88% of mortgage applications through brokers go to offer
The influence of mortgage brokers in the present environment, has been underlined in new data which reveals that 88% of mortgage applications through intermediaries went to offer in the second quarter of this year.
This represents a staggering 75% increase on the same period of 2016.
Peter Williams, executive director, at the Intermediary Mortgage Lenders Association’s Mortgage Market Tracker said:
“The percentage of successful applications continued to grow across the board, a testament to the ability of the intermediaries to match consumers with suitable products in what is an increasingly complex marketplace.
“With house price rises softening and easing affordability pressures, borrower demand and lender supply remains unwavering, heightened by increasingly competitive residential and buy-to-let LTV pricing.”
Andrew Turner, chief executive at Commercial Trust, said:
“This data is a positive affirmation of the important role that the broker can play in helping a mortgage applicant to find the right product.
“Since the start of the year, the buy-to-let market has become bigger, with recent reports indicating there are now more products available, meaning more choice.
“At the same time, interest rates remain low at present and it is important for borrowers to understand how products might suit their individual circumstances before making a commitment.
“Of course since April 2016, there have been a number of major fiscal changes affecting the buy-to-let market which have had an impact on affordability and taxation. As a result, many landlords have expressed concerns about the financial impact of new rules around Stamp Duty and the loss of mortgage interest tax relief.
“In times of such uncertainty many landlords are prudent enough to seek assistance from experts, so it is not a big surprise to see data showing such a spike in numbers.
“The other side to this news is that a high percentage of the service provided by brokers is resulting in offers, suggesting that quality information is in many case being delivered, to help find the right product for the borrower. At Commercial Trust we aim to help landlords to identify appropriate products by having detailed discussions around their circumstances and goals with buy-to-let property.”
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.