December’s non-conforming index continues to see a small increase in loan size, lenders reporting an average of £113,877 marking a positive end to the year from which business can continue to grow. Despite remortgages continuing to lead the market over purchases, December recorded a noticeable rise in the levels of First Time Buyers.
Certainly the market as a whole cooled rapidly in December with broker activity levels decreasing significantly mid month with the onset of the Christmas holiday period.
In contrast, Adverse Credit which last month recorded a marked increase, demonstrated its first minus entry since October due to the slow Christmas period but this is set to increase in 2006 along with levels of personal debt following the Christmas period.
Kate Huet, Marketing Director added:
“We predict 2006 will deliver greater product innovation amongst the leading current non-conforming lenders. Coupled with this, new ranges will deliver to the market even more choice, with flexible underwriting providing to brokers a stronger competitive edge enabling them to deliver the best product solution.”
With the festive season behind us, and the majority of lenders experiencing the effects of the slump in enquires, brokers have an ideal opportunity to plan ahead their marketing campaigns for 2006. As clients re-assess their finances following the overspend of Christmas and look to re-organising their assets, the start of a new year may mark the beginning of a cycle of debt consolidation, as personal debt is expected to once again increase. With all lenders in agreement that brokers have not yet maximised their opportunity within the market, a constant trend set over the past few months, an opening still remains within the mortgage and secured loan business.
In order to support brokers, Advantage have developed generic, non-branded posters and leaflets for both mortgage and secured loans which can be branded with the broker’s own contact details to aid any campaigns, for more information Advantage urge brokers to talk to their local Business Development Manager or go on-line to www.afg.co.uk.
The Advantage Non-Conforming Index is the result of a monthly survey to Advantage Home Loans Mortgage Panel Lenders active within the non-conforming mortgage sector. Compiled monthly the results of the survey are summarised above. The survey commenced in January 2005 and the findings above relate to the period December 2005.
