Brokers take 78pc market share
Between April 2014 and March 2015 lenders saw brokers’ market share increase by 22% from 56% the year before.
Henry Woodcock, principal mortgage consultant at IRESS, said: “Lenders don’t have enough people to deal with increasing volumes which is why we’re seeing the likes of HSBC join the market.
“It’s hard to say whether such an intermediary market share represents a new normal, but I don’t see the share dropping below 60%.”
Such was the strength of the intermediary channel that more than two thirds (69%) of lenders expected more brokers to come to market in the next 12 months. Indeed, the majority (85%) of lenders noted an increase in lending via intermediaries over the previous 12 months.
Intermediaries were most popular amongst mutual banks, who sold 82% of mortgages via brokers compared to 74% with banks.
Brokers were most effective in progressing offer to completion, as they achieved an 84% completion rate compared to telephony (81%), branch (76%) and online (58%).
The time taken to generate a mortgage offer is something that still needs to be looked at from lenders, Woodcock said, as he liked the Mortgage Market Review to an “earthquake” which lenders are only now getting to grips with.
Currently the percentage of cases going to offer in 10 days or less has increased by 4% from year-on-year to 26.5% while offers in 14 days are almost level at 43%.
Woodcock added: “The sweet spot on the loan to offer is 10 days – driving that down going forward is an area all lenders can look to improve on – and technology will help with that.
“Buyers don’t want to get gazumped. Remember that buying a house is a highly emotional process.”
He said: “Many are under the impression that the impacts of the MMR are behind us, but this is clearly not the case.
“Even 18 months on, lenders and consumers alike are still coming to terms with the more stringent and rigorous processes required.
“With the added complexity, intermediaries are playing a more vital role than ever before, helping consumers navigate the mortgage process, and their market share has grown as a result.”