Mortgage lending via intermediaries 'rose in Q2'

Posted: 17 Aug 2011 12:23:07 GMT

The Intermediary Mortgage Lenders Association has welcomed news mortgage lending via intermediaries rose across the second quarter of 2011.

Mortgage lending via intermediaries increased throughout the UK in the second quarter of 2011, it has been found.

New figures from the Financial Services Authority (FSA) and Council of Mortgage Lenders (CML) revealed the level of business of this kind jumped for both first-time buyers (FTBs) and home movers in this time.

According to the statistics, the value of loans via intermediaries for FTBs swelled by 30 per cent during this period, jumping from £2.7 billion in quarter one to £3.5 billion in quarter two.

In addition, this sum escalated by 26 per cent for home movers, rising to £6.8 billion from its first quarter figure of £5.4 billion.

When judged by volume, loans via intermediaries for FTBs increased from 24,000 to 30,000 - a jump of 25 per cent - while for home movers it elevated from 33,000 to 41,000, which represented a 24 per cent hike.

Such movement has been welcomed by the Intermediary Mortgage Lenders Association (IMLA) - a specialist trade body representing the interests of those who market products via mortgage brokers - which claimed it has been a long-time champion of such intermediary-led competition.

IMLA's executive director Peter Williams described the findings as encouraging, noting they underline the key role played by these bodies in mortgage distribution.

"Intermediaries have the knowledge required to provide specialist information, helping customers find the right product for their needs and saving time and money for both borrowers and mortgage lender," the industry figure explained.

He added: "Despite changes to the UK mortgage market and the current fragile economy there are funds available to obtain a mortgage."

The figures provided by the FSA and CML - whose members account for around 94 per cent of residential mortgage lending in the UK - could serve to highlight the availability of this help and act as an indicator of gradual improvement in the market.
 

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