In its mortgage report published this week, it says the intermediary share of the mortgage market will fall from 65 per cent in 2007 to 63 per cent.
A survey of 80 brokers found 53 per cent are most concerned about lenders pulling away from intermediary distribution.
It says lenders are being increasingly selective on distributors and some are prioritising selling through their branches but it does not believe this will have a dramatic impact on advisers’ market share and predicts that intermediaries will remain the main distribution channel for mortgages.
Legal & General mortgage director Ben Thompson says: “This is positive news. Even though some direct deals are 30 basis points cheaper, customers are still looking to advisers for rounded advice. When market conditions return, I think distribution will swing even more in favour of brokers.”