Furthermore, data from the Intermediary Mortgage Lenders Association (IMLA) showed that the intermediary sector handles 90 per cent of today's non-conforming business.
However. the UK mortgage market remains dominated by prime and self-cert residential lending despite all of the upheaval experienced within the financial markets.
Peter Williams, IMLA’s executive director, said: “Specialist, intermediary lenders are often associated with sub-prime, buy-to-let and other forms of non-conforming lending, but we mustn’t overlook the fact that significantly more prime business is handled through intermediaries than direct: £140 billion for intermediaries compared with £115 billion direct.
“What is clear is that the intermediary sector has played an important role in providing mortgage products for customers with unusual requirements and circumstances, reflecting the dynamism and flexibility of the UK mortgage market.
He went on to stress that non-conforming lending is not all sub-prime related, adding: “Buy-to-let statistically has a lower risk profile than prime lending, and indeed most self-cert is for prime borrowers who are for one reason or another are unable to provide full documentary evidence of their income and financial circumstances.”
Peter Williams concludes: “Intermediaries handled in excess of £230 billion in 2007, according to our calculations. Even in a slower market, based on projections for the size of the market in 2008, they will still be looking at substantial levels of activity in the current year. With an intensification of competition between channels and some specialist markets contracting, there should be some good deals for the consumer this year.”
