Self-cert mortgages made up just 0.7% of brokers' business in Q2 this year, according to Paragon Mortgages.
Research by Paragon showed self-cert business has fallen significantly in the past three years from 13% of the total in Q1 2007.
The lack of self-cert products from lenders has stifled the sector, which is set to be killed off by the FSA's plans to require income verification for all borrowers.
Paragon also found sub-prime business has dropped markedly compared to its first review of the sector in 2007.
In the first three months of 2007, sub-prime accounted for 7.2% of business but this fell to just 0.4% in Q2 2009. It has now rebounded modestly to 1.8% of brokers' business.
John Heron, managing director of Paragon, says: "Since the onset of the credit crunch, lenders have focused the majority of their available funding on prime residential mortgage customers, meaning that ‘non-conforming' borrowers are unable to step onto the property ladder. Those lenders that do offer self-cert or sub-prime mortgages appear to do so direct rather than through the intermediary market."
He adds the increasing number of borrowers falling outside lenders' profiles of prime customers has lead to a rise in demand for rented property. Paragon research shows three times as many landlords reported rising tenant demand in Q2.
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