Broker confidence reaches record level

Sarah Davidson

January 20, 2016

Mortgage intermediaries’ confidence about the prospects for the mortgage market has reached a record level in the latest NatWest Intermediary Solutions’ market confidence barometer.

Sufficient funding from lenders across all loan-to-values saw the greatest increase in confidence levels rising 5.2 points to a score of 77.6, its highest ever score.

Confidence in demand for remortgaging rose 5.0 points to a score of 77.3 – again its highest ever score.

Homeowners having sufficient equity in their existing properties to move and potential for house prices to rise both rose 4.6 points to 74.0 and 70.7 respectively.

Confidence in first-time buyer affordability went up by 3.4 points to a score of 61.3.

The only component that saw a dent in confidence was for an adequate supply of properties in brokers’ local areas which fell by 3.6 points to 55.1.

Graham Felstead, head of NatWest Intermediary Solutions, said: “The fluidity of the market is, to a great degree, dependent on both the anticipation that house prices will rise and that homeowners have sufficient equity in their current properties.

“It’s telling that confidence in both of these measures has risen, indicating that brokers believe homeowners have the capability to move and, consequently, creating a demand for mortgages.

“The only real concern that brokers have is over the supply of suitable properties for people to buy which could inhibit some market growth.”

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