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ISCOVER
Jessica Darnbrough
Tighter lending practices by the banks and an improved borrower psyche towards mortgage brokers has helped the third party channel cement its dominance in the market place.
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According to the Market Intelligence Strategy Centre, mortgage brokers suffered an 11 per cent contraction in their mortgage business in the last six months of 2010.
But while this drop in broker business activity seems substantial, it was very small in comparison to the 21 per cent contraction in all mortgage business.
The Strategy Centre attributes this sound result to the more dynamic and responsive nature of the channel and in part, to the changed borrower psyche as a consequence of a tighter overall lending environment.
“Borrowers will naturally be encouraged to embrace channels they perceive afford them more assistance and more lender choice. By comparison the total mortgage market results for the same size month half year to September 2010 including all other lending channels as well as brokers reflected their poorer performance for the six months ending 2010,” a statement by the Strategy Centre read.
