Broker presence in market on the up
In quarter one, 52% of remortgage borrowers took out their loan via an intermediary compared to 48% in the fourth quarter of 2012 while 48% of home movers and 55% of first-time buyers used an intermediary, up from 45% and 54% respectively in the fourth quarter.
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, said: “As we have been predicting for some months recent initiatives would encourage consumers to come back and intermediaries are always going to be well placed to assist them.
“AMI expects that this trend will continue throughout 2013 and into 2014.”
The Funding for Lending Scheme is now considered by many to have firmly bedded in and its positive effects are being felt by brokers as they see an increase in enquiries.
Sophie Hall, head of intermediary at Avelo, said: “It’s not yet full steam ahead for the mortgage market but it is certainly picking up speed. Banks and building societies are passing on the benefits of cheap finance from the Funding for Lending Scheme and the pool of products for those without colossal deposits is deepening – albeit steadily.
“But the biggest factor in strengthening activity has been the renewed confidence of the man on the street. With the UK avoiding a triple dip and house prices climbing homebuyer demand is hardening. As a result many brokers are seeing business pick up and are increasingly optimistic over the prospects of the market.”
This month, Moneyfacts released data which revealed that there are 1790 mortgage products available to consumers which is at its highest since March 2008 when the total number of products stood at 2096 but dropped sharply to 793 products one year later.
Peter Williams, executive director of the Intermediary Mortgage Lenders Association, said: “Understanding the range of deals and schemes now available for home buyers is a significant task and advice from intermediaries is increasingly important for anyone searching out the most appropriate loan in the current market.”