Direct only mortgage deals account for 53.7% of the mortgage market, compared to 2007 when they accounted for only 22%, a new banking report shows.
Independent financial research company Defaqto has launched a new banking report which highlights the growth in direct only mortgage products.
In April 2007 there were 590 direct only deals, compared to 1,400 in April 2010. Broker only deals made up 25.8% of the market in April 2007, but now only make up 18.4%, with mortgages from both channels making up 27.9% compared to 52.3% in April 2007.
The research attributes this to providers no longer trading, and others struggling for funding which means direct products now dominate the market.
Kevin Bray, Insight Analyst for Banking at Defaqto, says: “Our research shows that 12 of the top 20 best buy fixed rate mortgage products are only available directly from the provider. The steady growth in direct only products over the last 2 years has clearly placed mortgage brokers at a disadvantage but it also leaves consumers with a difficult choice to make. Do they seek the advice of a mortgage intermediary or do they do their own research and approach the provider directly?”
He adds: “Mortgage intermediaries play an important role in helping buyers through the house buying process but consumers need to ensure that the broker they are using will advise them of the best deals in the market including direct only products.”