Most mortgage brokers 'cannot satisfy customers'

Date:Monday 29th September 2008

Most mortgage brokers cannot find deals to suit their customers' needs, the Intermediary Mortgage Lenders Association (IMLA) has said.

According to its findings, two-thirds of brokers are unable to satisfy their clients.

The biggest reasons for this are the tightening of lending criteria and the increase in necessary deposit values as loan-to-values have been slashed.

More than half (51 per cent) of respondents to the poll gave these reasons.

Another 23 per cent of mortgage brokers said withdrawal and lack of availability of suitable products were the reason.

Peter Williams, executive director of the IMLA, urged the Bank of England and government to address the need for greater liquidity in the market.

He said it was "vital" that "all categories of mortgage provider, including specialist lenders, have access to funding that will help ease the log-jam for brokers and their customers".

According to Land Registry figures, the average price of a house fell by 4.6 per cent in August to £174,493.

This represents a month-on-month decrease of 1.9 per cent.

London has seen a 3.2 per cent drop in the past 12 months, with the average house now worth £336,620.