Since the financial meltdown of 2008 – We have seen massive changes to the mortgage market relating to the amount of products and how the lenders underwrite mortgage cases.
We can track the Recession starting in the UK to the 1 st / 2 nd quarter of 2008 (Office of National Statistics – 2 nd Quarter 2008) Lehman Bros Collapse Sept 2008 with over $600 Billion worth of assets.
Although in the UK Mortgage Market Lenders were already pulling products towards the end of 2007! We knew a massive problem of funding was taking place.
The problem was started by Banks and is still perpetuated by Banks. They lent too much money ‘Leveraged’ their debts and sold on as investment products to other banks. CRAZY!!
This had a massive impact on the UK banking system as we all know and especially hit the UK Mortgage Market hard, with Mortgage Brokers, Mortgage Networks and Mortgage lenders all vanishing from the market.
The amount of mortgages on the market shrunk from about 30,000 plus to under 5000 products today.