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Broker homeloans rise as direct deals dive

The number of mortgage products available to intermediaries has increased by 35 per cent since January while direct-only products have fallen by 29 per cent in the same period.

According to figures from TrigoldCrystal, 1,974 intermediary mortgage plans have been added to the market since January, increasing the total number from 5,651 to 7,625 while the number of direct-only products has dropped from 1,946 to 1,393.

But although there are many more mortgage products available through intermediaries, direct-only products are still cheaper on average.

Figures from Moneyfacts. co.uk show the average fixed-rate mortgage available through intermediaries is 4.54 per cent while direct from a lender, it is 4.44 per cent. The price of the average direct variable rate is 3.63 per cent against 3.76 per cent through an intermediary.

Figures from the FSA and the Council of Mortgage Lenders, published earlier this month, show intermediaries account for 64 per cent of first-time buyer business and 54 per cent of homemover business.

Emba group sales and marketing director Mike Fitzgerald says: “Lenders are doing this to increase their share of the market. They realise they can reach a lot more people by distributing through intermediaries.”

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