Mortgage business set to rise 7.1%

Mortgage business set to rise 7.1%

17 February 2010 / by Rachael Stiles

Mortgage business is going to increase in the first quarter of 2010 compared to the final quarter of last year, according to financial advisors surveyed by Paragon Mortgages.

A panel-based survey of mortgage brokers, Paragon Mortgages' Financial Adviser Confidence Tracker Index has revealed that financial advisers expect to see a 7.1 per cent rise in the number of mortgages taken out in the first three months of this year, compared with the previous three months.

The results show that 58 per cent of mortgage brokers expect to see an increase in business during the first quarter, while 34 per cent predict lending to remain stagnant, and a further eight per cent think that mortgages will decline during this period.

Commenting, John Heron, managing director of Paragon Mortgages, said that the findings suggest a strengthening of the confidence which started to return to the mortgage market last year.

"As house prices seem to have turned the corner, buyer confidence has increased and we have seen a slight tick up in mortgage approvals in recent months," he said. "However, these remain low compared to the historical average and the market is nowhere near back to normal yet."

The buy to let mortgage sector is still struggling more than most, Mr Heron continued, with a continuing lack of competitive deals available to landlords.

But, he added, "We are encouraged by improvement in the broker community's projections for future business and we hope that it continues throughout the rest of the year."

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