How is the Current Mortgage Market? – A Recruiter’s Take

It’s been an interesting few months in the UK mortgage sector, to say the least! If you’re a mortgage advisor, or even thinking of moving into the industry, you’ve probably noticed that things are moving fast. From market fluctuations to evolving recruitment trends, it’s certainly keeping everyone on their toes.

At Placing Faces, we’re seeing this shift first-hand as specialist recruiters in the mortgage industry. Our role puts us in the thick of it – matching candidates with employers and watching industry changes as they unfold in real-time. So, what’s going on right now, and how is it affecting your career prospects? Let’s get into it!

The UK Property Market is Still a Rollercoaster

Let’s get real for a moment. The housing market has been a bit of a rollercoaster, hasn’t it? House prices rose by 8.5% in 2023, but according to Nationwide’s House Price Index, things are beginning to cool down, with a 3.1% decrease in September alone. 

But here’s the kicker: while house prices are dropping, buyer numbers are rising and the demand for expert mortgage advice is skyrocketing! People still need homes, and securing a mortgage in a complex market makes advisors more valuable than ever.

Employment Opportunities in a Candidate-Led Market

Here’s the good news (for candidates): right now, it’s all about you! The UK mortgage and finance sectors are in what we call a candidate-led market. That means there are more job openings than there are experienced professionals to fill them. Employers are starting to pull out all the stops to attract top talent.

As recruiters, we’ve noticed a significant uptick in mortgage advisory roles – both employed and self-employed. Whether you’re looking for flexibility in a self-employed setup or the stability of an employed role, there’s something out there for you. And because of the candidate shortage, salaries are creeping up too.

Stability in the property market brings a good balance in recruitment, the hope is that 2025 brings that. In 2023, certainly the back half of the year, the market was slow. This unfortunately led to many redundancies, so we were seeing a high volume of strong candidates and a lack of roles available for them. This year things have steadily improved on the role front through the year until a recent spike. We saw a 40% increase in jobs that we have taken on since the start of September, compared to the previous two months. Where this is typically a positive thing, the need for good candidates is higher than ever.

(Insert shameless ‘live jobs’ plug below)


The Rise of Self-Employed Roles

Speaking of flexibility, we’ve seen a huge rise in self-employed mortgage advisor roles this year. In fact, we had made more self-employed advisor placements by June this year, than we had on any other previous full year. With rising costs of living and increasing business expenses, more companies are offering self-employed contracts to give advisors autonomy while minimising their overheads. Fortunately the feelings are mutual for candidates, according to Mortgage Strategy, over 50% of new mortgage brokers prefer self-employed roles because of the flexibility and higher earning potential.

But self-employment isn’t for everyone. You’ll need to be self-motivated, business-savvy, and if you want to be hitting those higher commission levels of 70/80%, then you need to be prepared to hustle for your leads. Luckily, many firms are offering admin support and lead generation, so you won’t be starting from scratch. Just make sure to weigh the pros and cons!


What Does the Future Hold?

The Bank of England is bringing the base rate down, the lending environment is going to likely improve. The predictions for the future rate is also looking very positive;

Source: Money to the Masses

Here’s the silver lining: Rates are expected to keep falling, the falls may not look dramatic as we were used to lower in the 2010s but these weren’t sustainable. These rates will bring much more stability. There is a serious need for skilled mortgage advisors to help clients navigate the complex lending landscape. The Financial Conduct Authority (FCA) has emphasised the importance of clear, transparent advice in these turbulent times, meaning experienced mortgage brokers will continue to be in high demand.

The Financial Times recently reported that UK household debt levels have soared to £1.8 trillion, with a significant chunk tied up in mortgages. If you’re a mortgage advisor, this is where your expertise comes in – helping clients manage their debt and secure affordable deals will remain crucial in the coming months.

The Impact on the Finance Sector

It’s not just the mortgage sector feeling the pressure. The entire finance industry is grappling with a talent shortage. According to PwC’s UK Economic Outlook, nearly 70% of UK financial services firms are facing recruitment challenges. As demand for roles like financial analysts, compliance officers, and corporate finance experts rises, companies are scrambling to find the right people.

Most companies are becoming more open to offering flexibility, competitive pay and support for growth. For candidates, this is prime time! You’re in control, and employers are offering competitive salaries, hybrid work setups, and additional perks to attract the best talent. If you’ve been thinking about making a career move, now might be the perfect time.

A Few Key Takeaways

  1. It’s a Candidate-Led Market: Job seekers in the mortgage and finance sectors have more power than ever, with employers competing for talent.
  2. Self-Employment is On the Rise: Many mortgage firms are now offering self-employed contracts, which can be a great option for those seeking flexibility and higher earnings.
  3. Lowering Interest Rates: Things are improving in the market, and 2025 is looking promising.
  4. Perks and Salaries Are Getting Competitive: With more jobs than candidates, employers are becoming more flexible with their offering, exploring hybrid working options, higher pay and more benefits.

Final Thoughts

So, what does this mean for you? Whether you’re an experienced mortgage advisor looking to step up or a finance professional exploring new opportunities, now is the time to act. The demand for talent is there, and the opportunities are ripe for the taking.

Feeling unsure about where to start? We’re here to help! We specialise in finding the perfect match between candidates and employers in the mortgage and finance sectors. Whether you’re looking for your next employed role or thinking of going self-employed, get in touch with our team today. We’d love to chat about how we can help you in this exciting (and sometimes overwhelming) market.

That’s it from us for October! Keep an eye out for more insights next month, and as always, feel free to reach out with any questions or to discuss current opportunities.

Sources:

  • Nationwide House Price IndexLink
  • PwC UK Economic OutlookLink
  • Mortgage StrategyLink
  • Financial TimesLink

To view a range of roles we’re currently hiring for, please visit the following link to our jobs page!

Mortgage, protection, finance roles and more – Jobs – Placing Faces

Got an upcoming interview? Read our blog on CV Writing. We’re here to help!

CV Writing: High-Impact Resumes For Success In The Mortgage Industry – Placing Faces

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