The packaging market has turned a corner, the majority of directly authorised intermediaries believe.
The Mortgage Alliance’s January Distribution Indicator found that 48% of those surveyed think the sector is showing signs of improvement, agreeing with the All Types of Mortgages recent claim that packaging is returning to favour among lenders.
The study also showed 15% said the market may have turned a corner while the remaining 37% disagreed there is a growth in lending through packagers.
Furthermore, 41% of those asked stated the services offered by packagers are relevant in the current mortgage market, when helping to place non-standard deals.
Phil Whitehouse, head of TMA, says recent press coverage concerning specialist distributors appears to be increasing DAs’ confidence.
“Not everyone will be comfortable using packagers but what is clear is that there is still very much a place for packagers in the modern mortgage market as intermediaries are continuing to struggle placing the growing number of non-standard borrowers who are failing lenders’ strict credit scoring,” he adds.
Dale Jannels, sales and marketing director at AToM, says: “The specialist packager/distributor market is once again rife with activity. Many may have diversified into different areas but the core basics have, in the main, remained.
“Packagers and distributors who have kept close and long-term relationships with lenders are being rewarded with an increasing number of exclusive and semi-exclusive mortgage products.”