The UK mortgage market is forecasted to experience a slowdown in 2023, returning to pre-pandemic trends, with a decrease of 15% in overall mortgage lending, according to a recent report by UK Finance. Despite this decrease, there are still opportunities for mortgage advisers to assist clients and grow their business.
One key opportunity lies in servicing existing clients whose mortgages will mature in 2023. With around 1.8 million fixed rate mortgage deals scheduled to end, this presents a window of opportunity for advisers to assist clients in finding the best refinance options that suit their specific needs. By proactively reaching out to clients whose mortgages are set to mature, advisers can help them navigate the current economic conditions and secure the right deal on their mortgage.
Another opportunity is the growing share of intermediated distribution. According to data from the Intermediary Mortgage Lenders Association (IMLA), intermediaries’ share of distribution has risen to 84% in 2022 and is expected to continue to rise, potentially reaching 90% by 2024. This presents an opportunity for advisers to capitalise on the growing share of intermediated distribution, even as overall lending decreases. By promoting the value of their services and highlighting the advantages of working with a mortgage adviser, advisers can attract new clients and expand their business.
The forecast also predicts challenges for the market, such as a significant decrease in lending for house purchase mortgages and buy-to-let landlords due to affordability pressures, and a small increase in unemployment. However, these challenges also present opportunities for advisers to demonstrate their value to clients by providing professional guidance and evaluation to help them navigate the market and find alternative options such as shared ownership.
Additionally, the cost-of-living crisis has caused 43% of insurance customers to cancel policies in an effort to cut costs, according to Consumer Intelligence. As a mortgage adviser, it’s essential to stress the importance of protection and insurance products in protecting clients’ assets and financial well-being. By providing information and advice on protection and insurance products, advisers can help clients make informed decisions about protecting their assets and financial well-being. This not only helps clients secure the protection they need but also demonstrates the value and expertise of the advisor.
In conclusion, the UK mortgage market may be slowing down and returning to pre-pandemic levels, but there is an opportunity for mortgage advisers to demonstrate their value to clients by providing professional guidance and evaluation to help them find the best options for their needs. With the rise of intermediated distribution and the growing need for advice, mortgage advisers can focus on servicing existing clients, promoting the value of their services to attract new clients, and highlighting the importance of protection and insurance products.
