Over 600 mortgage brokers from across the UK were surveyed with 43% saying that they felt that the FLS is having a positive impact. However, 41% of those surveyed took the opposing view.
Peter Williams, executive director of IMLA, said: “It is interesting to see the divergence of views among brokers on the impact of the FLS given the rather more healthy level of activity in the market.
“I am confident this is partly due to the scheme still being relatively new, and that more intermediaries will see its benefit as the year progresses. At the same time, IMLA accepts that brokers’ experiences will vary and FLS is only part of what is needed. IMLA will continue to work to see more mortgage funding becoming available.”
The survey results suggest brokers are divided over the impact that the FLS is having on the market – highlighting the fact that, while there are more mortgages and prices have improved, supply is still tight.
When questioned about the anticipated impacts of the FLS, the most common expectation among brokers was a reduction in mortgage rates (77%).
Just over half (51%) thought it will result in an increase in the availability of loans (51%), while slightly fewer (49%) predict more lending at higher loan to value (LTV) ratios.
Bank of England figures for December 2012 show that while mortgage lending for house purchases by the major UK lenders increased by £1.7bn in the first five months of the scheme, compared to the same period in 2011, their overall mortgage lending during this period actually fell by £2.3bn.
In a separate survey, IMLA members, representing more than 80% of lending in the intermediary sector, were unanimous in predicting an increase in high LTV lending at 85-89% and 90-94% during 2013. However, over half (57%) felt there would be no extra lending at 95-99% LTV, and less than one in five (14%) expected any increase in 100% LTV loans.
