Brokers retained FTB share but lost remortgage business in Q2

22 August 2011 | By Natalie Thomas

Brokers held on to their share of the first-time buyer market in Q2, but lost some of their remortgage sector share to direct business.

Latest figures from the Council of Mortgage Lenders show intermediaries had a 64% share of the first-time buyer market in the latest quarter, down just 1% on Q1.

Brokers’ share of the home mover market remained static at 55%, but they only claimed a 58% share of the remortgage market in Q2, down from 61% in Q1.

But Robert Sinclair, director of the Association of Mortgage Intermediaries, says the figures show the resilience of the broker market.

He says: “I expect brokers’ share of all sectors to steadily increase as more products come to market. They will always have a larger share of the market compared with lenders and I don’t think that will change.”

But he adds that there will still be a fight for market share and a lot will depend on the quality of advice given by brokers.

The CML figures also show the value of loans via intermediaries for first-time buyers increased by 30%, from £2.7bn in Q1 to £3.5bn in Q2 and by 26% for home movers from £5.4bn in Q1 to £6.8bn in Q2.

By volume, loans via intermediaries rose 25% for first-time buyers from 24,000 in Q1 to 30,000 in Q2 and 24% for home movers, from 33,000 in Q1 to 41,000 in Q2.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association, says the figures are encouraging and show the key role brokers play in mortgage distribution.

He says: “Intermediaries have the knowledge required to provide specialist information, help customers find the right product for their needs, and save time and money for borrowers and mortgage lenders.

“Despite changes to the mortgage market and the fragile economy there are funds available to obtain a mortgage.”

He adds: “These figures are a good indicator that the market is gradually improving.”