Nearly nine out of 10 mortgage advisers now use multi-lender organisations, research by Paragon Mortgages shows.
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's only one way by which they do business. Flexibility and choice are key in today's 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.