2023: A smooth sea never made a skilled sailor

Brokers began a love affair with swap rates, and whilst most sectors went to war and striking due to inflation outperforming wage growth, the mortgage industry was hit with multiple pay cuts as Product Transfers became ultra-aggressive and brokers had to learn to be happy with half their normal remuneration in many instances.

Buy to lets became a swear word, and most landlords were left wondering whether the word profit was a myth when it came to rent. Payment shock really did reverberate through the industry, and it was not just homeowners and landlords that incurred its wrath. Tenants saw rents rise at alarming rates and some were forced to move out of “assets” that were liquidated due to the pressure of falling house prices whilst amateur landlords opted to exit, as preferential mortgage rates ended. This sparked fire sales, it caused a flood of stock that remained stubbornly on property portals for longer than normal. Overall, it was a mess, and most mortgage brokers were walking around bearing scars of battle like Stallone in Rambo: Last Blood.

Further education, industry exams, seventy-seven letters after your name, they all show an ability to learn and excel, but I would argue that more lessons have been learnt in our industry in the year of 2023 than any book will ever teach you.  There have been some casualties for sure, and I hope those people soon return to employment and find new homes, and my thoughts go out to all of those that have been hit by the trauma of 2023, but I think we should also congratulate all of those that got through it.

I remember the crunch of ’08 all too well. Minimal levels of business, the phone not ringing, little activity and the odd tumbleweed landing in your tea as you watched the 9 millionth rerun of Friends on tv. This time it has been different. Lenders continued to lend, swap rates continued to fall, and we have worked continuously, constantly rewriting business to ensure our clients settled on the best rate available at their time of completion. In many instances we did this for half the money we would normally achieve.

What I feel we have accomplished in 2023, is a much closer bond to our clients. We have had more touch points than usual in a transaction, more communication and a longer 6-month journey together, rather than usual 6-8 weeks from app to completion. We have been pillars of support, we have been more involved in and at the risk of sounding like Simon Cowell “we have been on a journey together” with a lot of clients. These journeys will cement our relationships with them and will build a loyal client base that will stand us all in good stead moving forward. Together we have got through the battle of the swaps and seen out one of the hardest years our industry has seen this decade. Covid was a breeze in relation to this!

As I have said in several other pieces, my motto for 2023 will be, “A smooth sea never made a skilled sailor” but in 2024 I think we will all be relieved to see “Land Ahoy” and look forward to jumping out the boat for a bit of rest bite.

Merry Xmas one and all.