Consumers are going out of their way to take mortgage advice with business being placed through...
Consumers are going out of their way to take mortgage advice with business being placed through financial advisers steadily increasing since 2000.
The finding comes from the Paragon Mortgages Financial Adviser Confidence Tracking (FACT) index published today.
Mortgage business arranged by financial advisers is 11% higher than a year ago and almost a fifth higher than two years ago. This bucks the trend between 1997 and 2000 when mortgage business placed through advisors spiralled downwards.
In the first quarter Paragon found one in ten mortgages arranged by financial advisers was a Buy to Let, and 39% of these were to first time investor landlords. In the last three months however, the number of newcomers to Buy to Let fell marginally from 42% to 39%.
Remortgages for short term gain have fallen steadily for four years, slipping from 17.2% of all remortgages in March 1998 to 4.5% in March 2002.
For the first time in four years, advisers saw a decline in capital and interest mortgages from 71% to 68%. Most of the fall was accounted for by a rise in interest only mortgages from 9% to 11%.
John Heron, Managing Director of Paragon Mortgages commented: "The Paragon FACT index is proving to be a consistently accurate forecast of trends in the mortgage market as a whole. It has been especially interesting to watch the trend towards more business being placed through financial advisers since 2000. This suggests a public that is confident but likes to take full advantage of professional advice."
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Short-term noise or something sinister?