Brokers face challenge from Brexit uncertainty

Brokers face challenge from Brexit uncertainty

The most recent broker sentiment survey from United Trust Bank found that the factor most likely to affect brokers success or failure this year is uncertainty over the longer-term effects of Brexit.

The survey asked intermediaries from the fields of property and asset finance, what they believed were the key challenges affecting their ability to reach their business goals this year. 41% of brokers who responded to the survey indicated that Brexit uncertainty was their key concern followed by an increase to the cost of borrowing (29%) and inconsistent decision making from lenders (29%).

A shortage of experienced staff and the time businesses must now devote to managing regulation also concern around one in four brokers.

Just 11% of respondents believed they had no key challenges at all.

What do you believe will be the key challenges affecting your ability to reach your business goals this year?

1 Uncertainty over the longer-term effects of Brexit 41%
=2 If the cost of borrowing increases 29%
=2 Inconsistent decision making from lenders 29%
4 A shortage of experienced and knowledgeable staff 25%
5 Problems created by valuers, lawyers or other associated professionals 24%
=6 Increasing competition 22%
=6 The time/resources I or my business has to commit to managing regulation 22%
=8 Lenders reducing their lending appetite 17%
=8 Generating customer/new business enquiries 17%
10 There are no key challenges affecting my ability to reach my business goals 11%

Harley Kagan, group managing director of United Trust Bank, said: “The results of this survey demonstrate just how many challenges brokers and lenders have in common. Brexit uncertainty, recruiting the right staff, the increasing burden of regulation; we’re all in the same boat and we must try to ensure that we’re all rowing in time.

“Uncertainty over the outcome of Brexit is understandable and unavoidable. Any event which brings significant change has the potential to increase caution and delay important decisions. However, as a bank which actively supports UK SMEs and smaller house builders, we believe the best way to show our confidence in UK PLC surviving and thriving through Brexit is to keep providing the funds which enable our vibrant SME sector to invest and grow and for builders and developers to construct thousands of much needed new homes. It’s important that those of us involved in asset and property finance continue to encourage ambition and enable it wherever possible.

“As a lender that means we have to be competitive, consistent and reliable. UTB increased its lending throughout the credit crisis and has done so every year since. We’re confident in our ability to keep growing our business by helping other companies to grow theirs and whatever the future brings, from Brexit, the general election or some other unforeseen circumstances, we’ll keep supporting our broker partners and our borrowers.”