The UK’s mortgage brokers look to have set a new record for their share of new mortgages approved in 2015, according to a report.
The Intermediary Mortgage Lenders’ Association (IMLA) says that the industry’s share of new mortgage approvals has broken through the 70% mark for the first time.
Mortgage brokers saw their share of mortgages reach 71% in the second quarter of last year.
In the third quarter, the value of loans reached £33.3bn – the highest it’s been since the start of 2008.
IMLA’s report also highlights that the world of mortgage lending is changing and there’s now a wider range of lenders with the emergence of mortgage lenders who use brokers exclusively beginning to break-through.
Mortgage features are becoming more complex
In addition, borrowers are seeing that mortgage features are becoming more complex as are the pricing structures.
The report also points to the effects of the far-reaching Mortgage Market Review (MMR) which saw some lenders end direct mortgage distribution and stop offering mortgages through their network’s sales staff.
One reason for the offloading of staff was that the MMR required that anyone giving advice had to have additional qualifications to do so.
Another aspect to mortgages in the UK has emerged and that’s the growing number of borrowers who fall into ‘non-standard’ categories – a market for which many mortgage brokers are well-positioned to exploit.
The executive director of IMLA, Peter Williams, said that the market for mortgage brokers has been revitalised and the 2015 figure looks like setting a new record for the share of mortgages approved.
He added: “The market is more regulated competitive since the recession and the broker’s impartiality and expertise means they are suited to navigate on behalf of borrowers the mortgage maze.”
Bridging loan lender racks up £400 million of business
Meanwhile, leading bridging loan lender West One Loans has announced that it racked up nearly £400 million of business in 2015.
For a growing number of bridging loan borrowers, West One is now one of the leading short-term finance providers in the UK.
The bridging loan market is growing quickly and the firm’s Bridging Index reveals that the UK’s market in the year to October 2015 was worth £3.2 billion.
The bridging market continues to grow
West One’s managing director, Stephen Wasserman, said: “The bridging market is growing as borrowers recognise that short-term finance can be useful.
“Bridging finance is set to enjoy 2016 and there’s no reason we cannot better our figures. Developers and businesses appreciate that short-term finance can be speedy and secure and be the difference between failure or success for projects.”