Direct only mortgages are only available to prospective borrowers applying directly to the lender. However, it is possible for mortgage brokers to suggest a direct only mortgage, or indeed, to charge a fee to the prospective mortgage borrower for doing so. In 2007 direct only mortgages accounted for less than 22% of the mortgage products available in the market but with many providers no longer trading, and others struggling for funding, direct products now dominate the market.
Kevin Bray, insight analyst for banking said: "Our research shows that 12 of the top 20 best buy fixed rate mortgage products are only available directly from the provider. The steady growth in direct only products over the last 2 years has clearly placed mortgage brokers at a disadvantage but it also leaves consumers with a difficult choice to make. Do they seek the advice of a mortgage intermediary or do they do their own research and approach the provider directly?"
Bray added "Mortgage intermediaries play an important role in helping buyers through the house buying process but consumers need to ensure that the broker they are using will advise them of the best deals in the market including "direct only" products."
