Sub-prime mortgages are still providing business opportunities for UK brokers despite major problems in the US market over the past year, according to BDS Mortgage Group.
A survey found sub-prime accounts for over 50% of the business volumes of one in every ten brokers, while 40% of brokers say the controversial market accounts for between 10% and 30% of their business.
But brokers still feel need more knowledge on obtaining and maximising opportunities from mortgage leads to increase business and cross sales income.
A substantial number of brokers did very little sub-prime business, the survey suggests, with 25% saying it accounts for less than 10% of their business, while a further 10% are very active in the sub-prime market, which accounts for more than 50% of their business volumes.
Bob Hope, sales and marketing director at BDS, comments: “There is no hiding from the fact that the choice and volume of sub-prime deals have greatly reduced, however this survey shows that there is continued demand and an increasing number of brokers are still using packagers in this sector.”
When asked about areas where more knowledge and advice was needed, the use of mortgage leads came out top, with a third of brokers unsure of how to maximise the opportunities offered.
Secured loans and debt management were also areas brokers felt weak on, with 27% saying they would benefit from greater knowledge of the products.
“Lead generation and cross sales remain one of the most difficult areas for mortgage brokers and lead generation especially is one that if entered into lightly, could lead to a series of expensive mistakes and is certainly an area we are looking at further,” adds Hope.
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