Brokers predict business increase this quarter

FACT, a panel-based survey of mortgage brokers, found that on average, advisers expect to do 7.1% more business in Q1 compared to Q4 2009.

A majority (58%) expect to see an increase in business in Q1 compared to Q4 last year while only 34% expect business levels to remain stagnant and just 8% expect falling business levels.

This is the fourth consecutive quarter that brokers have predicted an increase in mortgage business. It follows a negative 2008 when intermediaries overwhelmingly predicted contracting levels of business.

John Heron, managing director of Paragon Mortgages, said he hoped that this confidence would continue but said the market will not return to normality until the wholesale funding markets reopen.

He said: "This is particularly the case in the buy-to-let sector, where just two lenders dominate current levels of business and landlords suffer from a dearth of available mortgage products."