Intermediary lending increases market share

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Lending via intermediaries accounted for a rising share of the overall mortgage market during the first quarter of the year.

Statistics from the FSA and the Council of Mortgage Lenders (CML) show that intermediaries accounted for a growing proportion of loan sales by volume compared to the final quarter of 2010. Intermediaries accounted for 63% of first-time buyer loans, 60% of remortgage loans and 53% of home mover loans during the first quarter.

This compares to 63%, 56% and 52% of first-time buyer, remortgage and home-mover loans during the final quarter of 2010.

Based on value, remortgaging via intermediaries grew (63% in Q1 2011 vs 59% Q4 2010) over the period, home-mover lending remained stagnant (54%) and first-time buyer value dropped slightly (60% vs 62%).

The Intermediary Mortgage Lenders Association (IMLA) welcomed the figures. The specialist trade body believes intermediaries are vital in the mortgage buying process, providing “valuable”” consumer advice and “”driving product innovation and competition.””

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