Around 25.8% of new mortgage finance companies closed in the last five years, equal to over 1,000 firms, according to research.
According to AptPayment, around 1,075 out of the 4,163 mortgage finance companies that opened have either entered administration, gone into liquidation or are now dissolved.
The firm analysed data from Companies House on the number of new mortgage finance companies incorporated between January 2019 and December 2023 and compared it to those that have gone into administration, gone into liquidation or are dissolved.
Mortgage finance companies are defined using the Standard Industrial Classification code 64922. This is for firms offering mortgage services, including offering and arranging loans secured by real estate, assisting clients in obtaining mortgages and managing mortgage-related financial products.
The report found that Liverpool is the city with the highest percentage of closed companies at 39%, followed by Glasgow at 36.7%, Leicester at 35.9%, Derby at 35.3% and London at 30.8%.
At the other end of the list, Swansea has the most successful new mortgage finance companies, with only 10% closing in the last five years.
Coventry and Milton Keynes took the second and third spots at 14.3%, Bristol followed closely behind at 15.7% and Leeds was around 17%.
A spokesperson at AptPay said: “Our research highlights that location plays an important role in the success of companies. Whether you are dealing with commercial clients or individuals, where your business is based will affect your operating costs. But more than that, it can also potentially boost or hinder client acquisition and opportunities for expansion. In some cases, it could be the difference between growing a strong client base and having to close your doors within the first five years.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
