The findings from BM Solutions' SMART index show that half of all mortgage cases introduced by mortgage advisers (45%) are mainstream mortgages whilst 28% are self-certification cases, 13% are buy-to-let cases and 12% are sub-prime cases. Compared with the first quarter of this year, the average proportion of all cases introduced by respondents in the second quarter, which were mainstream mortgages is down from 51% to 45% whilst the proportion of self-certification cases has risen 25% to 28%. The proportion of buy-to-let and sub-prime cases has remained steady.
As fravas mortgage business for the third quarter is concerned, advisers expect, on average, an increase in mortgage business in all sectors. In particular, advisers expect self-certification cases to show the greatest increase, rising by an average of 3%. Sub-prime cases are expected to rise 2.3% and buy-to-let are expect to rise 1.6%. Mainstream cases are expected to rise by 0.9%.
Matt Grayson, public relations manager, BM Solutions, said: "These results highlight the continued buoyancy of the specialist lending market. Notably it is the self-certification market, which has seen a substantial strengthening in adviser confidence - with a rise from 151 in the first quarter to 164 in the second quarter's adviser confidence index. Advisers are also bullish about sub-prime with a score of 135. Confidence in buy-to-let has remained steady at 98."
