Primis survey suggests customer confidence boost Mortgage Finance Gazette

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Four in five mortgage brokers are upbeat about the coming year, believing customer confidence will rebound as inflation falls back and energy bills come down in April.

This is according to a survey from mortgage network PRIMIS, which found that 82% of brokers expect overall customer confidence to improve as the year progresses.

Brokers in Scotland had the most positive outlook, with 88% believing customers to be feeling more positive. Even in Northern Ireland, where brokers were more cautious about the economic outlook and ongoing pressure of higher living costs, 78 per cent were of the view that things are getting better.

PRIMIS sales director Claire Madge  said: “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.”

She added that there were 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 PRIMIS research also highlighted that, while confidence is improving, the pressure on household finances over the past three years continues to weigh on some customers. Two in five advisers across the UK said they do not expect the pressures on household finances to improve over the coming year, with three in five expressing some concern.

Madge warned the prospect of a rate cut later in the year could see some customers reluctant to lock into remortgage rates early, but with affordability still squeezed this may not be in their best interests. “Advisers know that each and every situation is unique and helping clients to understand the impact of different routes they might take is ever more critical.”

She concluded: “With the Consumer Duty rules on new products bedded in and extending to include existing products and services from the end of July, brokers are even more mindful of ensuring good outcomes for their customers.”