Brokers confident about coming year, says Paragon

Brokers’ exectations for growth in mortgage business over the next year remain strong despite interest rate rises, research by Paragon Mortgages reveals.

On average, brokers predict that business will increase by more than 6% over the next year, which is the highest expected rise since 1999.

Nearly 70% of the financial advisers questioned said that recent interest rate hikes would have either no effect, or a positive effect on their predictions for business levels over the next year.

John Heron, managing director of Paragon Mortgages, says: “Interest rate hikes may have cooled the housing market slightly, but there is still a healthy appetite for bricks and mortar.

“Financial advisers are the best source of advice for people looking to purchase a mortgage and in an environment of rising interest rates, it is more important than ever for borrowers to seek out independent expert support to ensure they get the best mortgage for their requirements.”

Buy-to-let landlords are not phased by the series of rate rises over the last year.

In separate research by Paragon Mortgages, 43% of landlords say that they would take no action as a result of rising rates.

However, a further 28% said they would be re-mortgaging, whilst more than 12% said they would be investing in more properties as a result.

Heron adds: “The majority of landlords are under-geared and are well placed to ride out the current wave of interest rate hikes without cause for concern.

“Strong tenant demand is underpinning further property investment.

“Financial advisers play a key role in ensuring that investors get the best product for their needs and their portfolios remain as risk averse as possible.”