Gemma Harle, managing director of Intrinsic mortgage network, said: "Our view is that it is good and gives people options away from the gifted deposit. The only thing is people need to be mindful they are borrowing 100 per cent whatever way they do it.
"There is [also] potentially a bit of confusion, where you are involving another party, that makes the adviser process more tricky, because you have to make sure that everybody in the chain has received the appropriate advice and that needs to be very clear and will mean more work for the brokers.
"I don’t think the demand is less because of brokers. I think it is more how up for it are banks of mum and dad keen on raising money on their property to allow their children to buy a property. They are definitely considered but not at the forefront of people’s mind, whether that is the customer or adviser."
Lenders also remain cautious as the memories of the global financial crash are still fresh.
Greater protection
Jackie Bennett, director of mortgages at UK Finance, notes there is more protection for borrowers as advisers are heavily involved in the application process.
“The industry has worked tirelessly since the financial crisis to ensure lending is safe and responsible, creating a strong and innovative market that meets the increasingly complex needs of their customers,” Ms Bennett says.
“Lenders must undertake a strict affordability assessment in accordance with the rules outlined by the regulator. The purpose of this is to ensure that the borrower can repay their mortgage over the lifetime of the loan in all foreseeable circumstances.
“The overwhelming majority of new loans are sold under an advised process, during which customers take part in a lengthy interview with the onus being on the lender or adviser to ensure that the mortgage is suitable for the borrower’s needs.”
Mr Shave adds: “Lenders are under the spotlight so they are in a bit of a tough place, but they are still trying to find ways to help people as affordability remains a big issue.”
As the market continues to recover from the last bout of the mortgage crisis, lenders will continue to tread carefully.
Any hint of a downturn could cause them to disappear again leaving those most in need in an unfortunate position.
Ima Jackson-Obot is a features writer at Financial Adviser
