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Chances of getting a mortgage hit a three-year high

Posted 17 April 2017 by Keith Osborne

Many mortgage brokers are finding it very easy to find the right product for a whole range of clients, says new research...

New research has revealed that it's currently easier to get a new mortgage than at any time in the last three years. A report from the Intermediary Mortgage Lenders Association (IMLA) has revealed that almost a third of mortgage brokers say that they have experienced no problem sourcing mortgages for any type of client – double the rate a year earlier.

The research found that almost 30% of brokers reported no problem sourcing a mortgage for any type of client in the second half of 2016, up from 26% in the first half of the year and double the rate recorded a year earlier (15%).

Mortgage advisors also reported a rise in their ability to source mortgages for a range of different types of borrowers. Just 16% of brokers said that they were unable to source a mortgage for first-time buyers (down from 29% in the first half of 2016) while just 15% of brokers said that they were unable to source a mortgage for standard status borrowers (down from 26%).

The rate of brokers who were unable to secure a mortgage for borrowers who are self-employed or have irregular incomes fell from 50% in the first half of 2016 to 25% in the second half. There was also a substantial fall in the rate of brokers who were unable to source a mortgage for borrowers looking for mortgages lasting into retirement, which fell from 43% in the first half of the year to 29%.

Peter Williams, IMLA’s executive director, says: “It is hugely encouraging to see a greater number of brokers are reporting that they are successfully arranging mortgages for a wide variety of clients. Over the past few years, regulations like the Mortgage Market Review have raised the bar in terms of borrowers’ requirements, which some predicted would leave many borrowers locked out of the market. This new regulatory regime has made the intermediary channel more important than ever, and brokers are clearly doing a great job of helping people get a foot on the housing ladder.

"House prices have been growing faster than incomes over the past few years, which has challenged affordability. This issue has been particularly acute among first-time buyers, which means the fact that just 16% of brokers reported they were unable to source a mortgage for someone in this group over the six months is very positive news."

The research also found that brokers expect the biggest area for growth to be in the 'borrowing into retirement' segment of the market. 83% of brokers anticipate that there will be a greater availability of mortgages to these individuals.

Williams adds: "It is also positive to see that lenders predict greater availability for customers looking to borrow into retirement. This part of the market has been underserved in recent years, and it is vital that this growing demographic has access to the mortgage market.”


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