So it’s hardly surprising that many brokerages are finding it tough to keep going. Life must be particularly difficult for firms that focussed on buy-to-let, remortgaging or specialist lending in the past.
March 31 is the deadline for brokers to renew their Financial Services Authority fees for the year and many will face a hard choice – do they continue doing the job they love or do they throw in the towel?
Many sole brokers are finding it desperately hard to find new business but it would be a shame for consumers who rely on expert advice from brokers if the current market turmoil resulted in a mass exodus.
On the plus side, for every broker calling it a day many more are diversifying into fresh markets – be it protection or equity release – or expanding their financial skills base. There is also a growing market for government-backed shared equity schemes.
A central characteristic of the market is that while product rates are low, LTV levels are an impenetrable steel gate. But don’t forget, government funds are available to first-time buyers as well as key workers.
So borrowers and brokers still have options. Times may be hard and it might seem like the light at the end of the tunnel is a long way off but brokers must keep trying. Throwing in the towel should be a last resort after they have exhausted all other possibilities. Remember, it’s not over until it’s over.