Broker optimism has increased since the beginning of 2021, according to a recent survey from savings accounts, bridging loans, development finance, and mortgage provider Masthaven Bank. Of the 186 brokers who took part in the survey, the vast majority (92%) expressed confidence about their prospects for the next 12 months.
In the survey respondents were asked questions concerning thoughts on the mortgage market and the direction their company will go during the next 12 months.
Broker optimism increase
As the UK returns to some level of normality, optimism about the future seems to be increasing. By comparing the results to the end of 2020, where 87% expressed confidence about their company’s prospects, it demonstrates positivity about prospects has increased.
Rob Barnard, director of intermediaries at Masthaven, says: “Broker confidence has climbed even higher since the start of the year, reflecting the current strength of the property market, as well as general optimism surrounding the UK’s vaccine rollout and the easing of lockdown restrictions. The industry has worked tirelessly to support homebuyers since the start of the pandemic. This hard work, combined with pent-up demand from early 2020 and government support in the form of the Stamp Duty holiday, has resulted in a booming property market - but there are still challenges on the horizon.”
More than three-quarters (77%) of brokers believe their sales and revenue will increase this year. Almost half (42%) predict their growth this year to be in the double figures. Only 3% expect their sales to drop.
Business challenges brokers face
The Masthaven Bank survey also analysed the obstacles brokers face in business. Just over a quarter (26%) of brokers believed that economic uncertainty was the hardest challenge. This is a drop compared to the results at the end of 2020, where 30% felt this way. This too implies the optimism is increasing amongst more brokers.
A quarter of brokers (25%) stated they were concerned about lenders' service levels and 16% believed further local or national lockdowns due to Covid-19 were the greatest challenge.
Barnard adds: “The government’s various Covid support initiatives will be coming to an end soon, with the furlough scheme expected to wind down in September. The withdrawal of this support will undoubtedly be felt by some borrowers. As the market enters this next phase, brokers and lenders alike will need to work together closely to support all customers, but particularly those who have been affected heavily by the pandemic. Innovation and collaboration will be key in ensuring the industry continues to provide products tailored to customers’ needs.”