Broker Barometer Report

Broker Barometer Report

Broker Barometer Report | Brokers in the UK mortgage market are grappling with significant challenges in 2021. Lending constraints are their primary concern. Furthermore, valuation complications and Covid-related restrictions pressure an already complex landscape. The limited availability of mortgage products further exacerbates these difficulties.

These issues underline the need for careful strategic planning as the financial sector recovers from the pandemic. Addressing lending constraints is particularly crucial to ensuring clients can access financing options. Meanwhile, brokers must navigate valuation issues, which can delay or complicate transactions.

The pandemic’s impact has created operational hurdles, such as stricter health measures and delays in processing applications. Product availability has also become a significant obstacle, as lenders have reduced their offerings amid market uncertainty.

Brokers must adapt swiftly to thrive in this evolving environment. They can mitigate these challenges by staying informed on market trends, building strong lender relationships, and streamlining processes. Proactive planning and innovation will be essential in overcoming the hurdles that 2021 has presented.

Strategies for Success

To succeed, brokers need vigilance and agility. They must proactively address these challenges and explore innovative solutions. Staying up to date on industry trends and leveraging technological advancements is essential. By doing so, brokers can overcome obstacles and strategically position themselves for the future.

Adapting to Change

The financial sector’s changing dynamics require a proactive and forward-thinking approach. This ensures resilience and success amidst various challenges. By adapting to these evolving conditions, brokers can secure their position in the market.

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.

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, taken together, 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.

Second charge brokers

Emma Cox
Emma Cox, Sales Director of Property Finance at Shawbrook Bank

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 with the beginning of last year, the growth in business volumes suggests a robust recovery, likely to fuel 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 at the forefront of Shawbrook’s 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.”

Our role is to support borrowers as they navigate these opportunities with personalised underwriting, market insights, and agile solutions. At Connect, we believe mortgage advisers have a vital role in shaping this next chapter of the housing market.

To support your journey:

If you’re serious about developing your client base and becoming the adviser people remember and recommend, you’re in the right place.

➡️ Ready to grow? Join Our Network today and turn leads into loyal clients.

JOIN OUR NETWORK

Thank you for reading our publication on “Broker Barometer Report | Shawbrook’s Positive Outlook 2021.”  Stay “Connect“-ed for more updates soon!