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Housing market “needs healthy sub-prime”

  • 11/11/2011
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Housing market “needs healthy sub-prime”
Without the return of a healthy sub-prime sector, we’re not going to get a normal housing market, warned John Wriglesworth.

The managing director of the Wriglesworth Consultancy told delegates at the Mortgage Advice Bureau conference that more lenders need to bring back more  specialist lending to provide a mix in the market.

“Lenders are only doing the safest lending but they need to be brave enough to move the goalposts towards being more flexible,” he said.

“If lenders offered rates of up to 6-7% on 100% LTV mortgages that provides an adequate margin to compensate for extra risk.

“We must move down towards the low-key areas of business and bring back some specialist lending to give a mix so that customer choice will be satisfied.”

Rob Jupp, managing director of Brightstar Financial added that the difference between “mortgage brokers doing okay and really well, could be the specialist market.”


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