The average annual number of cases written by brokers has risen to 88, a number not seen for over seven years, according to the Halifax Intermediaries’ broker confidence tracker.
The poll of 100 intermediaries between April and June showed a 14 per cent increase in the average annual number of cases being written.
Broken down by type of business, the average broker case mix showed an increase in almost all areas, but particularly for first-time buyers (up four cases a year to 24) and home movers (up three cases a year to 25).
Ian Wilson, head of sales at Halifax Intermediaries, said that with Council of Mortgage Lenders figures for the second quarter showing an increase in mortgage activity, brokers have reported the amount of business they’re writing has also risen.
“In the post-MMR world, we’re seeing there is now more demand from borrowers for help and advice from intermediaries.
“It’s now up to lenders to support the increased demand for mortgages by stepping up to provide the levels of service required by brokers.”
Jeremy Duncombe, director of the Legal and General Mortgage Club, said recent figures show that intermediaries now account for 70 per cent of all mortgages written, which is testament to the quality and professionalism of the sector.
“By using a broker, customers can ensure they get advice on a wide range of suitable products from many lenders rather than just one, and this not only saves times but often saves money too.
“Recent research from L&G Mortgage Club also shows that it’s easier to get an appointment to see a broker, with some banks not having availability for weeks, particularly for appointments on a weekend.
“Lenders are increasingly seeing brokers as a cost effective and good quality way to distribute their mortgages.”
Victor Jannels, group executive chairman of Atom, explained that they experiencing the highest volumes of both new business enquiries and completions for at least the last six years and these are increasing month on month.
“The quality of business is also at a higher standard overall. Confidence appears to have returned to this market but we feel that there is much more to come with re-mortgage business primed to escalate.”
Brian Murphy, head of lending at the Mortgage Advice Bureau, added the broker share of arranging mortgages has been growing strongly for the last two years and the step change has been most noticeable since the introduction of MMR in 2014.
“Latest [CML] data shows that intermediaries accounted for 72 per cent of first-time buyers, 65 per cent of home mover and 64 per cent of remortgage activity in the second quarter – all of which are improvements on the first quarter this year.
“By contrast at the end of 2013 as a whole intermediaries accounted for only 57 per cent of FTB, 50 per cent of home mover and 54 per cent of remortgage activity.
“Existing borrowers are increasingly taking notice of statements from the Bank of England and other commentators about the likelihood of a base rate increase in the not to distant future,” he added.
emma.hughes@ft.com
