UK brokers are seeing an upturn in non-conforming mortgage business according to research from sub-prime specialist lender GMAC-RFC.
A survey of mortgage brokers revealed that the non-conforming sector is more active, with a record number of applications made in March. The study, reported in IFA Online, showed that 96% of brokers believed the non-conforming sector will increase in 2006.
Poor financial management and divorce were cited as the main reasons why a client would not conform to standard lending criteria. Spokesman for GMAC-RFC Jeff Knight told IFA Online that, technology has removed the complexities put of the application process, particularly where cascade is available.
Products are now very keenly priced and having global brands dominating this sector is good news for everyone. Because the market has reached maturity, now is the time to expect new market entrants, which will be good for the market.