With the sector likely to shrink from the record of 346bn gross lending in 2006, it means there will be less business to go around.
This is mainly because the remortgage market is expected to contract due to the psychological effect that borrowers will feel after coming off fixed-rate deals only to see the choice of rates to be much higher than what they were paying initially.
Rising rates could also put some would-be first-time buyers off due to the added costs of borrowing. That all means plenty of work ahead for intermediaries to secure business this year and that is before anyone even contemplates further rate rises later this year. The message to brokers is that they may need to raise their game but at least they have the chance to prove their value to their clients in this more difficult climate.