A study by GE Money Home Lending shows that 95% of brokers are predicting that they will face further challenges in 2008 as a result of last year’s credit issues.

Brokers responding to the lender’s survey point to rising interest rates, lowered consumer confidence and product changes in addition to recession fears as factors contributing to make 2008 a difficult year.

The Treating Customers Fairly principles were also cited as "challenging" by 18% of brokers.

Duncan Berry, director of mortgage sales at GE Money Home Lending, says: “Despite challenges ahead in 2008, 75% of brokers see further decreases in the Bank of England base rate.

“As we enter 2008 brokers seem well aware of the challenges ahead and as such are well placed to plan and optimise business in the year ahead.

“Lenders will need to work closely with brokers to ensure business potential is maximised.”

Source: Mortgage Strategy