The average number of mortgages introduced per office in the third quarter of 2019 was 21.9, a 3% drop from Q2 and the lowest figure since Q2 2017, according to Paragon’s latest Financial Adviser Confidence Tracking (FACT) report.

The FACT report, based on interviews with 201 mortgage intermediaries, revealed there was a slowdown in overall mortgage business during Q3 despite stability in the BTL market.

Paragon suggested the BTL market has remained relatively stable since a notable decline in 2016, and comprised 17% of all mortgages introduced in the latest quarter, which was up from 15% in Q2 2019.

In terms of the BTL business completed in Q3, first-time landlords grew from 11% to 13%, and remortgaging climbed from 52% to 55%. The proportion of landlords, however, who were raising finance for portfolio extension, was smaller – falling from 23% of business in the second quarter to 20%.

Paragon director of mortgages, John Heron, commented on the latest figures: “After a number of years of instability and negative sentiment in the BTL market, it’s encouraging to see mortgage intermediaries forecasting increased BTL business over the next 12 months.

“However, the market overall has been constrained by the current Brexit uncertainty and it remains difficult to see exactly when this will end.”

Paragon said that intermediaries have forecasted a 2% pick-up in overall mortgage business over the next 12 months, including a 1% increase in BTL.

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