Predicted increase in mortgage popularity

14 December 2009

Written by Steve Olejnik

Mortgages for business and other purposes are expected to be increasingly popular in the forth quarter of the year.

Paragon Mortgages' Financial Adviser Confidence Tracker revealed that financial advisers are expecting strengthening levels in mortgages.

Some 55 per cent of brokers are expecting an increase in business while eight per cent are predicting a drop.

Advisers predict they will do 6.7 per cent more business in the final three months of the year - the third quarter in a row to see an increase.

John Heron, Paragon Mortgages managing director, said: "We are seeing some easing of mortgage criteria in the owner-occupied market, with less stringent LTVs and fees."

He added that purchase levels are still at historical lows but the number of next time buyers is increasing.

In April 2009 the Bank of England reported that gross mortgage lending had fallen to its lowest level since March 2001 but that lenders expected to see an increase in mortgage availability in the 2009 Q1 Credit Conditions Survey.

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