Nearly three quarters of brokers are worried about business prospects for 2023

According to research from Crystal Specialist Finance, which surveyed their broker database in December, 75 per cent said continued interest rate uncertainty and the cost of living crisis would impact their business and the wider mortgage market next year.

Only 26 per cent said they were confident looking ahead to 2023.

Around half, 48 per cent, of brokers surveyed said 2022 was a good year for business and an improvement on the previous year.

Brokers also said they had diversified into more markets this year, with 37 per cent moving into buy-to-let, 29 per cent moving into bridging finance and 17 per cent moving into commercial finance.

This trend looks set to continue with 70 of brokers saying they expect to diversify further next year.

Over half of brokers, 52 per cent, said they anticipate working more with a master broker like Crystal Specialist Finance over the next year, with brokers pointing to increased complexity of cases and more clients with adverse credit histories.

Brokers were mixed on base rate peaks for next year with more than, 54 per cent, saying they thought the base rate would not go above five per cent, but a third think it may peak above that.

Jo Breeden, managing director at Crystal Specialist Finance, said: “2022 should have been the return to some form of normality to the market, but instead we have seen volatility and instability that is set to continue long into 2023.

“Our survey has revealed that brokers are uncertain about next year, have diversified into new markets to bolster their businesses and see the role of a master broker like Crystal as increasingly important.”

He said that the trend was evident in its Q3 business performance, with enquiry numbers up 20 per cent year-on-year, adding that this had continued into Q4 with current enquiry volumes up 30 per cent.

Breeden continued: “While the wider residential housing market will decline further in 2023, this presents opportunities for the resilient broker that is prepared to look into new markets – such as bridging, commercial finance and complex buy to let – where Crystal specialises.

“As ever, we will continue to provide our expert support as the industry faces into a challenging year ahead.”