Sub prime lending

The current market conditions, particularly in the sub prime area have been triggered by events in the US where an entirely different set of circumstances has led to a liquidity crisis, a slump in the housing market and real fears about the health of the overall economy.

The conditions in the UK sub prime market are fundamentally different. Some UK sub prime lenders did relax their criteria and price for volume rather than always risk. However the extent at which this was done added to sound underwriting practices and the relative stability of the UK housing market, means we are significantly different to the US.

It now seems that everyone has become an expert in sub prime lending ranging from the government and more over the media. The media still do not understand what sub prime means! Everyone is quick to jump to conclusions and throw out pessimistic views on the market place.

Yes, current circumstances are difficult and largely beyond our control. But it is how we react which is in our control.

At Solution Mortgages we have taken action, adapted and bolstered our operation and are confident of navigating our clients through these difficult times. We have more underwriters from lenders based in our office than ever before, we are receiving more traffic to our website than ever before and we have completed a profitable first quarter to 2008. Our completion times for mortgages in March from initial application to completion was 26 days and the number of completed cases is more than satisfactory.

If brokers know their criteria and have good links with their lenders there are still good mortgage deals out there for clients and as a company we try to ignore the constant barrage of negativity that is being banded about at the moment and concentrate on the job.

If you are looking to remortgage and have adverse credit, please feel free to contact Solution Mortgages on 0845 123 1260 or apply online at