Despite a turbulent finish to 2022, the size of the UK mortgage broker market climbed by 9.6% year on year, research by lender Octane Capital has revealed.
The market size of the sector is estimated to have hit £1.878bn in 2022, having doubled (104.5%) in the past decade.
Growth is expected to continue this year despite the market dealing with tailwinds like rising mortgage rates induced by the Russia-Ukraine war, with Octane predicting a 2.6% increase for 2023.
Jonathan Samuels, chief executive of Octane Capital, said: “The property market has had to deal with a range of challenges in recent times, from a prolonged period of political uncertainty due to Brexit, the obvious obstacles posed by the pandemic and, more recently, the uncertainty spurred by high inflation, increasing interest rates and a shambolic mini-budget last September.
“Despite this, the market has stood firm and our aspirations of homeownership have not been dampened.
“Of course, an unwavering level of market activity requires a suitably adequate mortgage sector to help facilitate the nation’s aspirations of homeownership. So it’s hardly surprising that the mortgage broker market has increased in size quite considerably over the last decade and is expected to maintain this growth over the year ahead.”
This sharp rate of annual growth was also the third largest year-on-year increase seen over the last decade, after 2014 and 2016, when the market increased by 29.5% and 19.1% respectively.
Based on historic market trends, the size of the UK mortgage broker market is forecast to hit £1.926bn in 2023.