Intermediaries expect to see a 6 per cent increase in overall mortgage business during the last quarter of this year and are also positive about levels of mortgage business over the next 12 months, according to Paragon Mortgages.
The specialist lender’s third quarter survey - sent to a panel of approximately 200 intermediaries - showed that the 6 per cent increase in expected business from the previous quarter is up from an average predicted quarter-on-quarter increase of 5 per cent in the second quarter.
In terms of buy-to-let mortgage business, advisers expect to see a 3 per cent average uplift over the next 12 months, unchanged from the level recorded in Q2.
Around 56 per cent of intermediaries surveyed in Q3 expect their levels of buy-to-let mortgage business to remain stable over the next year. In comparison, 40 per cent said they expect to do more buy-to-let business, with 19 per cent expecting there to be an increase of 6 per cent or more.
The majority (69 per cent) of intermediaries surveyed identified rental demand as the most important factor for determining the expected change in their level of buy-to-let mortgage business over the next 12 months, followed closely by property prices (65 per cent) and interest rates (64 per cent).
Paul Clampin, director of underwriting at Paragon, said: “It is positive to see that average expected levels of mortgage business, both general and buy-to-let, have increased since the previous quarter, particularly following the recent implementation of MMR.
“Demand from tenants continues to remain high and is likely to do so over the foreseeable future as more people move into the private rented sector. Therefore, this is likely to have a positive impact on intermediaries’ expected levels of buy-to-let business going forward.”
peter.walker@ft.com
