Almost four in 10 (38%) mortgage intermediary firms have expanded their operations, despite a backdrop of labour market challenges, according to Paragon Bank research.
Paragon’s survey of more than 330 brokers found that, among those firms that indicated they were expanding, increasing headcount was the most common way to bolster resources, with 48% looking to take on experienced advisers.
Brokers revealed that their recruitment was motivated by a desire for knowledgeable staff who could hit the ground running, as well as diversification into more complex markets.
Three in 10 of the firms added extra resource have recruited trainee advisers to support their long-term growth aspirations, and a quarter hired paraplanners to assist advisers with administrative tasks.
A considerably smaller proportion of mortgage broker businesses, only 7%, reported scaling back.
Brokers noted recruitment challenges, with a third stating that it was fairly difficult to attract new staff, while a further 31% deemed it to be very difficult.
To overcome this hurdle, some firms focused on upskilling initiatives for their existing workforce, with nearly half of firms having already implemented or planning to implement such programmes.
This strategic shift towards internal talent development was also supported by investment in non-personnel resource, the most popular being additional technology and enhanced marketing, selected by 31% and 30% of companies currently growing.
Richard Rowntree (pictured), managing director for mortgages at Paragon Bank, said: “It’s really encouraging to see intermediary firms expanding, it gives a good indication of the strength of the market and could be viewed as a reflection of the more positive outlook for this year.”
He added: “While I’m aware of the difficulty for those looking to take on experienced advisers, in line with data pointing to a tightening of the broader labour market in the UK, it’s reassuring to see that firms are mitigating any resource shortfalls by developing existing employees or investing in marketing and technology.
“Doing so will help to ensure that there is a wealth of talent available, both now and in future, to support borrowers with sound financial advice to guide their investment strategies.”
