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Brokers predict continued growth in specialist loans

Intermediaries expect the specialist mortgage lending market to keep growing, according to research from BM Solutions.

In its first quarterly survey of the specialist market, brokers said they expected self-cert applications to rise by an average of 3.8 per cent between May and July compared with 3.7 per cent for buy-to-let and 3 per cent for mainstream and sub-prime mortgages.

Despite fears over the impact of FSA regulation, 45 per cent of the 400 intermediaries surveyed said the new regime will not affect their business.

Thirteen per cent think it will give their business a boost while only 10 per cent said it will be detrimental and reduce the number of brokers involved in specialist lending.

The research reveals that 16 per cent of mortgage cases introduced by intermediaries are self-cert, 13 per cent are buy-to-let and 8 per cent are sub-prime. Six out of 10 cases are mainstream mortgages.

BM Solutions says 55 per cent of intermediaries rank interest rates as the most important factor in a client&#39s choice of mortgage while 19 per cent cited lending criteria such as redemption penalties, 14 per cent gave top priority to product features and 11 per cent ranked service quality highest.

Head of mortgages Michael Bolton says: “An area which provides food for thought is the reaction to impending regulation. This is an issue at the top of the industry&#39s agenda.

“Regulation through legislation is a positive move and one in which every facet of the mortgage industry should be both welcoming and seeking an active role.”

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John Porteous

Born: Edinburgh in 1970.Lives: Brentwood, Essex, with wife Liz.Career: Left Inverkeithing High School to join Scottish Widows in 1988.Broker consultant with Scottish Widows, Abbey Life and Murray Johnstone until 1998, then joined Robson Rhodes as an IFA. Joined Kingsbridge Financial in 1999.Career ambition:To continue to improve as an IFA.Life ambition: To look over my shoulder […]

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