Intermediary confidence hits record high

Market confidence among intermediaries is at a record high due to rising prices, strong remortgage demand and healthy lender funding.

The only downside is the lack of adequate supply of properties on the local market.

The positive picture is revealed in the latest NatWest Intermediary Solutions’ Market Confidence Barometer, which measures confidence amongst 450 mortgage intermediaries.

The index score rose 3.2 points from 66.1 in March 2015 to 69.3 in December 2015.

Significant increases in confidence were recorded against five out of the six market components measured.

Confidence in sufficient funding from lenders and demand for remortgaging both saw healthy increases.

Intermediaries were more confident that homeowners had sufficient equity to move, and that house prices will rise higher.

Confidence in first-time buyer affordability also rose, although confidence fell when questioned about the adequate supply of properties.

Graham Felstead, head of NatWest Intermediary Solutions said: “The continued sunny outlook for the residential mortgage market has certainly been underlined by our latest survey with four out of the six components recording their highest ever broker confidence scores.

“It appears that mortgage brokers have high expectations for remortgaging and have great confidence that lenders will be able to offer funding to their customers.

“And it appears that they are pretty upbeat about the affordability prospects for first-time buyers too.”