UK Mortgage Brokerages Adjusting to Remain Viable
Brokerage houses within the UK continue to streamline their administrative and marketing processes in order to make it through until next year. This is certainly the case at brokerage house London & Country Mortgages. While many brokerages regrettably have to close their doors never to open again, L & C is making it work and plans on showing a profit at this year’s end. The firm closed out 2009 with a 3 million pound loss. The next year was improved as they only lost 1 million pounds. The year 2010 also saw an improvement in gross commissions and fees of an estimated 6%.
David Hollingworth, mortgage specialist at L&C, commented on the successful year the brokerage continues to have currently, saying: “We expect to push into profit this year and continue that trend going forward.
“The market is healthier in terms of product selection and protection sales and we have improved efficiency and processes in the business.”
One reason for continued losses during the year 2010 is the low interest rate which is still available today.
The accounts painted a black and white picture of what the remortgage side is experiencing, saying: “The level of remortgage business continued to decline as a proportion of overall business as Bank of England base rate remained at historic lows of 0.5%.
“As and when the base rate increases it is anticipated that the level of remortgage business will increase and the group anticipates being able to grow its position in the market and increase revenues and profitability.”