L&G brokers report a return to confidence

Brokers are beginning to feel more confident about business prospects over the next three months, the latest data from Legal & General reveals.

The L&G Adviser Confidence Index for Q4 shows that 27% of brokers expect business to get better over the next quarter, compared to 21% in Q3.

But house purchase mortgages continue to be scarce, with 71% of brokers saying these won’t represent more than of their mortgage business over the next three months.

Some 19% of brokers say they will mostly be dealing in remortgages.

Stephen Smith, director of housing at L&G, says: “At last after a year of falling adviser confidence our data shows a slight upturn in sentiment.

“The dramatic cuts in the bank base rate have played a part in the newfound confidence but it is only significant if it is reflected in consumer behaviour.”

He adds: “The vast majority of advisers are predicting a further base rate cut next month, with half of them foreseeing a reduction from 3% to 2.5%. Hopefully this will buoy confidence further.”