01 February 2010
Intermediaries predict 2010 will be a positive year for the
mortgage market
Platform’s first ever Intermediary Outlook Survey has today
(February 1) revealed that brokers believe 2010 will be a year of
progression for the mortgage industry and their businesses.
Two thirds of intermediaries (66 per cent) believe that business
will be better this year, in comparison to 2009, buoyed by the
general belief (74 per cent) of the sector that house prices will
rise by up to five per cent in 2010.
The majority of intermediaries (74 per cent) believe that
interest rates will rise by a maximum of 0.5 percentage points to
one per cent by the end of the year.
However intermediaries continue to have concerns. Despite their
otherwise optimistic outlook, the survey has revealed that 50 per
cent of intermediaries continue to be worried about the
availability of funds in 2010, whilst 39 per cent believe that
unfair dual pricing will continue to be a major challenge for the
sector.
The FSA’s Mortgage Market Review Paper is also causing some
concern amongst intermediaries with 12 per cent believing that the
challenges caused by the paper will be great. Over three quarters
(80 per cent) of brokers also believe that despite months of
consultation with the industry the FSA’s recommendations will only
be slightly different to its original plans.
Platform, the intermediary lender of The Co-operative Financial
Services, has launched the Intermediary Outlook Survey to give
intermediaries the opportunity to voice their predictions for the
year ahead.
David Tweedy, Director of Platform, said: “The research has
shown that intermediaries are confident that the next 12 months
will be positive for the market and that the sector is ready to do
business.
“As a lender that listens to the sector we are committed to
regularly engaging with the market to seek its views and concerns.
We believe that the Platform Intermediary Outlook Survey, which
will be regularly revisited, not only gives the industry a good
indication of what the year may bring, but it gives mortgage
providers an unrivalled opportunity to reassess their proposition
and service practices by accurately gauging the position of the
market.
“As this is the first survey that we have commissioned we hope
to expand the survey going forwards and welcome any suggestions
from the intermediary sector.”
Dual pricing continues to be a major issue for the sector with
nearly a third (64 per cent) of intermediaries wanting to see it
abolished in 2010.Whilst 22 per cent believe the service levels of
providers need to be improved.
Platform gives its customers six unique pledges** which include
a promise not to dual price or cross sell.
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