Mortgage network PRIMIS has revealed that 82% of brokers anticipate an improvement in customer confidence throughout the year, with the most positive outlook recorded in Scotland where 88% of brokers expect an upturn. Even in Northern Ireland, despite economic concerns, 78% of brokers see a brighter future.
Claire Madge, sales director at PRIMIS, commented on the changing economic landscape: “It’s been a tough few years for British households but it looks like the pinch of higher food prices, energy costs, rents and mortgage payments is beginning to lessen.
“Our advisers are right at the coalface when it comes to how their customers are feeling about their finances. And, with the prospect of a general election before the year is out, it may be that customers are finally looking forward to the future.”
At its March meeting, the Bank of England maintained the base rate at 5.25%, but Governor Andrew Bailey hinted at potential rate cuts. He said: “That’s not a prediction from me as to what’s going to happen, either on timing or amount, but I am encouraged.”
Madge added: “There are reasons to be optimistic about this year: the threat of inflation seems to be ebbing and this latest improvement in the Bank of England’s mood on interest rates bodes well for clients coming up to remortgage later this year.”
The survey also highlighted ongoing concerns, with two in five advisers across the UK sceptical about improvements in household financial pressures over the next year. Madge cautioned that the prospect of a rate cut could make some customers hesitant to lock into remortgage rates early, although advisers are keen to navigate clients through different financial scenarios, especially with the Consumer Duty rules extending to existing products and services by the end of July.
