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Is mortgage-provision a growth area for estate agents?

A new analysis from a financial services trade body shows that gross mortgage lending is expected to rise significantly in the next two years, driven by increased activity in the housing market.

Earlier this week both The Property Franchise Group and the London-based Berkshire Hathaway HomeServices Kay & Co agency groups announced that they were diversifying into mortgage lending. 

Their decision appears to tally with a report from the Intermediary Mortgage Lenders Association, anticipating that despite a fall in gross mortgage lending of 1.0 to 2.0 per cent in 2019, significant growth is expected in 2020 and 2021.


IMLA predicts that gross mortgage lending will grow by 1.4 per cent to £268 billion in 2020, rising to £275 billion in 2021. 

This compares to an estimated £264 billion last year. 

The reduction in economic and political uncertainty following the General Election is described as being the likely driver for more housing transactions, says IMLA.

Kate Davies, executive director of the Intermediary Mortgage Lenders Association, says: “The next two years certainly look positive for the mortgage market. In 2019 the sector remained resilient in the face of ongoing political uncertainty, but our report shows that a boost in consumer confidence is likely to support modest growth over the next two years.”

However, the report also states that there are a number of key challenges facing the mortgage market over the coming years. The growth of the sector will also partly rely on Britain’s ability to negotiate a trade deal with the EU after Brexit.

Estate Agent Today reported on The Property Franchise Group diversification into mortgage-lending earlier this week and now it’s been revealed that Connaught Private Finance is to be launched as a division of Berkshire Hathaway HomeServices Kay & Co, a London estate agent that is part of the Warren Buffett empire.

Connaught Private Finance is described as “a one-stop solution” for clients who want expert advice on all residential and buy-to-let mortgages, commercial, development, and bridging finance.

  • Matthew Gardiner Legge

    Estate agents offering mortgages/advice makes perfect sense until you go down the corporate route with pressure from up on high to meet targets.


    Or from a certain online-only agency who needs the referral fees to be able to continue with their 'free' offering.

  • Velgram Quaid

    I've heard of a number of cases of potential buyers getting nasty treatment from Agents after declining their offer of mortgage advice.

  • Andrew Stanton CEO Proptech-PR    Proptech Real Estate Influencer

    What is going to be the most interesting feature of the 'mortgage and related products market' as it gets swept along by the digital transformation of UK real estate/society in general, is who is going to be the provider that the public turns to and trusts?

    Pushing aside that the Fintech revolution has several years head start on the Proptech revolution, and finance sits firmly in the first camp, it is interesting that the financial services sector in the UK seems to be repeating itself. In the sense that in the early 1980's, financial institutions wanting to sell mortgages and endowments, needed access to the end user - the buyer. So, banks and building societies bought and created chains of estate agents, to get to these buyers at point of sale.

    Now with the rise of developments utilising big data and AI, buyer's data can be captured, not through the prism of an agency holding an applicant, but directly, so the process of targeting and satisfying the financial needs of a buyer of property, does not need the help of an agency. The new high priest of finance is the technician in their digital laboratory. The question is who is going to be paying their wages and using their knowledge?

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    • 20 January 2020 19:26 PM

    Any prospective mortgage applicant if they have any sense will always use a WHOLE OF MARKET mortgage broker.
    That means EVERY mortgage product that might be available.
    I know of NO EA that has a whole of market offer.
    No sane person would restrict themselves to anything less than a whole of market offer.
    Perhaps a white label type of offer such as with L & C etc.


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