It has claimed since the credit crunch hit the UK, the non-conforming market has been all but destroyed. The company reports that there has been a 40 per cent drop in the overall number of residential and buy-to-let (BTL) products since the market peaked in July.
Since the events of the late Summer the prime markets have shown shoots of recovery with increased activity from providers and signs of innovation returning. A reported 10 per cent rise has been reported in the number of prime residential products available since October.
eMoneyacts claims that if the market fails to recover in the longer term, borrowers coming off non-conforming fixed term deal in the next year or two could be in a difficult position.
Julia Harris, analyst at eMoneyfacts.co.uk, said: “
Not only have providers withdrawn significant numbers of products, rates have been hiked and criteria significantly tightened. It seems that the only way for the non-conforming market to survive is for lenders to take a radical look at their approach to the market.”
Mike Ratcliffe, chief executive of Wolsey Securities, said: “The situation in the market is much tougher than we have seen in recent years. The fallout has created an uncertainty which is manifesting itself in fewer buyers and slowing prices.”
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