The Mortgage Advice Bureau (MAB) saw total broker numbers fall following the mini-budget fallout.

In its latest trading update, published today, the company reveals the number of brokers dropped by 6% in the first five months of 2023.

However, the average number of mainstream advisers during the same period increased by 4% to 1,966.

In a statement, the company said: “Due to the market turmoil that followed the mini budget, we entered 2023 with a lower-than-expected pipeline of written mortgages and new Appointed Representative (“AR”) firms.  

“In addition, our existing AR firms focused on efficiency and paused recruitment, leading to a reduction in adviser numbers.” 

UK gross new mortgage lending for the first five months of the year was 28% lower than in the same period in 2022 due to rising costs of living and higher interest rates.

The residential purchase segment was down 30%, while residential re-mortgaging was down 18% and buy-to-let down 46%.

However, re-mortgaging and product transfers were up 12% for Q1 2023 compared to Q1 2022.

Gross new mortgage lending increased to 8% for the five months ended 31 May despite the reduction in overall adviser numbers.

MAB chief executive Peter Brodnicki says: “We had hoped to be in a period of interest rate stability as we entered Q3, followed by a resumption in organic adviser growth in Q4.

“Instead, we find ourselves in an environment of continuing interest rate rises, reduced affordability, and cost of living increases, all of which are naturally impacting consumer confidence.

“Despite strong underlying demand for property, some buying decisions are understandably being delayed by our customers until we have a more stable economic and interest rate environment.

“Despite the additional market pressure, I am delighted with how MAB is performing and how our market share continues to grow.

“Re-mortgages and increasing numbers of product transfers currently represent around 60% of our written transaction volumes.

“This will deliver MAB a greater number of re-financing opportunities in the medium term, with the group’s advisers performing particularly strongly in this area.”