Intermediaries believe mortgage volumes will continue to decline but at a slower pace over the next twelve months.
A survey of brokers by the Intermediary Mortgage Lenders Association (IMLA) found most believe the market will remain stable or decline to a modest extent, with the average respondent saying mortgage volumes will fall 5.9%.
Brokers in the North, Scotland and Northern Ireland were more pessimistic about the market outlook, while those in the Midlands, West and Wales believe business volumes will hold up.
Peter Williams, executive director of IMLA, comments: “The findings of the survey show intermediaries as realistic but not unduly disheartened. They recognise that mortgage volumes will be lower in the year ahead than they have been in the past and that they need to adjust their business models accordingly – for example relying on technology to a greater extent to handle applications.”
Half the brokers surveyed believe house prices will continue to fall, while 43% expect the market to stabilise in the coming months.
When asked to rate lenders, 60% of brokers rated speed in providing approvals as good or very good, while another 60% rate the helpfulness of lenders as good or very good.
However, lenders received a poor score when it came to taking account of an individual client’s circumstances, with just 20% rating the service as good or better. IMLA says this reflects the difficulty in placing cases with non-standard criteria since the onset of the credit crunch.
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