FMNL6074 - PML Advert for MI_Layout 2 04/01/2012 09:46 Page 1 News Review: Near Prime
New Year opportunity by
Alan Cleary, managing director, Precise
Mortgages
as we start a new year i want to remind you all of the significant opportunity available to mortgage brokers in 2012. For the first time since 2007 the number of mortgages divided by the number of
mortgage brokers has gone up. the peak of the market was 2007 when the gross mortgage
market was £362bn but at that point there were 25,000 brokers active in writing mortgages so there were 144 mortgage completions written per broker. Since then gross mortgage advances have taken a tumble but the number of mortgage brokers has been slower to correct and therefore the average number of mortgages written per broker has been declining. Let’s assume 2012 is going to be similar to this year and we
end up with gross mortgage advances of £130bn. according to many sources the number of active brokers is now around 8,000 which means the average number of mortgages per broker is at a record level. near prime is an even bigger opportunity for mortgage
brokers as only a tiny fraction of these mortgages are written by direct lenders, with the overwhelming majority written by brokers; here are some statistics for you. around 2.1m people have had a ccJ registered against
them in the last three years, an estimated 1m people have missed a mortgage payment in the last 12 months and an estimated 4m people have missed at least one unsecured payment. that makes a massive market of people who do not
obviously fit into high street lenders’ criteria. add to this the fact that the average uK household debt
excluding mortgages is £15,432 which is attracting an average aPr of 18.9% including 0% promotional rates. When you take out promotional rates the aPr is nearer 30%! So, there are an awful lot of people paying very
high interest rates just at a time when household disposable income is under severe pressure from all angles. these people look like they need some sound financial advice from a broker who can tidy up their debts, reduce their monthly outgoings by moving expensive debt to cheaper debt and at the same time help them to clear their debts more quickly by using some of that saving. there are a number of lenders like Precise mortgages who
cater for near prime customers and allow debt consolidation so now brokers have a great opportunity to convert some of this pent up demand into new business. So despite all the doom and gloom in the press here is a great reason to get positive about the new year.
Buy-to-let for serious players mortgage introducer JANUARY 2012 15
Distinctly different... Not all buy-to-let lenders are the same - at Paragon
Mortgages we are proud to stand out from the crowd.
That’s why when looking for a lender to satisfy the complicated financial needs of professional landlords, those in the know choose Paragon Mortgages. If it’s a limited company, an HMO, a multi-unit property or a customer who already owns a large portfolio, remember who to choose.
www.paragon-mortgages.co.uk 0845 849 4057
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52