The nonconforming market is developing rapidly in the U.K. with an influx of new players joining the fray. Still, volumes are not near the size of the prime sector and industry sources say there is still plenty of room for growth. They are also predicting a steady rise in issuance in this product over the next two years.
The market has heated up lately with increased competition from new lenders entering the market and from existing lenders looking to expand. The new players include Investec, which has acquired loans from mortgage originators Unity Homeloans, Infinity Mortgages, Victoria Funding, Basinghall Finance and Rooftop Mortgages.