Mortgage IFAs still lack confidence, L&G poll shows

  • Story by: Emma Ann Hughes
  • Magazine: FTAdviser
  • Published Thursday , December 10, 2009

Mortgage brokers' confidence has been declining all year but there could be good news just around the corner, according to Stephen Smith, director of housing of Legal & General.

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He said Legal & General's survey of appointed representatives shows that 42 per cent of them believe business in the next quarter will be flat – broadly consistent with the previous surveys in the second and third quarter.

About a quarter (23 per cent) of advisers believe that next quarter will be worse, and this figure has in fact risen from 15 per cent in the third quarter and 6 per cent in the second quarter of the year.

Mr Smith said: "This isn't really surprising, though, considering that this period covers the year-end when volumes are traditionally down, so I would call this realistic rather than pessimistic. 

"However, we believe that there are plenty of things to be positive about, what with house prices showing a mini recovery, absent lenders potentially looking to come back into the market and more products at higher loan-to-values.

"In addition, there is a lot of interest in the commercial market, the buy-to-let market is showing signs of growth for the first time in a long time, and house builders such as Persimmon are generally quite bullish.

"Our message to brokers is 'keep your chins up or you might not see the business that is out there.'"