Brokers and intermediaries place two thirds of all their mortgages with just three preferred lenders, new research shows.
The typical mortgage intermediary uses just nine different lenders in total to arrange on average 108 mortgages a year.
One in three of mortgages goes to their top lender, according to new data from Charterhouse Research.
The second preferred lender typically gets a fifth of their mortgage business with the third most used lender providing 13%.
With the average broker using nine different lenders the six least used are competing for the remaining third of the intermediary’s mortgage business.
Kate Turner, director of Charterhouse Research, said: “It may be a surprise to many that intermediaries place the majority of their mortgage business with a limited number of lenders.
“But intermediaries build close relationships with lenders and are in a prime position to guide borrowers through the mortgage maze, knowing which lenders they can count on to accept specific borrowers’ circumstances that might be difficult to place elsewhere.”
Turner said lenders use varied distribution channels with a number of specialist lenders choosing to lend only through intermediaries and not entertaining business direct from the consumer.
“Brokers will also be aware which of these ‘newer breed’ of lenders operate more flexible – human - underwriting and which will consider creditworthy borrowers in that grey area marginally outside the strict underwriting acceptability criteria used by the traditional lender.”