In the last quarter of 2010 the balance of brokers who saw an increase in the volume of mortgage business written rose to +35 in the last quarter of 2010 from +28 in Q3 2010. This was helped by lenders making more products available to the sector according to findings of
Nearly half (40%) of intermediaries believe that the remortgage market is the area with the most opportunity in 2011, whilst nearly a third (28%) have high hopes for the buy to let sector.
However there are still concerns about mortgage lenders willingness to lend, and with first time buyer options currently restricted, only 7% of intermediaries believe that there will be an improvement in 2011.
The Index of Mortgage Intermediaries acts as a barometer of the broker market and monitors the views of around 300 mortgage professionals.
The Index has tracked the sector for the past 12 months and, despite a slight dip in confidence midway through the year on the prospects of business expansion, the confidence of brokers was at a year high in the final quarter. Although nearly all (97%) of intermediaries believe the market needs to do more to promote the benefits of professional mortgage advice.
Lee Gladwell, business development director at Platform, said: “Despite the continued economic uncertainty brokers are optimistic about their business prospects in 2011.
“Remortgage and buy to let business is set to be a focus for intermediaries throughout the course of 2011 and it is important for lenders to support them in these areas, however not at the detriment of product development in other areas. Lender support for brokers remains vital in the growing market.
“The economic environment remains uncertain and increasing numbers of homeowners are searching out deals at the moment, primarily due to the continued risk of interest rate rises.
“With more consumers than ever seeking mortgage advice, 2011 is a year of opportunity for the intermediary industry, however the sector as a whole needs to work together to make this opportunity a reality.”
Platform is the dedicated intermediary mortgage lender of The Co-operative Bank.