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Thursday 04th of February 2010
February 3, 2010    

Mortgage brokers upbeat on 2010

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by Gill Montia

Mortgage brokers are feeling upbeat about 2010 and predicting a good year ahead for the UK mortgage market.

Research carried out by Platform (part of Co-operative Financial Services) found that 66% of participants in its Intermediary Outlook Survey are expecting improvements.

Seventy-four per cent of respondents believe UK house prices will rise by up to 5% during 2010 and the same proportion think low interest rates will be around for a while, with the base rate at a maximum of 1% by the end of the year.

On the downside, 50% of those questioned are still concerned about a lack of mortgage funding and 39% expect dual pricing (lenders offering their most competitive rates direct to borrowers) to continue to be a major challenge in the intermediary market.

Platform director, David Tweedy, comments: “The research has shown that intermediaries are confident that the next 12 months will be positive for the market and that the sector is ready to do business.”

Meanwhile, latest figures from the Bank of England show that UK lenders approved an additional £1.2 billion in mortgages in December.

The figure fell below the November total of £1.6 billion and the annual rate of growth slipped to 0.9% (1% in November).

Furthermore December house purchase approvals were down month-on-month for the first time in over a year.

The dip may well relate to the end of the stamp duty holiday in January, but opinions are divided as to whether it signals a more difficult period ahead for the UK housing market.

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Tags: , dual pricing, , intermediary survey, lack of mortgage funding, mortgage funding, , UK mortgage market