The research, undertaken at the end of 2004, reported that the average number of loans per quarter had increased from 26.8 in the third quarter to 27.8 in the final quarter.
Brokers also expect business volumes to increase 0.9 per cent during quarter one in 2005. The proportion of remortgage business written by advisers increased from 50 per cent a year ago to a current level of 56 per cent.
The number of fixed rates mortgages sold declined from 36 per cent to 32 per cent mirroring a widespread belief that interest rates may have peaked. John Heron, managing director of Paragon said: “Fixed rates comprise almost a third of home loans but that means more than two-thirds are variable. “The majority of borrowers clearly prefer the greater flexibility of a variable rate loan and don’t think that interest rates are set to rise much more, if at all.” Brokers also reported a rise in the average commission earned in respect of each mortgage introduced.
This rose by £17 or 5 per cent from £332 to £349. Not surprisingly, the UK’s largest mortgage lenders were the principal source of these commissions, with Halifax, Abbey and Nationwide topping the table.
“Financial advisers and brokers remain an important source of mortgage business for the lenders, and they also help borrowers find exactly the right loan to meet their personal needs.
“While business has been somewhat volatile over the past year they are still seeing healthy business levels and, indeed, are enjoying rising commissions on the business they introduce,” concluded Heron.
Andrew Seymour, chairman of Optoma, commented: “The period immediately following regulation was extremely slow but there is no doubt that there are very definite signs of recovery, helped along by some of the competitive deals lenders have recently released.”
