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Brokers foresee increased mortgage business

Brokers foresee increased mortgage business

Category: Mortgages

Updated: 06/07/2009
First Published: 06/07/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Confidence appears to be returning to the mortgage intermediary market, as research has revealed brokers are expecting an upturn in business in the third quarter of 2009.

On average, brokers foresee an eight per cent growth in the mortgage business they undertake in the three months to September, compared to the second quarter of 2009, according to Paragon Mortgages.

In total, almost 60 per cent of respondents said they expected an increase, with over three in ten (31 per cent) predicting a rise in mortgage business of 10 per cent or more.

Just seven per cent of brokers thought a contraction was likely. In the March 2009 and December 2008 surveys, 19 per cent and 39 per cent of brokers respectively said they expected business levels to shrink in the next three months.

"We are starting to see concrete signs of confidence returning to the mortgage market and that can only be positive for the UK housing market," said Paragon Mortgages managing director, John Heron.

"Mortgage brokers have endured some tough times in the past 18 months so it is welcoming that the market is finally seeing some positive news."

Talk of a housing market recovery is being fuelled by similar surveys. In the last month alone, buyer and estate agent confidence has been reported as vastly improved, while the rate of declines in house prices appears to be on the wane.

However, Mr. Heron warned that for real progress to be made, lending has to be made more readily available.

"The mortgage market cannot fully recover unless more is done by the Government to increase the ava ilability of mortgage finance to consumers," he stated.

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