UK Mortgage Adviser Shortage: What’s Behind the Decline and How the Industry Can Respond

The UK mortgage advice sector is facing a significant challenge: the number of mortgage advisers fell by 11% year-on-year in 2024, dropping to 31,524 – the first decline since 2020 and the steepest since the financial crisis in 2009. This shift raises critical questions about the future of mortgage advice and what steps the industry must take to adapt.

What’s Causing the UK Mortgage Adviser Shortage?

Several factors have contributed to this decline:

• Regulatory Pressure: Increased compliance requirements have made the role more demanding and less appealing.

• Economic Volatility: A turbulent housing market, including the aftermath of the mini-Budget and a 29% fall in purchase activity in 2023, has created uncertainty.

• Recruitment and Retention Challenges: Attracting new talent remains difficult, while many experienced advisers are retiring.

• Work-Life Balance and Profitability: Rising business costs, falling revenues, and long hours have made the role unsustainable for some.

  
  

Stephanie Charman, CEO of the Association of Mortgage Intermediaries (AMI), described the situation as an “inflection point,” stressing the urgent need to attract younger talent and create clear career pathways.

The Risks of an Advice Gap

Industry leaders warn that if the UK mortgage adviser shortage continues, consumers could face reduced access to expert, regulated advice. This runs counter to the goals of the Consumer Duty, which aims to improve outcomes for borrowers.

Opportunities for Change

Despite the challenges, there are positive signs and initiatives aimed at reversing the trend:

• Training and Mentorship: Programs like the Working in Mortgages platform and network-led academies are helping new entrants gain qualifications and experience.

• Career Switcher Support: Firms are investing in structured development for graduates and professionals from other sectors.

• Technology Integration: Digital tools and automation could ease administrative burdens, making the role more attractive.

  
  

Ben Thompson, Deputy CEO at Mortgage Advice Bureau, notes that adviser recruitment remains competitive, with vacancies signalling ongoing demand. However, he warns that confidence and market activity need to return before numbers can recover.

Mortgage Adviser meeting with first-time buyers

What’s Next for the Industry?

To future-proof the sector, firms must:

• Promote the benefits of a career in mortgage advice.

• Offer flexible pathways for entry, including apprenticeships and career-change programs.

• Embrace technology to improve efficiency and work-life balance.

  
  

The mortgage advice profession remains rewarding and impactful, but without decisive action, the UK industry risks a growing advice gap that could harm consumers and businesses alike.

The Importance of Adaptation

As the landscape continues to evolve, it is crucial for the industry to adapt. This includes not only attracting new talent but also retaining existing advisers. The focus should be on creating an environment that supports growth and development.

Building a Supportive Environment

Creating a supportive environment is key to retaining advisers. This can be achieved through:

• Regular Training: Continuous professional development ensures that advisers are up-to-date with the latest regulations and market trends.

• Peer Support Networks: Establishing networks where advisers can share experiences and advice can foster a sense of community.

• Work-Life Balance Initiatives: Implementing policies that promote a healthy work-life balance can help reduce burnout and improve job satisfaction.

  
  

Embracing Innovation

Innovation is essential for the future of mortgage advice. By embracing new technologies, firms can streamline processes and enhance client interactions. This not only makes the role more appealing but also improves overall efficiency.

The Role of Marketing

Effective marketing strategies can also play a vital role in attracting new talent. Highlighting the benefits of a career in mortgage advice through various channels can raise awareness and interest.

Looking for your next opportunity in mortgage advice?

If you'd like a stepping stone into the mortgage industry or are perhaps looking to return to it, take a look at our latest opportunities with some of the UKs leading brokers.

In conclusion, the UK mortgage advice sector is at a crossroads. By addressing the challenges head-on and embracing opportunities for change, the industry can secure a brighter future for both advisers and consumers.