"It is encouraging to see that when an intermediary does apply for a loan on their client’s behalf, they are being accepted and completed at growing rates. "
Intermediaries reported a five percentage point increase in mortgage completions over the quarter to 87% - the highest reported completion rate ever recorded by the IMLA Mortgage Market Tracker.
The data also shows that 89% of first-time buyer mortgage offers were completed in Q4 2018, up from 81% during Q3 and 69% three years ago
This bump in intermediary activity comes as UK Finance found that the number of first-time buyers securing mortgages in 2018 reached its highest annual level in 12 years.
IMLA says this positive trend for broker business looks set to continue in 2019 despite Brexit concerns.
Broker confidence has ebbed a little, with the percentage of brokers who professed to be “very confident” about their own business falling from 60% to 54% in Q4 2018, the second consecutive dip in confidence.
Kate Davies, executive director of IMLA, commented: “It is encouraging to see that when an intermediary does apply for a loan on their client’s behalf, they are being accepted and completed at growing rates. Mortgages going from offers to completions are at more than three-year highs as intermediaries and lenders continue to find solutions for clients.
“It’s significant that intermediaries are able to demonstrate such a high success rate, especially when helping first-time buyers to navigate the complexities of an increasingly competitive and complex mortgage market. This is particularly true for those taking out Help to Buy equity loans, who may need even more expert guidance.
“IMLA predicts that mortgage intermediaries will account for a growing share of the mortgage market this year and into 2020. These figures underline our firm belief that, during times of uncertainty, people still seek out a seasoned expert to help guide them through complex financial decisions.
“That said, even in the face of such strong evidence about brokers’ effectiveness, it’s not surprising that brokers themselves share the current general uncertainty about the future. But, whatever the outcome of the current Brexit negotiations, we are confident that brokers will continue to play an essential part in guiding borrowers through the market.”
