Mortgage intermediaries’ confidence about the prospects for the mortgage market has risen significantly, according to the latest results from NatWest Intermediary Solutions’ Mortgage Intermediary Market Confidence Barometer.
Measuring confidence across six market components, the index score rose 3.9 points from 62.2 in July 2014 to 66.1 in March 2015. Current sentiment is marginally below the level achieved in December 2013.
The survey, conducted in March 2015 amongst 536 intermediaries, measured the degree of confidence they had for six key market components. Brokers were asked to rate each component out of 100, with a score of over 50 indicating a positive view whereas a score of under 50 indicates a negative outlook.
Sufficient funding from lenders across all LTVs saw the greatest increase and achieved its highest ever index score reflecting the abundance of mortgage deals currently on the market from lenders.
Furthermore, confidence about first-time buyer affordability has risen by 5.8 points since last July, despite some commentators casting doubt on this.
Remortgaging seems to be viewed in a similarly optimistic vein. Brokers’ confidence in Demand for remortgaging has gone up by 4.7 points to 72.3, the highest score achieved so far in the index.
The prospects are encouraging for those looking to move and purchase a new property. Homeowners having sufficient equity in their existing properties to move also rose to its highest ever index level increasing by 4.3 points on July 2014 to 69.4.
NatWest said it appears to be a brighter picture also for an Adequate supply of properties in your local area as mortgage advisers confidence has risen 3.2 points to 58.7.
Having witnessed an increase in house prices in many parts of the UK in the last nine months, confidence in the Potential for house prices to rise has seen the smallest increase. But it still went up 0.4 points to 66.1.
Graham Felstead, head of NatWest Intermediary Solutions said: “It appears that the feel-good factor is definitely back in the market. The last 12 months have continued to remain buoyant despite the introduction of the MMR requirements and this is reflected by the fact that confidence in all the market components that we measure in this index have seen an increase. It is particularly interesting to see the marked improvement in the optimism for first-time buyer affordability and the demand for remortgaging.
“The improvement in perceptions about first-time buyer affordability shows that brokers and their customers have acclimatised to the post-MMR environment and that the continuation of Government schemes and lenders support at the higher LTV end of the market has restored confidence. From our own experience, 2015 has so far carried on where 2014 left off with very high levels of intermediary mortgages being written.”