Mortgage brokers are flocking to secured loan providers in a bid to find alternative funding for clients hit by the withdrawal of lenders from the self-cert market.
V Loans, a secured loan intermediary, has seen telephone enquiries rocket to their highest point this year since Beacon Home Loans became the last provider to withdraw from the self-cert market. Enquiry levels are already running 50% higher than six months ago, according to the group.
Over 65% of those enquiries came from brokers looking to raise capital and finding they cannot remortgage clients due to the lack of the right facilities.
Dave Pinnington, business development director at V Loans, says: "As the number of mortgage lenders still specialising in these areas have cut back or pulled out altogether, we have seen enquiry levels increase substantially. Since Beacon Homeloans' announcement of pulling out last week, our daily enquiry rate has doubled."
He adds: "Brokers are thrilled we are still able to help them and particularly so because the average loan case completes more quickly than a remortgage and the client has no upfront charges to face. We are expecting a lot more interest coming up to Christmas."
The FSA says it is not blocking self-employed and contract workers from getting a mortgage by banning self-cert products as part of its Mortgage Market Review proposals.
However, the CML warned last week some customers will be worse off as a result of the plans and a less blunt approach than an outright ban could still be adopted.
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From 1 March