Brokers confident about next year

Research by Mortgage Brain shows 47% of intermediaries believe business levels will increase in 2006.

Just 35% thought the same to be true when asked in April this year.

The survey, carried out among Mortgage Brain’s directly authorised and appointed representatives, demonstrates a rise in confidence in next year’s prospects.

Only 10% of those surveyed believe business for 2006 will decline, compared to 30% in April.

One year on from the introduction of regulation, intermediaries’ views on whether it has proved to be positive have also declined.

When asked in April, 75% said regulation would be a good thing for the mortgage advice industry. When asked again this month, intermediaries seemed less encouraged, with 70% still positive.

Mark Lofthouse, chief executive officer of Mortgage Brain, says: “Although the introduction of regulation has put more pressure on intermediaries and initially increased their workload, the results of our follow-up survey show encouraging signs that confidence is much higher and that business levels will be on the rise in 2006.

“The fact that fewer intermediaries believe the introduction of regulation was good for the industry might be down to the fact that the jury is still out on whether the increased cost of regulation has been matched by the anticipated benefits.”

The survey has also revealed an increase in the use of technology and mortgage sourcing systems.

Some 80% of those surveyed this month say compliance has increased their use of software within the everyday working environment, compared to 74% in April.