MortgagesMay 22 2013

Advisers take lion’s share of mortgage market

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According to the CML data, intermediaries had a bigger slice of the overall market in the first three months of the year.

More than half – 52 per cent – of remortgaging was done through an intermediary, compared to 48 per cent in the last quarter of 2012.

The number of first-time buyers who used an intermediary also rose by 1 per cent, from 54 per cent, since then.

The number of loans made to first-time buyers increased from 15, 900 in February to 19,100 in March, while higher LTV mortgages have made their biggest impact on the market in four years.

A quarter of first-time buyers put down a deposit of 10 per cent or less in the first quarter of 2013, compared to 1 in 5 in the same period last year.

Overall activity in the first three months of 2013 was only slightly below levels of loans in the first quarter of 2012, where the end of the stamp duty holiday triggered a surge in applications.

Paul Smee, director general of CML, said: “More borrowers are taking out higher loan-to-value mortgages than any other time in the last four years – a sign that lenders are open for business, and that borrowers, even those without a large deposit, are increasingly able to get a foot on the property ladder.”

Adviser comments:

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The battle among lenders for bigger volumes has continued to fuel consumer choice, with nearly 2000 more products available on average in March 2013 compared with March 2012 – 9269 compared to 7592. Brokers have a crucial role to play in identifying the best deal for each person’s circumstances, so it’s encouraging to see more borrowers turning to expert advice.”

Lea Karasavvas, managing director of London-based Prolific Mortgage Finance, said: “The first-time buyer has without doubt been the driver of the market over the past year. Given that the strength of the property market as a whole depends on its base, this is highly encouraging. The fact that more first-time buyers are now getting onto the ladder with smaller deposits is confirmation that lenders have opened up at higher loan-to-values.”


Number of loans

Value of loans £m

Average loan to value

March 2013




Change from
Feb 2013




Change from
March 2012