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Brokers - what have been the big lessons of 2023?

Journalist: John Fitzsimons, Freelance

ended 12. December 2023

Morning brokers

With the end of 2023 on the horizon, we'd love to get your take on what the big lessons of the year have been for the broker community.

What has happened this year which has shifted your thinking and the way you operate? 

Have there been any notable surprises in the market over the last 12 months?

What will be the legacy of 2023 when it comes to mortgages?

Any and all thoughts on this one are very welcome!

 

11 responses from the Newspage community

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Michelle Lawson
Director at Lawson Financial
The only lesson for 2023 is for us to continue to expect the unexpected. We have had a tumultuous few years in this industry with one thing and another which has seen everyone and their processes tested to their limits. Hopefully we can look forward to a calmer 2024 and for the community to be able to crack on and give quality advice and do what we do best.
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Ken James
Director at Contractor Mortgage Services
It has been a challenging year to put it politely, I feel that we are all very ready to put 2023 in the rearview mirror and begin to look forward to what 2024 hopefully will bring.
The secret to succeeding this last year has been to ensure your customer-centric. Keeping the client at the center of all you do has looked a
lot different this year, keeping them up to date on rate changes acting swiftly to secure the best rates and reacting and adjusting when deals shift downwards have been a constant this last year, also with mortgages slowing downshifts in focus to protection have been increasing and with consumer duty, this was a direction most were looking to increase regardless but the shift has happened swifter than it possibly would due to market conditions. Many brokers are starting to feel burnt out so a rest over Christmas and a good recharge has to be the main focus to allow us to get the best out of the coming new year
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Craig Fish
Director at Lodestone Mortgages
I have learnt two things in 2023, expect the unexpected, and social media is the way forward. As the year started things looked positive, but as interest rates rose, along with inflation, the outlook seemed very bleak. People turned to social media for help, and as advisers we had to adapt, and be where 'the people' were. The biggest surprise is the rise in product transfers, and to a certain extent, this could continue for a short while longer, but the legacy of 2023 is that the independent advice of a broker with unrestricted product choice is of paramount importance. The mortgage landscape is changing and 'real' advice is being sought, people want more than just an off-the-shelf solution. For brokers to succeed in the future they need to have a complete understanding of the UK economy, and not just the difference between mortgage rates.
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Jack Tutton
Director at SJ Mortgages
The mortgage market in 2023 has been like being on a rollercoaster, the market started to settle after the mini-budget only for inflation to bite and send rates skyward again. We have had to adapt our way of thinking and processes to ensure that our clients continue to get the best deal available to them, by being proactive and a constant eye on the market we've been able to reduce people's interest rates and have saved them thousands over the term of their new deal. One of the most noticeable impacts of 2023 is how much rates have impacted the buy-to-let market, having significantly higher stress rates has meant that in my opinion the market has struggled and led to a lot of landlords selling up. I think this will be something that lenders will want to think about going into 2024, the reduced rates with significant fees haven't appealed to landlords.
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Imran Hussain
Director at Harmony Financial Services
This year has been a hangover of Trussonomics first time buyers are still active in the market, but it's been a challenging year for many brokers and our clients with borrowing costs being much more than the previous decade.
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Denni Tyson
Mortgage and Protection Advisor at Henchurch Lane Financial Services
The increase in trackers is the most notable surprise in the market this year, however, those that have one with no penalties will reap the rewards in the long run and into 2024.

The legacy of the year however will be upon how consumers have been impacted by this chaotic year. It has hopefully highlighted the importance of us advisors and our ability to navigate a complicated market with more product changes compared to other years.

Roll on 2024, it can't be as chaotic as 2023 can it?
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David White
Chief Operations Officer at Simply Lending
I think a lot of firms didn't realise that they were playing in Easy Mode until we saw the rate increases of 2023.

The Mortgage business was more competitive than it's ever been in '23 and clients are choosing to scrutinise deals and shop around far more... and rightly so!
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Peter Stokes
Director of Mortgages at Davidson Deem
2023 seemed to be all about interest rates! Fixed rates have been the proverbial yo-yo this year with High Street highs well over 6%, and lows. albeit briefly, just under 3%. Keeping track of market expectations and managing rates reserved for clients seems like it has been a full-time job.
Thankfully, the money markets seem to have calmed down, lenders are pricing competitively again, and the upshot of this is that fixed rates are falling. Hopefully, in early 2024, we might see rates starting with a 3 again. Fingers crossed!
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Adam Smith
Founder at Alfa Mortgages
This year has been dedicated to enlightening clients about the persistent reality that interest rates are highly improbable to return to the 1 or 2% range. If there is a lasting impression, it is the era of elevated interest rates and heightened inflation.
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Charles Breen
Founder at C B
The bank of england dont understand what is going on in the economy, they are unable to forsee or preempt the economy and the direction it is heading, and get caught like a rabbit in the headlights when things change beyond what their little computer models tell them. At times it felt like we were being guided by a supply PE teacher asked to teach GCSE maths, totally out of their depth and clueless.
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Jamie Thompson
Mortgage Broker at Jamie Thompson Mortgages
Be careful what you wish for. Falling interest rates are great for the industry and consumers but the additional work it creates from changing products is enormous.
There was much fuss about the introduction of consumer duty but firms who were already doing things property and taking a customer centric approach really didn’t have much they needed to change.