During the final quarter of 2014, intermediaries’ showed greater confidence in the mortgage market going into 2015.

Paragon Mortgages’ latest quarterly Financial Advisers Confidence Tracking (FACT) survey, which tracks intermediaries’ views on the performance of the mortgage market, showed a strong confidence index rating of 102.9 in Q4, which had increased from 101.5 in Q3 2014 and 96.3 from the same quarter last year. These index points are based on the average number of mortgages introduced since Q3 and intermediaries’ average expected levels of business over the next three months.

During Q4 intermediary firms had written 5% more business than the previous quarter and 9% more than Q4 2013. In comparison however, the number of mortgages introduced by intermediaries individually remained the same (at eight) between Q3 and Q4 2014.

Intermediaries reported a slight (1%) increase in business from first-time buyers, from 18% of all mortgages introduced in Q3 to 19% in Q4. This is the highest proportion of first-time buyer business reported since Q4 2013, and reflects the steady increase seen in this borrower type since 2008.

Intermediaries also showed confidence in the buy-to-let market, with 41% expecting to do more buy-to-let mortgage business over the next 12 months compared with 2014.

Confidence was shown around key market factors, with 48% of intermediaries surveyed saying the availability of buy-to-let finance had improved since Q3, showing a 6% increase over the past three months, along with 35% reporting landlord demand as strong or very strong.

John Heron (pictured), managing director of Paragon Mortgages, said: “It is encouraging that confidence among intermediaries has increased since Q4, giving a strong platform for the mortgage market for 2015.

“The increased levels of business firms have been writing is a positive sign of growth, providing evidence of a busier market in Q4. This does not seem to be the case on an individual basis however, suggesting the process may be more complex post MMR with advisors working harder to take advantage of growth opportunities.

“Another good sign is the balance of intermediaries expecting buy-to-let lending to grow further over the coming year. This is likely to be driven by the competitive market and strong demand seen over 2014, which we anticipate to continue through 2015.”