AMI says this downward trend is set to continue. AMI director general, Chris Cummings says: “It is extremely positive that brokers are again getting access to the best products. Consumers wish to deal with mortgage intermediaries and record numbers have done so during the course of 2008.
“It must always be remembered that consumers want help and advice to find the most suitable mortgage for them – they put ‘service’ as the number one reason to use an intermediary, not ‘rate’.
“We welcomed the intervention of the government in the mortgage market. We now need to see a concerted effort from lenders to kickstart the market and ensure the slump we are currently in does not become worse.”
Although client approval is on the rise, the number of brokers who expect to see fewer lenders operating in the intermediary market over the next 3 months has gone up from a half to three quarters. Also, ‘Maximum LTV reached’ dominates the reasons for brokers being unable to assist both purchase and remortgage.
Also, more than a half of mortgage broker business is now dedicated to other services aside from mortgage and remortgage procreation.
Cummings adds: “There are clearly still real difficulties in the market and intermediary firms are looking at how they can weather the storm.”