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Brokers optimistic base rate will drive up remortgage enquiries

by: Samantha Partington
  • 08/09/2014
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Brokers are optimistic that speculation about a rise in the Bank of England base rate will create a surge in more remortgage enquiries from customers, survey results have shown.

In a poll carried out by NatWest, 82% of the 500 brokers surveyed said the rate rumours would push up the level of mortgage switching enquiries.

Meanwhile 58% responded positively when asked about the outlook for the rest of the year stating they expected business in their sectors to increase in H2.

Over half of respondents disagreed with the notion that a housing bubble had been created; 56% disagreed with the view while 34% supported the theory.

The majority of the brokers surveyed said they had seen an uplift in buy-to-let sales in the past three months and were expecting to see this business increase the next half of the year.

On Friday, the Treasury revealed its proposals on how the UK mortgage market would need to change in order to meet the requirements of the EU mortgage credit directive.

‘Accidental landlords’ were one borrower type which will become subject to the Financial Conduct Authority’s regulation.

These landlords will be anyone who has had a prior association with the property, inherited it or been unable to sell it and decides to let it out.

While this group of buy-to-let customers are considered to make up only a small proportion of property investors the effects of the decision on business is as yet unknown.

Mortgage Solutions asked the industry for its reactions and while most said they thought the impact would be minimal there were shared concerns that this encroachment of regulation on buy-to-let would not be an isolated event.

 

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