View more on these topics

Brokers anticipate sub-prime growth

Mortgage intermediaries expect more growth in specialist mortgage lending, the latest research from BM Solutions reveals.

Over half of all mortgage cases introduced by brokers are mainstream. Nearly a quarter are self-cert, 12% are buy-to-let and 10% are sub-prime.

The BM Solutions SMART index of broker confidence shows that advisers expect to do 4.9% more sub-prime mortgages in the first quarter of 2003. Intermediaries expect to see a 4.3% increase in self-cert cases, 2.4% for mainstream, and 2.1% for buy-to-let.

The average loan size for self-cert and mainstream mortgages arranged by intermediaries is £122,400 and £119,800 respectively. The average for buy-to-let is £90, 200 and for self-cert £98,700.

Brokers continue to think through the practical impact of regulation for their business.

The proportion of intermediaries that believe there will be no effect on their businesses from mortgage regulation has fallen from 30% in the last SMART survey to 21%.

The proportion saying that regulation will bring increases in paperwork rose from 18% to 30%.

But some 28% – up 4% from the last survey – expect an increase in business thanks to a less competitive intermediary market post-N4.

Michael Bolton, director of mortgages at BM Solutions, says: “The results show that intermediaries continue to be bullish about specialist lending growth, especially in sub-prime and self-certification.

“It&#39s also obvious that the majority of intermediaries are getting ready for the effects of mortgage regulation and potential increases in business volumes and paperwork.”

Recommended

My mortgage week

Monday: First day back in the office after the Christmas break. Feeling fully refreshed notwithstanding the fact that I had to stand on the train for the 50-minute journey. A new year and fresh targets to discuss in my first week with the six members of my team, so an early start is the order […]

Goldman & Co denies bid rumours

Goldman & Co, a Manchester based specialist brokerage, deny all rumours that they have received a bid for their business.Michael Goldman, senior partner of Goldman & Co, says: “These rumours are totally unfounded and we will continue to serve our loyal clients for the forseeable future, taking care of their mortgage, insurance and protection needs.”In […]

Halifax drops cost of fixed rates

Halifax is cutting the price of fixed rate mortgages. A two-year fixed rate for homebuyers is falling from 4.4% to 4.3%, while a three-year fix drops from 5.15% to 4.99%. A five-year fix falls from 5.4% to 5.2%. For remortgages, Halifax is dropping the two-year rate to 4.59%, while a five-year fixed rate is available […]

The One Account says broker confidence is up

The One account&#39s Mortgage Outlook Index shows that intermediary confidence is improving in three key areas: lenders&#39 service levels, mortgage regulation and business prospects for the year ahead. The research was carried out by NOP in December 2002 and covers the period September to November 2002. It found that 74% of mortgage intermediaries believe service […]

Health services

Challenges and opportunities

By Sarah Scott, marketing consultant On 22 February this year the charity Diabetes UK launched a fundraising initiative, #Swim22. They challenged individuals to swim 22 miles over the course of 89 days – a distance that equates to the width of the English Channel. Because of the time period the challenge is spread over, it […]

Newsletter

News and expert analysis straight to your inbox

Sign up