Third of brokers expect business levels to rise in Q4

A third of mortgage brokers believe business levels will increase during Q4 of this year, according to research from the Intermediary Mortgage Lenders Association.

The majority of these are expecting a relatively small rise in business levels, with 26% of brokers predicting an increase of between 3% and 7%, and a further 8% predicting growth of more than 7%.

The survey also shows that 64% of intermediaries expect business levels to remain stable in Q4, and just 2% expect business to fall.

Half of respondents believe buy-to-let business will increase during the period, while 46% expect remortgage activity to grow, 44% think next-time buyer business will rise and a third think first-time buyer business will increase.

Meanwhile, 49% of intermediaries reported that mortgage market conditions improved in Q3, compared to 14% who thought that conditions in the sector worsened. The remaining 37% said that conditions remained unchanged.

John Heron, chairman of IMLA, says: “This positive attitude from intermediaries is a reflection of the general improvement seen recently in the mortgage market.

“The pick-up is slow but market conditions are gradually improving, particularly in the buy-to-let and remortgage markets.”

He adds that the research goes against the recent perception that mortgage finance is unavailable, by indicating that good deals are out there and intermediaries are well placed to help find them.

The survey is based on responses from 108 brokers around the country.