The survey of IFAs charted an average expectation of a 4.2 per cent rise in business levels in Q4, compared to Q3 2006, while a third of brokers believed volumes would grow by over 6 per cent in the period.
Nicola Severn, communications manager of Mortgage Trust, commented: “It is very telling that the Index is at its highest level ever. Notwithstanding the impact of borrowing costs, it seems mortgage activity among advisers remains buoyant. On average, they each arranged 32 mortgages over the third quarter, compared with 29 a year ago and 27 in 2004.”
The expectations of growth came despite many predictions that the Base Rate rises in August and November would dampen activity in the market.
However, Severn added: “Despite the recent increase in interest rates and the impact of affordability constraints on first-timers, the Index suggests people in the industry remain confident that it will continue along its current positive trend.”
Kevin Morgan, managing director of Consilium Financial Planning, agreed the outlook was positive.
“Year-on-year our business is up about 20-25 per cent. It has been busy and we are expecting that to continue for the rest of the year.
“Historically, rates are low and are only going up by 0.25 per cent, rather than the 100 basis points I’ve experienced in the past. However, average borrowing is much higher now so every rise is felt. We’re advising clients to pay off as much as possible so that when rates do rise, the levels of debt will be down.”
