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Nearly two-thirds of brokers predict a fall in adviser numbers next year – Primis

  • 23/04/2024
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Nearly two-thirds of brokers predict a fall in adviser numbers next year – Primis
Brokers are predicting a decline in the number of mortgage advisers in the UK, as fewer join the profession to replace those retiring, a survey from a network suggests.

Mortgage network Primis polled appointed representatives (ARs) and found that nearly two-thirds of respondents believed there would be fewer advisers in the sector by 2025.

Other respondents were less pessimistic, as 37% of ARs said the industry would expand.

Claire Madge (pictured), sales director at Primis, said the split in opinions likely reflected the varying customer bases across firms.

She said: “Our advisers report a really varied picture. In some parts of the country, customers are much more exposed to affordability constraints. In others, purchase and remortgage values are higher and income, therefore, more lucrative.

“Each firm has its own focus and business model to suit the customers they cater to, and that means they experience different parts of the market – from high-value loans and fewer transactions all the way through to writing more business at a lower margin.”


Regional divide

Madge continued on to say that some parts of the market were faring better than others because of the demand and wealth in the local areas.

This was reflected in the survey responses, as advisers based in the North of England were not as positive when it came to the number of mortgage brokers working in the sector. Some 66% said there would be fewer next year.

In contrast, respondents based in the Southern regions of England had a slightly less negative outlook, with 61% believing adviser numbers would fall by 2025.

Madge said: “There is no doubt that it’s been a tough couple of years for borrowers, and that has affected brokers.

“But whether our industry grows or not is of less relevance to advisers who run their businesses, as they know only too well.”

She added: “It’s much more important to focus on how efficient processes are, maximising profit margin on every piece of business written and having robust compliance taken care of so advisers can concentrate on what they’re good at.

“That’s where being part of a network [that] has your back is worth its weight in gold – especially at a time when regulatory requirements are coming in thick and fast.”

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