Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented:
“Brokers play an important role in finding a solution for mortgage seekers as they have access to a great pool of products across the market. This is particularly beneficial for anyone with complex income or specific requirements, as an independent broker has more chance of finding a product to suit a wider range of circumstances.
“Borrowers often stumble at the last hurdle of the application process and can be declined for reasons including their income, a failure to pass credit checks or personal circumstances they were unaware would have an impact. It is therefore essential the right advice is given and the process is made as transparent as possible to avoid any last minute disappointment.
David Hollingworth, Associate Director of Communications at London & Country Mortgages, commented:
“As lender criteria has tightened in recent years, the search for the right mortgage has become more complex than finding the best available rate. As a result, the role of the broker has become even more important in helping customers fund the right option tailored to their circumstance.
“We are finding that success rates are high and customers can be confident in seeking out a new, low mortgage rate when they take advice on the best overall solution for their needs.”
Andrew Montlake, Director at Coreco, commented:
“Given the recent regulatory changes it has never been more important to ensure that a potential borrower is placed with the most suitable lender and presented in the best possible way to ensure the mortgage process proceeds smoothly.
“A good broker working in partnership with the lender can not only save days in terms of application to offer times, but also ensure that more borrowers move through to completion. Overall, it is encouraging to see that mortgage brokers are both upbeat about the future and are delivering a real difference to consumers.”
Ray Boulger, Senior Technical Manager at John Charcol, commented:
“As Peter Williams says, ‘a decline from one lender does not necessarily mean the end of the road’ and this observation highlights one of the benefits to borrowers of using a broker. Lender statistics show a lower application to offer success rate for applications not made through a broker. This reflects the understanding brokers have of lenders’ criteria, which changes frequently, and the fact that lenders’ affordability calculations vary considerably, resulting in some cases in very different maximum loan amounts being available.
“It is not just that the original lender selected by a broker is more likely to offer a mortgage – and just as importantly, offer the amount required – than an application direct to a lender. Should the original lender decline to offer the amount required for any reason, a broker can quickly use the information already available to assess whether an alternative lender could help. In contrast, a borrower applying direct to a lender would have to find time and make an appointment to go through the fact finding process a second time with another adviser.”
For further information please contact:
Maham Uzair / William Muir, Instinctif Partners
Tel: 0207 427 1422 / 29 / twc.imla@instinctif.com
Notes to Editors
Methodology
The IMLA Mortgage Market Tracker uses data provided by BDRC Continental – the UK’s largest independent research consultancy – as part of its established Project Mercury, a continuous monitor of intermediary lender marketing effectiveness and broker sentiment which has run since 2007.
The Q3 2015 findings are based on interviews between July and September with 301 intermediaries. All intermediaries are based in Great Britain, arrange a minimum of 24 mortgages per annum and are not tied wholly to a single lender. Findings have been weighted by firm size and type to be representative of the intermediary sector.
¹ Data from the Council of Mortgage Lenders shows intermediaries arranged 73% of all first time buyer loans in Q2 2015 (vs. 63% a year earlier), 65% of all homemover loans (vs. 56% a year earlier) and 64% of all remortgages (vs. 63% a year earlier).
About IMLA
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel. Its membership of 52 banks, building societies and specialist lenders include 18 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (91.6% of balances and 92.8% of gross lending).
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