Brokers account for almost two thirds of all mortgages

Brokers accounted for nearly two thirds of all mortgages in the first three months of the year, according to data from the Financial Services Authority and the Council of Mortgage Lenders.

Peter Williams
Peter Williams, executive chairman of IMLA

The Intermediary Mortgage Lenders Association has cited figures from the FSA and the CML which show that mortgage lending via brokers made up 62% of total mortgage lending both by value and volume in Q1.

This is an increase from the 60% mortgage market share brokers had in Q4 2009.

Some 71% of first-time buyer loans by volume were introduced via intermediaries in Q1. IMLA says this is the highest proportion since Q2 2009.

By value, the proportion of first-time buyer loans arranged through brokers rose from 67% in Q4 to 69% at the end of March.

Brokers also introduced 57% of home mover loans in Q1 by volume and value, as well as 64% of remortgages by value and 61% by volume.

Peter Williams, executive chairman at IMLA, says that the services brokers offer remain in demand.

He says: “Mortgage lending continues to be constrained, with a scarcity of mortgage products.

“This is where the intermediary community adds value to  borrowers, ensuring that they are suitably matched for a mortgage application to be successful. Broker experience and expertise are particularly valuable in the current economic conditions.”

He adds: “What the figures show is that the contraction in the intermediary market share, which arose when lenders were rationing supply and delivering it direct through branches, bottomed out in 2009.

“It underlines the fundamental importance of this channel, not just to borrowers but also to lenders as a flexible and highly effective route to market.”