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Mortgage intermediary business close to ten-year high

  • Q1 2019 one of the busiest periods for mortgage intermediaries in the last ten years
  • Average of 8.8 mortgages introduced per advisor during the quarter
  • Remortgage applications helped to boost intermediary business

Mortgage intermediaries enjoyed a bumper first quarter according to Paragon's latest Financial Adviser Confidence Tracking (FACT) Index which surveys over 200 of the UK's largest mortgage intermediaries.

On average, each mortgage office taking part in the survey introduced 24.5 mortgages in the first quarter, up by 6% from 23.0 mortgages in Q4 2018 and by 10% compared with Q1 2018.

This puts current activity levels close to the ten-year high of 25.2 mortgages recorded in the last quarter of 2015 and compares with a low of 13.8 mortgages in Q3 2009 in the middle of the global financial crisis.

Individual advisers introduced an average of 8.8 mortgages in the quarter - up by 16% from 7.6 mortgages in Q4 2018 and by 11% compared with Q1 2018 - the highest level of productivity achieved since the beginning of 2014.

Productivity is likely to have been boosted by the growth in remortgaging which has increased from 30% of mortgage cases five years ago to over 40% of mortgage business in Q1 2019.

Unlike first time buyer and home mover mortgages, remortgages are typically quicker to process as there is no conveyancing involved.

Despite the busy first quarter, advisers anticipate a 1.5% increase in mortgage business in Q2 2019 – a modest pick-up for the beginning of the traditionally strong, spring-summer period compared with previous years.

John Heron, Managing Director of Mortgages at Paragon said:

While home mover activity is subdued, low interest rates and an uncertain economic outlook are encouraging more customers to remortgage, lifting intermediary business and boosting productivity. Despite the current economic uncertainty, it's encouraging to see mortgage intermediaries maintaining high activity levels.

View the full FACT Q1 2019 report

08 May 2019

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551