Confidence rising among mortgage advisers in Q2 2024: What this means for the industry

It’s safe to say that it’s been a turbulent few years for the mortgage industry, characterised by significant interest rate fluctuations, political and economic uncertainty, and a number of regulatory changes. However, according to recent data from the Intermediary Mortgage Lenders Association (IMLA), it appears there might now be light at the end of the tunnel. 

The report, published last week (08/08/2024), found that confidence among mortgage advisers has rebounded, reaching levels not seen in recent years. Indeed, findings from Q2 2024 indicate that intermediary confidence has returned to its long-term norm –  a promising sign for the market as business volumes continue to grow. 

This resurgence in industry confidence comes at a crucial time, as the sector navigates a continuingly complex landscape of fluctuating interest rates, evolving consumer preferences, and a challenging economic environment. 

However, what does this actually mean for the industry?

In this article, we’ll take a snapshot-look at the IMLA’s findings, assess the potential economic impacts of this perceived rise in confidence, and explain why now might be a great time to enter the industry by gaining a CeMAP qualification.

The findings in a nutshell… 

The IMLA report highlights several interesting trends that underscore the growing confidence among mortgage advisers. For example, according to the data, 29% of intermediaries said they were ‘very confident’ about the future of the industry, with a further 65% ‘fairly confident’. This is up from 24% and 62% respectively in the first quarter of 2024.

When it comes to confidence in their own business prospects, the improvements are even more stark. 54% of intermediaries now feel ‘very confident’ about their business prospects, with 43% feeling ‘fairly confident’. This marks a significant recovery from the lows experienced during the 2022-2023 period, when economic and political uncertainties in the UK – triggered by the Truss government’s fiscal event, along with a cooling housing market – led to widespread concerns among industry professionals.

The data could also suggest that intermediaries are experiencing higher levels of activity in Q2 2024, with somewhat of an uplift in mortgage applications. What is particularly interesting, is the apparent rise in first-time buyers. As a demographic that has been relatively subdued in recent years due to affordability concerns and uncertainty around interest rates, the stabilisation of the housing market and the availability of more competitive mortgage products has provided a much-needed boost to the market. This is reflected in the reported intermediary confidence increase.  

The economic impact of stability

As is always the case, economic conditions have played a pivotal role in shaping the current landscape for mortgage advisers. As stability in the economy becomes more apparent, so do the levels of confidence in the mortgage industry – as this report indicates.

The recent stabilisation of interest rates, following a period of volatility, has brought much-needed certainty to the market. And with the Bank of England opting to set the base rate at 5% in its latest meeting, borrowers and lenders alike have found it easier to plan for the future. This stability has been a key factor in restoring confidence among mortgage advisers, who now have greater clarity on the direction of the market.

Looking ahead: Industry opportunities and challenges

The apparent resurgence in confidence among mortgage advisers shown by this report is undoubtedly a positive development, however, the industry still faces a number of challenges. Economic uncertainties – from the potential for further interest rate hikes to ongoing inflationary pressures – still threaten to negatively impact the market in the coming months. Additionally – a salient issue in the UK right now – the availability of housing stock remains a concern, with supply constraints continuing to put upward pressure on prices.

That being said, the outlook for the mortgage market remains broadly positive, with the trends highlighted in the IMLA report suggesting that business volumes are likely to remain strong in the second half of 2024. Flipping a potential negative on its head, the continued demand for housing, coupled with the green shoots emerging from the UK economy, should provide a solid foundation for growth in the coming months. 

Could this inspire a new generation of mortgage advisers? 

So what could this mean for the long-term future of the industry? Well, one area it could impact is the education and recruitment of new mortgage advisers. After all, this boost in confidence illustrates to both young individuals looking to start a career in the financial services, as well as other adults looking for a professional change, that a career in mortgage advice represents a stable, lucrative, and professionally rewarding option.

However, in order to act on this, interested individuals need a strong foundation of knowledge and a professionally-taught skill set. This is where the CeMAP qualification comes in. CeMAP provides a comprehensive career pathway to becoming a qualified mortgage adviser. It equips individuals with the expertise to understand complex financial products, assess client needs, and provide tailored advice.

Here at Simply Academy, we offer a range of flexible CeMAP courses – from fast-tack classroom-based CeMAP learning to online-based self-study options – to accommodate different learning styles and schedules. Whether you’re a recent graduate or looking to change careers, our programmes can help you build a successful career in the mortgage industry.

Our final thoughts… 

The apparent rise in confidence among mortgage advisers in Q2 2024 is a welcome development for the industry – one that reflects a more stable and positive outlook for the market. Indeed, as business volumes continue to grow, the role of mortgage advisers will become increasingly important in helping borrowers find and understand the best mortgage products and services to suit their needs. 

For existing mortgage advisers, this is great news. For aspiring mortgage advisers, this news should be seen as further evidence that this field is more rewarding and exciting than ever before, and that by investing in professional development through courses like CeMAP, you can ensure you are as well-equipped as possible to meet the challenges and opportunities that lie ahead.

Here at Simply Academy, we are always happy to answer any questions and provide advice when it comes to careers in mortgage advice. For more information, browse our course pages or get in touch with our team today.