Brokers overwhelmingly predict rise in business as market continues to recover.By Tony Wornell
A study from BVA BDRC has found that the typical mortgage broker placed 17% more cases this year than the previous 12 months. The average number of cases this year grew to 74, an increase of 11 on last year’s figure.
Intermediaries’ confidence has also been growing since the end of last year, reflecting the market’s recovery. 97% of respondents indicated in the study that they expected business to rise, anticipating further improvement in the near future. This compared with 89% at the same point last year and under 80% in 2008. BVA BDRC’s Project Mercury revealed that three-fifths of brokers felt ‘very confident’ about the business outlook for their firms.
If this confidence is well grounded, then intermediaries can look forward to a further rise in the average number of cases placed over the next 12 months, potentially returning to the 80+ cases per annum last seen in early 2008.
Brokers should be aware that the Funding for Lending Scheme mortgage element is coming to an end and is likely to cause a rise in rates. This could stimulate the remortgage market and lead to more opportunities for advisers.