Following the release of UK Finance’s Mortgage Market prediction for 2023, John Phillips, national operations director at Just Mortgages shares his thoughts.
John Phillips, national operations director at Just Mortgages said ”As I read through the Mortgage Market forecast for 2023 from UK Finance there was a certain amount of pessimism with a prediction of overall mortgage lending dropping by 15% and overall property transactions falling by 21% next year. However, remortgage activity is predicted to increase in 2023 and lending is expected to return to pre-covid levels says UK Finance.
“2023 will, without question be a year for brokers to be proactive and it will very much be a case of getting out what you put in.
“Mortgage brokers have dealt with far worse economic environments and come out the other side. We need to help borrowers accept that rates of four and five percent are the new normal and household budgets should be adjusted accordingly. Brokers are in a very privileged position to be able to help people buy or keep their homes and good products still exist and let’s remember that lenders still want to lend.
“Diversification will be the watch word for brokers in 2023 and they should look to become proactive in all lending sectors even those they have not targeted previously such as equity release, commercial and overseas mortgages. There is also an untapped income for many brokers by simply ensuring that their existing and new clients have the appropriate protection needs met.
“There is also the opportunity to ensure that borrows wider financial circumstances are looked after with a referral to a pensions or wealth expert where the , there is so much better if a fee can also be earned from a terrific referral
“2023 can be a year of opportunity for brokers; they just need to seize it.”