Financial Service Authority and Council of Mortgage Lenders figures show that mortgage lending via intermediaries accounted for 62% of total mortgage lending, both by value and volume, in the first quarter of 2010. This compares to 60% for both measurables during the final quarter of 2009.
The figures highlight the value that homebuyers and remortgagers continue to place on the expertise and service levels offered by the mortgage broker community.
First-time buyers in particular are keen to utilise the skills and experience of intermediaries, with 71% of first-time buyer loans, by volume, introduced via intermediaries in the first quarter of 2010, the highest proportion since the second quarter of 2009. By value, the figure rose from 67% in the fourth quarter of 2009 to 69%.
Meanwhile, intermediaries introduced 57% of home mover loans, by both volume and value, and 64% of remortgages by value and 61% by volume.
Peter Williams, IMLA's Executive Chairman, says:
"House purchasers and those looking for a remortgage value the service that the mortgage broker community provides and that is why they remain the first destination for many when looking for a mortgage.
"Mortgage lending continues to be constrained, with a scarcity of mortgage products. This is where the intermediary community adds value to borrowers, ensuring that they are suitably matched for a mortgage application to be successful. Broker experience and expertise are particularly valuable in the current economic conditions.
"What the figures show is that the contraction in the intermediary market share, which arose when lenders were rationing supply and delivering it direct through branches, bottomed out in 2009. It underlines the fundamental importance of this channel, not just to borrowers but also to lenders as a flexible and highly effective route to market."
