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Successful broker-supported mortgage applications hit record high – IMLA

  • 29/08/2017
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Successful broker-supported mortgage applications hit record high – IMLA
Consumers placing mortgage applications through brokers are landing record numbers of mortgage offers first time with nine out of ten getting the deal they wanted in the second quarter of this year.

Intermediary Mortgage Lenders Association (IMLA) figures confirmed a 13% rise in all applicants receiving offers on the home loans applied for since April last year.

The number of first-time buyer applications going to offer also leapt from 71% last year to 88% this year with the tax changes for landlords reducing competition for properties and opening the door for first-time buyers.

First-time buyer completions also jumped from 75% in Q2 2016 to 81% in 2017, with 71 of every 100 mortgage applications now resulting in a completion, up from 58 in 2016.

UK Finance data shows first-time buyers and home mover numbers grew strongly in Q2 2017 confirming the highest numbers for over a year, where buy-to-let activity slumped between April and June.

The latest calls for government to reverse the Stamp Duty changes for landlords from MPs Iain Duncan-Smith and Jacob Rees-Mogg, although popular are unlikely to gain traction, given the £2bn boost to government coffers brought by the Stamp Duty changes.


Confident future

The data, supported by BDRC, confirms UK political upheavals including the snap general election and resulting hung Parliament failed to derail a buoyant mortgage market which achieved £60.3bn for the quarter. This was a 3% increase on Q1 and 6% up year-on-year.

In a further poll, 96% of mortgage brokers said they felt confident about the future of the mortgage market, suggesting this is a trend that may continue.


Graph: Rate of mortgage applications via intermediaries resulting in offers, Q1 2016 – Q2 2017

Rise in mortgage applications going to offer via brokers


Peter Williams, executive director of IMLA, said: “With house price rises softening and easing affordability pressures, borrower demand and lender supply remains unwavering, heightened by increasingly competitive residential and buy-to-let loan to value pricing.

“Greater choice means that, for intermediaries, it is perfectly possible to match a wide range of aspiring homeowners and movers to suitable finance without compromising on rigorous assessments of borrower capacity to service their mortgage underpinning the market.”

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