Guest wrongmove Posted October 22, 2007 Share Posted October 22, 2007 This should raise a few chuckles..... Traditional Lenders "Too Cautious" " Nearly two thirds of IFA's and mortgage brokers believe traditional lenders are too cautious with their lending criteria, says a new report on the growth of the sub-prime mortgage market.... The Sub-Prime Mortgage Report, commissioned by Preferred Mortgages, and conducted amongst more than 500 Mortgage Brokers and IFA's (mortgage practitioners) also found that 59 per cent of IFA's and mortgage brokers are surprised by the type of people being refused mortgages by traditional lenders. Simon Biddle Marketing Communications Manager: "The sub-prime market caters to people that can't get mortgages through standard mortgage providers - high street banks and building societies. "We specialise in giving mortgages to customers with financial problems that would normally preclude them from getting a mortgage through a standard outlet. "The advent of credit scoring", he adds, "has been a boon for the mainstream lenders but a lot of customers get turned down by the machine that does the scoring. "People with previous bankruptcies or county court judgements are obvious examples but so too are the self-employed, freelance workers and first-time buyers". Proving the increased popularity of sub-prime mortgages as a viable alternative to traditional lenders, 84 per cent of IFA's and brokers have already recommended a sub-prime mortgage to a client. Mortgage brokers are more likely to recommend sub-prime mortgages - 90 per cent have already done so - compared to 67 per cent of IFA's. In terms of year on year increase in business, the figures show a more significant variation. 48 per cent of brokers have carried out more sub-prime activity than in the previous 12 months compared to barely a fifth (19 per cent) of IFA's. Simon Biddle, concluded: "It seems that IFA's more than the brokers are missing out on an area that is of growing interest to their customers. Interest in sub-prime mortgages is definitely on the increase. We predict that as house prices continue to rise, the need for sub-prime mortgages will be greater than ever before." Quote Link to comment Share on other sites More sharing options...
House of Lords Posted October 22, 2007 Share Posted October 22, 2007 What a shame all those subprime lenders won't be around to play any more. Time for them all to learn plumbing or debt collection or something. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted October 22, 2007 Share Posted October 22, 2007 This should raise a few chuckles.....Simon Biddle, <snip> "We predict that as house prices continue to rise, the need for sub-prime mortgages will be greater than ever before." You were absolutely right there. And so, in a round about way, is he. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 22, 2007 Share Posted October 22, 2007 who do these scum think they are- there is no such thing as a sub prime mortgage- its the borrower thats sub prime cos they are risky. These are advisors! Hello sir, you cant afford this house really, but hey dont worry, let me check your pulse- WOW you qualify. Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted October 22, 2007 Share Posted October 22, 2007 who do these scum think they are- there is no such thing as a sub prime mortgage- its the borrower thats sub prime cos they are risky.These are advisors! Hello sir, you cant afford this house really, but hey dont worry, let me check your pulse- WOW you qualify. They are not advisors. They are salesmen pure and simple. If I go to a car dealer do I speak to an "advisor" on buying a car ? No. So logically when I go to buy (borrow) some money I'm speaking to a salesman effectively. The headline should be "Its not fair, our subprime lenders have all gone bankrupt and traditional lenders underprice the risk any more" (except NR which still has its state guarantee so can continue to lend 125% of value). Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 22, 2007 Share Posted October 22, 2007 They are not advisors. They are salesmen pure and simple. If I go to a car dealer do I speak to an "advisor" on buying a car ? No. So logically when I go to buy (borrow) some money I'm speaking to a salesman effectively.The headline should be "Its not fair, our subprime lenders have all gone bankrupt and traditional lenders underprice the risk any more" (except NR which still has its state guarantee so can continue to lend 125% of value). Yes, BUT people THINK they are advisors, after all they are regulated! They dont deserve the professional status afforded them. I couldnt agree more with your line 2 Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted October 22, 2007 Share Posted October 22, 2007 who do these scum think they are- there is no such thing as a sub prime mortgage- its the borrower thats sub prime cos they are risky.These are advisors! Hello sir, you cant afford this house really, but hey dont worry, let me check your pulse- WOW you qualify. Still they have tightened things. They never used to check for a pulse. Quote Link to comment Share on other sites More sharing options...
Wad Posted October 22, 2007 Share Posted October 22, 2007 They are not advisors. They are salesmen pure and simple. If I go to a car dealer do I speak to an "advisor" on buying a car ? No. So logically when I go to buy (borrow) some money I'm speaking to a salesman effectively.The headline should be "Its not fair, our subprime lenders have all gone bankrupt and traditional lenders underprice the risk any more" (except NR which still has its state guarantee so can continue to lend 125% of value). Too true. Ask any sales manager how his/her sales force react when the company orders them to raise the price of the product they are selling. All salesmen ultimately want to do is sell the product at any price necessary to get the sale away and still collect their bonus purely on volume sold. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted October 22, 2007 Share Posted October 22, 2007 These are advisors! They are called advisers BUT NO they are not advisers. They are brokers - not much different to car or home insurance. Quote Link to comment Share on other sites More sharing options...
jonewer Posted October 22, 2007 Share Posted October 22, 2007 In other news "not enough catholics" says pope and "not enough woods to shiat in" say bears! Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted October 22, 2007 Share Posted October 22, 2007 I have a great idea. These bods should start their own bank/lending platform. They can put their own money, their own houses and their own pensions on the line and underwrite the loans themselves. Quote Link to comment Share on other sites More sharing options...
Foobar Posted October 22, 2007 Share Posted October 22, 2007 The headline should be "Its not fair, our subprime lenders have all gone bankrupt and traditional lenders underprice the risk any more" (except NR which still has its state guarantee so can continue to lend 125% of value). I'm still gobbed smacked the Government are funding negative equity in the form of the Northern Rock's "Together" mortgage, it's some sort of sick joke. "Together" yes that's you and all the tax payers paying for negative equity! Quote Link to comment Share on other sites More sharing options...
crown Posted October 22, 2007 Share Posted October 22, 2007 Well they never surveyed me. As an IFA I think the lenders are still being way too lax on their lending. Sod them. they will be the ones holding debt with no security. Quote Link to comment Share on other sites More sharing options...
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