The mortgages market is becoming ever-more diverse as consumers look for products tailored to suit their needs, an industry body has said.
According to the Council of Mortgage Lenders, the market is now increasingly presenting “significant” opportunity for “niche players”.
Self-certification mortgages and let-buy are some of the more fringe products available, said CML spokesperson Sue Anderson.
Let-buy allows the borrower to let out their existing home while taking out a loan to buy a new one.
However, mainstream mortgages “still hold the majority of the market”, CML statistics show.
“Although the mainstream market is still the bulk of the mortgage market, at the margins there’s still a significant market opportunity for niche players, because it is a very, very large market”, said Ms Anderson.
In related news, the Centre for Economics and Business Research said today that house buyers are “probably justified” in snapping up fixed-rate mortgages in the face of rising inflation and interest rates.
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