There has been a significant increase in the number of advisers considering selling their businesses as a result of impending mortgage regulation, according to Acquisitions, Mergers and Sales Ltd (AMAS).
Phil Calvert, spokesperson of AMAS, said: ‘There are IFAs who have a sizeable mortgage business and do a substantial amount of mortgage broking who are considering selling up. The reasons for wanting this span across the board. Brokers are concerned about the future under regulation ‘ they feel they have done their time or are considering retiring.’
AMAS said the impending regulatory constraints appear to be putting pressure on brokers who feel they do not have the time to generate new client leads.
‘People are now thinking about regulation, but running a mortgage brokerage is hard work, and the overwhelming majority of people we speak to are reactive rather than proactive,’ said Calvert.
The findings from AMAS, which helps IFAs and brokers to undertake acquisitions, mergers and sales, also indicate that market consolidation is likely.
Calvert added: ‘It is interesting to see there is no shortage of buyers out there, and we are conscious that many firms have a strategy of growth through acquisition.’