The Association of Mortgage Intermediaries is predicting a flat mortgage market for 2011 in its Quarterly Economic Bulletin.
The bulletin predicts similar levels of housing transactions and lending levels for 2011 as 2010.
It says despite higher LTV mortgages being offered, the proportion of borrowers who were first-time buyers fell in 2010. But it predicts 2011 will see increased demand for remortgage business because of uncertainty over interest rates.
Robert Sinclair, director of AMI, says: “We expect housing transactions, house prices and lending levels to match last year. However the second half of the year has potential for an upside if government decides it needs to encourage more support for first-time buyers.
“The bright spots will be the buy-to-let sector and a pick up in re-mortgaging, for those who can meet lenders strict criteria.”