Is 2024 shaping up to be a big year for brokers?

Various industry names give their verdict on how the market is shaping up

Is 2024 shaping up to be a big year for brokers?

With the last few years proving to be particularly busy and stressful for brokers with their clients battling challenges such as COVID and the cost-of-living crisis, the question arises as to whether 2024 will be more settled or whether the turmoil will continue.

Will 2024 be a busy year for brokers?

Ken James (pictured), director at Contractor Mortgage Services, said, without a shadow of doubt, 2024 will be a busy year for brokers.

“The dawn of 2024 has ushered in a sense of vibrancy and dynamism that far surpasses the subdued tone that characterised much of the preceding year,” he said.

Unlike the era of historically low interest rates hovering around 1% or 2%, James said, the current market climate acknowledges a departure from those depths, with inflation figures seemingly reined in, prompting lenders to exhibit a propensity towards rate reductions rather than hikes.

These subtle shifts in the lending landscape, he added, are not lost on both buyers and sellers, who find themselves buoyed by a newfound air of optimism that had been conspicuously absent for a considerable period.

However, amid this palpable optimism, James said it is imperative not to lose sight of the volatility that still pervades the market.

“While current trends may signal a downward trajectory in rates, the precarious nature of swap rates and external market influences loom as constant reminders that fortunes can swiftly change, akin to a coin toss,” he said.

Indeed, James said the prospect of rates reversing course remains a plausible scenario, particularly if lenders see a need to fortify their positions in the face of unforeseen risks.

“Here is to hoping that this newfound stability endures, providing stakeholders with a sustained sense of confidence as they navigate the ever-evolving landscape of the mortgage market,” he added.

Will brokers be firefighting in 2024?

Lauren Tebb, mortgage and protection broker at L & K Financial, said in the dynamic landscape, 2024 is poised to be a significant one for brokers.

“Just within February, we have witnessed a whirlwind of activity, with lenders implementing rate increases, decreases, and even complete withdrawals,” she said.

For clients, Tebb said staying abreast of these rapid shifts can feel like an insurmountable task. Indeed she believes the intricacies of affordability calculations add another layer of complexity.

“Gone are the days when selecting a lender based solely on the best rate was the straightforward solution,” Tebb added.

Today, Tebb said the terrain demands a more nuanced approach, one that accounts for not only the interest rate but also the evolving criteria for affordability assessments.

“Brokers serve as indispensable guides, adeptly navigating clients through this ever-changing landscape, providing not just information but also invaluable insights and tailored solutions,” she said.

As the year unfolds, Tebb believes that the role of brokers will only become more pivotal. With their finger on the pulse of the market, she added that brokers are equipped to offer clients not just options but informed guidance, helping them make decisions that align with their financial goals and circumstances.

“In a climate where every rate fluctuation and policy change can have significant ramifications, the expertise and support of a broker are invaluable assets for anyone navigating the mortgage market,” Tebb said.

Do you believe that 2024 will be a busy year for brokers and why? Let us know in the comment section below.