This year will see greater demand for mortgages from the traditionally underserved borrower, research from the Intermediary Mortgage Lenders Association (Imla) shows.
Surveying 24 lenders of all types, Imla found that, this year, 63% expect to see more action first-time buyers, 63% also believe they will deal with more potential borrowers with credit impairments, and 58% will speak to more self-employed applicants.
Imla’s research shows this is something lenders are preparing for: 75% of those asked have invested in staff training and 67% have expanded their underwriting teams – with 13% saying then plan to do so.
Additionally, 58% of lenders say they have invested in broker training and 54% reporting investing in technology “to further support advisers”.
The importance of these borrowers using advice is a key theme of Imla’s report. It shows that the majority of lenders – 92% – say that leveraging mortgage advice will allow underserved borrowers to access more product choice, while 67% of these same lenders say that advice will help these borrowers find a more suitable mortgage.
And 58% report an application submitted through an adviser having a greater chance of being approved, and 46% of lenders believe that doing so will lead to fewer unnecessary delays in processing the application.
“Good relationships between brokers and lenders are not only key to ensuring that borrowers have access to a broad choice of mortgages to fit their needs,” says Imla executive director Kate Davies, “but also in reaching those non-standard borrowers who may have thought a property of their own was forever out of reach.”
She continues: “Our research demonstrates that consumers tapping into the expertise of mortgage advisers will benefit from more choice, a better mortgage and a quicker application process that is more likely to be successful.
“That is a triple win for the consumer, and the fact that lenders are recognising this value that brokers bring to mortgage applications is a sure sign that intermediaries are set to remain a vital channel in the mortgage market this year and beyond.”
