Over half of brokers believe interest rate rise would increase business
Over half of brokers (51%) believe an interest rate rise would increase business, research from Legal & General Mortgage Club has revealed.
The research shows potential brokers see for a rise in new business enquiries after a near-term rate rise as consumers look to secure favourable rates with a fixed-term mortgage ahead of any further increase by the Bank of England.
Over a third of brokers (35%) expected a rise to have no impact on their business and a smaller number (14.5%) believe a rise would decrease their business activity over the next year.
Jeremy Duncombe (pictured), director at Legal & General Mortgage Club, said: “With speculation over an interest rate rise being rife, our research shows that many brokers recognise the opportunity this brings for good quality, professional financial advice in the coming months.
“If rates increase for the first time in a decade, advisers will clearly have a chance to show their value, helping clients to find a good deal on their mortgage before the base rate rises again.”
In regards to the mortgage market, 61% of brokers expect gross mortgage lending to reach between £240-260bn in 2018, and a further 15% believing it will reach over £260bn.
Duncombe added: “Elsewhere, the mood remains positive amongst brokers. This positivity is a reflection of a market that remains robust in the face of Brexit uncertainty and in which the choices for borrowers continue to grow.
“New lenders, increased competition, good availability of funding and higher LTVs mean lenders are still very willing to lend and most brokers expect to see this continue into 2018.”
This survey was carried out at the Mortgage Club Live Conference.