First-time buyers flock to mortgage brokers

Mortgage brokers are seeing more first-time buyers, as a shrinking mortgage market draws those still brave enough to attempt to get a foot on the property ladder to seek independent advice.

According to the Council of Mortgage Lenders, the proportion of first-time buyer mortgages taken out through a mortgage intermediary rose to 82.5% in the first quarter of the year, compared with 72.8% the same period of 2007.

Brokers are also being used more by those who need to remortgage, with the proportion rising to 79.1% in the first three months of the year, compared with 68.2% in the first quarter of 2007.

According to Richard Farr, director of the Association of Mortgage Intermediaries, the figures are evidence that even in today’s market, intermediaries can still secure competitive loans.

However, first-time buyers remain in short supply. Mortgage broker John Charcol has reported that they made up only 4% of its customers in April, down from 7% in March and well below the 2007 average of 10%.

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