Intermediaries still ‘dominate’ mortgage lending

Figures released last week by the Council of Mortgage Lenders, using FSA data, showed that mortgage lending via intermediaries, by value, accounted for 64% of total mortgage lending in the first quarter of 2009, approximately the same proportion as the second half of 2008.

IMLA claims the data highlights the reality that the industry as a whole continues to use intermediaries as the main channel and that the evidence suggests homebuyers and remortgagers continue to value the expertise and service levels offered by the mortgage broker community. This is despite attempts by some lenders to move towards direct-only distribution

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

Peter Williams, IMLA’s executive director, said: “People value the service that the mortgage broker community provides and that is why they remain the first destination for many when looking for a mortgage. Their experience and expertise are particularly valuable in the current economic conditions