Research conducted by NatWest Intermediary Solutions has found that mortgage advisers are reasonably confident about its prospects for the next three months.
The first results of its Mortgage Intermediary Market Confidence Barometer show that across six market components the overall mood is positive, indicated by the 56.3 score on the Confidence Barometer.
The survey, conducted over the last three months amongst 323 intermediaries, measured the degree of confidence they have for six key market components.
Brokers were asked to rate each component on a scale from 0-100. A score of over 50 indicates that brokers have a positive view whereas a score of under 50 indicates a negative outlook.
Whilst brokers expressed a degree of confidence for all six components measured, it found that the anticipated Demand for remortgaging attracted the most confidence with a score of 64.8. Brokers were quite confident about the Potential for house prices to rise with a score of 57.7 and it appears that their concerns about the availability of lending have eased with Sufficient funding from lenders across all LTVs getting a score of 56.5. They also seem comfortable that there is an Adequate supply of properties in your local area with a score of 54.8.
Whilst still in positive territory, the prospects for First-time buyer affordability and Homeowners having sufficient equity in their existing properties to move earned the lowest scores with 51.9 for both.
Market component – Confidence Barometer score
Overall 56.3
Demand for remortgaging – 64.8
Potential for house prices to rise – 57.7
Sufficient funding from lenders across all LTVs – 56.5
Adequate supply of properties in your local area – 54.8
First-time buyer affordability – 51.9
Homeowners having sufficient equity in their existing properties to move – 51.9
Graham Felstead, head of intermediary channel, NatWest Intermediary Solutions, said the survey results suggested that the increased level of confidence anticipated at the beginning of the year is now working its way through the market.
He said: “The findings of our survey indicate that brokers anticipate a greater demand for remortgaging business and that they expect house prices to rise. It is also heartening to see recognition that lenders have demonstrated a greater appetite to lend this year. The plight of first-time buyers has been well-documented and continues to be an issue but the Funding for Lending and Help to Buy schemes seem to be having a positive impact on the prospects for this sector. It’ll be interesting to see how the perceived prospects for first-time buyers and movers fare in the next survey.
“At NatWest Intermediary Solutions we have certainly experienced a step-change in the volume of business we are attracting. At the beginning of the year we stated our ambition was to grow the volume of intermediary generated mortgage business. We have achieved this through a continuous programme of product range enhancements combined with a BDM, sales support and application processing service that is recognised as amongst the very best in the intermediary sector.”
