The majority (85 per cent) of IFAs and mortgage brokers predict that
> business in the sub-prime market will increase by £4billion in the next 12
> months, with nearly four fifths (79 per cent) stating that light-adverse
> products will be the 'next big thing' in the sub-prime market.
>
> The Preferred Report also found that although 57 per cent of
> intermediaries have significantly increased the level of activity carried
> out in the sub-prime mortgage sector over the past year, more than
> two-thirds (68 per cent) expect to be more active in the market over the
> next 12 months.
>
> However, the 2003 Preferred Mortgages Sub-Prime Mortgage Report
> highlighted a significant increase in the number of IFAs carrying out
> sub-prime activity than in 2002. While barely a fifth (19 per cent) of
> IFAs had carried out more sub-prime activity in the previous 12 months in
> 2002, now nearly half (47 per cent) have increased levels of activity.
>
> Simon Biddle, Marketing Development Manager for Preferred Mortgages said:
> "It is very positive news for the market that the number of
> intermerdiaries carrying out sub-prime activity has more than doubled in
> the last year. With house prices at the mid to lower end of the market
> remaining stable, we at Preferred are confident that the need for
> sub-prime mortgages will be greater than ever before."
>
> New entrants into the market
> The Preferred Mortgages Sub-Prime Mortgage Report also found that although
> nearly three quarters (71 per cent) of IFAs and mortgage brokers predict
> more 'high street' lenders will enter the sub-prime market in the next 12
> months, 61 per cent said they will not compete successfully if they
> continue to use credit scoring techniques.
>
> Simon Biddle concluded: "Our report not only identifies the growing
> awareness and trend towards sub-prime mortgage products, it also shows
> that while an increasing number of mainstream lenders continue to enter
> the market, intermediaries are still unconvinced that they will be able to
> make an impact without becoming more flexible."
>
> The Sub-Prime Mortgage Report was commissioned by Preferred Mortgages, and
> conducted amongst 512 Mortgage Brokers and IFAs (mortgage practitioners)
> by The Survey Shop.
>
> Preferred Mortgages has just re-launched its website at
> www.preferredmortgages.com. The new site provides intermediaries with a
> comprehensive online toolkit. Other key benefits include a regular email
> alert service on product developments, LIBOR bulletins, promotions, and
> news and events.
>
>
> The survey was conducted at random amongst 512 Mortgage Brokers and IFAs
> (mortgage practitioners) by The Survey Shop, with interviews conducted by
> telephone between 10 to 16 April 2003.
>
