Research: 8 in 10 mortgage brokers reveal renewed optimism amid economic challenges

New research reveals that there is healthy optimism among brokers about the future of the UK mortgage sector – despite a challenging economic backdrop, including stamp duty rises expected in April and falling rent prices causing worries for buy-to-let buyers. 

The research, conducted by Nottingham Building Society, gathered the opinions of mortgage brokers across the UK, finding that an overwhelming majority (82%) report feeling more positive about the sector’s prospects now compared to the start of 2024.  

This optimism is further bolstered by nearly four in five (79%) brokers expressing confidence that the housing market will experience growth over the next three years, giving more borrowers the chance to make their dreams of homeownership a reality.  

Still cause for concern

To reach this state of growth though, brokers are wary of the need to navigate ongoing challenges. The top concerns cited by brokers which dampened their optimism for the year ahead were: 

• Uncertainty over the wider economy (35%)
• Continued high interest rates (27%)
• The ongoing cost of living crisis (24%)
• High house prices (22%)
• The lack of new homes being built in the UK (22%) 

Their worries are not unfounded either, as The Bank of England held interest rates at 4.75% in January, and the supply of new homes in the UK experienced a fall in the twelve months leading up to September 2024 with just 221,500* new homes completed.  

Modernising the mortgage process 

Despite overall optimism, brokers also shared where they see room for improvement in the sector. Within the results, 41% of brokers said that the mortgage process is the same or slower than it was two years ago, prompting a further 31% to call for greater progress in introducing technology to streamline the application process and help borrowers secure their homes more quickly.  

According to Nottingham Building Society, an ongoing dialogue with brokers to understand their sentiment and act on their feedback is essential to meet the evolving needs of borrowers in a volatile economic climate.  

Praven Subbramoney, Chief Lending Officer at Nottingham Building Society said: “It is promising to see brokers’ optimism and feeling of resilience within the sector compared to a year ago, especially within the context of ongoing economic challenges and the pace of change across the sector. We are committed to maintaining this ongoing dialogue with brokers to understand their concerns and pressures, so that we can evolve our products and services to serve them and their clients. 

“As lenders we can't ignore the concerns brokers are voicing, including the speed of the mortgage process and their calls for further integration of technology to streamline the process. It is only by continuing to collaborate with brokers and the industry we can enhance our offering, helping borrowers to achieve their homeownership goals. Together, we have a responsibility to drive the progress that will ensure the sector’s long-term growth and success.” 

Notes to Editors: 

* Savills UK | English Housing Supply Update Q3 2024 (November 2024) 

** Inflation in the UK: Economic indicators - House of Commons Library (January 2025) 

About the research  

• 500 UK respondents currently working as mortgage brokers (18+)
• The data was collected between 09.01.2025 - 15.01.2025 by Censuswide 
• Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.