Brokers process two thirds of mortgages
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The intermediary sector is responsible for introducing nearly two thirds of all mortgages in the first quarter of 2010, according to data from the FSA and the Council of Mortgage Lenders.
The Intermediary Mortgage Lenders Association has welcomed the figures, which show that brokers made up 62 per cent of the volume and value of all mortgage lending in the first quarter. Figures show this figure stood at 60 per cent in the final quarter of 2009.
First-time buyers in particular are keen to utilise the skills and experience of intermediaries, with 71 per cent of first-time buyer loans, by volume, introduced via intermediaries in the first quarter of 2010, the highest proportion since the second quarter of 2009. By value, the figure increased from 67 per cent in the fourth quarter of 2009 to 69 per cent in Q1 2010.
Intermediaries introduced 57 per cent of home mover loans, by both volume and value, and 64 and 61 per cent of remortgages by value and volume respectively.
IMLA executive chairman Peter Williams says: “House purchasers and those looking for a remortgage value the service that the mortgage broker community provides and that is why they remain the first destination for many when looking for a mortgage.
“Mortgage lending continues to be constrained, with a scarcity of mortgage products. This is where the intermediary community adds value to borrowers, ensuring that they are suitably matched for a mortgage application to be successful. Broker experience and expertise are particularly valuable in the current economic conditions.
“What the figures show is that the contraction in the intermediary market share, which arose when lenders were rationing supply and delivering it direct through branches, bottomed out in 2009. It underlines the fundamental importance of this channel, not just to borrowers but also to lenders as a flexible and highly effective route to market.”
However, direct only mortgages increased from 22 per cent of available mortgage products in 2007 to over 50 per cent in 2010, according to figures published last month by independent financial research company Defaqto.
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