Self-cert makes for best selling specialist loans

Self-cert mortgages are the best selling non-standard mortgage product, a survey of 1,750 introducers by Sun Bank reveals.

December&#39s survey also finds brokers tend to recommend discounted as opposed to fixed rate products because of the pricing differential and their view on interest rates.

But fixed rate products remain popular with clients who want certainty over what their mortgage repayments will be over the short-term.

Products without extended redemption charges were far more popular than those with overhanging charges. The main reason cited was flexibility – giving clients the choice to take out a new rate with the lender later on or even remortgage and move to a better rate in the future.

Around a third of brokers reported that almost 50% of their sales was remortgage business.

Paul Howard, Sun Bank&#39s sales and development director, says: “As a lender our business relies upon our market intelligence being first class. This research supports our view that the non-standard market will continue to evolve in 2003. As a result, over the coming months we will be introducing a number of new products that we are confident will prove popular with brokers and their clients.”