Brokers are becoming more confident about the future prospects of the intermediary sector, with over a third forecasting an increase in business volume and half reporting improving market conditions, according to the Intermediary Mortgage Lenders Association (IMLA).
Research from the specialist trade body indicates that 34% of intermediaries believe standard mortgage business levels will improve during the fourth quarter of the year, with 26% expecting business levels to increase between 3% and 7%, and 8% forecasting business growth of over 7%.
Meanwhile, 64% expect business levels to remain stable during the period, with 2% expecting business to fall.
In terms of business type, intermediaries forecast that buy-to-let and refinancing will fuel the increase in business levels expected during the fourth quarter. Half of intermediaries forecast growing levels of buy-to-let business during the period, with 46% expecting remortgage activity to grow. Brokers also predicted an increase in next-time buyers (44%), although only a third thought first-time buyer business would increase.
49% of intermediaries reported that mortgage market conditions improved during the third quarter, compared to 14% who thought that conditions in the sector worsened. The remaining 37% said that conditions remained unchanged.
John Heron, IMLA chairman, said: “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
