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.
If you would like to comment on this story, contact:
Tel: 020 7034 2682
e-mail: [email protected]
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets
Appetite has suffered since Brexit vote
Three key concerns