How to navigate the Summer Holidays and the specialist lending markets

How to navigate the Summer Holidays and the specialist lending markets

The Summer months can prove a welcome break for some people or, alternatively, a logistical nightmare for others, by this I mean those of us with school age children! For the record I have three and successfully navigating this six-week marathon can be a mix of fun, headaches, dad cabs and anything in between. To make the most of this Summer extravaganza, careful planning and having a good support network in place is a must. Not to mention technology in the form of fully charged iPad and phones at all times.

In some ways, this is a period which also reflects being a broker in 2023. There is a ridiculous amount of waiting time to contend with, uncertainty on what the next day might bring, constant frustration and some difficult conversations along the way. However, on the other side of the coin, there are opportunities to explore new experiences, build relationships and to really maximise our time.

Despite all the various challenges, it’s also an extremely rewarding time and when reflecting on 2023 as a whole, I’m sure that many brokers will look back with a mixture of emotions and experiences. Staying on a positive note, one overriding factor which they should hold close is the value and expertise provided to an array of clients in the midst of such economic and market uncertainty. A factor which will certainly bode well for future relationships and business levels going forward.

This was reflected in market analysis by Octane Capital which found that the UK’s mortgage brokerage market is projected to grow this year despite ongoing economic insecurity. The data showed that since 2013, the UK’s mortgage broker market has increased its revenue every single year without fail, with each passing year bringing a new high-water mark.

Looking back, 2014 saw the biggest increase in revenue and therefore market size, growing by 29.5%. The same year saw the number of businesses operating in the space increase by 24.4%. 2016 brought yet more double-digit revenue growth (19.1%) and from there have been constant annual increases all the way through to 2022 when revenue jumped by 9.6% to reach a decade-peak of £1.88 billion. 2022 also saw a peak in the number of market operators, growing by 9.1% to hit 5,484.

Despite the current economic and market conditions, forecasts for 2023 show the sector to be maintaining this upward trend. It’s estimated that, by the end of year, revenue will have increased by 2.6% to hit a new high of £1.93 billion. The number of businesses is also expected to rise again, this time by 0.2% to hit a new high of 5,615.

This represents some encouraging news for the intermediary market and just reward for all the hard work and dedication to meeting their clients ever-shifting demands, especially in more recent times. It also poses the question of how brokers can further grow their business to reflect this increased demand for their services?

Focusing on the specialist lending markets is an obvious route to generating more revenue and being able to service a wider array of client requirements as individual borrowing scenarios and financial situations become ever more complex. Technology will also play a key role in both better connecting advisers with the specialist markets and in streamlining front and back-office processes to allow advisers to dedicate more time to what they do best, giving advice.

Now, what date is it again and how long do we have until the schools reopen????

Neal Jannels, Managing Director of One Mortgage System (OMS)

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