View more on these topics

Sub-prime predicted to be biggest growth area

Mortgage intermediaries expect sub-prime lending to be the biggest growth area this quarter, according to research by BM Solutions.

Although mainstream mortgages accounted for 55 per cent of all business introduced in the last three months of 2002, intermediaries believe sub-prime will take the lead.

Predictions for the growth of sub-prime business in the next quarter average 4.9 per cent compared with 4.3 per cent for self-certification, 2.4 per cent for mainstream and 2.1 per cent for buy to let.

The quarterly survey of 200 intermediaries, carried out in December, found that self-cert made up 22 per cent of lending in the last quarter while 12 per cent was buy to let and 10 per cent was sub-prime.

Average loans for self-cert and mainstream mortgages were £122,400 and £119,800 respectively. The average loan size for buy to let was £90,200 and £98,700 for sub-prime.

BM Solutions says most intermediaries are preparing for mortgage regulation and the potential increase in business volumes and paperwork.

The proportion of intermediaries who believe regulation will have no effect on their business has fallen to 21 per cent from 30 per cent in the previous quarter.

Those who expect to see an increase in business as a result of reduced competition or the elimination of bad advisers have increased to 28 per cent from 24 per cent.

Director of mortgages Michael Bolton says: “The results show that intermediaries continue to be bullish about specialist lending growth, especially in sub-prime and self-cert.”


&#39Polarisation should be considerably loosened but how far do you go?&#39

MM: Has the time come for polarisation to end? MW: Polarisation was the right thing for 1988. At the time, there was no way of distinguishing between who was a broker and who was a tied salesman. Everyone had two business cards and called themselves whatever they wanted. The only way of brin-ging some order […]

Split-cap &#39spider&#39s web&#39 is biggest FSA probe

The FSA says its enforcement division has significantly widened the scope of its investigation into possible collusion between companies in the split-capital investment trust sector. Speaking at the AITC conference for directors in London this week, FSA managing director John Tiner said the FSA had stepped up the initially small investigation to encompass many more […]

Split-cap charity to help investors

The AITC is setting up a charitable foundation it hopes will raise millions of pounds to provide financial support to victims of the split-capital investment trust fiasco. Announced by director general Daniel Godfrey at the AITC conference for directors in London this week, the foundation is seeking to establish a hardship fund for investors who […]

Laundering laugh that&#39s no joke

I am an IFA and, under money-laundering regulations, I am obliged, even when transacting a £10 a month insurance or savings scheme, to see, for example, a passport and a council tax bill (or similar documents) as evidence of identity, etc. I am required to record the details and to fill in a form for […]

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm