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Mortgage brokers expect a spike in business
03 August 2010
Financial advisers have forecast a 7.2 per cent quarter on quarter increase in mortgage business during the third quarter of 2010. This is the sixth consecutive quarter that brokers have predicted increased business levels, according to data from Paragon Mortgages’ financial adviser confidence tracker (Fact) survey. Nearly a quarter of brokers expected to handle over 10 per cent more mortgage business in the July to September quarter than they did in the previous three months. Over a third forecasted up to 10 per cent growth in mortgage business. Overall, some 58 per cent of respondents forecasted that mortgage activity levels will increase during the July to September period, compared to three per cent who expect a fall. Nearly four out of 10 brokers believe that mortgage activity will remain static. John Heron, managing director at Paragon Mortgages, said that although no clear pattern has emerged from lending data published by various bodies, mortgage brokers appear to be confident about the short-term future of the mortgage market, which is a positive sign as they are the ones on the ground talking to borrowers. He said: "The third quarter is always a strange period in the mortgage calendar because it contains strong seasonal anomalies – August is traditionally a very quiet month but September bounces back as people return from holiday with plans to either buy or sell." Published by FTAdviser.com
