Intermediaries reported a fall in the number of mortgages from a peak of over 32 per office in the last quarter of 2003 to 30 per office in quarter two of this year.
The survey also showed brokers had trimmed expectations for business growth next quarter, predicting on average 3.4 per cent more mortgages than this quarter. This compared with expected third quarter growth of 4.5 per cent a year ago and 6 per cent two years ago.
This quarter’s survey reveals a return to favour for fixed rates which rose from 29 per cent to 34 per cent following three quarters of decline. Remortgaging accounted for 51 per cent of mortgages handled by advisers.
John Heron, managing director of Paragon, said: “Almost four in 10 of those who remortgage do so to save money rather than spend it. Those who remortgage in order to fund expenditure are three times more likely to put the money into a long-term property investment.”
John Stewart, director of PMI Independent Financial Advisers, said: “The interest rate rises are making people think twice about buying or refinancing their properties.”
