Advantage releases sub-prime survey results

Advantage Home Loans has released the results of its September index findings.

The results are based upon a survey completed by its panel of lenders and represents from the industrys sub-prime mortgage sector.

Since the Advantage Non-Conforming Index launched at the start of the year, trends show that average loan sizes have increased by 13,000 based on the results received by the panel. Reaching for the first time at an average high of 114,634.

Product innovation in September was good as many lenders brought new products to the market, Advantage has seen dramatic rises for self-cert business (with a record 32% from one lender) and Right to Buy (23% increase) fuelled by products that meet the needs of this client base.

Factors affecting brokers in this market still show that search engines are not fulfilling the requirements for non-conforming brokers, five out of the six lenders continue to state that brokers are not maximising the opportunities open to them.

Remortgage is continuing to account for the majority of sub-prime product transactions, this level has been fairly constant throughout the year, varying only between 53%-56%. The buy-to-let market seems much slower, and the number of first-time buyers in the market is still low.