These are the findings from the first quarterly Specialist Mortgage Adviser Regular Tracking (SMART) index commissioned by BM Solutions.
The full findings from the BM Solutions SMART index were:
16 per cent of mortgage cases introduced by mortgage intermediaries are self-certification, 13 per cent buy to let and 8 per cent sub-prime. Six out of ten cases introduced are for mainstream mortgages.
During the current quarter (May - Jul) mortgage intermediaries expect the number of self-certification mortgage applications to show the greatest increase, rising by an average of 3.8 per cent compared with 3.7 per cent for buy to let and 3 per cent for mainstream mortgages. Intermediaries expect to see a 3 per cent increase in the number of sub-prime cases they submit to lenders.
Average loan sizes for self-certification and mainstream mortgages were £111,300 and £111,200 respectively. According to intermediaries, the average buy to let loan size was £88,500, with sub-prime at £84,000.
Unsurprisingly, 55 per cent of mortgage intermediaries ranked interest rate as the most important factor in their client's choice of mortgage product.
19 per cent ranked lending policy / criteria as the next most important factor, followed by service quality (11 per cent) and product features (14 per cent) such as redemption penalties or insurance.
More than four out of ten (42 per cent) respondents had at some point in the past, submitted a mortgage application through an on-line electronic system.
When asked what effect the new mortgage regulatory regime would have on their business nearly half of all respondents (45 per cent) said that they expect it to have either no effect or it will simply increase their administrative workload.
A significant 13 per cent of respondents think mortgage regulation will help to increase their business. 10 per cent believe that regulation will cause a reduction in the number of mortgage intermediaries operating in the market.
Michael Bolton, head of mortgages at BM Solutions, said: "Clearly specialist lending continues to represent a significant area of business for many mortgage intermediaries. This is reflected in the increasing competitiveness of the market and some of the recent developments which we have seen."
"One area which does provide food for thought is the reaction to impending regulation. This is an issue at the top of the industry's agenda. Regulation through legislation is a positive move and one in which every facet of the mortgage industry should be both welcoming and seeking an active role."
The BM Solutions SMART index will provide a regular barometer of confidence, business trends and opinions on the issues facing the mortgage intermediary today.
