Broker sentiment has remained resilient despite the pandemic, with 71 per cent of advisers saying they feel confident about the market in 2021, according to research by Masthaven.

This figure is down 6 percentage points from 77 per cent of brokers who felt confident about the year ahead in the market when they were surveyed in January before the Covid crisis hit.

The latest poll, carried out among 265 intermediaries over the last month, found that 87 per cent felt confident about their company’s prospects next year, down by 3 percentage points from January.

The survey also revealed that 63 per cent of advisers expect to see revenues rise in the coming year, with 36 per cent predicting double-figure growth.

Economic uncertainty was cited as the biggest challenge for 30 per cent of brokers, while 23 per cent said lender service levels and 19 per cent said local or national lockdowns due to Covid.

Mortgages for home movers was a key segment this year, as 21 per cent or brokers reported it was the strongest area of growth, followed by remortgages for 14 per cent of advisers and specialist mortgages for 12 per cent.

When asked to consider which areas of the market needed greater innovation, 23 per cent of said mortgages for first-time buyers, 19 per cent said specialist mortgages and 11 per cent highlighted later life lending.

Masthaven director of intermediaries Rob Barnard says: “Despite the challenges of 2020, confidence among brokers has remained remarkably resilient. 

“This is testament to the strong collaborative effort between brokers and lenders in an unprecedented time. 

“The industry has demonstrated this year that it can continue to operate in extraordinary circumstances and provide the support customers need.

“As the pandemic continues to wreak havoc on the finances of people across the UK, brokers will be key in helping many people who no longer fit the model of a ‘vanilla’ borrower unlock affordable finance. 

“Looking ahead, tough economic conditions and a potential no-deal Brexit may mean more challenges ahead. 

“However, knowing that brokers are optimistic about 2021 should give lenders and customers greater confidence in the market and provide an opportunity for the market to expand and innovate further.”