The survey measures sentiment by taking the mean ratings for four key questions relating to broker expectations.
The index revealed that sentiment is now at its lowest ever point, standing at –0.04 down from 0.49 in September 2004.
December was also the first time that the index had reported a negative result for brokers’ anticipation of future business volumes, with a score of –0.04.
The results are in marked contrast to December 2003 when the result was a positive 1.97.
Over half of the respondents (60 per cent) specialise only in mortgages, while around 25 per cent are IFAs who also advised on mortgages.
Fixed, discounted repayment products came out as most popular among brokers while euro-mortgages and pension-linked were revealed as the least likely mortgages to be recommended.
As in the previous iteration of the survey for Quarter 3 2004, the Halifax, Nationwide and Northern Rock were the most advised on providers. Bristol & West, Alliance & Leicester, and NatWest all saw an increase in this quarter.
Tony Corrigan, managing director of Manchester-based Classic Network Solutions, urged brokers to take a longer-term view.
“With the introduction of regulation and the interest rate rise there were bound to be some tough times.
“But there are some very exciting prospects on the horizons, including the relaxation of the pension rules in relation SIPPs, which should regenerate the buy-to-let market,” he said.
