Brokers are back!
Robert Sinclair, AMI chief executive, said: “It really looks like a corner has been turned. In a world that still lacks good news, this is a small beacon that indicates we have reached the bottom and started to climb back up the slope.”
The Financial Services Authority has updated its information on the numbers of authorised mortgage firms.
At its peak, the number of firms registered with the FSA having mortgages as their primary category of authorisation was 3,553 in January 2006. This gradually declined to 1,394 in March 2012, a figure that has remained static in both the June and September 2012 numbers.
The total number of FSA directly authorised firms holding mortgage permissions (adding those with Investments or Insurance as their main permission) peaked at 7,174 in December 2007, before the mortgage market imploded. The number of these firms then declined gradually until the numbers bottomed in March 2011, at 5,007. Since then numbers have risen in the two succeeding quarters, to 5,055 in September 2012.
The number of appointed representatives of authorised firms also peaked in December 2007 at 5,123. This also declined gradually over the following 4 years, to 2,383 in March 2012. We have now seen the first rise in this numbers in the latest quarter to 2,434 as at the end of September 2012.
This brings to an end a long run of falls in the number of firms advising on mortgages and indicates that for the first time broker numbers are on the rise.
Sinclair added: “AMI is predicting a bigger market with larger broker share in 2013 and it looks like businesses are beginning to invest to be part of that growth. Our membership numbers also continue to grow.
“As we now have certainty over the MMR, the position of brokers in the mortgage market with their focus on high quality advice has to be the benchmark that all aspire to.. There will be great opportunities ahead as the UK economy becomes focussed on building more houses and ensuring that those who wish to buy them have affordable loans that meet their needs.”