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Monday 08th of June 2009
June 5, 2009

Mortgage brokers cautiously optimistic


by Gill Montia
Mortgage brokers cautiously optimistic

Mortgage brokers are cautiously optimistic about levels of business this summer.

According to research from the Intermediary Mortgage Lenders’ Association (IMLA), brokers expect to handle slightly more business for first-time buyers and home movers over the next two months.

The forecast is the first to predict positive growth for 18 months and comes alongside signs of increased activity from both types of borrower.

In May last year, IMLA members said they expected business from first-time buyers to decline by almost 5% and from home movers by over 3%.

The body has also reported that the average numbers of mortgages handled per office per month fell from 16 in July 2008 to 10 in May 2009.

However, intermediaries are now predicting growth of 0.3% in standard prime loans, while volumes of sub-prime, self-cert and other types of mortgage are expected to continue to decline.

The Association’s executive director, Peter Williams, comments: “While the level of growth is small, at less than 1%, this is an important signal that confidence is beginning to pick up. There is a modest improvement in mortgage availability and estate agents are starting to report a rise in property sales.”

He adds: “Further work still needs to be done to improve availability of mortgages in the sector, however, for example by way of government initiatives to support specialist lenders and the full spectrum of building societies.”

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Tags: , , , IMLA, Intermediary Mortgage Lenders Association

 

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1 Comment »

  1. I would have thought there would be a natural increase at this time of year anyway, and 0.3% in minimal. So I don’t see good news.

    Comment by M Edwards — June 6, 2009 @ 10:04 pm

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