Take advantage of business optimism

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DAVID FINLAY, INTERMEDIARY BUSINESS DIRECTOR, BARCLAYS

January saw two pieces of overwhelmingly positive news from brokers via their distribution partners.

Research from The Mortgage Alliance revealed that 86% of the respondents surveyed expect business volumes to rise in 2011.

Legal & General’s Advisor Confidence Index for Q4 2010 also indicated that 85% of advisers predict business will improve or at least stay the same over the next three months.

Great news, but it’s important not to get too carried away.

The current market provides us with a heady balancing act of opportunities and challenges and we all need to find our own equilibrium to convert this much needed optimism into real business.

External influences continue to circle the market and none more so than interest rates.

L&G noted that 96% of those polled predicted the Bank of England base rate would stay unchanged in 2011, with the rest predicting it will increase by 0.25%.

Presumably these responses were collated before December’s unexpectedly high inflation rate. They might reflect differently now as the Bank is under even more pressure to lift rates.

Which leads me to my favourite topic at the moment: remortgaging.

With the future of interest rates in the balance it could be time to fulfil this optimism by capitalising on the remortgage market.

Making the most of any business opportunity today will help breed even more confidence for the rest of the year.