Mortgage brokers see boom time ahead

Intermediary lenders are looking to increase the numbers of brokers they work with, according to the Intermediary Mortgage Lenders Association.

Half of those polled plan to put more business in the way of advisers, and 29 per cent have reported an improvement in the quality of introduced business during the first six months of the year.

A study by IMLA of 300 intermediaries has found that 34 per cent have seen a spike in successful applications between January and June, while 69 per cent believe that product availability has improved.

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Two-thirds of brokers believe that failing to match a lender’s profile was the main issue that could thwart mortgage applications. However, the numbers of brokers who had been unable to secure a mortgage for a mainstream borrower has fallen from 63 per cent in the last quarter of 2012 to 37 per cent in Q2 of 2013.

Additionally, 85 per cent of brokers feel the market is currently improving, compared to just 37 per cent in January.

Peter Williams, executive director of IMLA, said: “Both lenders and brokers have high hopes that business will continue to grow for the remainder of the year.

Trevor Mitchell, associate of Edinburgh-based broker Robson Macintosh, said: “Because we have a blue-chip customer base, these problems with obtaining mortgages have not affected us as badly, because borrowers have 50 per cent deposits. But there does appear to be much more movement right across the market, and speaking to property solicitors, there has been a huge increase in property transactions in the last year.”