Mortgage broker earnings were up 13 per cent between 2017 and 2018, representing a rise from £1.16bn to £1.31bn, according to data collected by the FCA. In relation to this, the figures show that a third of all earnings, £449m, came from selling non-investment insurance products.
The regulator’s research shows that the average mortgage revenue per firm with one adviser was £42,330, whereas the average for a firm with 50 advisers or more came to £19.2m. However, while the average mortgage revenue per adviser for sole trader was for those with 50 advisers or more, the number came to £61,770.
Looking at home finance, the report outlines that the total reported revenue earned from the mediation of regulated mortgages increased from £1.02bn in 2017, to £1.18bn in 2018 – a 16 per cent rise. In addition, the data outlines that a small number of large firms with over 50 advisers account for 70 per cent of all advisers working as mortgage brokers. However, nearly nine in 10 firms comprise five advisers or fewer.
The sector is also growing: the total number of mortgage advisers rose by 7 per cent from 2017 to 2018, reaching 14,052.