View more on these topics

Confidence soars among mortgage advisers

Confidence among specialist financial advisers and mortgage brokers almost rivalled an all-time high at Christmas, reveals the Paragon Mortgages Financial Advisor Confidence Tracking Index.

The Index reached 135.3, only marginally lower than the eight-year high of 135.5 reached in the second quarter of 2002.

Buy-to-let mortgages rose from 9.2% to 10.5%. Of these, 41% were arranged to extend the portfolios of experienced buy-to-let investors.

However, the number of mortgages arranged for landlords entering the market for the first time fell dramatically from 39% to 32%.

John Heron, managing director of Paragon Mortgages, says: “The fact that more experienced landlords are stepping up investment in rental property while fewer novice landlords are entering the market demonstrates the maturity of the buy-to-let market. We also know from other Paragon surveys that professional landlords are buying more modestly priced properties to maximise rental returns.”

Overall, the number of mortgages arranged by financial advisers during the fourth quarter of 2002 was up 4% on the previous quarter. That is 15% more than the number arranged a year ago and 31% more than it was two years ago.

Nearly half of all mortgages arranged by financial advisers were remortgages. This rose from 44% to 47% over the quarter, to reach the highest level for remortgaging for two years.

The proportion of remortgages arranged for short-term gain has been declining since 1998 and the latest quarterly figures confirm that this is a continuing trend.

Heron says: “These figures continue to show that the majority of borrowers are conservative and cautious. On the whole, borrowers are not remortgaging to finance excessive spending.”

Fixed rates saw a surge in popularity, rising from 22% to 25% of all mortgages arranged in one quarter. Discount rates showed a decline in popularity, falling from 39% to 37% and tracker rates experienced a slight decline, down 1% to 29%.

The FACT Index shows financial advisers starting the new year with expectations of a 2.8% rise in mortgage business during the first quarter.

Recommended

New sales manager at xit2

Outsourced processing provider xit2 has appointed a new sales manager to mastermind the company&#39s entry into the packaging sector and other new markets. Mark Hollands has eight years experience of the lending industry, including roles with GMAC-RFC as key account manager for central London, with Bank of Ireland Group and Yorkshire Building Society. Holland says: […]

SPML announces £1bn completions for 2002

Southern Pacific Mortgage Limited has announced record completions in 2002, achieving a total of over £1bn in mortgage lending, doubling the lender&#39s total for 2001. John Prust, SPML&#39s sales and marketing director, says: “This is a magnificent achievement for the company and reflects the hard work and dedication of all the staff, together with the […]

MPLC strengthens its service infrastructure

Sub-prime lender Mortgages PLC has strengthened its systems and infrastructure after record lending in 2002 led to several service issues.Paul Thomas, chief operating officer of Mortgages PLC, says: “We had a record year in 2002. Throughout that time we have been looking at both our systems and infrastructure and have strengthened both.“We&#39re looking to recruit […]

Flood advice from the Association of British Insurers

With many parts of the country experiencing flood warnings, the Association of British Insurers is reminding policyholders not to get bogged down. The ABI advises homeowners to keep up-to-date with the flood situation, through local radio and the Environment Agency&#39s Floodline (0845 988 1188 ). And it says those worried about flood risks should keep […]

Newsletter

News and expert analysis straight to your inbox

Sign up