Brokers’ market share is now at its highest ever level, with adviser-introduced loans accounting for 69 per cent of new mortgages in the second quarter.
Figures from the Council of Mortgage Lenders show brokers’ share of the market has increased by over 8 percentage points over the past year from 61.9 per cent in Q2 2014.
The figures are significantly up on Q3 2009 when brokers had a market share of 46.7 per cent. This was brokers’ lowest-ever market share.
The previous high was in Q4 2007, when brokers had a 68.5 per cent share of the market.
Intermediaries say the length of time it takes to see a bank adviser and the fact it is now more difficult to get a mortgage are the key factors in brokers’ recent market dominance.
Perception Finance managing director David Sheppard says: “It is so much tougher to get a mortgage these days, so anyone trying to do it on their own will generally come up against too many barriers. The other thing is, over the last few years, all we have heard about is bank misselling, so I don’t think people will trust that they are going to get the right advice.”
In February, Money Marketing sister-title Mortgage Strategy revealed that lenders were beefing up their digital mortgage sales platforms to drive more business through their direct channel.
However, Middleton Finance managing director Daniel Bailey believes brokers’ share of the market will continue to grow.
He says: “The processing time is quicker through brokers and I think advice is so crucial at the moment. Getting a mortgage is much more difficult than it was pre-MMR. And brokers offer support. It is not just advice and a recommendation; it is guiding buyers through the process and explaining it all to customers.
“I would say [brokers’ market share] will keep on growing.”