Two- thirds of brokers not confident for next quarter, says L&G
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Around two-thirds of mortgage brokers are not expecting business to improve in the next three months, says Legal & General.
The figure is lower than last quarter showing brokers are more pessimistic with only one-third actively thinking things will get better.
Legal & General also reveals house purchases are expected to reach their highest level of proportion of business with 51% of brokers’ sales in the next three months.
Yet remortgages are forecast to be about 31% - the lowest level since the start of 2008.
And Stephen Smith, director of housing at Legal & General, says 14% of advisors now expect an interest rate rise in the next three months.
He adds: “The Bank of England believes that the recent rise in inflation is a temporary spike but it must be said that there is now more lingering doubt around how quickly inflation will drop.
“Some commentators have been flagging the inevitability of increases in the base rate for some time and the recently published inflation figures bring this sharply into focus.”
But 42% of advisors believe protection sales will increase over the coming quarter.
The Q1 2010 ABI Savings and Protection survey shows life insurance as the most likely cover to take out with 13% followed by critical illness cover at 8%.
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Readers' comments (3)
Steve Cornish | 29 Jun 2010 2:48 pm
With the recent reports suggesting that the BBR might not rise above 1% before the end of 2012. There is likely to be a small scattering of remortgage business in the next 30 months.
With the lack 90% products for the first time buyers market, there is likely to be little movement in the property market………………..
We are doomed…………..!!
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Anonymous | 29 Jun 2010 6:37 pm
" says 14% of advisors now expect an interest rate rise in the next three months."
Does this mean 86% think the rates will remain unchanged, and therefore the remortgage market will be slow to non existant?
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Ancient Wisdom...is a mortgage broker in N3. | 29 Jun 2010 7:07 pm
With more property coming on the market, buyers have a wider choice and hopefully enquiries pick up.
However, as soon as more indices start reporting house price falls in consecutive months, fewer will be interested in buying and will put it off as oversupply rears its fateful head.
Estate agents are already reporting fewer buyers on their books, and rising stock levels. Im my area, there are houses already coming down in price....and still unsold.
Time to pack up shop for us - the crash is coming.
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