Brokers who conducted buy-to-let mortgage business with CHL in Quarter 2 2008 were asked for their forecasts on their own business levels in 2008 compared to the previous year. Respondents were asked to mark where they expected their business to be at the end of the year on a scale from one to three with one representing (lower), two (the same) and three (higher).
Quarter 2 results showed brokers were much more pessimistic about the business levels they will conduct this year with the average score at 1.17. This was way down on Quarter 1 2008 and Quarter 2 2007 where the results were 2.20 and 2.35 respectively.
Bob Young, managing director of CHL Mortgages, commented: “The results of this latest survey of CHL’s broker partners and customers show the difficult circumstances that many intermediaries and their clients are facing. With housing transactions at particularly low levels historically, brokers are clearly looking at 2008 as a year in which business volumes will be significantly lower than last year. The liquidity crisis continues to impact on all firms and it looks unlikely we will see more positive results in our future surveys throughout the rest of the year.
“There is however, a hint of more positive news from buy-to-let landlords who now seem much more inclined to look at further rental property purchases throughout 2008. With house prices continuing to fall across the UK and rental yield having increased due to improved tenant demand, many professional portfolio landlords may well be able to take advantage of these market conditions. Buy-to-let remains an attractive proposition for those who are able to find funding, meet their mortgage commitments and take a long-term view. CHL Mortgages will have a new buy-to-let product range available later in the year and we look forward to working with our broker partners and their clients in meeting their aims and expectations in this vitally important sector.”
