L&G: Brokers will be 60pc of market in 2014
Mortgage professionals attending the Legal & General Mortgage Club Forum were in bullish mood on prospects for intermediated mortgage sales next year.
Attendees were asked to share views on a number of topics including mortgage business volumes, new build lending, Help to Buy, Buy-to-Let lending, protection business, gross mortgage lending and prospects for intermediary share of the market in 2014.
All of those questioned expected to write more mortgage business in 2013 compared to 2012.
Looking forward to 2014, 82% expect more buy-to-let business and 65% of respondents expect to write more New Build business. 52% suggested that Help to Buy 2 was a good idea with 35% unsure.
Some 60% think that the intermediary share of mortgage market in 2014 will top 60%.
Even more optimistically 63% believe that gross lending figures will exceed £170bn and 25% think it will climb to over £180bn.
On the issue of protection, 43% said they felt that conversion rates for protection business had dropped as volumes of mortgage business have increased.
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “Clearly there is a lot of optimism around the mortgage market at the moment.
“The economy is improving and confidence is returning. This combination of factors paints a more appealing picture for mortgage professionals and for intermediaries in particular. Those firms and individuals that are prepared and have the right resources in place will be well positioned to take advantage.
“New build, buy-to-let, first time buyers and protection are all areas we expect to see greater volumes of business. It seems that 2014 is shaping up to be a good year for the intermediary community.”
The event brings together a mix of ARs, DAs, Principals and business writers from a cross-section of the mortgage market. It is the first hosted by Legal & General Mortgage Club and is an educational forum designed to bring together views from across the industry.