Brokers debate whether a comeback is on the cards for the sector
Be it COVID, the Liz Truss mini-budget, a stagnant UK economy, geopolitical factors such as the wars in Ukraine and the Middle East, and more recently Donald Trump’s tariffs debacle, the mortgage sector has felt it all.
But everything, in time, passes, it’s said, so could the sector rise gloriously again, for a new era of business growth, or is that hoping for a miracle too far? Broker Sheena Campbell (pictured left), managing director of Campbell Financial, is unequivocally positive. “After a tough few years, I do believe the mortgage industry can absolutely rise again and, in many ways, it already is,” Campbell told Mortgage Introducer. “We're seeing lenders demonstrate a real willingness to lend, which helps brokers like us continue to deliver the right solutions for our clients.
“That said, the volatility in rates over the past couple of years has pushed many brokers to their limits. With trying to stay ahead of constant changes, often working late into the night to protect client outcomes, with little to no extra reward, it’s no surprise some have stepped away from the industry altogether. But brokers are essential - we’re a cornerstone of the UK mortgage market. Without brokers, countless people wouldn’t access the mortgage products they need. The most vulnerable would suffer the most and many may not ever achieve their goals of homeownership.”
Campbell is optimistic about the outlook for the mortgage industry and is keen to embrace what technology has to offer. “AI is often seen as a threat, but I see it as something that can make our work more efficient behind the scenes, freeing up more time for high-quality human advice,” she said. “Execution-only transactions might become easier, but there will always be people who value personal guidance, especially in uncertain times. As long as we keep clients at the heart of what we do, we’ll continue to grow stronger. Many of us have come through the last few years tougher and better than before. The future is definitely still bright for those committed to doing right by their clients.”
While acknowledging the challenges faced by the industry recently, from rate volatility to shifting affordability criteria, mortgage and protection broker Katrina Horstead (pictured second from left), co-founder and director of Versed Financial, believes there’s every reason to feel ‘cautiously optimistic’. “The resilience of the mortgage market should never be underestimated,” Horstead reasoned. “As consumer confidence begins to return and lenders continue to adapt with more flexible criteria and innovative products, we’re seeing real green shoots of recovery. To help the industry truly rise again, I think collaboration and communication are key, between brokers, lenders, and clients. We have an opportunity now to focus on education, guidance, and clarity to help clients navigate what is still a complex landscape.” She added: “At Versed Financial, we’re seeing first-hand that people are still keen to buy, invest, and move - they just need the right support to do so confidently.”
Read more: Trump's tariffs spark a UK mortgage rate war
How busy are mortgage advisers?
Broker Luke Senior (pictured second from right), at Just Mortgages, confesses to a previous, misplaced sense of pessimism. “I'd say the phone and inbox are busier than usual, and all the enquiries I'm getting seem to be good ones, on the purchase and remortgage side,” Senior shared. “In terms of giving us a boost, I think restrictions around the claiming of the bonus on the old Help to Buy ISAs - the £250k cap - should be lifted, to match the new LISA (Lifetime ISA). Additionally, wholesale reform of Stamp Duty, and any changes that are made to be indefinite ones, rather than time limited. Only yesterday I had a discussion with a mover wanting to upsize from a property in the £220k range, to one around £350k. The cost of moving would come in at more than £15k - which is prohibitive.”
House price inflation has been a concern for some time, acknowledges Senior. “We'd not want to exacerbate this further,” he said, “but at the same time, obstacles that get in the way of people moving, upsizing or downsizing, should be mitigated, or ideally removed where possible.”
Sam Hutchins (pictured right), specialist property finance adviser at Blueberry Specialist Lending, is upbeat too, focusing on the growth of his sector. “I personally feel very optimistic,” Hutchins said. “People’s incomes are becoming more complex, credit situations are evolving, with blips becoming more common, and clients increasingly require lending which high street lenders are currently unable to provide. I do believe the FCA review of unnecessary regulation and also streamlining its handbook will assist lenders in being able to help more individuals and increase lending. So, all in all, I feel quite positive about the current market and years ahead.”
