The latest in a series of six monthly polls to gauge independent financial advisors’ opinions has revealed that broker confidence in the mortgage industry is the highest it has been in over ten years.

This confidence comes despite concerns in some quarters that the recent rise in interest rates and the expectation of further rises in 2007 could dent general optimism in the market.

The research, which is based on both the average number of mortgages introduced in the last three months and the average expected change over the next three months, is an indication of both current performance and future prospects. The survey reveals that on average advisers expect an uplift in business of 4.2% for the fourth quarter of 2006 compared to the third quarter, and a third of respondents expect volumes to pick up by 6% or more.

Nicola Severn, communications manager of Paragon Group commented on the index results: “It is very telling that the Index is at its highest level ever. Notwithstanding the impact of borrowing costs, it seems that mortgage activity among advisers remains very buoyant. On average they each arranged 32 mortgages over the third quarter, compared with 29 a year ago and 27 in 2004.”

“Despite the recent increase in interest rates and the impact of affordability constraints on first time buyers, the index suggests that people within the industry remain confident that it will continue along its current positive trend.”