The mortgage intermediary market is in an upbeat mood, and advisers expect sales of specialist mortgage products to increase in this quarter. Intermediaries are expecting sub-prime mortgages to rise by an average of 4.9%, with 4.3% more self-certification cases and 2.1% more buy to let.
The figures were revealed by Birmingham Midshire Solutions in its SMART index, tracking confidence and general sentiment of intermediaries in the buy-to-let, self-cert and sub-prime mortgage markets.
Expectations of regulation are also changing. The proportion of intermediaries who believe there will be no effect on their businesses from mortgage regulation has fallen from 30% to 21%, while expectations of a rise in paperwork are growing, 30% of advisers are anticipating more, compared with 18% in the third quarter of 2002.
Michael Bolton, director of mortgages at Birmingham Midshire Solutions, said: ‘The results show intermediaries continue to be bullish about specialist lending growth, especially in sub-prime and self-cert. It is also obvious the majority of intermediaries are getting ready for the effects of mortgage regulation and potential increases in business volumes and paperwork.’
‘Without doubt, more intermediaries will take advantage of online services to free up time to handle any increases in administration,’ he added.
The proportion of intermediaries expecting to see an increase in business as a result of reduced competition, or the elimination of bad advisers from the market, has increased from 24% to 28%.