Just over half (51 per cent) of mortgage intermediary firms are currently expanding, reflecting growing optimism among brokers, research from Paragon Bank has revealed.
The summer edition of Paragon’s Mortgage Intermediary Insight Report found that optimism has increased among brokers in recent months.
This is evident as 38 per cent of intermediary firms said they were expanding in the winter edition of the intermediary barometer.
Conversely, the proportion who stated that their employer is scaling back has fallen from 7 per cent to just 5 per cent during the same period.
Paragon Bank commercial director for mortgages, Louisa Sedgwick, said: “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.”
The report also found the most common approach to growth adopted by firms is recruitment, with 27 per cent of intermediaries saying that experienced advisers are being employed.
Meanwhile, 17 per cent stated that their company is hiring more trainee advisers, 16 per cent noted that additional paraplanners are being utilised to help advisers with paperwork, and 12 per cent said “other staff” are bolstering headcounts where they work.
The research, which surveyed over 200 mortgage brokers, also found 25 per cent of mortgage intermediary businesses are expanding operations with new or enhanced marketing.
A further 23 per cent are investing in additional technology.
Sedgwick added: “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 secure and service more business effectively.”
tom.dunstan@ft.com
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