View more on these topics

Endowment mortgage sale slump goes on

Endowments now account for less than one in 10 of all mortgages arranged, according to the latest research by Paragon Mortgages.

In its quarterly survey, financial adviser confidence tracking index (FACT) – identifying trends and confidence levels in the mortgage market – the sub-prime lender found that the number of mortgages arranged by financial advisers fell by 5 per cent in the summer.

Discount mortgages are the most popular by interest type. Fixed- and capped-rate mortgages have maintained a 39 per cent market share. Repayment mortgages now account for 54 per cent of the market in the face of the decline in endowments.

The survey also shows financial advisers are expecting to improve their levels of business by 4.7 per cent in the final quarter of the year.

Advisers are finding changes in reasons why customers are remortgaging. Remortgaging to finance home improvements has fallen to 21 per cent from 23 per cent.

Financing second property remortgages has risen to 13 per cent from 10 per cent.

Paragon managing director John Heron says: “Borrowers are showing both caution and sophistication and this suggests that the days of the extremes of boom and bust in the housing market should now be behind us.”

Recommended

Portman pull TESSA penalty

Portman Building Society is withdrawing the transfer penalties on all its variable interest rate TESSA products. The move follows recent concern from the Banking Code Standards Board on transfer penalties. As a result Portman is withdrawing the 180 days loss of interest penalty for customers closing or transferring their variable rate TESSA. Portman Group Communications […]

Waiting for the rally to take flight

Every investor wants to know when markets are going to rally. Until now, analysts have tended to fall back on the “It&#39ll be all right in the fourth quarter” response. But sentiment has, if anything, worsened in recent weeks.The challenge for international portfolio managers is to make the most of the opportunities that do exist. […]

Aberdeen Zeros In On New Structure

Aberdeen Investment Trusts has extended the term of its preferred income trust by changing the structure and issuing new shares in the trust.The trust will now have a proportion of European fixed interest securities, including corporate bonds, in addition to its original focus on the UK fixed interest securities.The Preferred Income Trust is likely to […]

Is it all over for past performance?

Does past performance have a role to play in decision-making? In August, the FSA produced a paper in its occasional series entitled, Past Imperfect? The performance of UK equity managed funds.The paper was timed to coincide with the debate over the use of past performance in advertising and in league tables.It has long been an […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment