Record highs for intermediary market confidence in Q4 2019
Intermediaries were more confident about the outlook of the mortgage market in Q4 2019 than at any other point during the year, the Intermediary Mortgage Lenders Association Mortgage Market Tracker found.
According to the research, 93% of mortgage intermediaries were confident about the outlook for the mortgage industry heading into 2020.
Kate Davies, executive director of the Intermediary Mortgage Lenders Association, said: “The last few years have certainly tested the resilience of the mortgage market.
“Amidst significant political turbulence, intermediaries have faced the challenge of disintermediation, diminishing consumer confidence and uncertainty surrounding what may replace the Help to Buy scheme as it is gradually wound down.
“Despite that, they ended last year on a high with a significant proportion expressing their positivity towards the sector’s future and having helped many more onto and up the property ladder.
“It’s clear there will be challenges ahead in 2020. The FCA’s recent changes to execution-only sales and the punitive tax changes on buy-to-let landlords will continue to change the shape of the market.
“However, it would appear that the new government has helped to boost consumer confidence and IMLA has predicted gross mortgage lending will rise to £268bn this year, 1.4% ahead of last year.”
Some 55% of decisions in principles (DIPs) through advisers resulted in completion – an increase of 7% from the previous quarter.
Gross lending on all mortgages has increased each quarter since Q1 2019, reaching £70.9bn in Q4 2019, according to the Bank of England.