Financial advisers’ confidence in the mortgage market is at an all time high, despite the succession of rate hikes since last August, research by Paragon Mortgages has revealed.
Paragon’s index, based on the average number of mortgages introduced in the previous three months and the average expected change over the next three months, has been rising steadily since the start of 2006, peaking in the first half of this year.
The bullish mood of advisers is understandable considering the average number of mortgages being introduced by financial advisers is up 17% on the same time last year.
Advisers expect this growth to be sustained, predicting an average increase in mortgage business of 6.4% over the next three months.
John Heron, managing director of Paragon Mortgages, says: “The mortgage market has experienced rapid growth over the past 18 months and remains robust.
“The first half of 2007 has seen continued strong activity across all sectors of the mortgage market. The market also remains fairly risk averse with only 7% of all mortgages handled by financial advisers being subprime.
“Despite an almost certain further rate hike in July, brokers remain confident in continued high levels of demand for mortgages – in particular from the private rented sector, where higher interest rates mean increased tenant demand.
“Landlords know this and many are continuing to invest and seek mortgage advice from brokers.”