The Intermediary Mortgage Lenders Association (IMLA) used data from BDRC Continental to determine the level of completions for homemovers, remortgagors, buy-to-let borrowers and applicants for specialist loans.
If found that 80% of homemover applications resulted in an offer and 80% led to a completed deal.
Peter Williams (pictured), executive director of IMLA, said that using an intermediary has become more established as a means to access mortgage finance.
“After a busy start to the year, this data suggests that homemovers in particular have taken advantage of strong competition between lenders and a fast expanding range of competitive products,” he said.
Overall, 55% of enquiries in Q1 progressed to an agreement in principle (AIP), with the highest rate reported by intermediaries dealing with remortgages and specialist loans (59%). Those focused on first-time buyers (FTBs) saw the fewest initial enquiries (51%) progress any further.
IMLA said historical data shows that activity for each sector through the intermediary channel is seasonal – with both 2014 and 2015 recording a slower start for FTB activity than homemover and remortgage activity, before growing in Q2.
“The first time buyer market typically picks up pace in Q2, although April’s Stamp Duty reforms have clearly disrupted normal patterns and will have a lingering effect on the supply of property,” said Williams.
“Credit conditions are just one of many factors impacting first time buyers’ journey from enquiry to completion, and the EU referendum adds another unknown into the mix for Q2, which won’t go unnoticed in terms of intermediary confidence and consumer behaviour.”
Overall, almost seven in 10 (69%) of AIPs in Q1 progressed to an application, rising to 72% among firms handling homemover and remortgage cases.
More than three in four (76%) applications received an offer, and the same percentage resulted in a completion. In each case, intermediaries dealing with homemover cases reported the highest conversion rates (80%).
