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Mortgage broker market to shrink

Mortgage broker market to shrink

Category: Mortgages

Updated: 20/05/2009
First Published: 20/05/2009

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The number of brokers operating in the mortgage sector is set to reduce considerably in the coming years, the Intermediary Mortgage Lenders Association (IMLA) has warned.

A survey by the association has found that two thirds of member lenders said they expected the broker market to shrink this year because of the relative lack of activity in the sector.

Lending through intermediaries has fallen from its peak of 77 per cent of all mortgage lending between January and March last year, to stand at 62 per cent in the first quarter of 2009.

The Association of mortgage intermediaries has predicted that lending via brokers will account for less than half (45 per cent) of the market's total activity this year.

"This is a tough market for everyone – lenders are fighting to stay fit, and brokers will have to do the same," said Peter Williams, IMLA executive director.

"The mortgage market is less than half the size it was at its peak – unfortunately that means brokers have to compete hard for the reduced business there still is in the market.

"Brokers need to focus on attracting good quality borrowers – writing high credit loans will help brokers stand out from the crowd."

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