Mortgage brokers pull further ahead of direct rivals

Mortgage brokers tightened their grip on the remortgage and home mover markets against direct channels in Q1, according to FSA and CML figures.

The figures showed intermediaries accounted for 63% of first-time buyer loans, 60% of remortgage loans and 53% of home mover loans during the first quarter, compared to 63%, 56% and 52% in Q4 2010.

In value terms, remortgaging via intermediaries grew 63% in Q1 2011 vs 59% in Q4 2010, home-mover lending remained stagnant at 54% and first-time buyer value dropped slightly to 60% from 62%.

IMLA (the Intermediary Mortgage Lenders Association) believes intermediaries are vital in the mortgage buying process, providing valuable consumer advice and driving product innovation and competition.

Peter Williams, IMLA's executive director, said: "Intermediaries play an important role in the UK mortgage market and it is encouraging that despite massive change in the market they still account for the most significant proportion of mortgage business.

Williams said: "Our members are keen to stress that there are funds available to borrowers in this market and fight the perception that seems to exist amongst certain borrowers and brokers that they won't be able to obtain a mortgage."

Product availability is improving and we are starting to see specialist sectors of the mortgage market more active again, he said.

"That is important as it helps serve a wider range of mortgage customers and complements the lending already undertaken at the prime owner-occupied level."