Brokers will grab bigger slice of mortgage cake as lenders launch
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Brokers will be able to lay claim to a higher percentage of mortgage business in the coming years as more broker-only lenders launch, says the Association of Mortgage Intermediaries.
Last week the Council of Mortgage Lenders released figures showing brokers accounted for 63% of first-time buyer mortgages, 60% of remortgage loans and 53% of home mover loans in Q1 2011.
This compares with 63%, 56% and 52% of first-time buyer, remortgage and home mover loans respectively in Q4 2010.
Based on value, remortgaging via intermediaries rose to 63% in Q1 2011 versus 59% in Q4 2010. Home mover lending remained at 54% and first-time buyer value dropped slightly to 60% versus 62% in Q4 2010.
AMI director Robert Sinclair says the pendulum will swing further in favour of brokers than direct business in the future.
He says: “The broker sector has maintained its market share fairly well and has settled into what has become the normal balance of broker and direct-only business. I would expect to see an increase in intermediary business as more broker-focussed lenders enter the market.”
Would-be intermediary-only lender Portillion recently revealed it has applied to the regulator for authorisation. Precise Mortgages launched into the broker-only market last year and Kensington and Mortgage Trust have re-entered the sector in the past 18 months.
Peter Williams, executive director of the Intermediary Mortgage Lenders Association, says: “It is encouraging that brokers still account for the most significant proportion of mortgage business.”
But he says there seems to be a perception among some brokers that there aren’t the funds to provide mortgages.
He adds: “Our members are keen to stress that there are funds available to borrowers.”
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