Our Q2 2012 Project Mercury data demonstrates that an average of 73 cases were written per respondent in the 12 months prior to interview.
Putting this into context, whilst the current level of business is only two thirds (68%) of that seen in mid-2007, it is 20% up on the low point of mid-2009.
Looking at the typical broker’s caseload helps us to understand the blend of the business being written.
At the end of Q2 2012, the following profile emerged:
12 months to Q2 2012
First-time buyers 14
A couple of points are worth noting here, firstly the volume of BTL cases being written. This has doubled from 7 in Q2 2009 to 14 in Q2 2012, highlighting the growing strength of this key market.
Secondly, the nose-diving of re-mortgage business (down from 34 cases in Q2 2008) is a result of the prolonged period of record low interest rates.
Taking a step back and reflecting on these high level indicators and the pace at which things change in this market, I guess this is further proof, if it were needed, of the resilience and adaptability of the UK’s mortgage intermediary industry.
With relatively little forward visibility of either workload volumes or composition, brokers increasingly have to get to grips with new ways of working and generating business for themselves.
Mark Long is director at BDRC Continental