Financial advisers' confidence in the mortgage market has hit a five-year low.
The Fact index, which measures advisers' confidence in the mortgage market
fell to 99 in the first quarter of 2000 compared with 113.1 in the first
quarter of 1999 and 113.9 in Q1 1998.
The quarterly report by Paragon Mortgages also reveals that a property
shortage is the main reason for the sharp rise in house prices.
The market share of endowment mortgages is continuing to fall and is at 17
per cent of mortgages sold in the last six months. Repayment mortgages now
account for half the market. Discount mortgages have gained in popularity
against fixed and capped products.
The survey is designed to track the confidence of the mortgage industry as
reflected in the attitudes of financial advisers, brokers and other
professionals in the business.
Paragon Mortgages managing director John Heron says “For financial
intermediaries to be despondent about the second quarter shows there is no
real activity in the housing market.
“House prices are being driven upward by the lack of property for sale.”