Credit crunch cleanses mortgage market

Credit crunch cleanses mortgage market




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Much of the press relating to the mortgage market in the last year has been all-consumed with doom and gloom. Few have had anything good or positive to say about lenders or the market, and with the recession stamping down hard on the economy, that trend looks set to continue… 

But could it be possible that the trouble and strife of the past six months has actually improved the market, in efficiently sorting the wheat from the chaff? Perhaps had a cleansing effect on an industry infused with cut corners and lax background checks?

 

Many brokers believe this to be so.

 

This year’s mortgage exhibitions have been fairly scant affairs, but the opinion of those who have been there is that quality is winning over quantity. The irresponsible brokers who have made their money from dishing out mortgages to those who don’t quite fit the criteria have been the big losers in the industry downturn. In the meantime, brokers with quality clients, who refuse to accept anyone with less than a perfect credit score, are not only surviving, but in some cases, booming.

 

Perhaps the truth is that the sharks in the mortgage pool are finding their prey diminished, to the point of starvation, and those picky eaters who refuse to accept anything less than the best, will lead the way in nursing the market back to health.

 

It is now a time for old fashioned values and elitism to make a comeback, with integrity and thoroughness being the name of the game. The height of the first rung on the property is higher than ever, but those who make it, will hold on tight, and are there to stay.

 

By Danielle Williams

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