Mortgage applications via broker from homebuyers and remortgaging homeowners reached their highest point of 2014 during October, new research shows.
According to the Mortgage Advice Bureau, applications via brokers were up 13 per cent in October compared with September, and up 21 per cent compared with October 2013.
Council of Mortgage Lenders data shows a growing share of customers turning to intermediaries to find a loan rather than going direct to lenders. This is thought to result partly from the introduction of new affordability rules under the Mortgage Market Review (MMR).
The range of products available from brokers is also booming. Brokers’ product numbers grew by 270 in October compared with September to reach 8,812, while direct-only products rose 136 to 3,663.
In the six months since MMR took effect in April, broker products have risen 11 per cent (870) compared to a 5 per cent (189) growth in direct-only products.
October’s total of 8,812 broker products means more products were available via brokers last month than across the whole market at any point in 2012.
New product launches in October pushed the overall total to 12,476, exceeding the previous post-recession high of 12,265 in August.
Brian Murphy, head of lending at Mortgage Advice Bureau, comments:
“The direction of house prices, interest rates and wages are giving consumers plenty to think about, and these figures show that growing numbers of borrowers are focused on progressing their house buying or remortgaging plans and seeking independent advice to make it happen.
“After seeing the Bank of England flirt with a first interest rate rise in 7½ years, more people will be conscious that change is coming and looking for opportunities to make the most of today’s low prices. With product numbers continuing to rise, they have more choices at their disposal than at any point since the market recovery began.”
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