A potential increase in costs is the biggest concern facing brokers about the introduction of any new regulation, according to NatWest Intermediary Solutions.
36% cited this as the number one issue followed by the potential increase in paperwork (19%) and potential increase in time it would take to sell a mortgage (18%). Only 7% thought that any new regulation would have little effect on their business.
The poll also found that 51% of mortgage advisers thought that the greater availability of higher LTV deals would have the biggest impact on improving trading conditions, followed by a rise in interest rates cited by just under a quarter (24%), whilst 16% felt that greater consumer confidence held the key to market improvements.
On the subject of interest rates, there was a pretty significant consensus that we would see the next rise in the BoE rate towards the end of this year or early in 2011. 32% thought it would be in Q4 this year and 34% said it would be Q1 in 2011.
Graham Felstead, head of intermediary channel, NatWest Intermediary Solutions said: “It appears that intermediaries believe an increase in interest rates would breathe new life into the remortgage business. Their general expectation is that the BoE rate won’t be increased for at least six months so until then they will continue to focus on the first-time buyer and homemover sectors.”””
