There was a substantial rise in the average number of mortgage enquiries received by intermediaries during the final quarter of 2016, according to new data.
Statistics released from the Intermediary Mortgage Lender’s Association mortgage market tracker indicate that the average number of enquiries rose by 26% per intermediary in the final three months of the year.
Results show that borrowers’ appetite remains strong, with buyers attracted to the low rates available on the market. The number seen were the highest number recorded by the tracker, surpassing those seen in the first quarter of 2016.
In addition, there was a rise in the number of buy-to-let enquiries, up from 43 to 63 quarter-on-quarter. A simple reason for this is the greater complexity facing landlords in their daily role, which in turn is giving investors further incentives to get intermediated advice.
Peter Williams, executive director of the IMLA, said: ‘It is unsurprising that there was an increase in the numbers of borrowers seeking expert advice in the final quarter of 2016, given that the changes to buy to let underwriting standards and mortgage tax relief were looming large on the horizon.’
‘As the layers of regulation in the market become increasingly complicated, and the number of products increase, the intermediary market continues to play a very important role in the provision of mortgage finance to a variety of borrower types,’ he added.
Williams also said: ‘It is very encouraging to see that the profile of the intermediary channel continues to grow among borrowers, and that many more are making it their first port of call. Different borrowers have different needs, and consulting an independent expert can help ensure the best possible outcomes for a wide variety of cases.’
There was also a rise in the proportion of borrowers progressing through the mortgage approval process, in comparison the quarter three. The proportion of full applications resulting in offers rose from 75% to 81%, with completions rising from 74% to 80%.