Masthaven Bank has reported that confidence in the broker market remains high despite the challenges posed by 2020 and the ongoing Covid-19 pandemic.
Its survey of 265 intermediaries found that 71% said they were confident about the market in 2021. Indeed, confidence has remained resilient this year in spite of Covid-19, with just a 6% fall since Masthaven’s last Broker Beat survey in January 2020, when 77% of brokers said they were confident about the market’s prospects.
Confidence was also high when it came to company prospects for next year, with 87% of intermediaries feeling confident about their firm’s prospects next year, down just 3% from the last survey in January 2020. 63% expect to see revenues rise in the coming year, with 36% predicting growth to be in double figures.
30% of brokers said that economic uncertainty was the biggest challenge their business faced in the next six months. 23% reported that they were concerned about lenders’ service levels and 19% said they believed that the biggest challenge they face is local or national lockdowns due to Covid-19.
Intermediaries also highlighted areas of the market where they are seeing growth in the market. 21% said first charge mortgages for home movers was the area of the market experiencing the most growth. This was followed by remortgages on 14% and specialist mortgages on 12%.
When asked to consider which areas of the market needed greater innovation to grow more quickly, 23% of intermediaries said first charge mortgages for first time buyers, 19% said specialist mortgages and 11% stated the later life lending sector required innovation.
Rob Barnard, director of intermediaries at Masthaven, said: “Despite the challenges of 2020, confidence among brokers has remained remarkably resilient. This is testament to the strong collaborative effort between brokers and lenders in an unprecedented time. The industry has demonstrated this year that it can continue to operate in extraordinary circumstances and provide the support customers need.
“As the pandemic continues to wreak havoc on the finances of people across the UK, brokers will be key in helping many people who no longer fit the model of a ‘vanilla’ borrower unlock affordable finance. Looking ahead, tough economic conditions and a potential no-deal Brexit may mean more challenges ahead.
“However, knowing that brokers are optimistic about 2021 should give lenders and customers greater confidence in the market and provide an opportunity for the market to expand and innovate further.”