The remaining 73% of intermediaries were unable to secure a mortgage for at least one of their clients during the quarter.
Of cases where a mortgage was unable to be sourced, 56% were in respect of borrowers with some level of adverse credit. Just over half of intermediaries, 51%, said it was in respect of borrowers who were first-time buyers and 51% also said it was in respect of remortgagors.
Under a third, 31%, said they were next-time buyers and only 15% were standard status borrowers.
Almost a half of the first-time buyers unable to find a mortgage through their broker opted to rent instead. Also 13% of the next-time buyers opted to move into rented accommodation.
Despite difficulties in securing mortgage finance for certain types of clients, most intermediaries still remain optimistic in the markets, with 49% reporting that mortgage market conditions improved during the third quarter, compared to 14% who thought that conditions in the sector worsened.
The remaining 37% said that conditions remained unchanged. In addition, 34% of intermediaries believe standard mortgage business levels will improve during the fourth quarter of the year.
Peter Williams, executive director at IMLA, said: “Mortgage market conditions have been showing some improvement, but certain types of borrowers are still struggling to get on to the property ladder, particularly at the periphery of the mortgage market.
“For those seeking a mortgage, intermediaries remain the best conduit to find the right deal as they have the skills and knowledge to match lenders with borrowers, but our research highlights the continued tough conditions in the market when even they are struggling to secure finance for some customers.
“This demonstrates that first-time buyers are still amongst those struggling to find mortgage finance. Deposit requirements have improved over recent months but this is still a sticking point for those trying to get on the ladder.
“For those without a substantial deposit or support from a family member the rented sector is the next alternative.”
