The self-certification market is the biggest niche mortgage area for advisers, according to specialist research company, BDRC.
The 2002 Mortgage Achilles Report found 93% of advisers who are active in the specialist and niche markets now deal with self-cert mortgages, up 13% on last year. Surprisingly buy to let drops to second place, with only 83% of advisers dealing with mortgages in this sector, down 3% on last year.
Correspondingly, market share figures report the self-cert sector now accounts for 42% of volume in niche mortgage lending ‘ up 13% on last year’s figure. Buy-to-let products have fallen to just 22% of the market ‘ an 11% drop on last year.
Guy Batchelor, sales and marketing director at Platform Home Loans, said: ‘These figures do not surprise me. Buy-to-let is partly in the descendency, while self-cert is becoming more important as people need it to get the loan they require. Consumer are more aware of these products.’
Other findings include the size of the average self-cert mortgage, which at £101,300 is a 13% increase on the year. In contrast, the buy-to-let average loan size has increased 19% over the same time frame to £80,700.
The top three factors in choosing a specialist lender were having decision-makers on the telephone, flexible underwriting and a consistent approach to decision making.
Charles Reed, managing director at UCB Home Loans, said: ‘Changing working patterns and the increasingly specialist requirements of the self-employed are contributing towards this growth in the self-cert market.’
