Change in mortgage lending patterns
06/07/2006
Non-conforming mortgage sales have risen from £1 billion a decade ago to £25 billion today, it has emerged.
Council of Mortgage Lenders' (CML) figures show that the non-conforming mortgage market has grown around six times faster than the mainstream mortgage market.
Non-conforming loans have no set guidelines and can vary widely from lender to lender, potentially changing on a regular basis, which proves flexible for the customer.
In addition, the variety of mortgages available to the UK public has also helped to improve the home loan situation for those with bad credit.
The fact that there are now at least 30 mortgage lenders in the marketplace now has also increased competition, which has consequently helped consumers.
David Tweedy, the managing director of Britannia Building Society's intermediary lender, Platform, indicated that the choice of fixed-rate, discounted, tracker and non-conforming mortgages has enhanced consumer choice over the last ten years.
In a presentation to a CML seminar he added that early redemption charges are not as regular, which means lenders are encountering increased loan-to-value ratios today.
Yesterday, Drew Wotherspoon, from British mortgage broker John Charcol, advised first-time buyers that they should make getting the best mortgage deal their immediate priority.
Council of Mortgage Lenders' (CML) figures show that the non-conforming mortgage market has grown around six times faster than the mainstream mortgage market.
Non-conforming loans have no set guidelines and can vary widely from lender to lender, potentially changing on a regular basis, which proves flexible for the customer.
In addition, the variety of mortgages available to the UK public has also helped to improve the home loan situation for those with bad credit.
The fact that there are now at least 30 mortgage lenders in the marketplace now has also increased competition, which has consequently helped consumers.
David Tweedy, the managing director of Britannia Building Society's intermediary lender, Platform, indicated that the choice of fixed-rate, discounted, tracker and non-conforming mortgages has enhanced consumer choice over the last ten years.
In a presentation to a CML seminar he added that early redemption charges are not as regular, which means lenders are encountering increased loan-to-value ratios today.
Yesterday, Drew Wotherspoon, from British mortgage broker John Charcol, advised first-time buyers that they should make getting the best mortgage deal their immediate priority.
