Six in 10 (60%) brokers have stated that they believe that H1 2023 was about the same or worse than 2022, research by Crystal Specialist Finance has found.

Using its broker database to gauge the thoughts of brokers, Crystal Specialist Finance has published a follow up to its 2023 predictions survey, which was conducted in December 2022.

The research found that nearly half (48%) of brokers agreed that, despite its challenges towards the end of the year, 2022 was better for business than 2021.

However, uncertainly among brokers has fallen from the start of the year. Around three in four (74%) responders stated at the start of the year that they were either unsure about the year ahead or were worried about the prospects for their business. This figure has fallen to 67% at the end of H1.

Crystal Specialist Finance has said that this could be a reflection of the resilience of mortgage brokers and their adaption to the ongoing market turbulence becoming the “new norm”.

The relevance of the cost of living crisis has also lessened for brokers, with two thirds (66%) stating that this is having an impact, compared to 76% at the start of the year.

However, brokers did state that more clients lacked confidence, a feeling which has increased to 40% in H1, compared to 35% at the start of the year.

Furthermore, brokers have seen a big shift in their thoughts of the direction and peak of the Bank of England (BoE) base rate, with over half of those surveyed at the start of the year stating that it would not go above 5%.

In H1, 40% of brokers now think that this will peak above 6%, with 10% now believing that it would peak at 5.25%.

Managing director at Crystal Specialist Finance, Jo Breedon, said: “At the start of 2023, we were hoping for some form of stability with inflation coming under control and this being reflected in mortgage pricing and availability. Instead, we saw the opposite and it is only as we approach Q3 that inflation is falling – but not at the rate the BoE or the markets want to see.

“Our survey has revealed that brokers are still uncertain about the remainder of 2023, just as they were at the start of the year. That said, many have used the opportunity to diversify into new markets to bolster their businesses and I’m delighted to see the increasing importance of a master broker like Crystal in helping them achieve that.

“While the wider residential housing market is in decline, this presents opportunities for the resilient broker that is prepared to investigate new markets – such as bridging, commercial finance and complex buy-to-let.”

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