View more on these topics

Liquidity crisis wipes out 23,000 products

Mortgage sourcing system Trigold believes the gap in product availability is far wider than previously reported with 23,000 mortgage products wiped from the intermediary market in the last six months.

In August 2007 there were 45,590 products on the Trigold sourcing system and in February 2008 this had fallen to 21,988 equating to a drop of 52% in just six months.

However, this is till just below the 25,000 products that were on the system in Feb 2005.

David Aylmer, marketing and business development director at Trigold, says: “These figures demonstrate the extent of the credit crunch on mortgage availability although it’s important to put this into context.

“Restricted access to wholesale funding together with tightened underwriting criteria from those lenders who still have lending capacity, has had, and will continue to have for some time, a significant impact on the extent of product choice available in the market and through intermediaries.

He adds: “However, over recent years we have witnessed a considerable increase in both the number of mortgage product providers and the products they made available.

“Live mortgage products in the UK intermediary market are still in excess of 2004 figures in the run up to mortgage regulation of 16,000.

“There is no doubt that mortgage brokers are finding products choices limited in some sectors such as sub-prime, but our evidence shows that broker activity remains strong with a mortgage being sourced on Trigold by a UK mortgage broker every second of the day.”


Recommended

Housing crash bets are off

Betting exchange service Cantor Spreadfair has revealed a shift in confidence among its clients, with most saying that a housing market crash is unlikely.In January, Spreadfair bettors predicted that the average UK house price would fall to £181,000 by the end of the year but the same clients have since changed their minds. They now […]

BDS Secured Loans extends 10% proc fee promise

BDS Secured Loans has extended its pledge to pay brokers an extra 10% commission on all deals received by April 30.The firm, which launched last September, already offers brokers half of the case income it receives after costs.Mark Clinton, director of BDS, says: “There’s no doubt we’re working in a challenging marketplace.“This makes it even […]

Primrose Associates becomes Paradigm partner

Primrose Associates has become the latest firm to sign up as partner members of Paradigm Mortgage Services, the mortgage partnership proposition.Based in the City in London, Primrose Associates has nine financial advisers offering a range of products and services covering mortgages, investments and savings, estate planning, and insurance.By joining Paradigm, Primrose will have access to […]

Chelsea to reprice sub-prime range

Chelsea will be withdrawing its currennt sub-prime Prospect range from close of business today.It will be introducing new sub-prime rates via Prospect tomorrow.The rates will be available on the website from Tuesday morning. All other Chelsea mortgage products remain unchanged.Prospect applications on the current range must be submitted by 5pm today to secure the rate.

Newsletter

News and expert analysis straight to your inbox

Sign up