Mortgage brokers pessimistic about the market

The Intermediary Mortgage Index introduced by Platform this weekhas revealed that adviser confidence in the market saw a steady gain from the summer of 2009, but suddenly experienced a significant dip between the second and the third quarters of 2010.

According to the Index, decreasing confidence among brokers is largely due to a reduction in lending in the third quarter of this year.

Nearly 51 per cent of mortgage brokers find it alarming that lenders are offering increasingly more mortgage products without the help of intermediaries.

In addition, the Index shows that there was a downward trend for brokers in remortgage business during the last quarter and that business levels have been hit by hard by the absence of mortgage products for the self-employed, following the Mortgage Market Review.

Lee Gladwell, of Platform, says that this new tracker serves as a forward looking indicator for the mortgage market by letting intermediaries express their thoughts about their experiences with customers. It demonstrates that while broker confidence has experienced a steady growth over the last year, it has recently went down due to several challenges that are not so easy to overcome.

Since most mortgage deals are still arranged via intermediaries, problems that have a negative impact on the market will effect lending across the whole industry.  Thus, lender support for intermediaries is still critical for reviving the economy. With the volatility of economical environment and a broad spectrum of hard-to-grasp loan deals available, many people opt to seek the professional advice provided by brokers.

 


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