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Intermediaries lead the way on mortgage lending

Intermediaries lead the way on mortgage lending

Category: Mortgages

Updated: 04/08/2009
First Published: 17/07/2009

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Industry figures have revealed that mortgage intermediaries continue to lead the way in home loan lending, despite renewed efforts to increase direct distribution.

Data released by the Council of Mortgage Lenders, which drew on figures from the Financial Services Authority, showed that intermediaries accounted for 64 per cent of the total value of lending in the first three months of 2009.

Furthermore, in the same period, 70 per cent of first time buyer loans by volume came through intermediaries, up from 68 per cent in the previous quarter.

The increases come despite a renewed focus on branch-based mortgage distribution.

It is evidence that suggests homebuyers and remortgagers continue to value the expertise and service levels offered by the mortgage broker community, says the Intermediary Mortgage Lenders Association (IMLA).

Home loans lent by intermediaries to other movers increased from 56 per cent to 58 per cent over the same period.

Executive director of the IMLA, Peter Williams, 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 the current economic conditions when mortgage availability remains scarce and it is harder than ever for borrowers to source suitable mortgage deals."

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