Almost two thirds of mortgage brokers expect to lose more than 10% of their sub-prime business as a result of lenders changing their product ranges, according to organisers of the Mortgage Business Expo.
A survey conducted by the Expo also found the market turmoil would lead 60% of advisers to source products from lenders they would not normally deal with.
The survey asked brokers how they thought the problems in the sub-prime market would affect their business volumes. The results show 55% of brokers expect to lose more than 10% of their sub-prime business due to repricing of products, while 65% expect changes to lending criteria to cause a 10% drop in sub-prime business.
Commenting on the findings, Daniel Nwaokolo, director of the Expo, says: It’s clear from our results that our adviser respondents are expecting the fall-out from the ‘credit crunch’ and the resulting impact on sub-prime lenders and products to affect their own volumes of business.”
He says 36% of respondents had already seen sub-prime cases declined, which would normally have been accepted prior to the crisis. As a result, brokers will be looking to form new relationships with other lenders that can better meet the needs of their clients, according to Nwaokolo.
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