Brokers expect busy times ahead
- Published: Tuesday 27 April, 2021
- By: Commercial Trust
New data from a survey conducted by Paragon, a UK lender, has highlighted that mortgage brokers across the UK have high expectations for the year ahead.
Buy to let brokers
Paragon surveyed almost 200 mortgage brokers, 50% were recorded as anticipating higher levels of business for buy to lets when compared to 2020.
21% of those expecting higher levels were predicting a 10% or more increase.
This shows that optimism amongst brokers is building, as at the end of 2020, only 41% were forecasting for more business in the New Year.
A significant driver of this positivity is the demand for buy to let mortgages, with 47% of brokers surveyed stating it is either ‘Very strong’ or ‘Strong’, up from the 44% reported at the end of 2020.
Paragon Bank Managing Director of Mortgages, Richard Rowntree, commented:
“We know that brokers have an excellent grasp of current conditions and can often accurately predict how things will pan out in the coming months so our quarterly Financial Adviser Confidence Tracker survey provides a useful picture of the mortgage market.”
“It’s fantastic to see that such high levels of optimism have been recorded following the challenges of the past year or so and that this is being driven by strong levels of demand. The extension of the Stamp Duty holiday is certainly a driver of that, but it is underpinned by longer-term demand for rental property.”
At Commercial Trust
These sentiments of optimism are felt here at Commercial Trust too where director, Andrew Turner, comments on 2021 so far.
“The pandemic caused a huge amount of disruption in the industry, lenders took time to clear the decks of administrative work which arose and conveyancers had to devise and implement plans to conduct their work safely.
“Beyond the first lockdown, the property industry was able to remain open and so, impetus began to grow.
“The Stamp Duty Land Tax holiday and extension reinvigorated the appeal of purchasing rental properties and, as the benefits of this run through until September, we expect to see maintained momentum throughout the year.”
“There are no guarantees that the easing of lockdown will mean it is the last one we will see, it can only be hoped that the country will remain cautious so another step backwards is not required.”
“Regardless, there is a long journey of economic recovery ahead. The financial circumstances of huge numbers of people have been affected by the pandemic, which will have a direct impact on personal finances.”
“Whilst the government’s new 95% mortgage scheme will help some people off the mark, there will still be large amounts of people it does not, and those who prefer the flexibility of renting.”
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.