Brokers are, however, losing confidence in lender product development
While mortgage brokers remain positive about the outlook for their business volumes in the next 12 months, some are also losing confidence in lenders developing products to target the needs of their clients.
This was revealed by two separate research studies, from specialist lender Pepper Money and mortgage solutions provider Mortgage Broker Tools.
Research from Pepper Money, conducted among more than 500 brokers, has revealed that around four in 10, or 41%, believe their business volumes will increase, while about a quarter, or 26%, expect business volumes will stay the same. A third, or 33%, think their business volumes will reduce in the next 12 months.
According to the research, nearly 10% of brokers believe their business volumes will increase noticeably in the next year, despite the fact that 61% think property prices will decrease in the next year as the continued cost-of-living crisis and uncertain economic environment continue to impact the property market.
“The economic outlook may be uncertain, but brokers are bullish about their prospects for the year ahead and, in many respects, this is for good reason,” said Ryan Brailsford (pictured left), business development director at Pepper Money. “Any forward-thinking business has the ability to thrive even when the macro-environment is challenging and, while overall lending volumes may fall in the next 12 months, the cost-of-living crisis means the number of customers with specialist circumstances is continuing to grow.
“Financial advice will be vital for this growing group, and brokers have a great opportunity to help people continue to achieve their goals, even amidst the economic turbulence, through professional, people-focused advice and access to specialist lenders.”
Meanwhile, a recent survey by Mortgage Broker Tools (MBT) has found that a majority, or 54%, of brokers think that only the smarter lenders will become more creative and develop more bespoke products, criteria, and underwriting based on affordability.
MBT noted that this proportion was up from 30% last year, indicating that brokers are losing confidence in lenders’ product development, with nearly a fifth, or 19%, of brokers saying that very few lender proposition updates in the last year have enabled them to help more of their clients.
“Brokers have lost confidence in lenders doing smart things and a lot of product updates in the last year haven’t helped them,” said Tanya Toumadj (right in picture), chief executive at Mortgage Broker Tools. “However, there is the technology available now that can empower smarter product development.
“We have recently launched MBT Sandbox, for example, which provides lenders with a ground-breaking data-driven approach to product development. We’re already working with five lenders to help ensure they are taking a smarter, more data-driven approach to product development, and we are confident that more will follow.”
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