More than half of mortgage intermediary firms are expanding, reflecting growing optimism amongst brokers, according to new research from Paragon Bank.
The summer edition of Paragon Bank’s Mortgage Intermediary Insight Report (MIIR) showed that 51% of firms are currently expanding, up from 38% in the winter edition.
Conversely, the proportion of firms scaling back has decreased from 7% to 5% over the same period.
The most common approach to growth is recruitment, with over a quarter of intermediaries reporting that experienced advisers are being employed, and 17% stating their company is hiring more trainee advisers.
Additionally, 16% noted the use of additional paraplanners to assist with paperwork, and 12% mentioned increasing headcounts with other staff.
The survey of over 200 mortgage brokers also found that a quarter of businesses are expanding operations with new or enhanced marketing, and 23% are investing in additional technology.
Louisa Sedgwick, commercial director for mortgages at Paragon Bank, said, “It’s great to hear that brokerages are growing.
“Some are boosting their workforce numbers while others are upskilling existing staff, an approach that ultimately increases the expertise in the sector.
“In addition, we see that some firms are investing in marketing or technology, helping them to secure and service more business effectively.”
The growth reflects the increasing optimism among mortgage intermediaries, which is also highlighted in the report.
Brokers were asked about their confidence in the mortgage industry, the intermediary sector, their own firm, and the buy-to-let business. The results show a notable increase in confidence across all areas compared to the winter edition.
Confidence Levels
| Aspect of Business | Winter 2024 | Summer 2024 |
|---|---|---|
| Mortgage industry | 70% | 89% |
| Intermediary sector | 79% | 89% |
| Own firm | 85% | 91% |
| Buy-to-let business | 49% | 65% |
Sedgwick added: “Committing to expanding suggests that intermediary firms feel confident about the future. This is something that our report supports, also highlighting how the brokers we spoke to are now notably more optimistic about various facets of business compared to the start of the year.
“Having direct relationships with clients, the people who are investing in property, means that brokers have an up-to-date picture of the current strength of the market, so an increase in optimism is an encouraging indicator for the rest of the sector.”
