Brokers continued to dominate the mortgage market in the third quarter although their share of new lending fell to 64.4 per cent.
Several industry commentators have suggested that brokers could achieve a market share of up to 75 per cent over the coming months.
But new figures from the Council of Mortgage Lenders show the proportion of new loans written by brokers had fallen back from 67.7 per cent in Q2. Brokers’ largest share of the market was in Q3 2009, when they wrote 69 per cent of new loans.
Despite the dip, brokers have a vastly superior market share now to what they did in Q3 2014, when they wrote around 60 per cent of new loans.
A breakdown of the Q3 figures shows brokers wrote 71 per cent of first-time buyers loans, 64 per cent of homebuyer loans and 62 per cent of remortgage cases. In Q2 the figures were 73 per cent, 65 per cent and 64 per cent respectively.
Distribution swung in favour of brokers after the FCA introduced the Mortgage Market Review in April 2014, with experts suggesting the dominance of intermediaries is as a result of lenders struggling to provide advice efficiently.
Coreco director Andrew Montlake says: “It is little bit of a surprise [that brokers’ market share has dropped]. There has been little fightback from lenders but I think the general direction of travel in distribution will favour brokers in the coming months.”
Brokers’ market share since Q1 2013: