Why now is the time for brokers to diversify their businesses – Smith

His point is simple but powerful: rather than chase false certainty, both individuals and businesses should build resilience and adaptability into everything they do. 

Given how 2025 has played out so far, it’s hard to imagine a more fitting message for those of us working in the mortgage market. 

We entered the year with cautious optimism, but uncertainty has quickly reasserted itself. The widely reported trade tensions and fears of a global recession describe an uncertain picture.

Nothing is certain 

There are also reports that markets are now pricing in three – maybe even four – Bank of England rate cuts this year in response to rising global uncertainty. But nothing is guaranteed. So far, the bank has been cautious about publicly backing further rate cuts. 

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Even if the Monetary Policy Committee (MPC) does start cutting rates – possibly as early as May – there’s no guarantee it will bolster the market and maintain transaction levels. 

Surveys consistently show UK consumer confidence is low, which normally makes people spend less and save more. 

In this environment, how many people will feel confident enough to move home? Some will, but many won’t – and that could drag down purchase volumes and overall lending. 

If activity does falter, it may prove difficult to hit the £260bn of lending UK Finance projected at the end of last year. Another challenging year could be on the cards. 

Of course, all of this is speculation. No one can say for certain how things will play out. But history tells us that in times like these, activity tends to soften.

I hope I’m wrong – and given how fast things are changing, I might well be. But we’d be wise to prepare for the worst. 

Staying ahead of change 

So, what could brokers do? In a word: diversify. 

When mortgage business slows, relying solely on purchases, remortgages or even product transfers can put pressure on income and growth. Diversifying helps build a more resilient business – one that can ride out short-term volatility and stay profitable through the cycle. 

Crucially, economic uncertainty often increases demand for financial security and long-term planning among clients. 

Brokers who also offer protection insurance, wills, private medical insurance or later life planning are well-placed to meet those needs. 

These services add value for clients, open up new income streams and help keep your business active and relevant even when the housing market hits a lull. They also position you as the go-to adviser – not just for a single transaction, but in the next time of need.

But most importantly, diversification allows you to provide even better support and advice to your clients when they need it most. 

In an unpredictable world, standing still isn’t an option. A broader offering isn’t just smart business – it’s how you build trust, add value to your clients and future-proof your firm. 

To borrow and slightly butcher Mr Paulos’ words: use today’s uncertainty to build more certainty tomorrow.