The mortgage industry is moving closer to fully understanding the profile of the UK sub-prime sector, with the Council of Mortgage Lenders set to produce in-depth analysis by the year end.
The trade body has established seven standard definitions of the sub-prime market and wrote to all its members this week asking them to provide details of lending volumes in each category.
The categories are ultra light, light, medium, heavy, heavy plus, unlimited and unclassified.
A CML spokesman says it hopes to get data from its members in November which will then go to its executive committee meeting planned for December.
Mortgage brokers say the gathering of sub-prime data has been long overdue. Alexander Hall chief operating officer Andy Pratt says: “The data that the CML collects has not really moved on for ages. More information on the sub-prime market is much needed so anything it can do to break down the data will be helpful.”
Mortgageforce managing director Rob Clifford says he does not think all lenders will respond. “I think many lenders will say this requires technology and system changes and they will not be able to do it in this timeframe,” he says.
Homeowners Mortgages managing director Mark Chilton says he is concerned that the push for standardisation will discourage product innovation by lenders.