Mortgage brokers not so gloomy
Prior to today’s part nationalisation of Royal Bank of Scotland, HBOS and Lloyds TSB, the Intermediary Mortgages Lenders’ Association (IMLA) had reported a slight improvement in its members’ expectations.
According to an IMLA poll of 486 intermediaries, mortgage brokers expect volumes to decline by 2.3% for first-time buyers over the next two months.
In the case of remortgagers, volume is expected to fall by 0.4% in the run-up to Christmas.
By contrast, in May this year a similar poll revealed that brokers expected business from first-time buyers to fall by almost 5% in the two months to the end of July, and home mover volumes to be down by 3.6%.
IMLA director, Peter Williams, points out that the survey results were obtained before the latest volatility in international markets.
However, he is optimistic that they represent a glimmer of hope and that confidence among brokers is slowly returning.
As if to be sure not to overstate the case, Mr Williams also referred to the Bank of England’s Credit Conditions survey, which warned that lending would become tighter still during the fourth quarter of 2008.
Meanwhile, the Treasury has today stated that rescued banks, now part-nationalised, will be expected to increase mortgage lending to 2007 levels, over the next three years.