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Expo is non-conforming springboard

27 September, 2007

The survey, conducted amongst mortgage intermediaries and IFAs, examined their attitudes to the recent changes in the non-conforming marketplace – focusing on future business volumes, changes in lending criteria and product sourcing.

Over half of brokers expect to lose more than 10 per cent of their existing non-conforming business due to product re-pricing while 65 per cent expect to lose the same amount of business due to lending criteria – currently the biggest issue facing brokers.

A further 60 per cent of respondents said the current problems would lead them to source products from lenders that they would not normally deal with.

Daniel Nwaokolo, MBE show director, said: “It’s clear from our results that our adviser respondents are expecting the fall-out from the ‘credit crunch’ and the resulting impact on non-conforming lenders and products to affect their own volumes of business.

“Indeed, 36 per cent have already had non-conforming cases that would normally have been accepted declined in the last four weeks.

“This state of affairs means brokers are already looking at lender and product alternatives in the marketplace. Mortgage brokers and IFAs are clearly looking to broaden their horizons at MBE, taking the opportunity to meet those lenders who they do not yet have relationships with and touch base with those they are already using.

“MBE has a wide range of sub-prime exhibitors and seminar sessions covering this topic. We would urge all advisers to register and attend to hear the very latest news on the changes in this vitally important sector.”