The latest quarterly intermediary survey from Paragon Mortgages has found that intermediaries are upbeat about their future levels of mortgage business over the next year.

The specialist lender’s Q3 survey shows that, on average, advisers expect to do 6% more overall mortgage business in Q4 in comparison with Q3. This figure is up slightly from an average predicted quarter-on-quarter increase of 5% in Q2.

In terms of levels of buy-to-let mortgage business, advisers expect to see a 3% average increase over the next 12 months, which is unchanged from the level recorded in Q2.

56% of intermediaries surveyed in Q3 expect their levels of buy-to-let mortgage business to remain stable over the next year. In comparison, 40% said they expect to do more buy-to-let business, with 19% expecting there to be an increase of 6% or more.

69% of intermediaries surveyed in Q3 identified rental demand as the most important factor for determining the expected change in their level of buy-to-let mortgage business over the next 12 months, followed closely by property prices (65%) and interest rates (64%).

Paul Clampin, Paragon Mortgages’ director of underwriting, said: “It is positive to see that average expected levels of mortgage business, both general and buy-to-let, have increased since the previous quarter, particularly following the recent implementation of MMR.

“Demand from tenants continues to remain high and is likely to do so over the foreseeable future as more people move into the Private Rented Sector.

“Therefore, this is likely to have a positive impact on intermediaries’ expected levels of buy-to-let business going forward.”