FTBs still struggling for finance despite LTV improvements: IMLA

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73% of intermediaries were unable to secure a mortgage for at least one of their clients during the third quarter of 2011, according to latest research by the Intermediary Mortgage Lenders Association (IMLA).

Of cases where a mortgage was unable to be sourced, 56% were in respect of borrowers with some level of adverse credit, 51% were first-time buyers and 51% were clients remortgaging. Fairing slightly better, 31% were next-time buyers and only 15% were standard status borrowers.

According to IMLA, credit status and credit quality is clearly important but equally significant is the finding that 47% of the first-time buyers unable to find mortgage finance through their broker opted to rent instead. In addition, 13% of the next-time buyers also opted to move into rented accommodation.

Despite difficulties in securing mortgage finance for certain types of clients, most intermediaries still remain optimistic in the markets with 49% reporting that mortgage market conditions improved during the third quarter, compared to 14% who thought that conditions in the sector worsened. The remaining 37% said that conditions remained unchanged. In addition, 34% of intermediaries believe standard mortgage business levels will improve during the fourth quarter of the year.

Peter Williams, IMLA executive director, said: “Mortgage market conditions have been showing some improvement

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