Monday, May 16, 2022

Broker confidence in mortgage outlook on the rise


Broker confidence in the outlook for the mortgage reached its highest level for the whole of last year in the final quarter of 2019, according to the Intermediary Mortgage Lenders Association

Broker confidence in the outlook for the mortgage reached its highest level for the whole of last year in the final quarter of 2019, according to research by the Intermediary Mortgage Lenders Association.

Imla’s latest sentiment tracker found that 93 per cent of advisers felt confident about prospects for the industry and 94 per cent were confident about the intermediary lending sector in particular as they looked ahead to 2020.

Advisers’ attitudes towards their own business prospects were even more positive, with 97 per cent expressing confidence.

On average brokers reported caseloads of 88 per year, close to the previous high of 90 per year in Q2 2018.

Advisers also continued to help more borrowers successfully apply for mortgages, as 55 per cent of decisions in principle resulted in completion – an increase of 7 per cent from the previous quarter.

The conversion rate from borrowers who were approved at the DIP stage progressing to full application and successful offer reached close to nine in ten of all customers.

Imla executive director Kate Davies, Executive Director of the Intermediary Mortgage Lenders Association says, the last few years have certainly tested the resilience of the mortgage market.

Amidst significant political turbulence, intermediaries have faced the challenge of disintermediation, diminishing consumer confidence and uncertainty surrounding what may replace the Help to Buy scheme as it is gradually wound down, he said. Despite that, they ended last year on a high with a significant proportion expressing their positivity towards the sector’s future and having helped many more onto and up the property ladder.

Davies adds, it is clear there will be challenges ahead in 2020.

The FCA’s recent changes to execution-only sales and the punitive tax changes on buy-to-let landlords will continue to change the shape of the market, he said.

However, it would appear that the new government has helped to boost consumer confidence and Imla has predicted gross mortgage lending will rise to £268bn this year, 1.4 per cent ahead of last year.


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