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Risky lending to decline but BTL boom goes on

High-risk categories of lending are expected to see a reduction in business in the coming months, according to Intermediary Mortgage Lenders’ Association’s latest member survey.

Self-certification business is expected to fall by around 2 per cent over the next quarter while light, medium and heavy-adverse volumes are predicted to ease by slightly smaller percentages.

Lenders believe that mainstream lending will continue to grow steadily by 2.5 per cent over the next quarter. Buy to let is expected to surge by a stronger 3.6 per cent.

IMLA executive director Peter Williams says: “In the current uncertain market, lenders’ focus is expected to be more on mainstream and buy to let but, not least because underlying demand remains sound, we are not seeing a meltdown of the selfcert and adverse sectors.”

“Lenders are repricing and may be pulling back slightly but still expect to write significant business volumes. Self-cert and adverse accounts for about 40 per cent of our respondents’ business and there is no sign the proportion will fall to any significant degree.”

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