Thu, 04 Feb 10
Mortgage brokers are predicting house price rises of up to 5% during 2010, according to a latest survey.
Of those brokers surveyed by Platform, The Co-operative Bank’s intermediary lender, 74% expect to see prices rise by as much as 5%. Two thirds also said that business in the mortgage sector will be better in 2010 compared with last year.
When asked about interest rate rises, 74% thought they would increase from the current historically low level of 0.5% to 1% during 2010.
David Tweedy, director of Platform, says: "Intermediaries are confident the next 12 months will be positive for the market and that the sector is ready to do business."
Among concerns for brokers is the Financial Services Authority’s review of the mortgage sector. Around 12 % say the challenges it presents will be great.
Under consideration by the FSA are plans to protect borrowers who fall into arrears by ensuring they use repossession as a last resort. Curbs on arrears charges are also being proposed as is forcing lenders to record all arrears handling phone calls – see Home News 26 Jan 2010.
Around half of those surveyed were also concerned about the availability of funds to the mortgage sector during 2010.
By Joe Lepper
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