"This is a bleak forecast from AMI. In the third quarter of 2008 (the last published data) brokers sourced 61% of owner occupier mortgages. We know the intermediary market share has been contracting in 2008 partly in line with the decrease in specialist lending in 2008 - it was 74% in Q1. Additional loss of market share would involve prime lenders further boosting the volume of lending done directly with borrowers. But in practice the number of intermediary products on the market in January is on the up.
"Intermediary sourced mortgages make up a vital constituent of the UK mortgage market and IMLA is working with its members and other trade bodies to make sure brokers remain properly supported by mortgage lenders. The next 12 months will be far from plain sailing, but we are expecting the balance between direct and intermediary lending to stabilise. Brokers play a key role in helping borrowers negotiate what is still a very complex mortgage market and it is vital they continue to focus on providing top quality advice and service. Most lenders still see them as the primary route to market and they are working hard to ensure sufficient funding is in place for this channel."
