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New figures have revealed that more and more borrowers are turning to a qualified mortgage broker for high value mortgage advice. Data from the Council of Mortgage Lenders shows that brokers increased their mortgage market share across all business types in the first quarter of 2013, demonstrating that high value mortgage clients are keen to benefit from high quality financial and mortgage advice.
With the Funding for Lending scheme credited with driving down interest rates, the number of high value mortgage deals available has also reached its highest level since 2008.
The Council of Mortgage Lenders’ March Housing Market Survey found that, in the first three months of this year, 52 percent of remortgage borrowers took out their loan via a mortgage broker compared to 48 percent in the fourth quarter of 2012. The data also shows that 48 percent of home movers and 55 percent of first-time buyers used an intermediary, up from 45 percent and 54 percent respectively in the last three months of 2012.
“This data shows that more and more people understand that finding the right mortgage for them can be a tricky process and that consulting a professionally qualified adviser can help,” says Islay Robinson, CEO of London mortgage broker Enness Private Clients.
“Lending criteria for mainstream banks and building societies remains tight, and high value mortgage clients are often much more likely to find the right deal for them via an intermediary. Brokers are excellently placed to understand the needs of a client and to be able to use their expertise and contacts to source the right product,” he added.
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, said: “As we have been predicting for some months recent initiatives would encourage consumers to come back and intermediaries are always going to be well placed to assist them.
“AMI expects that this trend will continue throughout 2013 and into 2014.”
While the number of clients seeking high value mortgage advice from a broker has increased, so too has the number of mortgage deals available.
Recent data from analysts Moneyfacts revealed that there are now 1,790 mortgage products available to consumers – the biggest choice of deals since March 2008 when the total number of products stood at 2,096. There were just 793 deals available in March 2009.
Mr Robinson, the large mortgage specialist, added: “As the choice of mortgage products grows, so does the complexity of the mortgage market. This makes it ever increasingly difficult for a borrower to source the best high value mortgage deal from the options available.
“I think this is one of the reasons that brokers have seen a rise in interest from clients so far this year. Advisors have access to a wide range of deals and can establish exactly what a high net worth mortgage borrower is looking for. They can them match a client with the right deal and the right lender.”