How the Property Market has Impacted Mortgage Recruitment

Here at Placing Faces, we’ve witnessed an increase in demand in the mortgage recruitment sector lately. From Mortgage Advisors, Brokers, and Underwriters to Bridging Specialists, everyone is in high demand. The huge surge in the Property Market is likely responsible for this increased demand. And what better way to explore this topic than with you guys on our blog!

Over the last two years, the property market has been very unpredictable, in turn creating uneasiness in the mortgage sector. But the last 6 months have caused a boom in both housing prices and an increase in demand for mortgage advisors and brokers alike.

Annual UK house price growth in August rebounded to 11% after a fall in July

With COVID-19 lockdowns subsiding, restrictions easing and a somewhat return to normal life in full swing, the last year has also seen the UK property market return to some sort of normality. Since June 2020 house prices have been steadily increasing, with the peak in May and June 2021 at 9.6% and 8.7% annual increase.

Stamp Duty Holiday came to a close at the end of June, resulting in a dip in prices through July. However, the Halifax Price Index has confirmed that the prices have rebounded through August by 11%. 

What’s caused the boom in the property market?

House Prices are determined by several factors, namely the state of the economy, interest rates, and supply and demand. 

The Government furlough scheme has ended, more people are back in full-time work again and restrictions have been eased. Resulting in people getting out and spending more money, which has boosted the economy. 

During the pandemic, The Bank of England made emergency cuts to interest rates, to a historic low of 0.1%. They confirmed on the 23rd of September they aren’t going to increase them yet. This is excellent news for borrowers and individuals needing mortgages.

People have re-evaluated their circumstances and priorities after COVID, causing a huge demand for properties in the country. Providing more outdoor space, and more living space, with working from home still preferred by a lot of people. Accompanying this is the lack of supply, with estate agents reporting low numbers of properties on their books.

So, what does this mean for Mortgage Advisors and colleagues in the sector?

According to LinkedIn Data Search, out of the top 15 most in-demand job sectors, Mortgage and Loan Advisors ranked at number 2. With LinkedIn reporting a 59% increase in relevant job postings for the job category. Roles consisting of mortgage underwriters, especially bridging underwriters, mortgage brokers, mortgage loan officers, escrow officers, and loan closers. 

Mortgage Advisors and Mortgage Brokers are seeing increased demand and workload.

Mortgage Brokers can expect to stay especially busy. After the first lockdown easing’s in June 2020, the housing market has been steadily growing. Causing extra work and urgency for mortgage brokers. With house prices and demand still on the rise, this will be the case for a while. The IMLA (Intermediary Mortgage Lenders Association) expects gross mortgage lending to rise to a huge £283 billion this year; a 17.3% increase from 2020. This demand is resulting in increased pay and the greater amount of work results in more bonuses!

With these unprecedented times and the boom in the property industry, Mortgage Advisors are sought-after professionals. This demand has been causing a shortage of advisors in the sector. With the pandemic and furlough period seemingly behind us, the need for ‘furlough-friendly’ mortgages has fallen. Whilst a new wave of individuals seeking lenders who will consider borrowers with financial difficulties has risen.

People are still facing financial difficulties and are seeking Specialist Lenders who are happy to help and accommodate their circumstances. Mainstream lenders have been restricting criteria. Specialist Lenders will be crucial to helping those self-employed, or with financial difficulties, get the mortgages they need.

If you enjoyed this read then head over to our Headlines Page, to explore the following stories… “Bridging Watch: Build on this groundwork” and “Trussle to Hire 1,000 Mortgage Advisers”.

And if you’re currently looking for work in the mortgage or property sectors then please head to our Jobs Page, where all the latest job opportunities are available for you to apply 🙂