Niche lending has only experienced a limited effect of the recent interest rate rises and house prices are still expected to increase next year, a new survey reveals.
Only 15 per cent of the 1,300 mortgage brokers polled by UCB Home Loans said that the self-certification sector had been influenced by the rate changes and 40 per cent thought that the adjustments had affected the buy-to-let market.
Some 33 per cent of intermediaries said that their buy-to-let business had increased over the past four months and 42 per cent said it had stayed the same.
"Despite the fact that rate rises have had some effect on the self-certification and buy-to-let sectors, the majority of brokers are still reporting that business has been growing," explained Keith Astill, managing director of UCB Home Loans.
Over three quarters (85 per cent) of brokers expect house prices to be higher at the end of 2007 than they are now and only ten per cent think they will remain the same.
However, the rate of increase is expected to slow. Some 43 per cent of companies said they thought prices would rise at a slower rate than this year and 38 per cent thought the rate of growth would stay about the same.
Mr Astill described the expectation for price rises to slow down next year as a "pretty reasonable assumption".To read more about mortgages, click here.
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