HSBC survey finds brokers optimistic about lending, cautious on BTL market
A vast majority of mortgage brokers are seeing a rise in the amount of lending agreed for clients, with 78% of respondents in a recent survey noting an increase.
The findings come from HSBC UK’s mortgage broker barometer, which collected responses from over 1,100 brokers.
The data also show that 93% of brokers believe increasing borrowing power is important for their clients. In addition, 63% of brokers reported that clients are actively working to improve their credit scores, and the same proportion expect mortgage applications to rise in the next six months.
However, the outlook for buy-to-let mortgages remains subdued. Most brokers anticipate that buy-to-let application volumes will remain steady in the near term.
Looking ahead, 87% of brokers surveyed expect the Bank of England base rate to fall within the year.
The survey results follow recent changes by several lenders, who have adjusted their policies to allow some homeowners to borrow more after guidance from the Financial Conduct Authority. HSBC UK, which revised its own stress rates, estimates that the average mortgage offer for first-time buyers is now £39,000 higher than before.
“The recent adjustments to stress rates by lenders are clearly making a positive and tangible impact,” said Chris Pearson (pictured right), head of intermediary mortgages at HSBC UK.
“This broker barometer shows that almost eight in 10 brokers are seeing an uptick in the amount of lending agreed for their clients. This is a crucial development as it directly translates into enhanced buying power and greater accessibility for aspiring homeowners, reflecting a more responsive market.”
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