This is according to the latest research from Precise Mortgages which found the total number of residential mortgage products grew 10% between August and October with the number available standing at 2,784 in October.
Of these products 1,106 (39.7%) were only available through mortgage intermediaries – up from 38.9% – while 1,007 (36.2%) were only available direct – down from 38.3%. Approximately 671 (24.1%) were available through both channels.
However, despite the growing proportion of products only available through intermediaries the volume of intermediary lending remains at just under one-third of total gross advances.
Furthermore, only 44% of borrowers in the UK would use a broker to secure their next mortgage, according to a YouGov poll of 2,000 borrowers commissioned by Precise Mortgages, but four in five borrowers said they would prefer to make just one mortgage attempt.
Alan Cleary, managing director of Precise Mortgages, said: “High street lenders are losing ground to brokers in terms of the number of products they can offer borrowers but the amount they spend on marketing and promotion ensures that many borrowers believe the high street is the only option for them.
“We know for a fact that four in five borrowers would rather make one mortgage application than go from lender to lender trying their luck. So it’s up to intermediaries to be proactive in targeting these borrowers and demonstrating the benefits of visiting a broker.”
In June 2011 3.4m (1 in 3) borrowers planned to secure another mortgage over the following 12 months but 2m mortgage holders were not confident they could secure another mortgage if they applied for one; 1.1m borrowers (1 in 10) were worried about their credit record; 2.8m (1 in 4) felt their income level was too low; and 2.3m (1 in 5) believed they don’t have enough deposit.
Cleary added:: “The pool of borrowers who would benefit from using a broker is enormous, but most have no idea of the benefits.
“We’re 100% dedicated to the intermediary market so we’re running a series of roadshows exclusively for brokers to help them increase their business.
“We’ll be travelling the country on a Routemaster bus stopping at various locations for brokers to climb aboard and receive presentations and information from me and our senior sales and marketing teams on how to encourage borrowers to use a broker and how to tackle sections of the market they may not have considered before.
“The bus will also be branded with consumer messaging, encouraging borrowers to visit a broker.”
