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Brokers foresee soaring specialist lending

Brokers expect specialist mortgage lending to rocket in popularity, according to the latest survey by the Intermediary Mortgage Lenders Association.

Over 70 per cent of the 400 advisers in the poll said niche lending will become increasingly important to their business after seeing demand for non-mainstream mortgages shoot up over the past year.

Flexible mortgages were cited as the loans which are most in demand, with mortgage brokers and IFAs predicting 10 per cent growth on average over the next three years.

Self-certification mortgages for the self-employed were expected to rise by over 6 per cent by 2004 while buy to let mortgages were predicted to rise by 5 per cent over the same period. Sub-prime loans were predicted to grow by less than 4 per cent.

Almost half said specialist lending was already either extremely important or very important to their business but predicted further growth would depend on z type of mortgage.

Imla chairman John Heron says: “The survey reinforces our view that niche mortgages are not just important to IFA and brokers at the moment but also will be in the future. The advice sector is going to have to deal with a lot more of this type business as people require a more diverse range of products.”

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