More borrowers than ever are choosing to arrange their mortgages via brokers, with the Association of Mortgage Intermediaries forecasting that they will take a 75 per cent share of mortgage sales within five years.
Since the Mortgage Market Review (MMR) banned most non-advised sales, lenders have been struggling to cope. They have been forced to train staff to give advice but this has resulted in significant delays for mortgage applicants. Some borrowers who have gone direct to a lender have had to wait many weeks just for an appointment.
The intermediary market is enjoying its best period since the financial crisis as lenders realise that if they wish to meet their lending targets, they need to embrace brokers.
Another consequence of MMR is that it has become harder for some people to get a mortgage, such as those requiring interest only, older borrowers, the self-employed or those paying school fees. Brokers are increasing demand as it is more difficult to place deals and lenders don’t have the resources to give advice.
Approach a lender direct for a mortgage and your success will depend upon qualifying for one of its products; go to an intermediary and they can advise on the right product for your particular circumstances. This means that the borrower is not only more likely to be approved but also to end up with the right deal for them.
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