A majority of brokers – 78% – believe that remortgaging will be the strongest engine of new business growth in 2023, a survey carried out by Paragon Bank shows.

In asking 350 intermediaries about the next 12 months, the lender also found that 51% of survey participants believe that buy-to-let (BTL) remortgaging will be a strong driver for new businesses and that 33% of brokers say interest-only mortgages will play this role.

And 29% and 28% said that later-life lending and adverse credit mortgages will lead to new business.

Brokers were least enthusiastic about home movers, BTL purchases, first-time buyers, and home movers, with just 18%, 23% and 24% highlighting these market segments as significant business drivers, respectively.

Regarding product types, 49% say that five-year fixes will be the most popular in 2023 and 47% believe base rate trackers or variable products with no early redemption charges will prove to be the most popular.

Paragon managing director Richard Rowntree says: “After strong sales markets since the introduction of the Stamp Duty holiday in 2020, brokers now believe the dial will shift and remortgaging will dominate business. In the owner-occupied market, many borrowers are due to come off two- or five-year fixed-rates, whilst the BTL market saw a significant amount of five-year business written in 2018 due to mature.

“We believe that whilst BTL house purchases will be slower next year than the previous two years, professional landlords will still be looking for acquisitions. A slower market means they are well-placed to pick up stock and we know many are keen to add to their portfolios.”