There was a record high in the level of mortgage intermediaries’ confidence in the prospects for the mortgage market in the latest NatWest Intermediary Solutions’ Market Confidence Barometer.
Measuring confidence amongst 450 mortgage intermediaries across six market components, the index score rose 3.2 points from 66.1 in March 2015 to 69.3 in December 2015. This is the highest recorded index score since it began in July 2013.
|Market component||Confidence Barometer score|
|December 2015||Change since March 15|
|Demand for remortgaging||72.3||77.3||+5.0|
|Potential for house prices to rise||66.1||70.7||+4.6|
|Sufficient funding from lenders across all LTVs||72.4||77.6||+5.2|
|Adequate supply of properties in your local area||58.7||55.1||-3.6|
|First-time buyer affordability||57.9||61.3||+3.4|
|Homeowners having sufficient equity in their existing properties to move||69.4||74.0||+4.6|
The survey, conducted in December 2015 amongst 450 intermediaries, measured the degree of confidence they had for six key market components. Brokers were asked to rate each component out of 100, with a score of over 50 indicating a positive view and a score of below 50 indicating a negative outlook.
Sufficient funding from lenders across all LTVs saw the greatest increase in confidence levels rising 5.2 points to a score of 77.6, its highest ever score.
Confidence in Demand for remortgaging rose 5.0 points to a score of 77.3 – again its highest ever score.
Meanwhile, Homeowners having sufficient equity in their existing properties to move and Potential for house prices to rise both rose 4.6 points to 74.0 and 70.7 respectively.
In addition, confidence in First-time buyer affordability went up by 3.4 points to a score of 61.3.
The only component that has seen a dent in confidence was for an Adequate supply of properties in your local area which fell by 3.6 points to 55.1, although tit still remains in positive territory.
Graham Felstead, head of NatWest Intermediary Solutions, said: “The continued sunny outlook for the residential mortgage market has certainly been underlined by our latest survey with four out of the six components recording their highest ever broker confidence scores.
“It appears that mortgage brokers have high expectations for remortgaging and have great confidence that lenders will be able to offer funding to their customers. And it appears that they are pretty upbeat about the affordability prospects for first-time buyers.
“The fluidity of the market is, to a great degree, dependent on both the anticipation that house prices will rise and that homeowners have sufficient equity in their current properties. It’s telling that confidence in both of these measures has risen, indicating that brokers believe homeowners have the capability to move and, consequently, creating a demand for mortgages. The only real concern that brokers have is over the supply of suitable properties for people to buy which could inhibit some market growth.
“2016 is set to be another good year for the mortgage market and we will continue to place heavy emphasis on growing our broker relationships, maintaining an attractive and wide-ranging set of mortgage products and providing a first class service.”