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Broker Barometer | Shawbrooks Revealing A Largely Positive Outlook for 2021

Broker Barometer

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Brokers have indicated that their foremost apprehension for the year 2021 revolves around ‘lending constraints.’ Additionally, they have highlighted ‘valuation complications,’ ‘Covid-related restrictions,’ and ‘product availability’ as significant challenges expected to impact their operations. In the ever-evolving financial landscape, these concerns underscore the need for adaptability and strategic planning to navigate potential hurdles successfully.

As the financial sector grapples with the aftermath of the global pandemic, the significance of addressing these challenges becomes even more pronounced. Brokers are confronted with the intricate task of managing lending constraints, navigating valuation intricacies, and adapting to the ongoing effects of COVID-19 restrictions on the market. Furthermore, the availability of financial products emerges as a key factor shaping the landscape, adding another layer of complexity to the broker’s role.

In pursuing sustained success, brokers must remain vigilant and agile, proactively addressing these challenges and exploring innovative solutions. By staying attuned to industry trends and leveraging technological advancements, brokers can overcome existing obstacles and position themselves strategically for the future. The ever-shifting dynamics of the financial sector necessitate a proactive and forward-thinking approach to ensure resilience and success in the face of multifaceted challenges.

Broker barometer | Broker optimism continues…

Despite ongoing uncertainty as we continue to navigate the challenges of the pandemic, brokers remain optimistic when looking at the year ahead. Over two-thirds (67%) of commercial brokers said they were confident about the UK lending environment this year, whilst 60% stated they felt confident about the growth of their business.

Second-charge brokers reveal a more cautious view, with only 30% feeling confident about the lending environment and 19% about business growth.

Confidence in the UK economy has grown across both commercial and second charge brokers since our last Barometer six months ago, with 44% of commercial brokers and 50% of second charge brokers showing confidence in this area for 2021 – a 10% increase across each.

It’s encouraging to see that since the height of the first lockdown, 58% of commercial brokers and 66% of second-charge brokers have seen an increase in business volumes of more than 20%. This strong bounceback will likely be a key factor in their optimistic view of the year ahead.

Broker barometer |Lending restrictions remain a key concern

Brokers have expressed their foremost apprehension for the year 2021, highlighting ‘lending restrictions’ as their primary concern. Additionally, they have 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. The intricate interplay of lending constraints, valuation concerns, pandemic-related restrictions, and product availability intricacies pose substantial hurdles that brokers are poised to navigate in the foreseeable future.

 

Broker barometer| Commercial Brokers

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Broker barometer | Second charge brokers

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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. The growth in business volumes, when compared to the beginning of last year, implies a robust recovery, which is 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 front of mind for Shawbrook. 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.”

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