Intermediaries are seeing their share of the mortgage market eroded, according to figures from the Council of Mortgage Lenders (CML).
The CML also unveiled further evidence of the severity of the credit crunch, with loan approval rates falling yet again.
In the first quarter of 2008, intermediaries took a record share of the UK mortgage market, with over 80% of first time buyers choosing to visit an adviser.
However, the proportion of potential borrowers visiting an intermediary has declined, with 77.9% of first time buyers visiting an intermediary in the three months to June.
The proportion of home movers using the services of a mortgage broker fell from 63.5% to 60.8%, while the most drastic reduction was seen amongst remortgagors, with just 64.7% visiting a mortgage broker, compared with 74.6% in the first quarter of 2008.
The CML also revealed another fall in the number of mortgages approved, with approvals for house purchase down 9.6% to 47,000 in June, while remortgage approvals slid 2.6% to 75,000.
The total amount lent for mortgages fell to its lowest point since February 2006 to £23.6bn.
Bob Pannell, head of research at the CML, says: “Mortgage lending activity remains relatively weak and will decline further in the coming months as a result of funding constraints and lower consumer demand.”
The CML’s research also shows lenders are being far more conservative with the loans they do make, with the average deposit having increased from 20% in May to 22% in June.
Pannell says this is a prudent move by both lenders and borrowers to deal with the slowing housing market.
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