Mortgage brokers have played a major part in creating the UK's highly competitive mortgage industry, according to the Association of Intermediary Mortgage Lenders (IMLA).
The role of brokers in finding the best deal for customers has helped the proportion of business originated by intermediaries triple in the last 20 years.
Peter Williams, executive director of IMLA, says: “Looking back 20 years mortgages were largely the domain of building societies and the limited availability of funds often meant homeloans were effectively rationed to the consumer.”
“The growth of the mortgage adviser and the emergence of the specialist lender with no branch network and wholesale funding changed everything.”
According to IMLA, just 25% of mortgages were originated by intermediaries in the late 1980’s, while figures for the first quarter of 2008 show 75% of all mortgage business came from brokers.
Williams says brokers are continuing to play a major role in helping customers source mortgages despite current problems with dual-pricing, and claims the intermediary sector is essential for a healthy mortgage market.
“Despite all the challenges, the market will return and a robust intermediary sector will be essential, particularly given the still substantial choice of products and the need for customers to be properly advised in both the TCF environment and in a more testing housing market,” he explains.
“The intermediary is an essential part of the landscape of the market – key to both customer choice and to maintaining a competitive market.”
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