Mortgage confidence increases

A Mortgage 4 You Mortgages - Mortgage confidence increases.

05 December, 2006

Independent Financial Advisers' (IFAs) confidence in the mortgage market has reached its highest level in ten years, according to Mortgage Trust.

The confidence was revealed in the latest in a series of six monthly polls to gauge IFAs’ opinions and comes despite concerns in some quarters that the recent rise in interest rates and the expectation of further rises in 2007 could dent general optimism in the market.

The research, which is based on both the average number of mortgages introduced in the last three months and the average expected change over the next three months, is an indication of both current performance and future prospects. The survey revealed on average advisers expect an uplift in business of 4.2 per cent for the fourth quarter of 2006 compared to the third quarter, and a third of respondents expect volumes to pick up by 6 per cent or more.

Nicola Severn, communications manager of Paragon Group, commented: “It is very telling that the index is at its highest level ever. Notwithstanding the impact of borrowing costs, it seems that mortgage activity among advisers remains very buoyant. On average, they each arranged 32 mortgages over the third quarter, compared with 29 a year ago and 27 in 2004.

“Despite the recent increase in interest rates and the impact of affordability constraints on first-time buyers, the index suggests that people within the industry remain confident that it will continue along its current positive trend.”