Intermediaries are positive about the possibilities for future mortgage lending in the coming year; the latest quarterly intermediary survey has shown.
On average, growth in overall mortgage business of six per cent is expected in the fourth quarter of this year compared to the third quarter.
This marks a slight increase on estimates made in the second quarter when growth of five per cent was anticipated, according to Paragon Mortgages.
Positivity also exists in the buy to let market as advisors expect to see an increase of three per cent in activity during the next 12 months – a figure unchanged from quarter two of 2014.
Some 56 per cent of intermediaries expect their levels of buy to let business to remain stable during the next year while 40 per cent expect to see an increase in this type of activity.
Nearly one in five intermediaries also expect an increase of six per cent or more, showcasing the positivity that is currently surrounding the sector.
Rental demand was identified as the most important factor in determining the levels of change in buy to let activity by 69 per cent of those surveyed.
Meanwhile 65 per cent said property prices would have an impact and 64 per cent identified an interest rate increase as a potential game changer for current market predictions.
“It is positive to see that average expected levels of mortgage business, both general and buy to let, have increased since the previous quarter,” said Paragon Mortgages’ director of underwriting Paul Clampin.
“Demand from tenants continues to remain high and is likely to do so over the foreseeable future as more people move into the private rented sector.
“Therefore, this is likely to have a positive impact on intermediaries’ expected levels of buy to let business going forward.”
To see the most recent prediction on the future of the Buy to Let market please read our last prediction from 2014.