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Mortgage applications through brokers rocket in January

by: Mortgage Solutions
  • 23/02/2016
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Mortgage applications through brokers rocket in January
Applications through brokers enjoyed a 36% year-on-year increase in January, as the remortgage market also gains traction, according to research.

The research  from Mortgage Advice Bureau (MAB) showed that remortgage applications through mortgage advisers are now double the number of purchase applications.

Deals placed through brokers have also soared compared to borrowers buying in branch or online. The average number of intermediary deals has shot up by 42% over the last year, dwarfing the 17% increase in direct-only deals. Brokers have now held 71% of total mortgage products for five consecutive months, an increase of 4% since January 2015, the findings revealed.

Brian Murphy, head of lending at MAB, said: “Not only are mortgage products increasingly affordable, with a sustained period of low interest driving down mortgage rates, but consumer choice is continually improving. Every borrower is different, so having a greater number of mortgage products available means they are more likely to find the perfect mortgage for their particular needs.”

The vast majority of borrowers exercised caution by opting for fixed rate products in January. This was particularly true among remortgage borrowers, with the proportion opting for a fixed rate increasing from 87.5% to 91% annually. The same trend also applied to purchase borrowers, with 95% choosing a fixed rate in January.

There were 17,132 products available on the market in January – the highest number since March 2008 – and an annual increase of 34%, rising from 12,771 in January 2015.

Murphy added: “Borrowers tired of guessing when rates might rise may be tempted by the safety and security of fixed rates. These types of mortgages are attractive for borrowers who are comfortable with a longer-term commitment and prefer continuity of repayments.”

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