Figures from the FSA/Council of Mortgage Lenders show that intermediaries accounted for a growing proportion of loan sales by volume compared to the final quarter of 2010. The figures showed that intermediaries accounted for 63% of first-time buyer loans, 60% of remortgage loans and 53% of home mover loans during the first quarter.
This compares to 63%, 56% and 52% of first-time buyer, remortgage and home-mover loans during the final quarter of 2010.
Based on value, remortgaging via intermediaries grew (63% in Q1 2011 vs 59% Q4 2010) over the period, home-mover lending remained stagnant (54%) and first-time buyer value dropped slightly (60% vs 62%).
IMLA, the specialist trade body representing the interests of lenders who market their products via mortgage brokers, believes intermediaries are vital in the mortgage buying process, providing valuable consumer advice and driving product innovation and competition.
Peter Williams, IMLA’s Executive Director, says:
“Intermediaries play an important role in the UK mortgage market and it is encouraging that despite massive change in the market they still account for the most significant proportion of mortgage business.
"Intermediaries excel at helping consumers find the right product for their needs, adding value to both borrowers and mortgage lenders. They are adept at matching a borrower with a lender, saving time and money for both parties.
“Our members are keen to stress that there are funds available to borrowers in this market and fight the perception that seems to exist amongst certain borrowers and brokers that they won’t be able to obtain a mortgage.
"Product availability is improving and we are starting to see specialist sectors of the mortgage market more active again. That is important as it helps serve a wider range of mortgage customers and complements the lending already undertaken at the prime owner-occupied level.”
