Use of mortgage intermediaries increases

Posted 2008-05-14

The number of first-time buyers turning to mortgage intermediaries for advice has increased, according to the industry body.

According to the Council of Mortgage Lenders (CML), in the first quarter of 2008, more than 82.5 per cent of first-timers used the services of an agent, an increase of ten per cent on the same period in 2007.

In addition, 79 per cent of all remortgages involved intermediaries, which is also a ten per cent increase on the corresponding time period last year.

Richard Farr, director of the Association of Mortgage Intermediaries, said that in the current financial climate, seeking advice regarding a major transaction such as a mortgage was wise and that people trusted the opinions of brokers, more so than those of the provider.

"Mortgage intermediaries are playing a vital role in the current market place as first-time buyers struggle to find a mortgage deal. Consumers clearly value the advice they receive from mortgage brokers," he said.

The CML recently reported that mortgage lending in March was nearly 50 per cent lower than in the same month last year.

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