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Mortgage confidence drops in Q3, says L&G

Less than half of mortgage advisers think that business will improve in the last quarter of 2009.

Legal & General has found that the majority of mortgage advisers feel less confident about the last three months of 2009 than they did in previous quarters of 2009.

L&G director of housing Stephen Smith says: “Confidence had been relatively stable in the first half of this year but has now taken a small dip – 15 per cent of advisers now feel it will get worse. This may be as a result of the lack lending coming through from banks and building societies.

“Whatever the case, buyer enquiries do not seem to be translating into mortgage sales for brokers, which means that cashflow is challenged.”

L&G also found that the outlook amongst mortgage brokers for the protection market has been dropping slowly all year – in Q1, 62 per cent of advisers thought that their protection sales would improve over the following three months. This was cut to 56 per cent in Q2 and is now down to 49 per cent in Q3.

Smith says: “Selling mortgage-related protection remains challenging which is why many advisers have become more involved with family and business protection.”

L&G also found that the average broker predicts that house purchase will make up 43 per cent of their overall mortgage business, up from 40 per cent in the last quarter, and the highest figure since it started its confidence report in 2008.

Smith says: “So it seems the pendulum is swinging towards house purchase business but this will not gather momentum until housing transactions pick up, funded by an improved flow of good mortgage deals from lenders.”

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