Nine out of 10 mortgage advisers now using multi-lender organisations

Nearly nine out of 10 mortgage advisers now use multi-lender organisations, research by Paragon Mortgages shows.

Paragon&#39s first quarter 2004 survey of mortgage advisers reflects brokers&#39 changing habits in terms of use of MLOs.

However, the research also shows that the overall proportion of mortgages arranged via such organisations has declined gradually over the past year and a half, falling from 44% in the third quarter of 2002 to the present figure of 39%.

John Heron, managing director of Paragon Mortgages, says: “Almost all brokers make use of MLOs on a regular basis, but that&#39s only one way by which they do business. Flexibility and choice are key in today&#39s competitive intermediary market.”

This quarter saw a significant increase in popularity of the Legal & General Mortgage Club, which accounted for 45% of business, up from 40% in the last quarter of 2003, taking over from Prudential as preferred MLO. Other organisations seeing increased usage were Norwich Union, up strongly, from 20% to 30%; Pink Home Loans, up from 14% to 18%, and Scottish Life, up from 3% to 5%.

Prudential saw a decline from 42% to 40%, while The Mortgage Operation slipped from 13% to 11%, the survey found.