Average loan values for non-conforming mortgage business have continued to rise every month this year, the aggregate figures for all of Advantage Home Loans – the Branded Mortgage Arranger, Non-Conforming lenders in July is reported to have grown by nearly 2% in the month alone to £110,302.
Remortgages are still leading the business splits with purchases falling behind with only 47% of the market share.
Major changes to products launched within this sector have contributed to rapid growth in some lenders areas, in particular enhancements to new Buy to Let and Right to Buy products, to further meet the needs of this growing sector of non-conforming lending.
With a 0.25per cent base rate reduction this month, predictions show that interest rates in the sub-prime arena should now feel the benefit of the cut, Advantage predict many of their lenders will follow suit with their own variable rates very quickly.
This drop in rate is a positive step forward for the broker who specialises in this market and will also help to attract new brokers to this specialist field, as rates become more attractive and will open up further the non-conforming mortgage sector.
The same can be said of the Secured Loans Division launched by Advantage last year, the drop in rates will help both applicants and brokers alike.
The cut in rate will of course help considerably all consumers who are considering, or have already, a debt consolidation product. It is these people for whom the reduction although small, will yield the most benefit and with personal debt rising consistently, it is this group for whom the benefits will make the most difference.
