Intermediaries dominate mortgage lending

Despite the increased focus by some lenders on direct distribution, intermediaries continue to dominate mortgage lending, according to IMLA.

Figures released by the CML show mortgage lending via intermediaries, by value, accounted for 64% of total mortgage lending in the first quarter of 2009. This was approximately the same proportion as the second half of 2008.

The figures show that 70% of first-time buyer loans, by volume, came through intermediaries in the Q1 2009, up from 68% in the previous quarter, while home mover loans increased from 56% to 58% over the same period.

The evidence suggests homebuyers and remortgagers continue to value the expertise and service levels offered by the mortgage broker community.

Peter Williams, executive director of IMLA, says the broker remains the first destination for many when looking for a mortgage because people value the service they provide.

He comments: “Their experience and expertise are particularly valuable in the current economic conditions, when mortgage availability remains scarce and it is harder than ever for would be borrowers to source suitable mortgage deals.”

He adds: “Consumers value this channel and clearly so do lenders. Indeed despite all the turbulence in the market a number of lenders have strengthened their intermediary operation. There will be many challenges ahead but in our view the intermediary market will remain at the heart of mortgage distribution"