Some 71% of brokers are confident about the market in 2021, a fall of just 6% from January 2020, according to findings from Masthaven.
The lender surveyed 265 intermediaries and found that confidence in the broker market remains high despite the challenges posed by 2020 and the ongoing pandemic.
This confidence extended to company prospects for next year, with 87% of intermediaries feeling confident about their firm’s prospects next year, down 3% from the last Broker Beat survey earlier this year.
Nearly two-thirds (63%) expect to see revenues rise in the coming year, with 36% predicting growth to be in double figures.
Conversely, 30% of brokers cited economic uncertainty as the biggest challenge their business faced. Almost a quarter (23%) reported that they were concerned about lenders’ service levels, and 19% said local or national lockdowns brought about by Covid-19 were the biggest challenge.
Despite these challenges, intermediaries also highlighted areas of the market where they are seeing growth. One in five (21%) said first charge mortgages for home movers was the area experiencing the most market growth.
This was followed by remortgages (14%) and specialist mortgages (12%).
When asked to consider which areas of the market needed greater innovation to grow quicker, 23% said first charge mortgages for first-time buyers, 19% said specialist mortgages and 11% stated the later-life lending sector.
Rob Barnard, director of intermediaries at Masthaven, says these figures are a testament to strong collaborative effort between brokers and lenders.
“The industry has demonstrated this year that it can continue to operate in extraordinary circumstances and provide the support customers need.”
“As the pandemic continues to wreak havoc on the finances of people across the UK, brokers will be key in helping many people who no longer fit the model of a ‘vanilla’ borrower unlock affordable finance.”
“Looking ahead, tough economic conditions and a potential no-deal Brexit may mean more challenges ahead. However, knowing that brokers are optimistic about 2021 should give lenders and customers greater confidence in the market and provide an opportunity for the market to expand and innovate further,” he concludes.