Mortgage brokers face a difficult market as housing transactions slow. Cautious first-time buyers delay purchases due to rising borrowing costs and economic concerns. The Bank of England's rate hikes since 2022 have increased mortgage costs, and while the base rate has fallen, expectations of further cuts have faded, with some predicting a rise. Swap rates have already increased. In July, mortgage approvals dropped 15 per cent year-on-year. Refinancing remains strong as borrowers seek affordable deals, cushioning brokers like Mortgage Advice Bureau (MAB).

MAB climbed from Aim to the LSE's main market this year and is expanding its adviser network. Shares have fallen over 40 per cent this year due to dashed rate cut hopes. A profit warning cut adjusted full-year profit forecast to £38mn. However, adviser numbers rose 9 per cent, and revenue per adviser was flat. The stock trades on seven times forward earnings with a projected 2027 yield near 7 per cent.

Luceco (LUCE) reported solid half-year results under new CEO Dr Thorsten Müller, driven by organic growth and M&A. The electrical accessories and LED lighting company saw adjusted operating profit rise 14.5 per cent to £15.8mn. The group focuses on its energy transition business. Consensus gives adjusted EPS of 17.6p for 2026 and 19.4p for 2027.