Mortgage brokers increased their market share by 2% in Q1 2010, advising on 62% of total mortgage lending, figures from the Financial Services Authority and the Council of Mortgage Lenders reveal.
The Intermediary Mortgage Lenders Association has calculated that brokers accounted for 62% of total mortgage lending both by value and volume in Q1, up from a 60% market share in Q4 2009.
Broker activity was particularly strong among first-time buyers. Brokers arranged 71% of first-time buyer loans by volume in the first three months of the year – the highest level since Q2 2009 – and 69% by value.
Brokers also accounted for 57% of home mover loans and 61% of remortgages.
Peter Williams, executive chair-man of IMLA, says that with a lack of mortgage products brokers are well placed to ensure borrowers are taking out the most suitable mortgage.
He also claims the smaller share of the direct channel reflects the important role brokers play.
He says: “What the figures show is that the contraction in broker market share, which occurred when lenders were rationing supply and delivering it through branches, bottomed out in 2009. It underlines the importance of this channel, not just to borrowers but also to lenders as an effective route to market.”
Robert Winfield, managing direc-tor of Chartwell Funding, says brokers probably represent an even higher market share than the figures suggest.
He says: “We’re still having to send clients direct to lenders if they want a higher LTV deal. If the figures reflected the number of borrowers who told their lender that they were referred by a broker, the proportion of mortgages that brokers account for would be a lot higher. It could be nearer 80%.”
And Rob Jupp, director at Savills Lending Solutions, says: “Any statement showing the majority of consumers sourcing mortgages through brokers and not via bran-ches or websites is to be welcomed.”