Mortgage brokers expect business to increase as buyers' confidence rises

The number of borrowers applying for mortgages is expected to keep on rising as confidence returns to the UK housing market.

That is the picture painted by the latest Paragon Mortgages' Financial Adviser Confidence Tracker FACT, which shows that a majority of brokers expect to do more business in 2010 than they did last year.

Indeed, compared to the eight per cent of the brokers and intermediaries polled for the study who predicted mortgage interest will fall, 58 per cent stated that they expected to find themselves increasingly busy over the coming months, thanks partly to low interest rates, growing confidence and the return of affordable products to the market.

"As house prices seem to have turned the corner, buyer confidence has increased and we have seen a slight tick up in mortgage approvals in recent months," said John Heron, Paragon Mortgages' managing director.

He added, however, that borrowing rates remain "low compared to the historical average and the market is nowhere near back to normal yet".

Earlier this month, the Council of Mortgage Lenders CML reported a rise in buy-to-let lending for the final three quarters of 2009.

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2010-02-17 13:43:17 © Moneyextra.com