Broker barometer | Broker optimism continues…
Despite ongoing uncertainty, brokers remain optimistic about the upcoming year. Over two-thirds (67%) of commercial brokers are confident in the UK lending environment this year. Additionally, 60% feel optimistic about their business’s growth.
Conversely, second-charge brokers hold a more cautious outlook. Only 30% feel confident about the lending environment, and 19% are optimistic about business growth.
Since our last Barometer six months ago, confidence in the UK economy has increased among both commercial and second-charge brokers. In 2021, 44% of commercial brokers and 50% of second-charge brokers expressed confidence in the UK economy. This marks a 10% increase for each group.
It’s encouraging to note that business volumes have increased since the height of the first lockdown. Specifically, 58% of commercial brokers and 66% of second-charge brokers have seen more than a 20% rise in business volumes. This strong recovery is likely a key factor in their optimistic outlook for the year ahead.
Broker barometer |Lending restrictions remain a key concern
Brokers have expressed their foremost apprehension for 2021, highlighting ‘lending restrictions’ as their primary concern. Additionally, they identified ‘valuation issues,’ ‘Covid restrictions,’ and ‘product availability’ as significant challenges anticipated in the upcoming period.
These factors collectively contribute to a complex landscape, shaping the financial sector’s outlook for the year. Lending constraints, valuation concerns, pandemic-related restrictions, and product availability intricacies pose substantial hurdles. Brokers are poised to navigate these challenges in the foreseeable future.
Broker barometer | Second charge brokers
Emma Cox, Sales Director of Property Finance at Shawbrook Bank, said:
“The optimism amongst brokers, even amid enduring uncertainty whilst we continue to navigate the Covid-19 situation, is great to see. Compared to the beginning of last year, the growth in business volumes implies a robust recovery, likely to be fuelling the positive outlook for the year ahead.
“Despite the optimistic outlook, as we move further into lockdown 3.0, we understand there are still many brokers facing challenges, which is why it remains crucial for lenders to continue to work closely with brokers over the coming months. This is very much in Shawbrook’s front of mind. We plan to continue to invest in our business with an unchanged product and system development agenda, supported by a robust appetite to lend across all our markets.”
Thank you for reading our publication on “Broker Barometer Report | Shawbrook’s Positive Outlook 2021.” Stay “Connect“-ed for more updates soon!
