The Intermediary – October 2025

From the editor...

There’s nothing quite like the approach of an Autumn Budget to keep your friendly neighbourhood finance journalists on their toes.

From the threat of National Insurance being applied to rental income, touted Capital Gains Tax changes, a Stamp Duty overhaul (I’ll believe that one when I see it), and potential relief for energy efficiency improvements, there’s a lot of speculation going around.

Of course, as this journalist has learned the hard way, while it’s worth trying to get a handle on what might be coming, and how it could affect the market – see page 78, for a start – there’s a pre y strong chance that 26th November might come and blow all our predictions out of the water.

We’ve seen it go both ways – right through from industry experts being certain in the lead-up to a Budget that support for the property market was a given, only to be le speechless when this sector was roundly ignored, to those happily going about their business only to be hit by sudden, unexpected change.

What is certain, however, is that this market –from the vanilla residential to the most complex specialist finance, and everything in between –remains robust. Yes, there might be some sounds of pain and exasperation emanating from a couple of corners – buy-to-let, I’m looking at you – but largely this is a sector that is used to ge ing on with it and rolling with the punches. Of course, I’m sure most people would request not to

be punched in the first place, but these days that seems like asking too much.

All this next wave of uncertainty means is an increased need to turn to the experts to understand what on earth is going on, and how it’s going to affect the day-to-day business of running a market that is always going to be a key element of the social and economic foundations of the UK.

Enter, the humble trade mag. This month, we’re tackling the practical realities of everything from non-standard protection challenges in our feature, to working through build and finance challenges in development in our round-table. From second charge evolution to first-time buyer affordability. I could go on, but you could just read the thing...

It’s also important to remember that whatever the fall-out from next month’s Budget, there is a longer-term picture to be viewed. Next year sees the advent of planning reform, the Building Safety Levy, the Renters’ Rights Bill… and that’s just the policy stuff.

There’s no shortage of policy ambition, but the market cannot thrive on headlines and consultation papers alone. It needs consistency, speed and accountability from those in charge of delivery. Until then, progress will continue to rely on the initiative of lenders, brokers and developers who are willing to act – and innovate – despite the uncertainty. ●

Jessica Bird

@jess_jbird

www.theintermediary.co.uk www.uk.linkedin.com/company/the-intermediary @IntermediaryUK www.facebook.com/IntermediaryUK

The Team

Jessica Bird

Managing Editor

Jessica O’Connor Deputy Editor

Marvin Onumonu Reporter

Brian West Sales Director

brian.west@astormedia.co.uk

Millie Sweetman Commercial Development Executive

Ryan Fowler Publisher

Felix Blakeston

Associate Publisher

Helen Thorne Accounts nance@astormedia.co.uk

Orson McAleer Designer

Bryan Hay Associate Editor

Subscriptions subscriptions@theintermediary.co.uk

Contributors

Aaron Shinwell | Alan Cleary | Alistair Nimmo Ashley Pearson | Averil Leimon

Charles Hart | Chris Williams | Claire Askham

Conor McDermott | Dan Mules | David Castling

Eddie Lau | Elise Coole | Emma Green

Emma Ramell | Fergus Allen | Greg Davies

Jahidu Jaman | Jonathan Fowler | Kate Davies

Laura Sneddon | Laura omas | Liam Mullans

Liam Schewitz | Louis Alexander | Louisa Ritchie

Lucy Lewis | Marc Acheson | Marc von Grundherr

Mark Heckels | Martese Carton | Martin Sims

Matthew Cumber | Melanie Spencer

Mitchell Martyn | Nick Mendes | Nathan Waller

Neil Cobbold | Nick Jones | Nigel Taylor

Pete Dockar | Richard Deacon | Richard Sexton

Rob Cli ord | Rob Houghton | Rob Morgan

Rob Oliver | Roland Steere | Roz Cawood

Sabiha Moghal | Sarah Stroud | Stephanie

Dunkley | Stephen Brown | Tara Evans

Tom Worbey

Copyright © 2025 The Intermediary

Cartoons by Fergus Boylan Printed by Pensord Press

Feature 68

MADE TO MEASURE

Marvin Onumonu asks how increased complexity could turn into protection opportunities

Rapid Reaction 78

AUTUMN BUDGET

The experts weigh in on potential plans for the upcoming Budget

Broker business 80

A look at the practical realities of being a broker, from diversity and inclusion to the monthly case clinic

Local focus 90

This month The Intermediary takes a look at the housing market in Cambridge

On the Move 94

An eye on the revolving doors of the mortgage market: the latest industry job moves

INTERVIEWS & PROFILES

The Interview 28

MERCANTILE TRUST

Tara Evans on staying front of mind for complex cases

In Pro le 42

CHETWOOD

Alan Cleary and Paul Noble discuss strategic direction amid a leadership transition

Q&As 10, 24

SKIPTON BUILDING SOCIETY

Lucy Lewis on a ordability, innovation and current market trends

LEEDS BUILDING SOCIETY

Martese Carton discusses broker partnerships and an updated product suite

Meet the Broker

LIONHART

Charles Hart talks opportunities, challenges and plans for his business

Sabiha Moghal discusses the challenges and opportunities for BDMs

Getting case packaging right rst time

In today’s market, speed, accuracy and transparency are more crucial than ever in getting clients from application to offer, and ultimately right through to completion, with minimal friction. While the market continues to evolve, with digital efficiencies and improved lender platforms, there remains one area that consistently defines how efficiently a mortgage case actually progresses: the quality of case packaging at submission.

While there is obviously a marked emphasis on the broker submitting the case to ensure all the relevant information is included and accurate, the lender also has to assume its fair share of responsibility in guiding brokers in the right direction, especially in those more specialist applications.

When a lender and broker work in sync from day one, with a shared understanding of what’s needed and why, the client journey becomes markedly smoother. But when documents are missing or inconsistent, or when basic checks haven’t been completed prior to submission, delays are almost inevitable.

It’s a shared frustration. Brokers want cases to complete quickly. Lenders want to issue offers efficiently. Yet there’s often a disconnect at the packaging stage, one that can easily be bridged with mutual understanding and attention to detail.

Taking care

Like many lenders, we have a team that reviews each case on submission. Their role isn’t to slow things down, it’s to keep the process moving by ensuring the key components such as payslips, bank statements, ID,

and signed declarations – in our case, wet signatures – are all present and correct.

However, all too frequently we see cases submitted with only partial documentation, maybe just the most recent monthly bank statement rather than three full months, or the full three months of statements but without accompanying wage slips. The worrying thing is that, by not supplying all this information upfront, it may indicate that the broker hasn’t yet reviewed their client’s full financial picture themselves, and that fact in itself raises concerns.

If a lender spots gambling activity, missed payments or undeclared credit commitments in the bank statements, for example, that’s not just a red flag for us – it also potentially points to gaps in the initial fact-find.

In a few instances, we’ve even received cases where the broker had no idea the applicant had a recent County Court Judgement (CCJ), simply because they hadn’t seen the credit file.

That’s not to say brokers are being careless, far from it. Many are under huge time pressure, juggling multiple clients and relying on admin support to process post-advice steps, and that’s sometimes where the process can break down. When responsibility for document collection shifts between teams or becomes an afterthought, the risk of oversight increases.

The good news is that systems such as our Mortgage Sales and Origination (MSO) platform offer flexibility for advisers, administrators and supervisors to collaborate on case uploads. Documentation can be submitted collectively, with full visibility across the team. But the system can only be as efficient as the information it receives.

ASHLEY

PEARSON is head of intermediaries at Loughborough Building Society

Take something as simple as verifying signatures. We require a signed declaration and a copy of a valid ID, such as a passport or driving licence. Our team checks whether the signatures match. If they don’t, the case can’t progress until the discrepancy is resolved. In many instances, that means going back to the client to complete a change of signature form, adding unnecessary time and friction. A simple check at the outset can prevent that.

While it’s easy to focus on forms and processes, the heart of good case packaging is still knowing your customer. Many advisers now operate virtually or by phone, so physical ID checks are less frequent. That makes rigorous background documentation checks even more important, not just to meet compliance standards, but to ensure you’re confident in the individual client’s profile.

Complete package

Ultimately, good packaging benefits everyone. We’ve seen cases reach the offer stage within days when everything is submitted correctly from the outset. Conversely, cases that arrive piecemeal often stall, dragging out timescales and causing frustration on all sides.

This isn’t about shifting responsibility. Efficient outcomes require coordinated effort. Strong relationships between brokers and lenders thrive on mutual trust and shared standards. When both sides commit to a thorough, front-loaded process, it pays off – not just in speed to offer, but in delivering the seamless experience every client deserves. ●

The search for certainty

The upper end of the property market is ‘gummed up’, a phrase that is suddenly all over the media. Expensive properties are not selling. As far as the wider market is going, transactions are off a bit.

But if you look at London, the picture is very different. A record number of homes are on the market, and yet transactions are down a third. Some 80% of prime homes sold for less than their asking price – with an average discount of 9%. This seems to be a reaction to the departure of ‘non-doms’ following this year’s tax and residency law changes, which have deterred wealthy international buyers and seen some wealthy owners decamp to other countries.

Given that Chancellor Rachel Reeves is unlikely to reverse her tax-andspend policies, or or start actively courting the global ultra-wealthy and beg them to return to London, how can we ‘un-gum’ this stagnating market? A market that has never been incredibly slick and efficient – and was already far from seamless before Reeves occupied Number 11.

How can we stop so many transactions falling through and reduce uncertainty in the home buying process?

For brokers, the stakes are high –failed deals mean lost commissions, wasted time, and frustrated clients.

Transformative reform

The Government has responded with ambitious plans to overhaul the homebuying process in England, compelling sellers to disclose property issues before listing to lower costs for buyers and speed up sales. Described as the most transformative reform in the country’s homebuying history, these proposals also include optional binding contracts to prevent sales from collapsing at the last moment, a common issue disrupting the market.

At the core of these reforms is a requirement for sellers and estate agents to provide comprehensive property details upfront.

This includes Council Tax bands, Energy Performance Certificate (EPC) ratings, building safety information, standard searches, property condition assessments tailored to the age and type of the property, planning permissions, flood risk data, chain status, and detailed floor plans.

The Ministry of Housing, Communities and Local Government (MHCLG) says these searches and surveys will need to be completed and disclosed before a property is listed. Additionally, listings must clearly state leasehold costs and whether the sale is part of a property chain.

By equipping buyers with critical information early, these measures aim to enable more informed decisionmaking, they also reduce the risk of transactions falling through due to unforeseen issues.

The introduction of optional binding contracts is another potential feature. These contracts could prevent parties from withdrawing months into the process, sparing families the emotional and financial toll of collapsed deals – and saving brokers significant losses on commission.

The Government estimates that these reforms could cut the homebuying process by up to four weeks, streamlining a system long plagued by delays and inefficiencies.

Reforming the UK’s broken property transaction system is certainly a worthy goal, one that HouzeCheck supports to the hilt.

Housing Secretary Steve Reed said: “Buying a home should be a dream, not a nightmare.” Quite.

These reforms represent a vital step toward a smoother, more reliable transaction process – one that benefits buyers, sellers, and the broking community alike. But we have been here before.

Property sector veterans with a few grey hairs will recall the Home Information Packs (HIPS) initiative, which saw the industry invest heavily in preparation, only for the scheme to be abandoned without a replacement. The HIPS debacle serves as a reminder that grand Government plans do not always deliver, and the road ahead for these reforms may not be entirely smooth.

Given this uncertainty, how can brokers take control of their own fate and become masters of their own destiny by reducing transaction uncertainty, even if the Government’s proposed binding contracts fail to materialise?

One effective strategy is to ensure buyers commission a survey early in the process. Individuals are more likely to follow through on a decision after investing resources, as they are reluctant to ‘waste’ their commitment. The initial financial outlay encourages them to proceed with the purchase rather than pulling out – and that reduces transaction uncertainty, helping to secure deals.

So, brokers do not need to rely solely on Government reforms to solve the market’s woes. By encouraging buyers to invest in surveys, intermediaries can enhance deal security and navigate the challenges of a sluggish market, driving their ensuring own success, regardless of shifts in policy.

The Government’s reforms certainly hold some promise, but brokers must act now to make the property purchase process as certain as possible, turning the dream of homeownership into a reality for more people. ●

Bringing homebuying into the 21st Century

The Government’s consultation on reforming the home buying and selling process is a long overdue opportunity to modernise one of the most outdated elements of the housing market. Mortgage lenders welcome the ambition to create a system that is faster, clearer, more transparent and above all less stressful for consumers.

Buying or selling a home is the biggest financial commitment most people will ever make, yet the process that underpins it has barely changed in decades. It remains paper-heavy, painfully slow and prone to collapse. Around one in three transactions still fail to complete, costing an estimated £400m a year in wasted fees, and leaving people emotionally and financially bruised. Failed sales also create inefficiencies throughout the housing market, from lenders

and conveyancers to surveyors, estate agents and removal firms.

This is not a lack of good will. The UK’s homebuying professionals work hard under immense pressure. The problem is a lack of structure, consistency and effective use of technology. Too often, vital information only comes to light once an offer has been accepted, triggering last-minute renegotiations or collapses. Multiple parties use different systems that don’t talk to each other. Consumers, meanwhile, are left in the dark for weeks.

These are symptoms of a process that has failed to evolve with the times. As Santander’s recent report pointed out, the English property market still operates under rules rooted in the 1925 Law of Property Act. That simply isn’t good enough.

Lenders have already invested heavily in digital transformation, making mortgage approvals faster and

KATE DAVIES is executive director at the Intermediary Mortgage Lenders Association (IMLA)

more consistent. But the full benefits of that investment cannot be realised until the rest of the chain modernises, too. The introduction of digital property logbooks and packs, storing verified data from trusted sources, could provide a real boost, by enabling key information to be shared securely and consistently across all parties. This would reduce duplication, speed up decision-making and give buyers greater confidence.

Many professionals in the mortgage world will remember a previous Government’s enthusiasm for introducing Home Information Packs (HIPs) – which would have mandated the provision of up-front information about properties at the point of sale.

That scheme met with significant opposition – not least from the Royal Institution of Chartered Surveyors (RICS), which sought a Judicial Review on the basis that Government had not consulted on it sufficiently –and also from the National Association of Estate Agents, which considered that the scheme failed to address the main reasons why sales fell through. The proposals eventually fell by the wayside in the next General Election.

While the original proposals for HIPs had a number of flaws – regarded by some as being unduly complex and costly – the underlying principle of requiring sellers and estate agents to provide comprehensive upfront information remains valid. Early access to accurate data about a property’s title, tenure, Council Tax band, Energy Performance Certificate (EPC) and condition would help prevent the nasty surprises that

currently derail so many sales. Care would need to be taken, however, to accommodate cases where the required information was simply not available – or not available except at disproportionate cost – which would continue to disincentivise some potential sellers.

The MHCLG consultation paper is accompanied by a second document seeking views on what should constitute the ‘Material Information’.

For the scheme to be workable and effective, it must avoid the temptation to be all-inclusive. The best must not be allowed to be the enemy of the good. Proposals which are over-engineered and too complex will simply cause the project to fail (again).

Codes of conduct

Another very important aspect of the current consultation is the plan to introduce mandatory qualifications for estate agents and a statutory Code of Practice for property professionals. It does seem extraordinary that, two decades after the regulation of mortgage advice was introduced, those responsible for marketing and negotiating property sales are still not subject to comparable professional standards. Mortgage advisers, conveyancers and lenders operate within some of the most stringent regulatory frameworks in the UK. Bringing estate agents into line will help restore consumer trust and drive higher standards across the sector.

A modernised homebuying process will also help to reduce one of the most damaging but least discussed consequences of the current system: consumer stress. Moving home is consistently rated among life’s most stressful experiences, and with good reason. Long silences, sudden setbacks and failed sales can be deeply demoralising, so much so that many potential movers simply give up. That, in turn, suppresses market activity, discourages downsizing and restricts mobility for those who need to relocate for work or family reasons.

If we want a housing market that supports economic growth and social mobility, people must be able to move with greater ease and confidence. Reforming the transaction process is, therefore, not just an administrative issue, it is a growth issue.

A more efficient system, harnessing the power of digitisation where appropriate, would help unlock the natural movement that keeps the housing market, and the wider economy, healthy.

Working together

The consultation also recognises that technology alone will not fix the problem. Success will depend on genuine collaboration between Government, regulators and the industry. Standards must be consistent, security robust and data governance watertight. Digital ID verification and interoperability

between systems are essential to command public – and lender – trust.

Given the right structures and assurances, mortgage lenders are ready to play their part. As an industry, we understand both the complexity of the homebuying journey and the potential for technology to simplify it.

But we also know that piecemeal reform will not do. What’s needed is a coherent, long-term strategy, one that aligns the interests of lenders, agents, conveyancers and consumers around a shared goal of clarity, speed and professionalism.

The Government’s consultation marks a crucial step towards bringing homebuying into the 21st Century. It’s a chance to create a system that works for modern consumers: digital, transparent, and underpinned by high professional standards.

If implemented effectively, the proposed reforms could reduce transaction times by a third, cut fall-through rates by half and save consumers hundreds of millions of pounds each year. More importantly, they could restore public faith in a process that too often leaves people frustrated and disillusioned.

The housing market underpins the wider economy. When people move, the economy moves, and when they don’t, it stalls. Let’s seize this opportunity to build a faster, fairer, more modern homebuying system that works for everyone. ●

Skipton Building Society Q&A

The Intermediary speaks with Lucy Lewis, senior national accounts and first-time buyer lead at Skipton Building Society, about affordability and innovation

What are the key findings from the Homes Affordability Index?

98% of adults living with parents still can’t afford to buy the average first-time home in their local area based on their financial situation. Most people assume that moving back in or staying put at the family home means it’s easier, but it’s not just saving for a deposit that could be stopping first-time buyers getting on to the property ladder. There are also a number of other housing affordability challenges they may be facing.

We want to use the data in the Skipton Group Homes Affordability Index to educate people on the affordability issues facing first-time buyers and hopefully drive some positive change –whether that’s through lobbying or using the research to inform our product offering.

What is different about Skipton?

Our purpose is the same now as 172 years ago when the building society was founded: to help people into homes. This remains the driving force behind our innovation and focus.

We use technology where we can, to improve the journey for brokers and customers, allowing our colleagues to focus their attention on the areas that need a human touch, that aren’t always straightforward. This is so important in the current market, as people looking for advice have very different needs and circumstances – a one-size-fits-all approach is not appropriate.

When a client’s situation is more complicated, it can help to speak to someone who’ll take a common-sense approach. We have an amazing team of both field and telephone BDMs across the UK. They have direct access to underwriters and will work to understand the client’s unique situation and discuss this with our senior underwriters to look at the positives of the case and see if we can help. We take a flexible, common-sense approach to lending, as well as having a range of innovative products.

How is Skipton driving innovation?

First-time buyers are vital to the homebuying landscape, and yet, too many people in the UK struggle to afford their own home. We look for areas where we can help the underserved and solve challenges for brokers and their customers. Moving into a first home can be expensive. Our research shows that 71% of first-time buyers say the process cost a lot more than they expected, with 63% saying they felt financially strained in the first three months. 35% had an overlap with their rental, meaning they were simultaneously paying a mortgage and rent. We wanted to provide an option to ease the strain, so we launched our Delayed Start mortgage product, designed to give some breathing space to firsttime buyers, with no mortgage repayments due for the first three months. Don’t worry – as the repayments aren’t due, there’s no impact to credit ratings. (Must be 21+. Only available in GB. Subject to eligibility and lending criteria.)

Two of the biggest challenges for first-time buyers are affordability and deposit, especially if you’re also paying rental on a monthly basis. We have provided options for both those situations with our income booster mortgage, which allows family and friends to be included on the mortgage application to help with affordability, and our track record mortgage – targeted at renters who haven’t owned a property in the past three years and have little or no deposit.

It’s key that lenders continue to innovate to help first-time buyers realise their dreams. We’ve seen some great innovation from lenders in this area in 2025, with more lenders launching joint borrower, sole proprietor (JBSP) mortgages – a great way for prospective buyers to boost their income with help from a family member or friend – increased options for new-builds and flats at high loan-to-values (LTVs), and some new lenders joining Skipton by providing options to borrowers with less than a 5% deposit.

But it’s not just down to lenders. The Building Societies Association (BSA) has highlighted the

part played by regulation in adding to the firsttime buyers’ affordability and deposit raising challenges. Skipton and counterparts from Nationwide and Yorkshire Building Societies spoke this year at the Treasury Select Committee and to Downing Street, highlighting the need to increase the Financial Policy Committee’s loanto-income (LTI) flow cap, and it was gratifying to hear the Prudential Regulation Authority (PRA) announce in July that it is reviewing the LTI ratio requirements, offering a modification by consent while the review is ongoing.

As the BSA notes, the unaffordability of house prices relative to incomes is the underlying issue. Intermediate tenures like First Homes and Shared Ownership can help, but they need to be much improved from their current form, and are always likely to be niche products. Ultimately, what is needed is a long-term strategy for housing, with Government creating conditions for the housing market where house prices rise in nominal terms but fall relative to incomes –helping not just today’s first-time buyers but also future generations.

is through listening to feedback from brokers – what are their clients missing and what can we do to assist? An example is our Track Record mortgage, which was originally launched with stricter affordability controls. We’ve changed our criteria to allow customers to borrow more.

How can lenders promote positive mental health?

How important is conversation with brokers to Skipton’s proposition?

Brokers play a pivotal role in a customer’s home buying journey, not only in making sure that they have a mortgage product that best meets their needs and circumstances, but also by holding their hands through the process. Their feedback is incredibly valuable. Their understanding of their customers’ circumstances, products that can help them, and areas where we lenders could do more, feeds our product development focus and priorities, helping us to innovate to help future buyers – so please keep it coming.

Moreover, we don’t just want to launch a product and forget about it. We host feedback forums with brokers, where ideas, policy critiques, and service suggestions are gathered and put into action where possible. Our policy on visa applications was adjusted following one such session. Another change was to our Income Booster offering, where the maximum age was raised to 80.

In the day-to-day, BDMs are also out speaking with brokers and are always open to hearing their thoughts, feedback and suggestions – just because we don’t do it now it doesn’t mean we won’t ever do it.

With affordability pressures, we are focused on expanding our FTB offering and helping more people. One vital part of how we do this

The Mortgage Industry Mental Health Charter (MIMHC) is a great organisation, and one we’re delighted to be able to support.

They have done an enormous amount of work to de-stigmatise mental health issues by spotlighting the stories of individuals and encouraging conversation. Health is important, whether that’s physical or mental, and we need to look after it. Lenders can play a valuable role, both in encouraging the conversation and raising awareness. We can also consider any part we can play in helping to reduce the stress levels of those working in the industry through our processes and communications.

What future trends are you looking ahead to?

The Financial Conduct Authority (FCA) is looking at whether it can update its responsible lending rules to support product innovation and greater homeownership for those customers that can repay, if firms can give more support to groups which may be currently underserved by the mortgage market – including potential first-time buyers. So, there could be more positive change on the horizon.

Advice has proven time and again to be key for borrowers, and even with increasingly efficient technology, consumers are voting with their feet and opting to take advice. I don’t believe that this will change in the near future, but we’ll see the continued development of tech able to support the processes in the mortgage journey which can only lead to efficiencies. We can be certain that AI will be playing a leading role. ●

The Skipton Group Home Affordability Index is not a benchmark for the purposes of UK Benchmark Regulation, nor for the purposes of any other legislation or regulation. The Skipton Group Home Affordability Index is produced for information purposes only and must not be used or relied upon for commercial purposes including any decisions and/or advice. Skipton Building Society is not responsible for any decisions made based on this information.

Adverse credit, automatic exclusion?

In conversations about creditworthiness, there is still a tendency to focus solely on borrowers with clean histories. That approach is easy to understand, particularly from a risk management point of view. However, brokers working on the ground will recognise that the reality is far more nuanced.

Many borrowers have experienced some form of financial setback, and that alone should not disqualify them from access to fair mortgage lending.

There’s been a lot of talk about affordability and criteria tightening, but we’re still seeing strong demand from buyers. According to UK Finance, the number of homeowner mortgages in arrears of 2.5% or more fell to 87,380 in Q2 2025, representing a 3% drop from the previous quarter.

These figures suggest that the vast majority of borrowers, even those with past credit events, are managing their finances effectively and meeting their commitments.

For some, adverse credit is still treated as a red flag, but I think that overlooks a crucial point: most credit issues are temporary and rooted in a specific life event. Redundancy, illness, divorce or the rising cost of living can all contribute to missed payments or short-term defaults. Yet in many cases, the borrower has since stabilised their finances and rebuilt.

Lending evolution

To reflect this, like many other lenders operating in this space, we have updated our lending approach and worked hard to make our criteria clearer, so brokers can tell straight away where we might be a good fit.

That saves everyone time, and it gives brokers that bit more certainty when placing cases that fall outside the usual parameters.

These relationships are essential when assessing adverse credit cases. We see brokers as ideally placed to

present a detailed account of the borrower’s circumstances, explain the reason behind credit issues, and provide supporting documents that demonstrate both progress and recovery. I believe that a single missed payment from 2021 can look very different when accompanied by two years of stable income, improved financial behaviour and clear affordability.

In these situations, communication between broker and underwriter becomes invaluable. Lenders that are open to discussion, and brokers who are willing to provide a full picture, can o en arrive at a decision that works for everyone involved.

I think it’s likely that we’ll see more borrowers with imperfect credit histories seeking these types of mortgage options. The fact is, cost pressures remain and affordability is still tight.

At the same time, millions of people have taken steps to rebuild their financial health and are now in a

CLAIRE ASKHAM is head of mortgage sales at Buckinghamshire Building Society

stronger position than their credit file alone might indicate.

According to the latest research from Experian, it can take as li le as six months to start improving a low credit score. That is a relatively short timeframe, yet many lending models still place far too much weight on past issues.

With the right lender, a wellstructured application and clear supporting evidence, adverse credit does not have to be the end of the road. It can be the start of a well-considered conversation that leads to a positive and sustainable outcome for a host of borrowers who have experienced a minor, or even a major, credit blip along the way.

Re ecting the changing world of work

The world of work has changed dramatically in recent years. From the growth of selfemployment and freelancing to the rise of portfolio careers and side hustles, Britain’s workforce is more diverse and flexible than ever. Various studies estimate that between 19% and 30% of working adults in the UK now have a side hustle.

I recently witnessed an example of this, when I sourced a young electrician to replace a fuse board at home, who had built large social media presence. Much of his income was now through his social media sites and creating content for other businesses.

Examples like this are increasing, yet standard affordability models and lending rules continue to favour the traditional nine-to-five worker, leaving many aspiring homeowners in cases such as this at a disadvantage.

Our latest broker survey highlights the issue. More than one in five brokers (22%) say that they have clients with non-standard incomes who are having to jump through additional hoops to prove affordability, because of their career choice or working pa ern. A further 18% of brokers say clients have delayed or abandoned dream career plans over fears it would harm their chances of securing a mortgage.

We also found that 16% brokers report clients who have experienced problems with mortgage applications because of their career path, and 17% say lenders have turned clients down outright because of income complexity.

While it is worth recognising that not all brokers report seeing these cases regularly, a significant

enough proportion are – and they have real knock-on effects. Almost one in five brokers report clients who held back from starting a business or pursuing a passion project for fear it would jeopardise their homeownership prospects. A further 15% say clients worry about the risks of entrepreneurship when it comes to accessing the housing market.

This comes at a time when, for those determined to get on the ladder, support from friends or family remains crucial. A study from earlier this year found that 57% of firsttime buyers used the so-called ‘Bank of Mum and Dad’ in 2023, up from 47% in 2022.

Taken together, I believe this highlights the potential risk of inequality in homeownership. Those without access to family wealth or without the security of a conventional job contract could be le with fewer options, even when they have the means to meet monthly repayments, as many are renting a home today.

That said, it is not all bad news. Encouragingly, some brokers point to cases where lenders have demonstrated flexibility and innovation. One in six (17%) say clients who received tailored advice felt more confident about their mortgage journey, while 15% report situations where lenders showed greater understanding of irregular income or non-traditional careers.

These examples highlight the potential of a more balanced approach – one that recognises the realities of modern work without compromising on responsible lending.

What needs to change?

The first step is acknowledging that income diversity is here to stay. Selfemployment, freelance contracts, side

AARON SHINWELL is chief lending o cer at Nottingham Building Society

People are having to consider their career and the potential impact on [their buying] ambitions”

hustles and entrepreneurial ventures are not exceptions; they are part of the mainstream economy. Lenders must adapt their criteria and product design accordingly.

This might involve more nuanced affordability checks, greater flexibility in recognising multiple income streams or using technology to streamline complex applications.

To get this right, it is important that lenders collaborate with brokers, drawing on their day-today experiences with clients, to ensure products meet the needs of modern borrowers.

Helping people onto the housing ladder is a significant life moment, one which should enable borrowers to pursue their dream careers, not hinder them.

What is clear from our ongoing dialogue with our broker network, borne out in our research, is that too many people are having to consider their career and the potential impact on their homeownership ambitions.

A mortgage market that embraces flexibility and innovation will not only open the door for more buyers, but will also support the economic and social contributions of a changing workforce. By working with brokers and adopting a forward-looking approach, lenders can help create a system that works for everyone. ●

Recently, Gen H was in the headlines for a surprisingly controversial product launch. What did we do? We introduced part capital repayment and part interest-only mortgages up to 95% loan-to-value (LTV).

They’re for first-time buyers, movers and remortgagers. Borrowers can take up to 80% of the mortgage on an interest-only basis, and we require a £50,000 household income. Applicants must prove they have a suitable repayment strategy for any interest-only portion.

Overall, feedback was positive. Many brokers working closely with first-time buyers have shown tremendous engagement. Others, however, still harbour that slightly hazy notion that interest-only is a bad idea for first-time buyers.

It’s apparently fine, though, if you’re buying your next home, or so long as you don’t actually need an interest-only mortgage. This brings to mind the old joke about bankers being the type to offer you an umbrella when it’s dry and take it away when it rains.

To be fair, I can understand a li le bit of apprehension among industry veterans.

A er all, it hasn’t been that long since the endowments scandal played out – since millions were paid out in se lements and trust in brokers and lenders was badly damaged.

It hasn’t even been 20 years since the financial crisis – where one in two first-time buyers took interest-only payments and millions of borrowers self-certified their income. I won’t dwell on this; we know how things turned out.

Then, of course, the Mortgage Market Review in 2014 changed the way brokers and lenders were expected to assess and document mortgage suitability. If a repayment strategy failed and the broker couldn’t evidence that the advice was suitable and the client understood the risks, they or their firm could be found liable for mis-selling.

Taken together, the events of the past 30 years can make interest-only seem like a bad product. But it isn’t, not inherently.

What these events actually have in common was irresponsible lending and bad advice. Things are different today.

In the financial crisis, we learned valuable lessons about what responsible lending actually means. This equipped us to be er protect borrowers and the wider economy from financial shock.

But the knock-on effect has been a deeply conservative approach to mortgage lending. This has, in my opinion, crossed over from a reasonable aversion to risk to one that is actively hurting aspiring homeowners – and as a result, the economy at large.

Not convinced? Look no further than the regulator. It is very revealing the Financial Conduct Authority (FCA) is actively recognising the potential role of interestonly in solving for a huge gap in homeownership. That’s why we’ve taken this stance on interest-only at Gen H. We believe it’s time for all of us to embrace calculated risk.

Risk realities

It’s a simple mindset shi , really. All mortgages have risk. Every single one.

PETE DOCKAR is chief commercial o cer at Gen H

This risk is mitigated by high quality advice and a responsible, pragmatic approach to lending. These two things help ensure a positive outcome for borrowers. Is that not what we’re all here to do?

Like all mortgages, interest-only won’t be right for everyone. But when it is suitable, part-and-part is a powerful tool to get clients on the ladder as a stepping stone toward a standard capital repayment mortgage. They can overpay to reduce their balance and build equity, skirting the whole frustrating and o en costly staircasing faff that comes with Shared Ownership.

The benefits of a part-and-part mortgage are even clearer when compared with renting. Renting is risky; there is no equity upside, rent consistently tracks or outpaces inflation, and the renter is always at the mercy of their landlord

Nothing illustrates a point like a worked example, so let’s have a look.

Think of an average household – a married couple, earning £35,000 each. They want to buy a £400,000 home in St. Albans. They’re paying £2,000

a month in rent, but they’ve managed to save a £20,000 deposit. They book a call in with their broker, their broker runs a decision in principle, and they hit a snag. That post-crisis aversion to risk which grips high street lenders is in full force.

Yes, they’ve been comfortably paying £2,000 in rent. But the £2,157 payment they’d face for a full capital repayment mortgage? Unaffordable, the bank says. That’s it. No path forward. They’re stuck in a race against rising house prices, trying to save a bigger deposit, and paying their landlord’s interestonly mortgage all the while.

This is a perfect scenario for partand-part. Say their broker puts 50% of the mortgage on capital repayment and 50% on interest-only. That simple change brings down the mortgage payment to £1,939, which is affordable – and less than they’re currently paying in rent.

Over time, as they earn more money, they can overpay their mortgage to reduce that capital balance.

Thanks to the equity they’ll build, and some house price appreciation, in five years’ time they could reasonably remortgage to a full capital repayment mortgage.

Equally, they may choose to stay put, and in 30 years, they can use the £200,000 equity they’ll have to downsize to a less expensive area or property.

Does this mortgage bring risk with it? Yes. But the only way to avoid risk in a mortgage product is to never have a mortgage.

The point is that these clients now have options – and as the broker in this story, you have options, too. The option to help them take this step onto the ladder today, and to support them in

two, five or even 10 years’ time as they take their next step.

Holding the ladder

With a more complex product, good advice is so important – both you and your clients can benefit from building and maintaining that long-term relationship.

For millions of would-be homeowners, the path onto the housing ladder is shaky at best. If we agree that homeownership is a social good – community investment, closeness with one’s neighbours, future financial security – then we must agree that tools like interestonly mortgages can play an important role.

It’s your job to identify who part-and-part mortgages may be suitable for, and to educate and empower them to access homeownership if they so choose. It’s our job to interrogate the viability of repayment strategies and lend responsibly.

Together, we could change the lives of thousands of aspiring homeowners – not next year or next month. Today. ●

Near prime products may be better than you think

DAVID CASTLING is head of intermediaries at Atom bank

Near prime is an area of the mortgage market which has become increasingly important for brokers in recent years. Cost-of-living pressures have meant brokers are seeing more clients with some sort of payment blip in their recent history.

The market has responded, with lenders developing far more flexible and realistic products. Indeed, we have seen record levels of Near Prime activity at Atom bank since the turn of the year, demonstrating how sought a er such lending is.

However, we do occasionally hear of misconceptions around how near prime really works, which may be holding brokers back from making the most of this product area.

What credit score?

Perhaps the clearest evidence of a person falling into the near prime category, rather than prime, is their credit score. A er all, those missed and late payments, or any County Court Judgements (CCJs), will have a substantial impact on the score.

However, credit scores do not necessarily need to play a part in actually assessing those applying for near prime mortgage products. Such scores do not always give the fullest picture of what a client can really afford each month. Some lenders, including Atom, carry out more bespoke assessments, to get a more comprehensive insight into the borrower’s prospects. As a result, it’s important for brokers not to get too hung up on the client’s credit score, since in practice it may not have the biggest bearing on the final decision if they work with the right lender.

One of the biggest issues around near prime is how a temporary issue

can have a long-lasting and outsized impact on a borrower’s ability to access a mortgage.

This is particularly true when it comes to the level of unsatisfied defaults an applicant has. While lenders in this space will o en have a cap in place for these defaults, there can be some confusion over whether this refers to the size of the debt at the outset of the issue, or its current standing.

At Atom bank, for example, our £2,500 cap applies to the current outstanding balance, rather than the initial debt. We believe it means we can support a wider range of near prime candidates, while also recognising the progress that has been made in reducing the debt.

Di erent process

A common misconception with near prime is the expectation that the process will have to be different from their prime customers. The valuation, for example, will need to be carried out manually, while the document assessments will be more protracted.

This isn’t always the case. There are lenders that will make automated valuation models (AVM) available for near prime cases, while at Atom I know that our document assessment service level agreements (SLAs) are the same for all borrowers, irrespective of their credit status. The fact that a client has a less than perfect credit history does not – and honestly, should not – preclude them from enjoying the same quality, fast service as the most prime of applicants.

The right direction

Being near prime is not a life sentence. Brokers will want to help their clients regain prime status, and with it access to more keenly priced products.

For the broker, there are many questions to ask about how the lender will help that happen.

How proactive is the lender in monitoring the borrower’s account, so that any recurrence of payment issues is picked up as early as possible?

How will the lender react if there are issues – will they hit the borrower with yet more late payment and arrears fees, making the journey out of near prime even more difficult?

Then there is the question of refinance. What are the borrower’s options if things have gone well and their status has improved over the term of the fixed rate?

I know that offering a clear path back to prime has been invaluable for our near prime borrowers, who are automatically offered a Prime rate at maturity if they qualify.

Those offers were made to around three-quarters of our near prime borrowers last year, a great example of how the lender’s approach can offer tangible benefits to those looking to recover from a temporary issue.

Crucial clarity

Delivering for near prime borrowers and their current needs is enormously important, and the level of activity shows how crucial such products are right now. What’s more, that’s unlikely to change in the foreseeable future, which is why it’s so crucial for lenders to spread the word about precisely how the products and criteria work in action. It’s only by clearing up misunderstandings that we can ensure the sector reaches its potential and supports the maximum number of borrowers. ●

Reignite the housing market, or risk overheating it?

The Conservatives’ proposal to abolish Stamp Duty on primary residences has reignited one of the sector’s longest-running debates: whether cu ing transactional taxes can genuinely stimulate the market, or simply fuel unsustainable price inflation.

Our analysis of Government transaction data suggests the impact of Stamp Duty reform on market activity is both immediate and substantial –but not without side effects.

In the six months leading up to the Covid-era Stamp Duty holiday, the property market averaged just 58,115 monthly sales as lockdown restrictions temporarily halted activity. When the holiday was introduced, the response was extraordinary. Over the initial 12 months, monthly transactions surged by 81%. Even as the scheme was tapered, activity remained high. Once thresholds reverted to pre-pandemic levels, sales volumes so ened again.

A similar, though less dramatic, pa ern emerged during the more recent zero-rate threshold for purchases up to £250,000. Between September 2022 and March 2025, this partial relief coincided with an average of 79,479 monthly transactions. Since April, when we reverted back to previous thresholds, there has been a modest but notable decline, to an average of 72,692 per month.

Bank of England data reinforces this trend in the way of mortgage approvals. In the six months prior to the pandemic holiday, mortgage approvals averaged 43,802 per month. That figure then more than doubled to 89,113 per month before easing to 71,378 during the tapered phase, and then 68,276 once the previous thresholds were reinstated.

However, the more limited relief for purchases under £250,000 did li le to improve sentiment amid higher interest rates. Interestingly, approvals have risen on average since April, suggesting that the end of the partial relief has not hindered activity, and that interest rate movements currently play a far greater role in buyer confidence.

In the six months before the 2020 holiday, average monthly house price growth across England sat at 0.23%. During the full holiday, that rate quadrupled to 0.99%, before cooling slightly to 0.70% as relief was tapered.

The introduction of the higher zero-rate threshold brought a period of relative calm, with monthly price growth averaging just 0.05% –evidence that smaller, targeted relief can create a more stable environment. Since this April, the monthly rate of price growth has so ened.

Boosting demand

Taken together, these figures paint a clear picture: full-scale Stamp Duty relief reliably boosts buyer demand. The resulting surge in activity pushes prices higher – great for sellers but a challenge for affordability and long-term stability. More limited tax relief, meanwhile, has li le effect on sentiment during periods of high borrowing costs, but can promote a more measured rate of growth.

If the Conservatives were to form the next Government and deliver on their promise, history suggests the result would be an immediate surge in activity, as pent-up demand, currently suppressed by higher mortgage rates, floods back into the market.

Whether that’s healthy depends largely on perspective. A vibrant, fast-moving market means increased instructions, quicker chains and

MARC VON GRUNDHERR is director at Benham and Reeves

greater liquidity. However, such bursts of activity can quickly overheat the market, leading to inflated prices, tighter margins, and a rise in fallthroughs. Of course, fall-throughs are an unavoidable consequence of high volume, but the concern is that removing a major friction like Stamp Duty could reignite the kind of shortterm inflationary pressures last seen in 2021, stretching affordability.

Research from Regency Living shows that, this year, homebuyers have already paid an estimated £3.24bn in Stamp Duty. Abolishing the tax would represent a significant fiscal decision, forcing policymakers to weigh the short-term stimulus against the long-term funding gap. Yet many in the industry argue that the trade-off is justified. Stamp Duty, first introduced in 1694 to finance a war with France, is one of the most outdated and distortive taxes in the property system. It penalises mobility, disincentivises downsizing, and adds unnecessary cost to what is already one of the most financially demanding transactions most households will ever face. In a market where buyers already contend with high mortgage deposits and elevated mortgage rates, removing that additional burden could make a meaningful difference.

Removing Stamp Duty could reignite market activity and boost liquidity across the board. However, it risks fuelling short-term price inflation and further supply strain, especially if not accompanied by measures to increase housing delivery. For the industry, the prospect of renewed momentum is welcome. For policymakers, the challenge lies in ensuring this does not come at the cost of long-term stability. ●

The vast majority of borrowers are very happy with their mortgage broker. In fact, the Financial Conduct Authority’s (FCA) latest Financial Lives survey shows that 84% of borrowers spoke positively about their adviser.

That’s not surprising. The brokers I know spend years – decades, even –cultivating relationships with their customers. And those relationships are built on trust and mutual respect.

That makes it all the more frustrating when national media reports try to tarnish the reputation of advisers who work hard every day to deliver a quality service.

One recent story I am referring to featured a so-called ‘whistleblower’ claiming that brokers were pushing 2-year fixes simply to earn commission more frequently.

Forgive the outburst, but that is absolute nonsense. Allegations this serious need to be backed up by evidence. But this one wasn’t. Not at all.

All this unnamed person offered was the vague assertion that “some

brokers” had admi ed to them that they were currently only recommending 2-year deals to their customers.

If this really were a widespread practice, the industry data would show it. But it simply doesn’t.

According to UK Finance, in July, 44% of borrowers took 2-year fixes –the same proportion as those opting for 5-year deals. The last time 2-year fixes dominated and accounted for more than 50% of new lending was at the end of 2017.

Given the lack of detail, we have to assume that the anonymous whistleblower works for a lender that writes more 2-year business than the industry norm. If that’s the case, then I would wager that it has something to do with that lender’s pricing.

Pricing of products will always be the primary consideration for borrowers when choosing a mortgage product. And for the first time in three years, 2-year fixed rates are generally cheaper than their 5-year equivalents.

Unsurprisingly, then, 2-year fixed rates are extremely popular at the moment, with Moneyfacts data showing that they made up around

half of all mortgage product searches last month. Consumers are asking for them – it makes sense.

The idea that advisers are ‘pushing’ these products therefore ignores the reality that consumer demand is the key driver, as is lender pricing strategy. Brokers clearly make recommendations, but the decision ultimately rests with the borrower.

And let’s not forget that, for the past 18 months, borrowers have been reading almost daily that bank base and mortgage rates will fall. The Bank

of England (BoE) has tried to temper expectations, but the consensus remains that rates will ease further –even if they now drop a li le slower than first expected.

Against that backdrop of further price falls, many homeowners are clearly cautious about locking in for five years at today’s rates.

Borrower psychology is another factor. Memories of the 2021-23 rate spike – when the average mortgage rate jumped from around 2% to more than 6% in just two years, according to Moneyfacts – remain fresh.

Understandably, homeowners are wary of commi ing long-term. When the BoE signals the end of the current rate cycle, 5-year fixes will almost certainly regain popularity.

The whistleblower’s claim also rests on a flawed assumption: that 5-year fixes are inherently ‘be er’ for borrowers at the moment.

Who decided that, exactly? The only way that would be true is if we knew for sure that mortgage rates would be higher in two years’ time. But no one – not me, not the BoE, not even the whistleblower – knows where rates will be in two years.

To suggest otherwise is at best disingenuous, and is outright vexatious in my view. Come forward, name yourself and name the improper brokers – and risk defamation proceedings!

Tailored advice

Even if we knew what will happen to rates, mortgage advice is not onesize-fits-all. For some customers –say, a family planning to move in a couple of years – flexibility is a key consideration. Therefore, a short-term deal may be most suitable. For others, certainty and stability are paramount, and a longer fix is the right fit.

The adviser’s role is to be a guide through these trade-offs, not impose generic solutions.

It’s also worth stressing how tightly and successfully regulated the mortgage market has become since the financial crisis. Brokers document their advice and can professionally defend their recommendations when challenged.

I can’t speak for directly authorised (DA) brokers who arguably face less regular scrutiny than authorised representative (AR) firms, but at

Stonebridge, compliance and ensuring that quality advice is delivered, is of critical importance.

Last year, we surpassed four million case file checks through our artificial intelligence (AI)-powered Check, Action, Resolve system, which runs more than 50 checks on every submi ed mortgage file. That level of scrutiny leaves li le room for the kind of broker behaviour alleged in the press report. If it did occur, our technology and our supervision teams would spot it.

Whistleblowers play an essential role in exposing wrongdoing. But when claims are made apparently without evidence, the effect is corrosive. Suggesting that brokers en masse are gaming the system for personal gain is laughable and unfair. Furthermore, it risks damaging the trust that underpins the advisercustomer relationship.

The reality is that mortgage brokers are highly trusted, tightly regulated, and the vast majority are motivated by their duty to their customers. Trust is hard-won and easily lost. Brokers deserve be er than to be smeared with such baseless accusations. ●

Fixed rates still need exible thinking

We’ve been talking about the mortgage ‘cliff edge’ for nearly two years now. The reality is, many borrowers are still quietly approaching it, with far less a ention than before.

According to UK Finance, around 1.8 million mortgage customers are expected to reach the end of their fixed rate in 2025, following the 1.4 million who already did so in 2024. That’s a substantial portion of the market being pushed to reassess their options.

For some, a straightforward product transfer will be enough, but for others, particularly those whose circumstances have changed, the situation is more complicated.

Straight switch

It’s easy to assume that a product transfer is the simplest and most efficient route. In many cases that’s true, as it can avoid fresh affordability checks, speed up the process and remove much of the paperwork. However, real life rarely follows a neat script.

Some borrowers now want to raise additional funds, whether to help children, consolidate debt, or invest in home improvements. Others may have changed jobs, moved into self-employment, or taken on new financial responsibilities since they last secured their mortgage. In these cases, a standard switch o en falls short.

This shi is becoming increasingly visible in broker conversations. Borrowers coming to the end of their fixed rate aren’t just asking for a new deal, they’re asking what’s actually possible in light of their changing needs.

Part of this trend is being driven by the housing market itself. With property prices still high and affordability stretched, many homeowners are understandably reluctant to take on additional borrowing just to upsize. Instead, they’re choosing to stay put and improve what they already have.

In fact, research from Aviva earlier this year found that almost seven million UK homeowners plan to renovate their properties over the next two years, a clear indication of shi ing priorities.

For brokers, this presents a specific type of funding challenge. These are clients who want to remortgage and release equity at the same time, but whose personal or financial circumstances may have changed since their last application.

If the loan amount or profile pushes them beyond standard lending criteria, they’re going to need a lender that can look beyond the automated process and assess the case on its own merits.

Flexibility matters

In response to this, we’ve recently refreshed our residential, expat buyto-let (BTL) and holiday let ranges, to focus on flexibility and underwriting capabilities to tackle the needs of the modern borrower, not just those that historically looked good on paper.

This includes supporting borrowers who need to raise extra funds as part of their remortgage, even where the structure is more complex than average.

This approach is especially valuable for self-employed clients with shorter trading histories, or older borrowers who need to raise capital later in life.

Both groups which are o en underserved by mainstream lending

ROB OLIVER is distribution director at Dudley Building Society

channels, and who require lenders to consider context and individual circumstances, rather than relying purely on automated assessments.

Fill the gap

For borrowers reaching the end of their fixed rate, the worst outcome is being told they have no choice but to fall onto a high standard variable rate simply because they no longer fit the mould. The second worst is being steered into a product transfer that technically fits but doesn’t support their broader financial goals.

This is where brokers play a crucial role. By looking beyond the high street and considering whether an alternative lender might provide a more suitable option, they can help clients access funding that actually meets their needs, especially where additional borrowing is part of the plan.

We fully recognise that the market has become more cautious, but that doesn’t mean it should become less personal. There is still a large and steady flow of borrowers reaching the end of fixed rates this year. This isn’t a backlog from the last rate spike, it’s the normal rhythm of the mortgage market, with clients whose situations are quietly evolving.

As a lender, we want to be part of the answer. That means giving brokers direct lines of communication, clear and considered decisions, and products that are designed around real-life circumstances, not just those that stand out in a rate table. ●

The rst-time buyer crisis is deepening

Anyone trying to buy their first home in 2025 might be forgiven for feeling like the odds are stacked against them. Our data shows that while the prices being paid by first-time buyers (FTBs) are edging down and mortgage rates have so ened a li le, for many wouldbe homeowners, the numbers still don’t stack up.

At reallymoving, which provides quotes for around 10% of the UK’s home movers, our analysis of conveyancing quote data shows that FTBs have steadily retreated from the market this year. Their share of moves in England and Wales fell 6.6% between January and August – a 10.4% drop in less than a year.

‘Cheaper’ is not a ordable

In January, almost two thirds (63.3%) of all home movers were buying for the first time, but by August, that figure had slipped to 56.7%. The average price they paid for their first home dipped by 3.1% to £271,784 over the same period, but that clearly wasn’t enough to tempt buyers back in.

Falling prices may sound like good news for those trying to get on the ladder, but the reality is that many remain priced out. Mortgage rates may have so ened, but with most deals still hovering around 4.5 % to 5%, affordability tests and monthly repayments remain challenging, particularly with inflation and everyday costs eating into savings.

Saving in a crisis

The biggest hurdle facing first-time buyers is still the deposit itself –especially for those buying without parental support. Rents are easing but remain high, and essentials like food, transport and energy are still eating up a he y chunk of monthly income. We carried out analysis last year looking at

how long it takes to save to buy a first home, including raising a 10% deposit and covering moving costs. We found that for a single person pu ing aside 10% of their earnings each month, it would take 76 months (6.5 years) to get on the housing ladder. Those pooling resources with a partner, friend or sibling could see that time halved to 38 months (just over three years) assuming they’re both earning the national average wage.

And then there’s Stamp Duty. The Government’s decision earlier this year to reduce the FTB threshold from £425,000 to £300,000 means FTBs in more expensive areas, namely London, the South East, South West and East, have lost valuable tax relief. Increasing numbers are now skipping the typical first flat altogether and saving longer to buy a house instead, reducing transactions overall.

A nationwide decline

Every region of England and Wales has seen a drop in FTB activity this year. The steepest falls were in the South West, Yorkshire & Humber, the East of England and the North East – all down by more than nine percentage points. The North East saw a 9% increase in average prices paid by FTBs between January and August and also one of the sharpest share falls –reinforcing the impact of affordability pressures.

In London, the story is slightly different. Despite having the highest property prices in the country, remarkably, London has the largest share of FTBs, accounting for 68% of all movers. High rental costs making renting unsustainable long term, and strong support from the ‘Bank of Mum and Dad’ are both likely factors.

The typical is changing

It’s not just who’s buying that’s shi ing, it’s what they’re buying too. Our data shows that the traditional image of the first-time buyer snapping

ROB HOUGHTON is founder and CEO at reallymoving

FTBs have steadily retreated from the market this year. Their share of moves fell 6.6%”

up a new build flat is changing. The proportion of FTBs buying flats has dropped from 29.7% in January to 26.5% in August, a 10.5% decline, amid ongoing worries about cladding issues and mortgageability, ground rents and rising service charges.

Meanwhile, the share of new build purchases has fallen by almost a quarter to its lowest level since 2016. Supply is part of the problem –Government data shows new home completions fell 19% year on year in Q2 2025 – but new build price premiums and lending restrictions are likely to be also playing a part.

What’s next?

For many would-be buyers, the market feels stuck in a frustrating stalemate. Prices are down a li le but not enough, borrowing is cheaper but still expensive, and government support remains thin on the ground.

Unless we start to see a dramatic increase in housebuilding, as has been repeatedly promised, along with targeted measures to boost affordability, first-time buyers are unlikely to regain their market share any time soon. Beyond restricting market mobility, this will undermine the financial security of young people and erode the long-term stability that home ownership can provide. ●

Leeds Building Society Q&A

The Intermediary speaks with Martese Carton, director of mortgage distribution at Leeds Building Society

Tell us more about your recent analysis of Land Registry data, how it has influenced your offering?

Our analysis shows that 51,602 more properties would have been within reach of first-time buyers, based on recent changes in lending assessments. This is equivalent to an increase in 65% more homes.

We changed our affordability assessments for first-time buyer mortgages, meaning that single or joint applicant earning £30,000 could borrow up to 95% loan-to-value (LTV). This means that first-time buyers on this salary could borrow up to £165,000, and therefore buy a home worth £173,000. Before these changes, a first-time buyer with a 5% deposit could have accessed homes worth up to £141,000.

Using Land Registry data from 1st July 2024 and 31st June 2025, we calculated that the number of homes that would have been affordable to eligible first-time buyers had the lending rules been in place rose to 143,017 up from 86,915, an increase of 65%.

You’ve recently reduced stresstesting rates. How do you balance expanding affordability with prudent credit risk management?

Affordability assessments can be one of the main barriers facing would-be homeowners, but following recent clarification from the Financial Conduct Authority (FCA), lenders have made changes to the way they assess a borrower’s affordability. Previous limits were restricting many lenders’ ability to support aspiring homeowners.

But the refreshed guidance from the FCA clarified how to incorporate future interest rate movements into stress testing. It emphasised that banks and building societies have flexibility in choosing a suitable stress rate, linking to reversion rates or future product rates, rather

than applying a fixed margin above current standard variable rates (SVRs).

Stress testing requirements have unduly held some borrowers back from achieving their aspirations, so we are pleased to be able to lend more to our customers as a result of these changes..Avoiding unnecessarily restrictive affordability tests is also great news for brokers. It means that intermediaries can say ‘yes’ to more clients, and revisit affordability on cases where applications previously fell short.

We will continue to update our stress rate assumptions and affordability models to align with regulatory expectations. In collaboration with our intermediary partners, we’ll continue to seek the best outcomes for borrowers as we have done for 150 years.

Leeds reported a fourth record year, what has driven that growth?

In an increasingly competitive environment, it was wonderful to see the society deliver such a strong performance in the first half of the year. During that period, we helped 9,600 first-time buyers secure a mortgage.

The recently reduced stress rate levels have worked in tandem with a range of initiatives to support first-time buyers and to increase our lending ability. For example, our range of Income Plus mortgages allow first-time buyers to borrow 5.5-times their income; our Reach mortgage range is designed to help borrowers with lower credit scores; our connection to Experian Boost uses open banking to help borrowers increase their credit score; and our Home Deposit Saver account allows people to put money away to fund a house move.

This innovation has enabled more people to overcome affordability challenges. We know more needs to be done. To truly support first-time buyers, we need action to ensure more affordable homes are built and to ensure Government policies provide the right conditions both for the society and our members to thrive. We will continue to campaign on issues that matter to our intermediary partners and their clients.

How do you assess the risk return of the Income Plus product line, and will it evolve?

We hear regularly from our intermediary partners that this range is having a huge impact on their clients, and allows them to say ‘yes’ to far more borrowers.

This range, along with the adjustments to our affordability model give a more realistic view of what borrowers can afford to repay every month. The purposeful action we take now will pave the way for future homeowners, and we hope that more lenders will come up with solutions to support more first-time buyers.

How does Leeds approach its relationships with intermediaries?

We are lucky to have around 25,000 mortgage advisors in the UK, who are helping people to secure a home of their own. Our relationship with these brokers is integral to the success of our business. Communication is integral to good relationships, whether that be between broker and client, or lender and intermediary partner.

This is why we consider our business development managers (BDMs) the lifeblood of our lending team. Their support at every step of the client’s journey is so valuable, and our BDMs can give brokers a quick indication of whether a case is likely to be approved and walk them through the simple steps a homebuyer can take to improve their chances of having an application accepted.

Through extensive training, our 31 BDMs across field and head office are equipped with the knowledge and skills to find solutions for those stepping onto and up the property ladder. We have a range of contact options all staffed by experts. These include dedicated contact telephone numbers for new or existing applications, a live broker webchat service, and a dedicated BDM for every broker.

With increasing focus on energy efficiency and green homes, how is

Leeds adapting?

Borrowers are increasingly aware of the need to take control of their energy consumption and the environmental impact of their home. In response

to this, we created a dedicated space on our website to support members in understanding their emissions and reducing their carbon footprint.

We became the first provider to offer enhanced affordability for mortgages on the most energyefficient new homes. We projected lower fuel bills for new-build homes with an A or B Energy Performance Certificate (EPC) rating versus a less energy efficient property. We’ve started to see other lenders come out with similar initiatives as we work together towards building a greener planet.

How far do you intend to scale your use of Open Banking following the pilot?

Our collaboration with L&C Mortgages has enabled mortgage applications to progress more quickly and efficiently by using an automated process to access applicants’ recent financial history. By connecting to Experian’s open banking platform, clients of L&C Mortgages have provided access to their financial records, showing regular income and outgoing payments, in place of gathering and submitting bank statements.

The process has now been adopted as routine procedure in applications between Leeds and L&C, freeing up time for brokers and clients and reducing steps in the mortgage application. Through our partnerships with L&C Mortgages and Experian, we have been able to demonstrate how new technology and close collaboration can deliver outcomes that will make meaningful differences to the mortgage journey.

We are looking forward to taking the learnings from this pilot forward with more of our intermediary partners and expanding our use of automation.

What’s next for the mortgage market?

Recent years have taught me to expect the unexpected, but it’s fair to say that things are starting to look up for aspiring first time buyers and the overall state of the market. Recent historically high house prices, the increasing cost of living and limited housing stock has made it difficult for borrowers.

The action we take now will pave the way for future homeowners, and we hope that more lenders will come up with solutions to bolster the future of the housing market.

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The Inter view.

Jessica Bird speaks with Tara Evans, chief executive at Mercantile Trust, on staying front of mind for complex cases

Tara Evans started her career with Norfolk Capital Group – the parent company of Mercantile Trust – in 2002. Originally working on the brokerage side, she moved through various roles within the group, including as operations manager at e Loans Engine, before taking on a new opportunity in 2017 as head of direct sales for Central Trust, making her rst move onto the lender side of the equation.

Evans says this start has given her the perspective needed to understand the “broker mind” when it comes to making decisions and coming up with new ideas. Last February, she made the move to Mercantile Trust, joining CEO Debbie Burton as the lender advanced into a period of renewed focus and growth. is meant moving from the regulated to unregulated side of the business, as well as coming to understand more about “all elements of lending from start to nish.”

From this month, Evans is set to tackle the next challenge as chief executive as Burton

Mercantile Trust

focuses on her role at Central Trust. She sat down with e Intermediary to talk about the plans, challenges and opportunities ahead.

Progress and plans

Since joining Mercantile Trust, Evans has seen the team grow from six to 15. In addition, average monthly completion volumes are up 32% compared with last year, and Evans is “con dent [the rm will] go from strength to strength.”

One of her key priorities as she moves into the role is to reposition Mercantile Trust rmly in the minds of intermediaries.

e lender has been around since 2016, originally on the buy-to-let (BTL) term side, then moving into bridging, and more recently, areas such as homeowner business loans. Mercantile Trust’s proposition is predominantly focused on second charge lending up to 75% loan-to-value (LTV) for residential BTL properties.

Beyond the o ering itself, Evans says the lender’s value lies in its size, which – despite going through a growth phase – is not going to change.

She explains: “We’re quite a small lender. While I’d love to say I’ll rule the world one day, we’ll always stay quite a small to medium-sized [SME] lender. We’re a niche lender for specialist situations with higher risk.

“We’re able to step in and help where somebody else can’t. With our products, we can service some customers that others currently can’t.”

Due to the niche, o en di cult nature of the cases in question, Mercantile Trust’s size is part of its proposition.

Evans says: “Because of our size, you can have access to anybody, really. You can call up and speak to me, to our underwriting manager.

“We have really quick [service level agreements (SLAs)] so if somebody submits a case by three o’clock, for example, they’ll have an update the same day.

“We want to act on speed, and at the same time we still have a lot of human touch in our processes.”

Moving forward, brand awareness is key. Evans says that, speaking with Mercantile Trust’s existing broker cohort, this should centre around speed, human service, and the ability to

help borrowers solve complex problems.

“We do so much with the introducers we work with,” she explains.

“For example, we sent weekly e-shots with case studies and product niches.

“We want to continue working on keeping people up to date and building those relationships, which also includes getting out to market and meeting people face-to-face to help them learn more about what we do.”

Having doubled in size already, there are still plans to add key players to the team and continue with this period of growth. In addition, Evans wants to continue creating a space where people are “having fun while we work – when people are happy they work well, and that comes through to the people they speak to.”

She continues: “As and when we bring people in, we need to check and challenge that we’re not slipping anywhere, and that as we grow it’s still working how I want it to work. I also see growth in our existing individuals.”

Mercantile Trust is not looking to grow and add more sta for the sake of it. Instead, Evans says: “We’ll grow because we’re getting busier, more people know of us, and because we have a lot more people we could be talking to, and need the bums on seats to do that. I will make sure we don’t slip on our current service levels – that’s the key thing.”

Healthy market

In order to create a strong lending market, Evans points to the importance of diversity among lenders. is is not only in terms of size and capacity, but product set and specialisms. While the proposition will continue to evolve, rather than “competing to become the biggest,” she wants to ensure Mercantile Trust is known as a reliable source of lending for speci c cases, and a provider of products that “really service the market.”

Part of creating healthy market growth goes beyond the individual product propositions, particularly in second charge.

Evans says: “ ere are still a lot of people that need to learn about second charges. When we go out and speak to people, and present second charge as an option for some cases, we’re nding people who have never even thought about it.

“We’re de nitely here to educate on when a second charge bridge or term loan is probably the best option, or at least an option. More people are thinking about seconds now, but plenty aren’t, so there is still plenty of

education to do there.” is is where Evans’ broker past comes into play, as it helps her and others in the team “know how brokers think,” allowing Mercantile Trust to provide an experience that helps guide intermediaries through a market sector with which they might be largely unfamiliar, but which provides valuable solutions for their clients.

She adds: “ at’s important in terms of service and being able to get those deals over the line.

It’s important that we’re clear on cases about exactly what’s required – we try to hold our brokers’ hands as much as possible, face-toface and on Teams.

“We’re accessible, you can get any of us on the phone. Because we’re small, everyone does a bit of everything, which means we’re all in it together and able to support people really well. If you’re not sure, pick the phone up.”

In addition to education and support for intermediaries, Evans says Mercantile Trust continues to look for ways to “do more on seconds.” is might include expanding into other areas to make the most out of opportunities in corporate let and company let products, for example.

“I’m always considering these options, as well as speaking to brokers – including those within the group as well,” she adds.

“I can go to them and see where they are seeing cases falling out, where we can help, and where there might be niches and opportunities we can bring to the market.

“Having two brokerages in the group is key to our progress in that way. ey have most lenders on their panels, so if they’re not able to capture something, it likely means no one’s doing it, and we can see about stepping in.”

Making manual work

While Evans understands that arti cial intelligence (AI), and technology in general, are useful elements in the modern mortgage market, one of the reasons behind Mercantile Trust’s success is the “human element and close contact with our brokers.” Keeping the individual, human approach means that one of the plans on Evans’ agenda as CEO is nding other ways to streamline the process, such as rationalising the documents needed. is will help “remove some small barriers and help us move even faster.”

For brokers yet to work with Mercantile Trust, Evans says they should understand that despite not having the overtly high-tech systems others might be able to boast, this is→

INTERVIEW

a deliberate choice, and a core strength. Evans explains: “Internally, that helps us, because we don’t ever have a ‘computer says no’ moment. Every single case is manually underwritten, and it’s a very collaborative team. We work together to nd a solution.

“Sometimes I’ll hear from brokers that they’ve submitted a case elsewhere and waited four days, or phoned and not been able to get through. With us, it’s just about knowing that we’re available, accessible, and will move quickly when needed.”

While of course working within the bounds of its funding agreement, Evans says this approach allows Mercantile Trust to “look at things holistically every time.”

is manual underwriting is also key to being able to handle complex cases while maintaining a sensible approach to risk.

Evans says: “ ere’s markers our underwriting team has to stick within, of course, but there’s an ability to be exible about how we get to that point, and how we prove it. When you’re manually underwriting, you’re able to take a step back and nd ways to make things work.

“Sometimes, having a system that does it all for you can be detrimental to a decision if you’re not looking at it in more granular detail. It doesn’t slow us down, and that’s again, partly due to our size. Maybe this will change one day, but at the moment we can take a step-by-step approach.”

A full future

Looking ahead, Evans says seconds are only going to come further into their own as property investors look to expand their portfolios by pulling money from elsewhere and deploying it e ectively. is, combined with the work being done to grow education and awareness around seconds, could mean an increasingly positive future for this side of the market.

For a lender heavily embedded in the BTL space, issues such as the potential for changes in the autumn Budget, the upcoming Renters’ Rights Bill, and other market headwinds, are likely to a ect the picture. However, with Mercantile Trust comfortably in a growth phase, these market shake-ups are not a huge concern for Evans. For Mercantile Trust, the next year is about building on its collaboration with brokers, landlords and networks, getting out to events and ensuring that its proposition is front of mind for those that need it. So far, despite market headwinds and doom and gloom headlines, this outreach has yielded

CASE ONE

Second charge on a buy-to-let

Property value: £435,000

Mortgage: £239,689

Net loan: £50,000

Lender fee: £1,500

Term: 120 months

Payment: £483.27

The purpose of this loan was to make improvements to the security property. The rst charge was on a xed rate, so the borrower did not want to re nance and lose the deal or have to pay early repayment charges. They released equity from the BTL as a second charge.

CASE TWO

Second charge bridge against a BTL property

Property value: £315,000

Mortgage: £133,162

Net loan: £75,000

Lender fee: £2,250

The customer needed money fast to purchase a property at auction. This completed in seven days on receipt of the case. Mercantile Trust provided a rolled bridge on a 12-month term, allowing the customer to do some light works to the property and rent it out. The exit was onto re nance once tenanted.

“more positive talk than negative,” which Evans in part attributes to the value of second charge in helping landlords, in particular, nd creative solutions, even as the market becomes more complex. She concludes: “ ere’s a lot more opportunity out there. We just need to keep making the calls and showing people what can be done, and we’ll continue to grow and nd solutions for the borrowers.

“I want us to be recognised as a small, accessible lender with fast turnaround on niche products and capable, motivated people – a name with brokers, who feel they can ring us as soon as one of those complex cases comes across their desk.”

When we speak to new brokers, one of the most common things we hear is ‘Wow! I didn’t know you did that!’

With our manual underwriting approach, award-winning team of local Business Development Managers, generous lending criteria and innovative products – we strive to find a way to lend to your clients.

How can we help?

— We take into account earned income up to the age of 70, or even 75 if the client is in a non-manual role

— We’ll consider pension pots, as well as fixed pensions, investment and rental income. Other income can be considered on a case-by-case basis

— We lend in retirement with higher maximum ages than most lenders

— We have a common sense approach to lending and use human beings, not robots, to underwrite each case. This means we can tailor our solutions to each of your client’s needs.

Landlords are getting younger. That’s a good thing

As the saying goes, you know you’re getting old when police officers start to look young. The same could increasingly be said of landlords.

The stereotypical image of a landlord is someone in their fifties or sixties, perhaps a semi-retired professional with a handful of properties. But in reality, the landlords driving the buy-to-let (BTL) market are increasingly in their thirties and forties.

According to trade body UK Finance, the average age of landlords buying with a mortgage has dropped from 47 in 2014 to 43 today.

Separate research by Paragon shows that landlords in their thirties accounted for 31% of new purchases in 2023, up from 21% a decade earlier, while the share of those in their fifties and sixties has dropped from 39% to 26%.

Keystone’s own figures tell a similar story. When we relaunched in 2018, the average age of landlords introduced to us was 47. Today it’s 45. More strikingly, the number of first-time landlords on our books has grown significantly and now represents 9% of new business.

The pipeline looks strong, too. A study by Market Financial Solutions found that 54% of under-35s want to become buy-to-let landlords at some point.

Brits

and mortar

So, why are younger investors increasingly turning to property?

Even with the rise of stock market investing among younger Brits, the UK remains a nation of property lovers. Bricks and mortar are ingrained in our culture.

Unlike shares or bonds, property is tangible and offers the potential for both income and capital growth. And in some parts of the country, gross yields are approaching double-digits.

While the housing market is currently cooling – as it does from time to time – it will recover as mortgage rates further reduce and the new-build housing targets fail to reach Government expectations, restricting property supply.

It’s easy to see why property remains a core wealth-building strategy for so many young people.

This is an overwhelmingly positive trend. Headlines have decried the supposed wave of landlords leaving the sector, but research by Hamptons has proven that these were mainly older landlords looking to cash in some of their assets to fund retirement, while in a benign tax environment

What such articles fail to acknowledge is that these landlords are being replaced by a younger cohort with decades ahead of them.

Younger landlords bring energy, enthusiasm and fresh ideas. Many have likely been tenants themselves, giving them a sharper sense of what tenants expect. They also tend to be faster adopters of technology, which could make the market more efficient and improve the tenant experience. Most importantly, data suggests that they see property as a long-term business rather than a short-term punt.

According to estate agents Hamptons, around 70% to 75% of new BTL purchases go into a limited company structure. Crucially, younger landlords are driving this shift, according to the National Residential Landlords Association (NRLA).

This matters, because landlords who incorporate tend to build larger

ELISE COOLE is managing director at Keystone Property Finance

Even with the rise of stock market investing among younger Brits, the UK remains a nation of property lovers”

portfolios. The latest English Landlord Survey, for example, reveals that 56% of landlords operating as companies own five or more properties. By comparison, 86% of individual landlords own between one and four.

This appetite among younger landlords to buy through companies bodes well for long-term demand.

Next generation

The data shows that this new generation aren’t emerging. They are already here – and they are young, ambitious, and ready to shape the sector for the next 30 years.

For brokers, this shift creates opportunity. If younger landlords are increasingly more business-like in their approach, there will be more demand for expert advice on how to structure their increasingly complex portfolios. Brokers who understand the motivations and challenges of younger landlords – and tailor their advice accordingly – will be best placed to gain from the rise of the next generation. ●

Does ‘vanilla’ actually exist?

Some years ago, it was a lot more common for the ‘vanilla’ case to come across an adviser’s desk. First-time buyer, employed for years, one bank account each, deposit meticulously saved and a credit card cleared each month.

Fast-forward to now, and we’re often seeing the same first-time buyer scenario, but there are five Klarna accounts, PayPal ‘Pay in 3’, phone loans alongside their phone contract, Personal Contract Purchase (PCP) car finance and also two missed payments due to having multiple credit accounts that are hard to keep on top of.

Even with buy-to-let (BTL), the complexities are now greater than before. Personal BTL isn’t as common as it once was, so now the broker has to check the structure of a limited company, ensure the SIC code aligns with the lender criteria, determine where the deposit funds originated from and whether there are any loan agreements in place, and so on.

Landlords are also looking for more lucrative investments. This isn’t always the standard residential

property that’ll house a family long-term, but multi-unit freehold blocks (MUFBs), houses in multiple occupation (HMOs) and bulk portfolio purchases.

Complex competition

The increasing complexities in our industry have their benefits. They force lenders to consistently review their offering and adapt to ensure they’re still getting sufficient business levels. It also causes greater competition in the market, with niche lenders plugging gaps to cater for certain case or client types.

It also prompts brokers to learn more and gain more valuable knowledge and insight that will no doubt continue to grow.

Whatever way we look at it, these changes ultimately benefit the client, but this has to be looked at – in my opinion – at a more macro level.

Those looking for a mortgage at present, even if their case is supercomplex and complicated, are likely to be able to find a lender via a broker. Even if lending multiples have to be increased to well over five-times income, we brokers know that there’s

JONATHAN FOWLER is founder and managing director at Fowler Smith Mortgages & Protection

likely an option. Even if they have no deposit, or very minimal, again there’s likely to be an option.

This is a great thing for the end consumer, and as brokers we have even more tools at our disposal, so we very, very rarely have to say no.

However, I often consider the implications this might have for people’s financial astuteness going forward. Are mortgage holders likely to be a little more lax with their finances, as they know there’ll likely be a way ahead for them?

This is a little different with buy-tolet, however, as it’s often a scenario of ensuring rental figures work and the property is suitable, and I think lender appetites increasing on more and more complicated scenarios, tenancy types and structures is inherently positive. But with residential, I feel that surely there will become a time that lenders have to pause making everything possible for clients to ensure good conduct going forwards.

This is where we can step in as knowledgeable industry professionals. Being an adviser is far more than just finding a home for a scenario there and then. We have a duty of care to pass on knowledge of financial wellbeing and promote this in our communities.

Does the vanilla case exist anymore? Probably not. Getting credit is quicker and simpler than ever. But the implications of knee-jerk financial decisions have lasting implications on current, new and future borrowers.

We all have the platforms to do more, educate as well as advise, and now is the time – more than ever – to be doing so.

Complications, uncertainty, opportunity

The mutual sector has played – and continues to play – a very important part in the in the more complex buy-to-let (BTL) sector of the market. Innovation is key to helping existing and would-be landlords. They need the best possible advice and service from their lenders, particularly as the BTL market has become much more complicated over recent years.

Causes range from then Chancellor George Osborne’s creeping tax rises to the further proposed property tax reforms which are being floated ahead of the current Chancellor’s Budget in November, to the uncertainty of the impact of the Renters’ Rights Bill. This is likely to be given Royal Ascent very soon and enacted next year.

As a business development manager (BDM) for the Family, specialising in lending to those BTL borrowers underserved by the major lenders, it is critical to know your subject thoroughly and to educate brokers and provide them with an understanding of the options available to buy-to-let landlords.

We feel that the mutual sector is better placed and nimbler in providing answers to brokers’ and other intermediaries’ questions in a growing, yet still niche sector. Building strong and enduring relationships with them is fundamental to the BDM’s role.

There is, however, some encouragement in the recent dip in BTL mortgage interest rates which are at their cheapest in three years. According to Moneyfacts, on average a 2-year fixed deal stands at 4.88%, down from 6.64% in September 2022.

Change and adapt!

We at the Family and other mutuals specialising in BTL feel that we are in sync with the professional landlords with big portfolios that have become accustomed to needing to change and adapt as costs have steadily increased and regulation has become tougher. But much depends on the long-term goals of landlords as well.

Portfolio landlords rent out properties as a living; they have simply needed to get on with it and consider different types of property investment – namely houses in

NATHAN WALLER is BDM at the Family Building Society

multiple occupation (HMOs), a fastgrowing part of the market where the yields are likely to be greater and properties, inspected and licensed by local authorities, are typically of a much higher standard.

There is a noticeable trend as more professional tenants look to rent HMOs near where they work that are practical and affordable, while they save for a deposit for a mortgage on a new home of their own.

Therefore, after listening to brokers, we recently amended our loan criteria to offer up to 75% loan-

to-value (LTV) on all BTL mortgages, with a reduction of our interest coverage ratio (ICR) on limited company landlords up to 125%.

In addition, and for all BTL streams, we do not stress-test the background portfolio or have a minimum income requirement when remortgaging.

Having an in-depth knowledge and understanding of the needs of expats also led us to specialise in expat BTL mortgages, including HMOs, for those living and working in more than 40 countries around the world.

EPC ratings

Clearly, there is a need for longterm planning and future proofing portfolios by upgrading Energy Peformance Certificate (EPC) ratings.

Of course we hear of landlords selling off those less rentable properties with Bands D and E ratings. Some find that the cost effectiveness of improving D and E EPC ratings to C and higher is just not worth it.

Diversification

For landlords looking for a simple way to boost short-term income, other forms of investment have been providing good above inflation yields. These include easy access interest paying deposit accounts and fixed interest gilts and bonds. Landlords are finding that it is an effective way to get a solid return on their surplus monies. Also, liquidity is vital to the landlord hit with increased costs or an unexpected one-off liability – a tax or

legal bill for example. And of course, it is very handy to have spare cash to reduce the LTV on new buy-to-let property purchases.

New entrants

Investing in BTL property is much more complex for newcomers today than it was historically. Back in the day, when you only needed a 25% deposit, you could buy the property personally and in your own name, Stamp Duty was standard, and all the mortgage costs could be offset. You could quickly work out where you stood and if a property would be rented out profitably.

Now, in many cases and depending on one’s personal tax situation, an attractive investment might be unviable, and incorporation makes perfect sense.

Although it is a simple thing to say “just buy it in a limited company,” in practice you will need decent quality professional advice not only from a broker, but also tax and legal

specialists. The fees will be steep, perhaps, but at least you are less likely to fall foul of the HMRC.

There is no doubt that the BTL market has become more professional, and new entrants need to be a lot more business-minded about it. A committed successful landlord requires patience and long-term planning. The rewards are there, as is the satisfaction of making a significant contribution to providing decent homes for those who desperately need them.

There is also no doubt that mutual lenders specialising in BTL – and other niche markets – are very well placed to not only continue to serve this critical area of the market, but help it thrive in these uncertain times. ●

Preparing landlords for change

In the past couple of months, there have a number of headlines focused on the supposed further – and larger – exodus of landlords from the private rented sector (PRS), suggesting significant numbers are considering selling up in the face of new legislation, squeezed margins and rising costs.

However, if you scratch beneath the surface, what people say and what they actually do often don’t align.

Recent research from Benham and Reeves revealed that rather than a collapse in supply, the rental market has actually seen stock levels increase since the Renters’ Rights Bill was first announced. It says there are now 23.5% more properties available to rent in England than back in September last year.

That’s a long way from the narrative of a mass landlord walk-out, and it’s a reminder that, while the market is changing, it is not in retreat.

It is also worth bearing in mind that professional landlords tend to take a longer-term view. They understand that legislative change is part and parcel of being in this sector, and adapting is often more fruitful than exiting.

So, while the new Renters’ Rights Bill – which by the time you are reading this will have become law –will undoubtedly change the shape of landlord and tenant relationships, it does not spell the end of the market.

Quite the opposite: it presents an opportunity for landlords who are prepared, informed, and willing to work collaboratively with their tenants and letting agents.

The challenge, however, is awareness. Housing Hand’s recent Understanding Renters Report suggested that close to 70% of tenants have never even heard of the Renters’ Rights Bill, and three-quarters are unclear about the impact it will have on them.

Tenants lacking this knowledge is one thing, but how many landlords are also unclear on the detail of the reforms – particularly those who may not be members of associations or engaged with professional advice channels? Advisers could have a critical role to play in bridging this gap.

This is why we have developed our new guide for both advisers and landlord clients, entitled, ‘Getting Landlords Renters’ Rights Ready: A Guide for Advisers’.

Staying compliant

The aim is simple: to break down the legislation in a clear and practical way, outlining what the Bill means in reality for landlords, and what steps they need to take to stay compliant. From the abolition of assured shorthold tenancies (ASTs), to new rent-setting rules, to the extension of the Decent Homes Standard, landlords will need to familiarise themselves with significant changes. They will also need to be ready for new obligations such as registration on the PRS Landlord Database and the introduction of a mandatory Ombudsman service.

For some landlords, this will feel like a steep learning curve. Many have relied heavily on letting agents to handle compliance and management, and it could be that the days of ‘winging it’ in this space are over.

The guide, available from the Fleet Mortgages website, stresses the importance of landlords having at least a working knowledge of the rules, even if they do continue to use agents, so they can hold them accountable and ensure their properties are being managed properly. In short, the landlordtenant relationship is becoming more structured, more professional, and more focused on transparency.

Advisers able to help landlords navigate this transition will not only

LOUISA RITCHIE is national account manager at Fleet Mortgages

strengthen their client relationships, but also add tangible value. Informed advisers can help clients put the right processes in place, encourage proactive maintenance and communication, and ensure that landlords are taking a business-minded approach to their portfolios. This is where the positives can shine through: landlords who embrace these changes will be better positioned to offer quality housing, attract and retain tenants, and build sustainable, long-term businesses.

Professional landlords recognise that rental demand remains strong and that well-run portfolios continue to generate returns. They are also aware that uncertainty in the wider housing market – not least for would-be homeowners navigating mortgage affordability challenges –only strengthens the case for rental as a tenure.

So, rather than seeing the Renters’ Rights Bill as the beginning of the end, advisers should view it as a catalyst for a more professionalised sector and a further opportunity to engage with existing, and new, clients.

Our guide is designed to help advisers take a leading role in that conversation. Once landlords are armed with the right information, they can move forward with confidence.

In the end, change always brings both challenges and opportunities. Saying you’ll sell up is one thing, actually doing it is another. The evidence suggests landlords are adapting rather than retreating.

Advisers now have a unique opportunity to make sure that adaptation is successful, and in doing so, reinforce their place at the very heart of landlord’s financing wants and needs. ●

Crucial to securing rent and growth

As the Renters’ Rights Bill approaches Royal Assent, le ing agents across England are preparing for the biggest change to le ings in 30 years. The Government’s impact assessment estimates agents could lose nearly £400m in revenue over 10 years, largely due to tenants staying in properties longer, while the wider changes to the sector see landlords collectively facing losses of over £1.02bn during the same period. But there is another threat to rental income, the growing risk of rent arrears.

Affordability pressures are mounting. According to the Office for National Statistics, (ONS) average monthly rents in England reached £1,403 in August, a 5.8% increase year-on-year. Meanwhile, average wage growth was lower at 4.7%. The growing gap between tenants’ rent and income makes them more likely to fall behind, and under the new legislation, landlords and agents can’t act as quickly as today.

The Bill will abolish Section 21 ‘no fault’ evictions. Currently, landlords who need to recover a property for

Arrears management must be embedded into rental strategy”

unpaid rent can still serve a Section 21 eviction notice, but once the Renters’ Rights Bill is enacted, an arrears eviction notice can only be served a er three full months of rent arrears – and unless the tenant leaves, landlords need to go through a full court hearing.

With average court delays already at 27.9 weeks from notice to repossession, landlords could be

waiting six months or more to regain possession, and may then need further court action to recover missing rent.

What’s also clear is that deposits won’t cover the shortfall. Generation Rent’s Freedom of Information (FOI) data shows the average deposit in England and Wales is just £1,118, less than one month’s rent in most regions.

Arrears management

Against this backdrop, arrears management must be embedded into a rental strategy, starting before the tenant moves in. We know from Rightmove that on average 11 tenants enquire per property, but not all tenants are equal.

Our tenant referencing strategic partners HomeLet and Let Alliance, who together operate one of the UK’s biggest tenant referencing services for agents and landlords, identify more than 150 potential fraud cases daily. Without robust checks, these tenants could end up in your properties, and potentially in arrears. Finding and placing the right tenant is your first step.

Check daily

Once a tenancy begins, early arrears intervention becomes critical. If a landlord only checks rent payments monthly, they could miss weeks when they could help those tenants address their arrears.

Bank-integrated rent payment platforms like PayProp help agents keep their finger on the pulse. Linked to your bank account, such tools can automatically flag who has paid and who hasn’t, allowing you to monitor arrears 24/7 and, when alerted, to send reminders by email or text, in just a few clicks.

The stats really speak for themselves. We looked at the top 10% of PayProp-powered agencies with the lowest arrears. In September, they had fewer than 1.4 tenants in

DR NEIL COBBOLD is commercial director at Reapit

arrears per agency, owing just £513 on average – less than 39% of average monthly rent. This limits the impact of arrears on income and gives great data points agents can use to sell their service to prospective landlords. While correlation alone doesn’t prove causation, it is striking, to say the least, that the same 10% of agencies also grew their le ings commission income by over 13% in the past year.

Protection can pay

Even the best processes can’t prevent every case of arrears. That’s why some landlords and agents are turning to rent guarantee insurance. The most comprehensive policies don’t just protect landlords from lost rent; they also safeguard le ing agencies from the financial impact of prolonged arrears.

While no one wants to rely on an insurance claim, it does provide the assurance if things go wrong. Property professionals could soon face over six months of unpaid rent if a tenant defaults and eviction proceedings are delayed. That missing income might be a lifeline – a mortgage payment or a pension. Knowing you won’t be le out of pocket can make all the difference, not just financially, but in building trust with prospective landlords, maintaining trust with your current clients, and stability within an agency.

The Renters’ Rights Bill is a wakeup call. The changes mean landlords and agents need to refocus and put arrears management at the heart of how they operate. With the right tools, property professionals can take control by ve ing tenants thoroughly, acting early on arrears, and pu ing insurance in place. They will be the ones best placed to grow under the Renters’ Rights Bill. ●

Meet The BDM

Keystone Property Finance

The Intermediary speaks with Sabiha Moghal, business development manager (BDM) at Keystone Property Finance

How and why did you become a BDM?

I’ve spent most of my career in banking, starting as a customer service assistant at Cheltenham & Gloucester. From there, I gradually worked my way up through a range of national and international banks, learning something new at every step.

It’s fair to say that my introduction to the industry was memorable. Not long a er starting out, I witnessed an armed robbery in my branch. For most people, that might have been enough to send them running for the hills, but it had quite the opposite e ect on me. During that period, I was taken under the wing of our area BDM, who became a real mentor. ey helped me see how vital it is to support customers through life’s biggest nancial decisions. at experience lit a spark in me and really shaped my path forward. So, when the opportunity eventually

arose, it felt natural to move into the BDM role myself. I became a BDM for the State Bank of India UK in 2017, and over the years I’ve worked my way towards my current position at Keystone Property Finance. It’s been quite a journey, and I’ve loved every minute of it.

What brought you to Keystone Property Finance?

What drew me to Keystone was its reputation for combining specialist expertise with genuine support and service. We are a lender that doesn’t just talk about supporting brokers and landlords, but actually delivers on that promise.

Keystone has a strong ethos of doing the right thing, and that really resonated with me too. It’s not about ticking boxes; it’s about helping brokers achieve the best outcomes for their clients.

I wanted to be part of a team that takes that responsibility seriously and genuinely values relationships.

What makes Keystone Property Finance stand out from the crowd?

ere are several things that set Keystone apart in the specialist buy-to-let (BTL) market. First and foremost, it’s our focus on brokers and landlords. We keep our ears to the ground and develop products and criteria that re ect what brokers actually need. Relationships are at the heart of everything we do, and that personal connection makes a huge di erence. A er all, Keystone was founded by brokers, so it truly is a lender by brokers, for brokers. Another key strength is our team’s experience. Many of us have been on the other side of the phone, working as brokers ourselves, so we understand the challenges and

pressures they face. at perspective allows us to communicate more openly and e ectively.

We also listen carefully to feedback from brokers and combine that insight with market trends to shape our products. It means we can respond quickly to changes and help brokers nd the best solutions for their clients.

Flexibility plays a huge part, too. In fact, it’s o en the deciding factor in whether a deal gets across the line. Being able to adapt to individual circumstances is something we do really well at Keystone. Finally, our ability to handle complex cases gives us a real edge. When you combine that with strong relationships, deep market knowledge, and exible thinking, you get a lender that brokers can rely on time and again.

What are the challenges facing BDMs right now?

No two days are ever the same as a BDM, but there are certainly some challenges that we all face at the moment. Interest rate pressures remain one of the biggest. Having seen my fair share of economic ebbs and ows, I’d say we’re in a period of transition. Rates have been higher recently, but we’re starting to see signs of stability, and even some positive movement. Naturally, that’s made everyone, including landlords, more conscious of value and price. ere’s also the question of con dence. Ongoing uncertainty has made many investors more cautious. e cost of living is still a concern, and that’s shaped how landlords approach new purchases or portfolio growth. However, despite the challenges, the private rental sector remains a vital part of the UK housing market. With the right products and mindset, there are still plenty of opportunities to seize.

What are the current opportunities for BDMs?

Challenging markets always bring opportunities if you know where

to look for them. For BDMs, it’s about taking a more specialist approach. at means moving away from one-size- ts-all lending and instead helping brokers nd tailored solutions.

We’re seeing more brokers looking to restructure portfolios into limited company formats, for example. It’s an area where our team can o er real guidance. Keystone also has strong expertise in houses in multiple occupation (HMOs) and portfolio lending, which gives us plenty of scope to support brokers exploring new strategies with their clients.

Above all, it’s a great time to strengthen relationships. Brokers want to talk, learn, and nd ways to adapt. Being that trusted partner is incredibly rewarding.

How do you work with brokers to ensure the best outcomes for borrowers?

For me, it all comes down to honesty and openness.

We’re upfront with brokers about what we can and can’t do, and that transparency builds trust. Our goal is always to create the best possible lending solutions, but we never overpromise. If a case is borderline, we’ll always explore it properly, working with brokers and clients to see what’s possible. Sometimes collaboration can make all the di erence.

at sense of partnership is what makes the role so rewarding. When a broker knows they can call you for a straight answer and that you’ll do everything you can to help, it builds lasting con dence on both sides.

What

advice would you give potential borrowers in the current climate?

ink long-term. Property investment has always been about steady growth and sustainability, not short-term reaction. Focus on how portfolios perform over time. Focus on their stability, yield, and resilience

rather than getting caught up in month-to-month rate movements.

It’s also wise to review your portfolio regularly and get tax advice from a quali ed accountant to make sure it’s both tax e cient and nancially sustainable.

Circumstances and markets change, so keeping things under review can make a real di erence.

And, of course, always lean on your broker’s expertise. ey’re there to guide you through the complexities of the market, helping you make informed, con dent decisions.

What would you like people to know about you outside of work?

As much as I love my job, my evenings and weekends are sacrosanct. Having a good balance between work and downtime is important to me, and I make the most of that time by being with family and friends.

When I’m not doing that, you’ll usually nd me knee deep in a DIY project. I’m passionate about home improvement. ere’s always another job to tackle, but I wouldn’t have it any other way! 

Keystone Property Finance

Established in 2018

Products

◆ Lending on HMOs up to 15 occupants

◆ Lending to expats, including retired and self-employed applicants

◆ Holiday Lets

◆ Refurb to Let

◆ Product Transfer and PT Plus Contact details

nance.co.uk 07891 305 354

What is happening with leaseholds?

Leasehold ownership has long been a source of frustration, but the pace of change in the past two years has been unusually sharp. The Government’s overhaul, anchored by the Leasehold and Freehold Reform Act 2024, is reshaping the legal framework and could alter the economics of buying, selling and managing these properties.

For brokers and landlords, the question is no longer whether reform is coming. It is how to navigate the transition and position clients for what comes next.

The reforms in brief

The Act, which gained Royal Assent in May 2024, removes the two-year ownership requirement before a leaseholder can extend their lease or buy the freehold. Other major provisions, including a 990-year lease extension term and reducing ground rent to a peppercorn are in the legislation but not yet active. Secondary legislation will be needed, and timelines are uncertain.

Transparency is another pillar of reform. Leaseholders will gain stronger rights to challenge service charges and building insurance fees, with landlords required to provide detailed breakdowns. The Act also proposes removing the presumption that leaseholders must cover a landlord’s legal costs in disputes, though this is awaiting the outcome of a judicial review.

Alongside these measures, the Government is pursuing a phased shi to commonhold for new flats, aiming to remove the traditional landlordtenant dynamic. The March 2025 Commonhold White Paper confirmed the ambition to make commonhold the default tenure for all newly built flats, with a dra bill expected in the second half of 2025.

Consultation is under way on lowering the consent threshold for

converting existing buildings to commonhold from 100% to 50%, though complex mixed-use sites remain a sticking point.

Market implications

For buy-to-let (BTL) investors, the most immediate impact will be on the economics of leasehold holdings. Eliminating ground rent removes a recurring income stream for freeholders, and the 990-year extension effectively removes lease length as a value lever. Investors who relied on purchasing properties with shorter leases at a discount and extending them for capital gain will find the model less viable.

Commonhold presents a more complex picture. While it offers buyers greater control and may simplify management in the long term, adoption will be gradual and uneven. In mixed-use developments, aligning residential and commercial interests is rarely straightforward. For investors, due diligence on a building’s governance and reserve funds will become as important as location and yield projections.

Risks and opportunities

The reforms are designed to level the playing field, but transitional uncertainty could disrupt transactions in the short term. Some buyers may delay commi ing until secondary legislation is in place, particularly for high-value leasehold flats in prime markets. Legal challenges, such as the judicial review on marriage value and ground rent caps could also delay implementation or water down certain provisions.

There are opportunities for landlords willing to adapt. Greater transparency could help professional operators differentiate themselves from less organised competition.

Properties in developments that already operate with clear, fair cost structures may command a premium

MARTIN SIMS is distribution director at Molo

Reforms are designed to level the playing eld, but transitional uncertainty could disrupt transactions [...] some may delay committing until secondary legislation is in place”

in the new environment. For brokers, educating clients now on the likely direction of reform could build trust and position them as go-to advisers.

Investor strategy

The shi from leasehold to commonhold has the potential to be one of the most significant structural changes in UK housing in decades. But as with any systemic reform, the real test will be in the details of execution. Investors will need to balance caution with agility, tracking legislative milestones and watching for market signals that point to emerging buyer preferences.

In the meantime, the fundamentals of property investment remain: understanding the asset, the costs of ownership and the depth of demand in the target market. Leasehold reform changes the rules of the game, but not the need for disciplined strategy. ●

Give clients the edge on buying property abroad

The buy-to-let (BTL) market is in a state of transition. Landlords are navigating shi ing tax rules, stricter licensing regimes and fluctuating demand, all while contending with higher borrowing costs. These pressures have prompted a more creative and free-thinking approach to portfolio management. For clients, that means looking beyond the traditional mortgage model and using bridging finance to unlock opportunities that might otherwise remain out of reach.

Latest figures from the Bridging & Development Lenders Association (BDLA) underline just how firmly bridging has established itself in the market. In Q1 2025, completions reached £2.8bn, matching the record level seen at the end of last year. Applications surged to £18.34bn, a 55.3% increase quarter-on-quarter and the largest spike on record.

Harnessing equity

One shi I’ve noticed in recent times, which may have a bearing on this business upli , is among landlords using equity in BTL property as a springboard to fund further acquisitions. That might mean raising

capital against a UK property to purchase another closer to home, or taking the concept across borders to buy overseas. Either way, the principle is the same: bridging allows an investor to access cash quickly while planning a longer-term refinancing or sale as the exit route.

The global element is particularly striking. Demand for international property investment has been on the rise, spurred by currency advantages, lifestyle relocations and strong yields in popular markets such as Spain, Portugal and Dubai. Yet conventional lenders rarely move fast enough to capture opportunities abroad. Traditional remortgaging can take months, only to falter on issues of affordability, criteria or appetite. For an investor who has found the right property at the right price, time is o en the deciding factor.

De ned exit, fast deals

This is where bridging demonstrates its value. By releasing equity from an existing residential or commercial BTL property, investors can create the liquidity to secure a deal overseas. Brokers play a pivotal role in structuring this type of finance, ensuring that the exit is clearly defined and achievable, and guiding clients through what may be their first cross-border transaction. The addition of legal fee support or valuation flexibility can make all the difference in giving landlords confidence to press ahead.

A recent case illustrates the point well. An experienced landlord wanted to diversify their portfolio by acquiring property abroad but needed rapid access to capital. StreamBank was able to provide a £650,000 bridging facility secured against a UK buy to let property through a loan

By releasing equity from an existing residential or commercial BTL property, investors can create the liquidity to secure a deal overseas”

structured at 65% loan-to-value (LTV), complete with a competitive monthly rate. Valuation was achieved through an automated valuation model (AVM), reducing both cost and turnaround time, and £1,000 was contributed towards legal fees. The investor used StreamEdge to release equity quickly and cost-effectively, completing on their overseas purchase without missing the window of opportunity.

Cases like this highlight the practical role bridging can play in helping landlords adapt to today’s market conditions. It is not just about filling short-term gaps, but about providing the freedom to act decisively when opportunities arise. Whether it is refinancing a buy-to-let to fund refurbishment, restructuring portfolios, or releasing equity to buy property abroad, bridging has moved beyond being a niche product. It is now a core tool in the broker’s kit.

As the figures show, activity in the sector continues to rise. Brokers who understand the possibilities of bridging will be well placed to support clients who need to move quickly, think differently and look beyond conventional finance. ●

In Pro le.

Q&A

Jessica Bird speaks with Alan Cleary, interim managing director, and Paul Noble, CEO at Chetwood Bank, about the lender’s strategic direction amid a leadership transition

In September 2025, Alan Cleary took over as interim managing director of Chetwood Bank’s mortgages division, as the lender makes the transition from Andrew Arwas to a permanent successor who will join the business in February 2026.

Cleary has over 30 years of experience, including at BM Solutions, Precise Mortgages and OSB, as well as a role on Chetwood’s advisory board, which CEO Paul Noble says makes him an ideal gure to lead the bank into its next growth phase.

e Intermediary sat down with Cleary and Noble to understand what this means for the bank, and importantly, the brokers and buy-to-let (BTL) borrowers it caters for.

The plan

While Chetwood is on a continuous path of evolution, including through the ModaMortgages and CHL Mortgages for Intermediaries brands. Cleary explains that “the direction of the business is already set,” and that both through his transitional phase and the introduction of the permanent MD next year, there is a “strategy that we are locked onto.”

He adds: “We are 100% broker focused, currently in the BTL space and in bridging shortly, and we have a bunch of other things coming down the pipe next year and the year a er.

“ e person coming in is a veteran in the specialist mortgage market, and will execute that strategy in line with what Paul and the board have signed o .

passionate about delivering on the specialist mortgage agenda,” as well as the opportunity to build on and cement the “strong foundations” already established by the bank.

For Noble, both within this transitional period and long-term, Chetwood’s ethos is “about understanding and supporting who we’re here to serve.”

To this end, he says: “We need to make sure we have the right product set that ultimately suits the end borrower, while remembering that our core route to market is through intermediaries.

“It’s important to us that we have every touch point that can work for intermediaries – and I think we’ve got that now across Moda and CHL.”

Cleary adds: “I’m focused on making sure the brokers know what we are, and that they understand the di erent brands, and which to use for which types of cases.

“I’ll also be working very closely with our operations team to make sure the service is excellent, making sure it’s all joined up and balanced in order to maintain really good quality.”

Already “well established in terms of the pure size of the business,” the long-term plan continues to be to grow the proposition over time, and “compete aggressively, not just on price, but service and proposition – the whole gamut,” according to Cleary.

The proposition

“It may look new, because we’re at the start of this journey and there’s exciting stu coming along in the future, and we’re going to deploy a lot more funding into the intermediary space, but it will be a continuation.”

e careful thought that has gone into both the transitional period and mapping out future plans should, Cleary explains, mean there are “no shocks” in store for brokers.

In working to cater for an increasingly diverse and complex set of borrowers, Noble says: “Moda is built on the foundations of automation and making things faster and easier for brokers who have cases that need quick responses and are a bit simpler.” is means semi-professional landlords, rst-time landlords, and small houses in multiple occupation (HMOs), for example.

rst year with Chetwood – says he

Noble – himself celebrating his rst year with Chetwood – says he continues to be “absolutely

CHL, meanwhile, caters for the larger HMOs, landlords with bigger, more complex portfolios, as well as elements such as multi-use properties.

more

He adds: “We’ve got a team of underwriters, in particular at CHL, who are equipped to work out how to lend, and handle

complexity with a real level of experience and depth of industry awareness.

“ at team will work with brokers to develop solutions to help their customers.”

In order to compete and grow, Chetwood Bank plans to continue building on its existing strong product set. Criteria updates happen regularly, and Noble reinforces the importance of having “the right sales and distribution teams out there dayto-day, talking to brokers to understand what the needs are in the market right now, but also with an eye on the future.”

He continues: “ e underlying principle of the proposition is that it must be re ective of need today, not where we were a week or ve weeks ago. at proposition is also broader than price –it’s the product mixes, types of properties, types of borrowers. ere’s a whole host of these topics we address in real-time.”

Cleary agrees: “We have a pipeline of at least a year of changes to the proposition already built in – we never stand still.”

The market

Maintaining business continuity through a leadership change is one thing, but doing so in a market that is “moving daily, weekly and in realtime around us,” according to Noble, is something entirely more challenging.

Cleary cites legislative and political changes as headwinds that mean this market is “always on the move,” but adds that this is not a new phenomenon, instead re ecting “business as usual” across his three decades in BTL.

He adds: “For us, the more complex it gets the better. It’s our stock-in-trade. We watch closely to ensure we’re compliant and predicting what’s likely to occur, but it doesn’t worry us, or fundamentally alter the way we do things.”

While this is par for the course for Cleary and Chetwood, uncertainty is still unsettling

He continues: “ at means we will do things the right way at every touchpoint. But it doesn’t mean we will do it slowly.”

In order to avoid roadblocks, Noble talks about building the right governance, fuelled by expertise and a risk and proposition team that work in collaboration – with nance and audit experts sitting within the leadership team, and compliance forming a fundamental part of the bank’s DNA.

The future

While brokers should see no interruption to service, the business has big plans for the future. Cleary – who will continue in an advisory role – calls this “evolution not revolution,” and says he is “on the hunt for big portfolios.” In addition, the bank’s bridging proposition is set to launch shortly, broadening the set of solutions even further and allowing, as an example, for more options for light and heavy refurbishment.

He says: “We’re all really excited about what we can do in the bridging space. We’ve seen how powerful that sector is, and how it ties really nicely into BTL. It’s a natural progression, and there will be other natural progressions next year and the year a er – all designed with the broker in mind.”

All of this is in the context of a market in which –as perennial reports that “BTL is dead” continue to prove untrue – needs brokers and lenders that are able to handle the challenges thrown at them.

Chetwood Bank plans to work alongside brokers to do this, not just by expanding into di erent asset classes, but also by providing education and information sessions. ese, Noble says, take the widespread expertise present within the bank and use it to ensure brokers have the right information to support customers, and the tools to handle increased demand and complexity.

He says: “We’re not just a number on a page, we want to be a key partner for brokers , and support them in many di erent ways.”

Cleary concludes: “We’ve got a shortage of housing, and we need to be able to lend as the market adapts. We’re going to do that.

for landlord borrowers. To this end, the bank promotes the importance of a human interface, and the ability for brokers to get in contact as needed in order to navigate the changes.

Cleary says: “BTL was only just born when I started out, and it was vanilla. Now look at the market – limited companies, HMO’s – it’s changed radically over the past 20 years, and it will continue to evolve, and change doesn’t tend to slow down. at works great with the way we run our business.”

“ e more complex it gets, the more likely borrowers will want to go to a

mortgage broker.

“We decided 30 years ago that the future was intermediaries, and that’s still absolutely the way it is today. e market becoming more complex simply plays into their skillsets.

“In a market with a lot of lenders funded in esoteric ways, we’re a bank with a successful savings franchise, so we are going to fund more and more deals, and in doing so, make the pie bigger

Noble points to Chetwood’s “well controlled, well governed, regulated, and with scale” status as being at the core of its stability.

PAUL NOBLE

a successful savings franchise, so we are for intermediaries.”

Backing brokers, because complex isn’t impossible

Ilike to think that what keeps my role engaging is that every case brings something different. But for brokers, that variety o en brings an element of frustration –especially in Scotland.

The number of times I hear, “It’s a strong case, but it doesn’t meet every criteria,” says it all. And nine times out of 10, they’re not wrong. The client can afford the mortgage, and they’ve got a solid story behind them, but because their income doesn’t look how a computer wants it to, the case fails to get out of the starting blocks. We’ve had many conversations with brokers north of the border who all tell us a similar thing. Clients are being turned

range available to the whole of market in Scotland. This includes Income Flex, Credit Flex, Core and our Skilled Worker visa criteria. We haven’t adjusted the criteria to make it fit Scotland, and nothing has been watered down.

It’s the exact same proposition we offer in England and Wales, and that’s the point. Everyone should have access to a lender who looks at the full picture, not just the postcode.

In May to July 2025, there were 4.43 million self-employed people across the UK, according to the latest figures from the Office for National Statistics (ONS). That’s an increase of more than 130,000 year on year. It’s not a blip. It’s a trend.

So, it’s becoming clear that fixed income is no longer the norm. Many of the clients we’re seeing are selfemployed, juggling multiple income sources or working contracts that can vary month to month.

That might sound complex, but it’s also reality. And with the economic pressure of the last few years, more borrowers are picking up second jobs or relying on net profit rather than salary.

LAURA SNEDDON is head of mortgage sales and distribution at Hinckley & Rugby for Intermediaries

away, not because they’re risky, but because the criteria is too rigid.

One broker in Fife recently told me about a healthcare worker on a Skilled Worker visa. Good income, reliable employer, the lot. But the postcode, the visa and the fact she was paid partly through an agency meant she was knocked back twice. It didn’t need to be that hard. We took the case, assessed it, and she moved in six weeks later.

Opening things up

That’s one of the reasons we’ve now made our full residential mortgage

We’ve structured our Income Flex range with that in mind. Whether it’s one year’s accounts or a mixture of income types, we’re open to a proper conversation.

Visa doesn’t mean veto

The same goes for Skilled Worker visa clients. We’re not asking for minimum time remaining on a visa, minimum income, or years of UK residency.

If the case makes sense, we’ll look at it. We’re seeing a growing number of clients in Scotland coming through on this route, particularly in the NHS and education sectors. These are people

Clients are being turned away, not because they’re risky, but because the criteria is too rigid”

who are fully embedded in their communities and more than capable of maintaining a mortgage.

This isn’t about headlines or coverage. We started by launching into Scotland with PMS and Sesame earlier this year. That limited launch gave us time to listen. The feedback was loud and clear. Brokers wanted full access. They wanted us to keep the same criteria.They didn’t want another name on a panel, they wanted an actual option for those tricky but do-able cases. So we opened things up, and we’re already seeing those cases land.

What it means

We’re here for the real cases. The ones that need a bit of explanation, or a call to clarify something, or a workaround that stays within policy but actually gets the job done. And we’re pleased to now be offering that same support across Scotland.

If you’re working on a case that doesn’t quite fit the usual mould, whether it involves self-employment, visa status or something more nuanced, we’re happy to take a proper look. Some of these cases aren’t complex at all. They just need a lender willing to listen. ●

Unlocking development in the South East

The housing market in London and the South East remains one of the most dynamic in the UK. The developers working in these regions continue to face a mix of opportunity and challenge, reflected starkly in the most recent government data. While much of the focus falls on housing, commercial and mixeduse schemes are also shaping these markets, particularly in London where demand for flexible space and repurposed assets continues to evolve.

Having spent many years working across the South M25 corridor and South Coast, I have seen firsthand how local conditions shape outcomes for both residential and commercial developers.

According to the Office for National Statistics (ONS), both London and the South East recorded a drop in the number of additional net dwellings produced between 2023/24 and 2024/25. While housing starts in the South East held up be er than expected, London saw the sharpest decline of all, with starts falling by 73%. Planning figures tell a similar story. The two regions accounted for around 35,000 of the 91,000 planning applications received across England in the first quarter, yet approval rates, at 82% in London and 87% in the South East, were among the lowest of any region.

These figures highlight the dual reality developers are contending with. Demand in these regions is intense, but the delivery of new housing remains difficult.

Ambition versus delivery

The Government has made housing supply a centrepiece of its political agenda, with schemes such as the

New Homes Accelerator designed to cut the time between consent and construction. Early reports suggest it has helped accelerate delivery on around 100,000 premises nationally, with the upcoming focus areas including sites in the capital. But the question is not whether these initiatives make headlines, but whether they meaningfully change conditions for developers. As we have seen before, se ing targets is one thing; creating the environment to meet them is quite another.

Unless developers, and particularly small to medium enterprises (SMEs), are supported with faster approvals and funding structured around how schemes really work, progress in London and the South East will remain uneven.

Planning delays remain one of the most consistent frustrations for SME developers. Local authorities are under strain, with many departments operating with reduced resource. For smaller developers, those delays can be critical. Unlike volume housebuilders, SMEs cannot afford to sit on sites indefinitely.

That is why relationships ma er. Developers who engage proactively with planning officers, building a dialogue early and submi ing wellprepared applications, o en stand the best chance of avoiding unnecessary setbacks.

Role of relationships

Strong relationships are just as vital when it comes to funding. London and the South East are markets defined by their quirks, from borough-specific planning requirements to unique buyer dynamics.

Having a lender that knows the patch, understands those nuances, and can structure funding accordingly can

LIAM MULLANS is lending director

for London and the South at Hampshire Trust Bank

be the difference between momentum and stagnation.

Developers need lenders who recognise that projects rarely follow a straight line. Nowhere is that more evident than in London and the South East.

My previous experience in the hotel sector reinforced this point: commercial projects are highly sensitive to shi s in demand, and rigid funding structures can quickly stall progress. The same lesson applies to residential developers navigating these regions today.

Unlocking potential

Despite the challenges, the appeal of these regions is undiminished. For developers able to navigate the hurdles, the rewards can be significant.

The fundamentals are clear: we need more homes, in more tenures, delivered with greater consistency. Achieving that requires collaboration between government and planners, between developers and local authorities, and crucially, between brokers, developers and funders.

While housing remains the priority, commercial and mixed-use projects are part of the same picture. Both need planning systems that can keep pace and funding partners who understand how markets evolve.

London and the South East will remain at the heart of the UK’s development challenge. But unlocking their potential will depend on more than targets. It will depend on the partnerships and resilience that turn permissions into places where people want to live, work and invest. ●

The quiet engine driving property progress

In the quieter corners of the property market, bridging finance is starting to make more noise. Long seen as a last resort or a short-term fix, it’s fast becoming one of the most effective ways to get deals done in an increasingly complex lending landscape.

This isn’t about rescue finance any more. Bridging has matured into a mainstream tool for borrowers who need flexibility, speed and certainty. Whether it’s an investor, a landlord, or a homeowner caught in a broken chain, bridging can o en make the difference between opportunity and frustration.

The truth is, it’s not the product that’s changed so much as the perception. Intermediaries and borrowers alike are realising that bridging isn’t just a backup plan; it’s a deliberate choice. It’s being used strategically to fund refurbishments, conversions and time-sensitive purchases that simply don’t fit the criteria of the high street.

That agility ma ers. It allows borrowers to move decisively in a market where delays can kill opportunities. The best advisers know that a bridging facility, properly planned with a clear exit route, can o en enhance a client’s overall strategy rather than complicate it.

There’s also a growing wave of clients who see property differently. Investors are snapping up unloved stock to renovate and reposition for sale or let. Landlords are restructuring portfolios to adapt to tax changes and rising costs. Homeowners are increasingly open to short-term borrowing if it means securing the home they want before their own sale completes. All of these are scenarios where bridging proves its worth – and

where intermediaries can demonstrate real value.

The industry itself has moved on too. Bridging once carried an unfair reputation for being opaque, but that’s no longer the case. Lenders have worked hard to increase transparency around pricing and process, while technology has accelerated turnaround times. Digital valuations, automated ID checks and open banking integration are making the journey smoother for both brokers and clients.

Delivering deals

That evolution has also a racted a wider range of intermediaries into the space. Brokers who traditionally focused on residential or buy-tolet (BTL) lending are beginning to recognise the benefits of having bridging in their toolkit. But success here isn’t just about knowing rates or loan-to-values (LTVs) – it’s about understanding risk, timescales, and exit strategy from the outset. A welleducated broker is o en the difference between a deal that delivers and one that dri s.

Another area gaining traction is sustainability. The Government’s focus on improving energy efficiency and revitalising existing housing stock is opening up a new frontier for bridging. Lenders are funding projects to upgrade Energy Performance Certificate (EPC) ratings, convert tired commercial buildings into residential spaces, or retrofit older homes. Some are even beginning to offer incentives for greener developments. It’s an area ripe for innovation, where bridging can play a role in improving the UK’s property landscape.

The outlook for bridging remains strong. Institutional capital is flowing into the sector, which should continue

RICHARD DEACON is managing director at Octane Capital

to support competitive pricing and broaden lender appetite. Regulated bridging is on the rise as homeowners gradually become more aware of what’s possible. And lenders are increasingly designing smoother pathways from short-term funding into term products.

But as ever, success in this market will depend on relationships. The best results come when lenders, brokers, solicitors and surveyors work in genuine partnership, communicating clearly and moving at pace. Bridging isn’t a product that suits delay or indecision – it rewards those who are proactive, pragmatic and collaborative.

For intermediaries, that means ge ing closer to their lending partners and to their clients’ ambitions. It means asking the right questions early, managing expectations carefully, and structuring deals that balance speed with sustainability. Bridging is not about taking unnecessary risk; it’s about creating optionality where others see obstacles.

In many ways, bridging finance reflects the broader property market itself – adaptable, resilient and quietly innovative. It fills the gaps that mainstream lending leaves behind, keeps transactions moving, and fuels the projects that turn potential into value.

For a market still grappling with uncertainty, that’s no small thing. Bridging gives borrowers and advisers something precious: the ability to act with confidence. And in today’s environment, that ability is worth its weight in gold. ●

Round-table.

From bottlenecks

Jessica O’Connor outlines the key points of a panel discussion covering challenges and opportunities for the development market as it battles new legislation and changing demand

Since the introduction of the Building Safety Act and the now-infamous Gateway process in 2022, developers and lenders have faced a tangle of regulation, uncertainty, and rising costs.

At a round-table hosted by The Intermediary and Downing, chaired by managing editor Jessica Bird, industry figures shared a candid discussion. From stalled deals to the asset classes offering hope, their message was clear: the rules have changed, but appetite has not gone away.

The GaT eway G aun T le T

The approval system, introduced to improve building safety and accountability, has instead added major time, cost and complexity to development projects –fundamentally reshaping how schemes are designed, funded and delivered.

What was once a relatively straightforward path from planning to build is now a threestage approval system that has added time and complexity to almost every project.

For many in development finance – from architects to advisers and lenders – it is not just another regulatory hurdle, but a full re-engineering of how schemes are designed and funded. For Doug Bowley, associate director at Downing, the challenge is as much about pacing as paperwork.

He says: “It’s reforming the whole way the construction industry works, and clearly, it’s a new process, so it’s adding a lot more expense and a lot more time to the process. The time factor, in particular, is an unknown quantity, and that’s one of the teething issues with developers.”

That reform is not just administrative. Lenders and developers now face the task of committing to design and cost information well before certainty on approval, or even viability, can be

achieved. As James Cooper, technical director at DLA Architecture, explains, the new system has reversed the usual process.

Cooper adds: “The planning application process (Gateway 1) is mostly the same as it was, but higher-risk buildings (HRBs) require you to have a contractor appointed before you make an application for Gateway 2.

“You make your application with a substantially complete design – such that those drawings could just be placed with a contractor and built. Then you wait.”

Previously, the relationship with building regulators was iterative. Under Gateway, this has been replaced by a single make-or-break submission. Cooper says: “Everything has to be pre-done and drawn, so the detail is much greater. The demand on the teams is much greater.”

While the system was designed to improve accountability and safety, it has also created bottlenecks. For funders, this translates into rising costs and additional risk.

Will Powell, investment director at Downing, says: “The average turnaround time is about 36 weeks, so the best part of a year – and we’ve seen huge cost inflation in the build cost market over the last few years.

“You’re having to get a contractor to sign up to a project at a certain price and then say, come what may, in 12 months they’re still comfortable with this price, which no contractor in a free market is realistically going to do.”

The result is a market caught between good intentions and poor mechanics. Powell says: “My take on this reform is that it’s obviously come from

to blueprints

the right place. Grenfell was a dreadful disaster, clearly there were failings there.

“Unfortunately, as is often the case with Government policy, the ramifications for the private sector are often not thought through in terms of how it works mechanically.

“It has added almost a stranglehold on a market that is already doused in regulation and red tape.”

Fundin G conundrums

Highly competent teams are needed to navigate an increasingly complex, multistage funding environment. If the Gateway process has redrawn the design playbook for architects, it has completely rewritten the rulebook for lenders.

Charles Jabre, associate director at DLA Architecture, says: “We are seeing a new funding tier to get schemes not only through the planning application but also another one for the Gateway application itself – because of the awful lot of risk attributed to the application.”

Indeed, backing a project that might fail at Gateway 2 can leave lenders holding the proverbial baby, with unrecoverable costs and no tangible asset to refinance.

Dieter Kerschbaumer, debt and equity adviser at Arc & Co., notes that a handful of lenders are adapting rather than retreating.

He says: “A select few development finance lenders are beginning to recognise the current market challenges. In some cases, if a developer can take a parcel of land to the point of obtaining outline planning, these lenders are stepping in with initial funding through a bridge facility to release equity. The intention is then to refinance themselves into a development loan once full planning consent is secured.”

These interim ‘pre-Gateway’ facilities, typically secured at conservative loan-to-values (LTVs), are now a lifeline for borrowers. Still, only a small handful of lenders have the appetite or flexibility.

According to Jack Heath, managing director at PHINOM Consultancy, these lenders are

Round-table.

PARTICIPANTS, FROM LEFT TO RIGHT

Charles Jabre DLA Architecture

Vishal Dixit Propel Property Finance

James Cooper DLA Architecture

Will Powell Downing

Jack Heath PHINOM Consultancy

Doug Bowley Downing

Dieter Kerschbaumer Arc & Co

Jessica Bird The Intermediary

pricing in time, not just risk. This shifts the burden onto the borrower.

“The longer it takes, the more it costs,” Heath explains, “and because of the continuous monitoring throughout, of not only the planning, but the additional Gateway steps in the background, lenders are needing to align their drawdowns with those steps, which could cause extra delays in build progress.”

Until Gateway certainty is achieved, a scheme is not financeable in the conventional sense. What is emerging instead is a patchwork of hybrid structures – part bridge, part equity, part belief.

When asked how Downing is approaching such risk, Powell’s answer is refreshingly candid.

“I’d love to sit here and say we’ve got this magic product that can just deal with all of this,” he admits. “But the reality is it’s a spider’s web of issues that’s very hard to layer a one-size-fits-all solution over.”

Instead, moving forward needs a careful balancing act. Bowley notes: “The competency of the team behind the process is key.” Developers must plan ahead meticulously and surround themselves with professionals who understand

the Gateway framework, “otherwise, they risk wasting time if their application gets turned down.”

s urvival o F T he F i TT es T

The changing landscape is forcing out riskaverse players and smaller firms, while rewarding well-capitalised developers able to navigate complexity and seize opportunity amid uncertainty.

Land values, inflated by the boom years of cheap money, have come crashing into today’s reality of high build costs and higher interest rates.

Nevertheless, many landowners, still anchored to 2019 valuations, refuse to accept the correction. This is clogging up the pipeline at a time when every viable opportunity counts.

Jabre adds: “Some clients of ours are very risk averse. When we’re helping them bid on sites, we get asked to just stick to non-HRB.

“This then would drive a much lower bid sum, and they would lose on site opportunities and someone else would outbid them.”

Still, Jabre insists: “We need to also inject some positivity in a way that it is only going to get better. There’s no way it’s going to stay like this; It’s to no one’s advantage.

“We’re telling clients to look at the long term as the application processing will get faster once the backlog has subsided.

“The New Building Safety Levy might also help better funding and resourcing the regulator once introduced in October 2026.”

However, even reform, Powell says, will not

“magic away” the macroeconomic headwinds.

He adds: “Build costs have been rising at a rapid rate over the past five years.

“If you look at the things that have thrown a spanner in the works since 2016 – there’s been Brexit, Covid-19, Liz Truss, inflation, and mortgage rates. If you were risk averse, you would have done nothing through that whole time.”

Indeed, many have retreated. But where some see paralysis, others see potential.

Heath says: “Those who are really looking to capitalise on uncertainty are the ones that are going to see larger profits.”

Heath points to a shift already underway in the investment landscape, which sees landlords and mid-tier investors offloading portfolios as 5-year fixed rates expire, rolling from 3.5% loans into 7% or 8% remortgages that break their business models. A lot of those assets are being picked up by opportunistic funds that have liquidity and the appetite for complexity.

He says: “There’s going to be some significant gains made, be it in the acquisition of single buyto-let units, blocks of flats, or picking up vacant or struggling commercial buildings to redevelop.”

Kerschbaumer says: “There are still developers out there with a healthy risk appetite, but they’re having to be creative – finding deals with strong enough returns to make the risks worthwhile.

“We’re seeing a growing number of option agreements, along with developers refocusing on different sectors, and an increased acquisition of sites subject to planning.”

Powell sees it as a kind of natural selection, saying: “There have been periods in the last 15 years where being a developer and making money has not always been through skill. It has been

through market rise and a bit of luck in timing.

“Now, a lot of that chaff in the market has been whittled away. You just can’t be lucky at the moment, you’ve got to be really good, and you’ve got to create genuine value.”

But there is a downside. As the barriers to entry rise, small to medium enterprises (SMEs) are being squeezed out by excessive regulation.

Powell warns: “The Government has run the risk of over-regulation. You risk that loss of the SME –the backbone.

“There are clearly big players that move the needle, but I think you would see a huge hole created if you killed the SME in this market, because the big boys can’t just take everything.”

The F orei G n money my T h Overseas investors remain cautious, favouring long-income and alternative commercial assets over traditional residential developments.

If the domestic picture is difficult, surely overseas investors can fill the gap? Not quite. For all the talk of global capital flooding back into London, the panel agrees that the foreign injection is a myth.

“There’s still appetite,” Heath says. “But they need to be very clear on what they’re investing in, making sure the assets they’re dealing with are solid.”

The post-Grenfell regulatory environment, coupled with a slower residential sales market, has pushed many overseas investors to pivot away from traditional development risk toward longincome asset classes.

Heath says: “I have a handful of Middle Eastern investors, and where they would normally put it into turn-key bricks and mortar developments,

→

Round-table.

they’re teaming up with a care home operator, building out sites and then retaining them as a long-term income-yielding investment.

“Then in five- or six-years’ time, once they’ve stabilised, they’ll look to offload them to a REIT.”

Vishal Dixit, managing director at Propel Property Finance, sees the next wave of growth as being outside mainstream residential entirely.

He says: “I predict we will be seeing a shift of lenders moving into the commercial sector. Data centres, energy, brown to green office – these are going to be popular sectors, and care due to the ageing population and the post-Covid recovery in sentiment. I’m certainly focusing on different elements of commercial construction to try and stay ahead of the curve.”

While the UK will continue to appeal to foreign investors, Dixit says the much-hyped influx of “overseas capital” is a mirage.

He says: “There’s interest, but it looks like people are just waiting and chipping away at the acquisition price to see what the best offer they can get is.”

Prime Central London (PCL) agents, traditionally seen as the bellwether of international wealth, are struggling.

Dixit explains: “Personally, from looking at clients that I’ve structured development facilities for in Mayfair and Marylebone, they’re not selling as freely as expected.

“The type of asset; unique selling points and micro location are more important than ever.”

n ew class o F asse T

Alternative housing models can unlock value amid land shortages, planning barriers and shifting market dynamics. Developers and designers are looking beyond the usual residential market to find schemes that still make sense. Lenders are also following the opportunities wherever they emerge.

“We’ve been seeing a lot of alternative living solutions and housing products on the market,” says Jabre. “Co-living is what [Build to Rent (BTR)] was 10 years ago – the new kid on the block.”

Just as BTR evolved from a niche American import to an institutional staple, co-living is maturing from trend to tested model. Demand is driven by young professionals, mobile workers, and the growing ranks priced out of ownership.

“We’re designing it with futureproofing in mind, to maximise flexibility and offer developers a good exit strategy, if need be,” Jabre says. “Our co-living accommodation is designed in a way that it can be converted to residential C3 or Build to Rent as part of a circular economy approach.”

The Greater London Authority has formally recognised co-living as a use class in its own right, complete with design guidance, which has boosted credibility among both planners and funders. Still, not everyone is convinced that shrinking the unit footprint is the solution to Britain’s housing crisis.

Powell says: “Rather than forcing people into smaller and smaller accommodation, I would argue that we do have the space to give people a relative standard of living in traditional housing, but the

land has not been unlocked to allow it.”

The shortage of traditional development opportunities is exactly what is driving creativity in the first place. Bowley notes that even within strict planning constraints, there are still profitable corners to be found, especially in Permitted Development (PD).

“Five years ago, I thought all the best buildings may have been converted by now,” he adds.

“But we’re still seeing good opportunities coming through […] you’re ultimately buying a structure that’s hopefully sound, which needs repurposing into something that is demanded in today’s market and is ESG friendly.”

Creativity is also reshaping the finance landscape, with lenders adapting by offering more integrated, relationship-led solutions.

Kerschbaumer says: “Lenders are coming full circle, no longer focusing solely on development or buy-to-let funding, but looking at the entire lifecycle: acquisition, development and term debt. In such a competitive market, the question becomes how to truly differentiate.

“The answer lies in relationship-based lending to discourage clients from going to competitors, which will be a key focus for lenders going forward.”

c han G in G T he narraT ive Despite frustration over planning delays and political interference, the panel calls for greater collaboration and

accountability across Government to rebuild trust, depoliticise housing, and recognise the vital role developers play in delivering high quality homes.

For all the frustration circling planning and policy, one theme keeps resurfacing: collaboration. The panel agrees that the will exists, but the ‘how’ remains stubbornly out of reach.

Bowley says: “There’s just zero accountability. The current administration has high-flying goals, particularly with the future supply of housing which feels unachievable.

“Perhaps some more accountability would be great, getting the basics right is the first step in the road to improving the system.”

For Powell, the real problem is politics. “Why should housing be so political?” he asks. “Fundamentally, housing is a need, not a want. Everyone needs somewhere to live.”

He notes that developers are already burdened by working within “the most heavily taxed industry in the UK” and that too often, “it shows a total lack of understanding on how developments are put together.”

He concludes: “The narrative surrounding development in this country is that developers are greedy criminal cowboys that profiteer.

“But the private sector generally is in it for the right reasons. More credit needs to be given to the good work it does in bringing forward quality housing.” ●

Rede ning the customer journey in commercial lending

In today’s competitive commercial lending landscape, the customer journey is more than a transactional pathway - it’s a reflection of how much a business values its clients. Yet, too often, organisations define customer journeys through the lens of their own internal processes, overlooking the reality that the journey should be shaped by the customer’s own experience.

The best customer journeys are agnostic to internal structures. They begin long before a form is filled out and continue well beyond the drawdown of a loan. They’re shaped by the customer’s need for finance, the steps they take to seek solutions, and the interactions they have along the way. Importantly, it doesn’t end when the loan is approved either - it extends throughout the lifetime of the product. Re-engaging a customer only at the point of maturity, after years of silence, is not a successful strategy - it’s a missed opportunity.

At YBS Commercial Mortgages, we’ve taken deliberate steps to improve our customer journey by focusing on clarity, consistency and responsiveness. While having the right product mix is essential, the real differentiator lies in how those products are delivered. The experience must make sense to the customer, not just satisfy internal metrics.

Getting this right has meant scrutinising every step of the process. Regulatory and credit requirements inevitably put pressure on all parties involved in the deal, but the opportunity lies in designing journeys that guide customers through those check points in joyful ways, andfollowing key feedback from our broker partners - is our objective.

Communication plays a pivotal role here. Above all, customers need to understand what’s happening, why it’s necessary and what comes next. This transparency builds trust and confidence.

There’s no doubt that commercial lending presents unique challenges compared to its residential counterpart. In residential markets, data is readily available, and properties change hands frequently, making decisions more straightforward. In contrast, commercial loans often involve complex ownership structures, trading businesses and portfolios with performance data that isn’t immediately accessible. This complexity means that critical information can emerge at various stages, potentially disrupting the progress of the deal.

Heavy lifting

The key is to gather as many relevant details as early as possible – without overwhelming brokers or customers. This enables lenders to make decisions that are not only fast, but reliable. Brokers play a vital role in this process too, with their longstanding relationships with their clients, and manage much of the heavy lifting, guiding customers through intricate transactions and acting as a bridge between lender and borrower.

Technology is also transforming customer journeys. Digital platforms now allow lenders to access all the relevant deal information in one place, accelerating their decision-making.

But we believe that technology should enhance - not replace - the human touch, and should be designed to give our people more time to engage meaningfully with brokers and customers. Armed with this

MARK HECKELS is regional director for YBS Commercial Mortgages

insight, we’ve made significant strides in this area. Our broker portal replatforming earlier this year has made us more agile, improved efficiencies and is making the application journey quicker, easier and more flexible for brokers and their clients, and there’s more to come.

Other impactful changes have been the recent introduction of a 24-hour decision in principle (DIP) along with providing offer letters within a defined 30-day service level agreement.

These steps will provide brokers and customers with early certainty around terms, conditions and interest rates – subject to valuation–making the customer journey more predictable and less stressful. We’ve also streamlined our customer due diligence process, tailoring it to perceived risk levels, and simplified our lending standards, making it easier for customers and colleagues to understand what’s in scope. These changes have enabled us to deliver clearer, faster decisions.

And we’re not stopping there. We’re committed to continuous improvement, guided by broker feedback and customer needs. Every change we make is aimed at enhancing our interactions - making them smoother, more transparent and more consistent for brokers and customers every step of the way. By focusing on clarity, consistency and communication, we can create customer journeys that not only meet expectations but exceed them, building trust, loyalty, and longterm value. ●

The missing links in housing reform

Since taking office, the Government has taken several positive steps forward in planning policy reform, including the reinstatement of local housing targets, the introduction of the grey belt policy, and proposals for a new ‘medium-sized site’ category. However, planning policy is by no means the only barrier that must be addressed. A range of persistent challenges continue to create uncertainty for both home builders and development finance providers. Without swift and decisive action, the opportunity to achieve a meaningful uplift in housing delivery during this Parliament will be lost.

Further action is needed to improve the planning process itself, which many developers still find too slow, costly, and unpredictable. These inefficiencies not only delay developments but also make it considerably harder to secure development finance.

Developer difficulties

The Government’s commitment to hiring 300 new planners is a welcome step in recognising the chronic underresourcing and understaffing of local planning authorities (LPAs). However, this falls significantly short of the 2,200 additional planners that HBF research indicates are required to meet current demand.

Despite the package of support for the affordable housing sector announced in the Spring Statement earlier this year, developers continue to face difficulties securing Registered Providers (RPs) to purchase their Section 106 affordable homes. A recent Freedom of Information request by the HBF found that approximately 8,500 Section 106 affordable homes, either under construction or due to commence within the next 12 months, remain uncontracted.This issue is particularly acute for small to

medium (SME) developers, many of whom rely on project-based financing to support cash flow and commence construction. Without contracts in place for the sale of Section 106 homes to RPs or councils, these funds remain inaccessible, delaying or preventing delivery.

Impact of reform

In the short term, it is vital that steps are taken to prevent the loss of affordable homes. HBF has therefore called on the Government to encourage local authorities to take a more flexible approach to the use of cascade mechanisms in Section 106 agreements, and to engage constructively in renegotiations where an RP cannot be secured. This would ensure that homes can continue to be built, either by converting to an alternative tenure or, as a last resort, through a financial contribution to the LPA in lieu of affordable housing.

A recurring challenge in recent years has been the cumulative impact of new taxes, policies and regulations on the home building industry including Biodiversity Net Gain (BNG), Electric Vehicle Charging requirements, and the Residential Property Developer Tax (RPDT). While each measure may have merit in isolation, together they place significant strain on the viability of sites.

Targeted support

This pressure is set to intensify with the planned introduction of the Building Safety Levy (BSL) in autumn 2026 expected to add an average of £3,000 to the cost of each new home and the proposed reforms to Landfill Tax, which could add a further £15,000 per plot. In many areas, such costs would render development entirely unviable.

At the same time, weak effective demand in the first-time buyer market due to stretched affordability ratios,

EMMA RAMELL is director of external a airs at the

Futher action is needed to improve the planning process itself, which many developers still find too slow, costly and unpredictable”

high deposit requirements and mortgage costs is further deterring investment.

Recent data from the Office for National Statistics (ONS) highlights the scale of the challenge: the average property in London is now unaffordable even for households in the highest income decile, while in the South East, South West, and Eastern regions, the average home is affordable only to those in the top income decile.

To address these issues, the Government should consider targeted support for first-time buyers in the forthcoming Budget, for example, through a new equity loan scheme cofunded by home builders.

Such a measure would help convert latent demand into effective demand, supporting housing supply, boosting home ownership, and stimulating the wider economy, while giving builders the confidence to invest for the long-term. ●

Small to medium enterprise (SME) lending is beginning to edge back, with momentum in 2025 becoming harder to ignore. Lending to small and medium-sized businesses is increasing, applications are climbing, and more firms are beginning to choose investment in their future rather than taking on finance simply to cover shortfalls.

While there is still an air of caution in the market, the overall signals are positive, and from my perspective it is clear that brokers sit at the very centre of this change.

Lending growth

Figures from UK Finance show that gross lending to SMEs reached £4.6bn in the first quarter of 2025, marking the sixth consecutive quarterly increase, and the highest level since mid-2022. A run of consecutive rises like this matters. It suggests that what we are seeing is not a one-off recovery, but part of a more sustained upward trend in demand and supply.

The most striking growth was among the smallest firms, with lending to businesses turning over less than £2m increasing by 30% compared with the same period a year

earlier. This is particularly significant, because these businesses have often been the most cautious since the pandemic, choosing to delay plans or rely on reserves rather than commit to new borrowing. The fact that they are now returning to the market suggests that confidence is not limited to larger or more established firms, but is filtering through to the smaller companies that form the backbone of the UK economy.

What I see day-to-day certainly reflects this. Many owners who postponed decisions during the past few years are now taking action, often after lengthy periods of hesitation. They are doing so not to patch over short-term challenges, but to pursue transactions that allow them to grow and progress. It is a change in tone that feels quite different from the stop-start patterns of the recent past.

Confidence moving

Equally important is the type of borrowing now taking place. The latest figures show that working

capital loans fell by 24% in the second quarter of 2025, while refinancing deals rose by 53% year-on-year, and applications linked to investment

increased by 38%. This shift tells us two things. First, fewer firms are approaching lenders because they need immediate liquidity simply to keep trading. Second, more are committing to longer-term projects that require stability and forward planning.

In other words, SMEs are not just borrowing more, they are borrowing with clearer intentions and a renewed focus on sustainable growth.

Applications and approvals also reflect this same trend. Loan requests rose by 20% in the first quarter of 2025, while overdraft demand grew by 11%. These numbers are more than just indicators of activity; they highlight a broader shift in mindset.

Brokers I speak to also report rising demand for larger transactions, with two in five expecting greater appetite for loans above £100,000 this year.

This suggests that, while caution has not disappeared, many SMEs are now prepared to take on more substantial commitments where they can see long-term value.

Enablers of growth

Set against these developments, the importance of brokers becomes paramount. Finance is available, but the sheer number of options, combined with criteria that continue to change, can leave owners uncertain about the best way to progress.

SMEs need more than a lender; they need a guide who can assess whether refinancing is the right route, explain the degree of flexibility built into a facility, and identify which lenders will genuinely support investment-led borrowing.

Brokers perform this role expertly, balancing ambition with practicality and ensuring that deals progress in the right fashion.

In many cases, their work is the difference between an application failing to get off the ground and a deal completing. This is why I believe brokers should not be seen as playing a secondary role in the lending process. Without their ability to interpret the

market and shape cases in ways that lenders can support, many businesses would simply struggle to move ahead.

Delivering real outcomes

The growing role of specialist lenders makes this point even more evident. While high street banks continue to prioritise the most established clients, specialists are increasingly stepping in where the opportunities are more complex or sit outside conventional criteria. According to recent data, around 60% of new SME lending now comes from challenger and specialist banks, and it is brokers who are linking businesses to these sources of funding.

At LHV Bank, I see this collaboration up close. A £10.9m facility for a prime office asset near Birmingham is a good example.

The broker involved in this case had deep knowledge of the local market, understood the strength of the tenancy, and was able to frame the opportunity in a way that made sense to us as a lender.

By working together, we provided the funding that allowed the acquisition to go ahead and, in doing so, supported wider regional growth.

The same pattern is visible in other sectors. In healthcare, for instance, we recently completed a £5m refinancing package for a portfolio of specialist care homes. Here, the broker played a central role in demonstrating the strength of the underlying assets and explaining why continued investment in this sector really matters.

These are not abstract transactions: they help businesses grow, and at the same time, support industries with clear social value.

Rebound to renewal

Looking at these developments as a whole, the message is clear. The SME market in 2025 is not simply rebounding, but moving towards something more sustainable.

For me, the real story is not only that lending volumes are rising, but

While caution has not disappeared, many SMEs are now prepared to take on more substantial commitments where they can see long-term value”

that borrowing itself is becoming more purposeful. Businesses are refinancing with clear strategies, applying for facilities in greater numbers, and targeting their finance at projects that are designed to deliver future growth.

Brokers are central to this process. They are the ones who help SMEs navigate the complexity of the market, and they are also the ones who ensure that deals are structured in ways that both borrowers and lenders can support.

Just as importantly, they are connecting firms with specialist lenders that are willing to back opportunities that do not fit the conventional mould.

The outlook is positive. Lending is rising, businesses are showing renewed ambition, and the influence of brokers is more visible than at any point in recent years.

This year has the potential to mark a genuine turning point. If SMEs continue to borrow with focus, and brokers continue to shape those deals with precision, 2025 will not be remembered as a cautious rebound, but as the year the sector began to set a new course for growth. ●

Building a more sustainable tomorrow

Afocus on carbon reduction and net-zero targets has rightly been at the heart of conversations around the key to creating a green economy.

Although it’s crucial to emphasise that behind every target lies the contribution of people and skills.

Transitioning to a greener economy should focus on collaboration, expertise and the financial innovation that can then become action, from what was once innovation.

It feels like we’re at a turning point here in Wales – not only around how we as a nation can look at matters like decarbonisation, but also how we can create a more fair, skilled and sustainable economy, that works for all of us.

But what are some other key takeaways overall that we can factor in to our thinking around green skills, and building towards a more sustainable future?

Foundation for change

Focusing on our work at Principality Building Society to begin with, we recognise that lenders and intermediaries play a critical role unlocking through sustainable finance.

We have launched our £20 million Green Development Fund, which acts as a dedicated resource to help finance the creation of greener homes and energy-efficient developments across Wales.

The fund supports developers who are embedding sustainability into their projects, from low-carbon building materials to innovative energy solutions.

By backing these developments, we are not just supporting construction –

we are helping to grow the green skills base across Wales: planners, builders, architects, and finance professionals who understand what sustainable building really means.

It is a tangible example of how finance can drive real-world change – and of how collaboration between lenders, developers, and intermediaries can make sustainability achievable, not aspirational.

Convening and collaboration

The progress we are able to make depends on partnerships – across business, government, education, and finance.

The power of cross-sector collaboration lies in convening different perspectives – lenders, brokers, developers, and communities – to shape the skills, innovation, and financing mechanisms that will define Wales’ green economy.

At Principality Building Society, we believe in creating impact beyond our scale.

That means working closely with our intermediary partners to identify opportunities, share knowledge, and ensure funding decisions support long-term environmental and economic resilience.

The opportunity ahead

The intermediaries who will thrive are those who understand sustainability not as a compliance issue, but as a business opportunity – one that is integral to how we build, lend, and invest.

Investing in green skills is a sound business strategy, which can then profitability and resilience, not only working as an act of corporate social responsibility.

NIGEL

TAYLOR is head of brand, impact and communications at Principality Building Society

Employees with green skills can identify and implement efficiency measures, such as reducing energy and resource use, which can significantly cut operational costs. By investing in green skills training and developing a sustainable corporate culture, companies can boost employee engagement and motivation, as well as then providing clear pathways for career development in green roles helps attract and retain top talent.

The transition to a green economy though requires more than just dedicated “green jobs.” It is about embedding sustainability across every function of a business.

This can be seen through finance, as accountants need green skills for carbon accounting and sustainability reporting to guide financial strategy.

Professionals in human resources and communications also need skills to bring to life the company’s commitment to sustainability, and manage brand reputation.

Company leaders need a strategic understanding of environmental challenges to set an example and drive culture change from the top

By funding greener developments, upskilling our teams, and aligning advice with long-term environmental goals, we can help ensure that the transition to net zero is inclusive, prosperous, and achievable.

In providing the financial foundations, the partnerships, and the purpose that will help shape a greener, more sustainable future. ●

A ordability holds the key

The lending market has been through one of the most turbulent periods in recent memory. Interest rate volatility, higher funding costs and persistent affordability challenges have reshaped how brokers and landlords approach property finance. While there are early signs of stabilisation, the aftershocks of the past two years are still being felt across the industry.

Brokers, as always, sit in the middle of that storm. They’re navigating client expectations against a backdrop of tighter criteria, rising operational costs and renewed regulatory focus on responsible lending. Conversations that used to take hours now take days. And for many, the biggest challenge isn’t the rate itself – it’s finding a lender whose approach is clear, consistent and aligned with real-world borrower circumstances.

Affordability pressure isn’t going away, but it can be managed more intelligently through consistent lending criteria [...] and genuine dialogue between brokers and lenders”

Affordability remains the defining issue. The combination of higher stress rates and stricter debt coverage ratios has limited what borrowers can achieve, particularly in regions where yields are lower and property values are higher. Many landlords in the South East, for instance, are

finding that traditional affordability tests simply don’t match the reality of their portfolios.

The pressure is only set to grow, with billions of pounds of mortgages due to roll off low fixed rates agreed during the pandemic. As those loans refinance at today’s higher rates, the affordability struggle will remain a clear and present challenge for brokers and borrowers alike.

At the same time, there’s a growing divide between the products brokers want and the ones that fit affordability calculations. 5-year fixed deals have dominated because they help borrowers pass stress tests, but they don’t always suit clients who want shorter-term flexibility. In a calmer rate environment, that imbalance needs to be addressed if the market is to move forward.

That’s where specialist and business banks can make a real difference. Our role isn’t just to lend money, but to make borrowing work – to create a framework that enables good deals to get done while maintaining prudence. Listening to brokers is crucial in that process because they see the pinch points before anyone else.

Enhancing transparency

At Redwood Bank, those conversations have shaped several recent adjustments to our lending proposition, all focused on improving affordability and transparency, particularly for commercial and mixed-use investors.

We’ve reduced our debt service coverage ratio to 130%, lowering the rental income hurdle relative to the loan amount. This opens opportunities in higher-value, loweryield areas where clients have strong covenants, but affordability has been difficult to evidence.

We’ve also reduced stress rates across residential and commercial lending, making it easier for borrowers to secure funding on 2- and

TOM WORBEY is senior lending product manager at Redwood Bank

3-year fixed or variable terms. Alongside that, we’ve extended the maximum term on commercial loans to 30 years, giving brokers greater flexibility when structuring deals and improving affordability over the long term.

Finally, we’ve introduced a more structured, LTV-based pricing model to make our rate framework clearer from the outset. Our alternative fee product can also help address the refinancing challenge by improving affordability options for borrowers whose loans are maturing from the low-rate, Covid-era period.

None of these measures are about short-term positioning. They’re about helping brokers and borrowers find stability in a market that’s still recalibrating. Affordability pressure isn’t going away, but it can be managed more intelligently through consistent lending criteria, transparent pricing and genuine dialogue between brokers and lenders.

Lender relationships

Looking ahead, I believe the next phase of recovery will be defined not just by rate movements, but by relationships. Brokers want to know they can pick up the phone to a lender who will listen, respond quickly and give a straight answer. For business banks like Redwood, that means maintaining flexibility while staying grounded in common sense and responsibility.

If the past two years have taught us anything, it’s that clarity and trust are every bit as valuable as competitive pricing. Those are the foundations that will keep the market moving and help landlords and SMEs continue to invest in Britain’s future. ●

Budget 2025: Lifeti

When clients think about mortgage product rates, they usually picture the Bank of England nudging the Bank Base Rate (BBR) up or down, and lenders reacting accordingly.

Of course, this is far too simplistic, and within the later life product space in particular, we know the situation is very different. Lifetime mortgages, for example, are fixed for life, and the real driver of pricing is the cost of longterm borrowing in the markets. That means gilt yields, and the swap rates built on top of them.

When those move, lenders’ funding costs move with them, and the products advisers can offer their clients reprice quickly. With the Chancellor’s Budget due on the 26th November, understanding the link between fiscal policy and the cost of later life lending has never been more important.

An important moment

We are already in a period of elevated long-term yields. Gilt rates are at levels we haven’t seen for almost 30 years, reflecting both global pressures and the way investors are judging the UK’s fiscal outlook.

Markets don’t just look at the year ahead. They care about the path of borrowing and debt over many years, and they adjust the return they demand accordingly.

With the [Budget due] understanding the link between scal policy and the cost of later life lending has never been more important”

That is why a Budget that signals higher deficits for longer can push up yields and increase the term premium, even if the Bank of England leaves BBR unchanged. The IMF recently published work showing that every one-percentage-point rise in the projected deficit-to-GDP ratio has historically added 20 to 30 basis points to long-term interest rates. That might not sound much, but when it feeds directly into lenders’ funding costs, the impact on mortgage pricing is significant.

Another factor is the supply and demand dynamic in the gilt market itself. If the Debt Management Office has to sell more gilts to cover higher borrowing, investors need to absorb that extra issuance.

But with the Bank of England shrinking its balance sheet through quantitative tightening, one major buyer has stepped back. That leaves a larger burden on private investors, who are naturally more pricesensitive. When supply goes up and demand is choosier, the clearing yield drifts higher, and the long end of the curve – which matters most for lifetime mortgages – tends to bear the brunt.

The Office for Budget Responsibility (OBR) has also underlined how sensitive the public finances are to yield moves. With debt at around 100% of GDP, a one-percentage-point rise in gilt yields adds roughly 1% of GDP to annual debt interest costs. Markets know that, and if they sense policymakers are ‘kicking the can down the road’ rather than rebuilding buffers, they will demand a higher premium today to insure against tomorrow’s risks.

Credible change

Credibility is perhaps the most important piece of the puzzle. Budgets are about signals as much as spreadsheets, and if investors feel rules are being bent too far or costings don’t stack up, they will adjust prices immediately.

ROLAND STEERE is director of funding at more2life

We don’t have to look far for an example. In September 2022, the mini-Budget triggered an abrupt surge in gilt yields and swap rates. Within hours, lenders were pulling products and advisers were left trying to shield clients from sudden, painful changes. Post-mortems from central banks and academics alike put the blame squarely on a loss of fiscal credibility. That lesson remains fresh: when credibility disappears, mortgage pricing can move almost overnight. Another area to watch is growth and productivity assumptions. A Chancellor can make the numbers look better on the day by leaning heavily on optimistic forecasts, but if those assumptions unravel later, the market reaction can be sharp and poorly timed for borrowers.

The OBR’s assessments are central to this process, and if its outlook is downgraded after the Budget, it can have a direct impact on gilt yields, and therefore on the swap rates used in mortgage pricing. Optimism without credible delivery mechanisms tends to push term premia higher, and that ultimately feeds through to the cost of borrowing for clients.

Inflation is another way fiscal choices and monetary policy collide. If the Budget is judged inflationary – whether through net demand stimulus, energy measures, or tax changes that boost consumption –markets may conclude that the bank will need to keep rates tighter for

me mortgage rates

longer. Swap markets essentially reflect where investors think policy rates are headed, and if that expected path shifts upward, so too do 5-year and 10-year mortgage fixes.

For advisers, the message is clear: fiscal choices today shape the inflation and rate expectations that directly influence lifetime mortgage pricing.

Bigger picture

We cannot ignore the global backdrop. Across advanced economies, public debt is elevated, central banks are retreating from bond-buying, and geopolitical uncertainty is high.

The IMF warns that these forces are pushing up neutral long-term rates and term premia.

In that world, any UK-specific slippage on fiscal anchors draws a sharper response than it might have done in calmer times. Investors are already demanding more compensation for long-horizon risks, and that makes credibility here at home even more valuable.

What does this all mean for advisers and clients? The message is not to second-guess every detail of the Budget, but to recognise the overall signal matters. A Budget that reassures

investors can help ease downward pressure on long-term borrowing costs. One that raises doubts risks pushing them higher – and quickly. Markets can move within hours of a fiscal statement, as we all saw in 2022.

With the Budget on the horizon, advisers have a clear window to help clients consider their options and, where appropriate, secure today’s terms. Credibility may turn out to be the cheapest form of mortgage relief the Chancellor has to offer. The real test for advisers is how we translate that into better outcomes for the people who rely on us. ●

Retirement wealth is key for older borrowers

STEPHEN BROWN is head of intermediaries at e Scottish Building Society

Over the past 10 years, the mortgage market in the Sco ish heartlands has undergone a significant transformation, with loan terms frequently extending beyond the standard 25 years, resulting in a higher proportion of older borrowers.

UK Finance data from Q4 2024 shows that 35,840 new mortgages were issued to UK borrowers in their 50s and 60s, a pa ern that is especially significant in our heartlands, where an aging demographic is striving to sustain homeownership.

Pension possibilities

In Scotland, the share of new mortgages with 36 to 40-year terms rose to 19.8% for first-time buyers and 18.5% for home movers in Q2 2024, reflecting affordability pressures for those nearing retirement, and with Scotland’s population aged 75 and over projected to grow by 341,300 by 2047, these numbers underscore the growing need for flexible mortgage solutions.

Amid widespread speculation about forthcoming UK budget changes, including potential hikes in inheritance tax, the introduction of wealth taxes such as property or capital gains tax, or reductions in pension tax relief, older homeowners have a lot to think about.

Nevertheless, life goes on, and people need to move for many valid reasons and increasingly in their later years. A growing number of those with retirement assets are turning to pension wealth to help fund essential later-life borrowing.

The mortgage industry has already adapted to a degree with later-life lending products like Home Equity

Older borrowers often face a ordability contraints [...] making it di cult for those individuals to secure a mortgage despite their wealth”

Release and Retirement Interest Only (RIO) mortgages, but these are not suitable for everyone.

In Scotland, supported housing for older people reached 21,085 units in March 2024, highlighting the need for more tailored mortgage solutions. For the ‘pre-retirement’ group, pensionbacked lending remains a largely untapped option.

Pension-backed lending leverages personal pensions, including money purchase plans and Self-Invested Personal Pensions (SIPPs). UK pension assets total £3.8tn as of 2023, with the defined contribution market, including SIPPs, accounting for £1.9tn. The SIPP segment, valued at £500bn, is projected to reach £750bn by 2030, offering substantial opportunities.

Practical support

Older borrowers o en face affordability constraints as traditional lending criteria focus on current income, making it difficult for those individuals to secure standard mortgages despite their wealth. Pension-backed lending offers a solution by leveraging uncrystallised

pensions, funds not yet withdrawn, as evidence of financial strength and future repayment capacity.

For instance, a sizeable SIPP, which may hold diverse investments like stocks or property, can demonstrate to lenders that a borrower has significant assets to support long-term mortgage payments. This enables asset-rich but income-light borrowers to access borrowing opportunities that align with their financial circumstances, bridging the gap between traditional affordability assessments and their actual wealth.

At the Sco ish Building Society, we’ve already seen how using pensions as part of the underwriting suite of solutions can unlock solutions for borrowers who may otherwise fall outside conventional lending criteria. By evaluating elements like a significant uncrystallised SIPP, we can support later life borrowers who are asset-rich but have low levels of income.

This approach is timely and responsible. Aging borrowers are a UK-wide phenomenon and are one reason why we are seeing these requests grow beyond our traditional heartlands.

Looking ahead, pension-backed lending offers mortgage lenders, especially mutuals, a way to support this growing cohort. As upcoming Budget speculation fuels demand for debt reduction strategies, pensions provide a practical tool to empower homeownership and financial planning among the older demographic. ●

The smarter, safer choice

In today’s competitive market, many mortgage brokers may be looking to diversify their services by offering add-ons like insurance directly to their clients. On the surface, this seems a convenient solution and an additional revenue stream. However, when mortgage brokers handle home insurance themselves, without referring clients, they may be opening the door to serious risk for themselves.

From compliance breaches to legal exposure and reputational damage, there are pitfalls that can arise when insurance isn’t le to focused experts. That’s why working with a specialist provider such as Safe & Secure Home Insurance is not just safer, it’s smarter business. When referring is quick, easy, paperwork-free and compliancelight, it makes sense to refer.

Home insurance is a regulated financial product with strict compliance obligations, including record-keeping, fair treatment of customers, and full disclosure of commissions. Failing to meet these obligations can easily lead to regulatory scrutiny.

Mortgage brokers are trained in lending products; however, that doesn’t necessarily translate to buildings and contents insurance expertise. Without a deep understanding of home insurance underwriting, exclusions, and policy structures, brokers may inadvertently set up unsuitable cover.

This can have consequences for the broker as well as the client. If a client suffers a fire, flood, or burglary and finds out they weren’t properly covered, the broker could be liable, and the client’s loss may lead to reputational damage and possible legal action.

Safe&Secure Home Insurance recently saw an example of this, when a mortgage broker sold a policy themselves and a subsequent claim made by their client was then challenged by the insurance company. As the broker had not saved the call recordings with the customer, it was not possible to evidence what was discussed at the point of sale. Consequently, the broker has to potentially cover the cost of the claim and associated costs.

Without the knowledge, tools, systems, and wide range of insurer panels access, it’s easy to overlook risk factors like properties in flood-prone areas, listed buildings and clients with unusual or high-value possessions.

Rather than trying to do it all inhouse with o en limited number of panels to choose from, many mortgage brokers choose to partner with Safe & Secure Home Insurance, being a specialist provider that handles home insurance with expertise.

Appropriate route

This gives both brokers and clients peace of mind, and can identify when home insurance falls outside the normal standard cover and find the appropriate route for the customer.

Clients receive a policy tailored to their exact needs, not a generic off-theshelf product.

The referral process is simple, transparent, and designed to protect the broker-client relationship. Brokers can focus on mortgages, while Safe & Secure handles the buildings and contents insurance, keeping everyone within their expertise.

While it may be tempting for mortgage brokers to offer home insurance themselves, the risks outweigh the rewards, especially when it comes to compliance, liability, and client outcomes. By partnering with a trusted specialist like Safe & Secure Home Insurance, brokers can provide be er protection for their clients and safeguard their own professional standing.

In a market where trust and reputation are everything, sticking to your core expertise and referring to the right partners is not just safer, but it’s the hallmark of a true professional.

The remortgaging

General insurance (GI) sales to remortgage clients represent one of the most significant untapped revenue streams in the mortgage advice sector, yet this opportunity continues to be overlooked by many advisers.

Our 2025 Adviser Survey speaks to this, showing a disconnect between advisers’ intent and their execution: while 83% of advisers want to grow their GI business, more than half (53%) say they don’t discuss GI with their remortgage clients often.

This means advisers are missing out on revenue and valuable chances to further solidify relationships with their clients. A common reason cited for not pursuing the GI opportunity with clients is that advisers don’t have the time or resource. But with the advent of referral services across the market, winds are changing.

A referral revolution?

The survey data tells a compelling story about the evolving landscape of adviser preferences. Awareness of Paymentshield’s referral service among the advisers surveyed has jumped from 65% to 76% year-onyear. However, more telling is that almost a third of advisers (30%) say

83% of advisers want to grow their GI business

their ‘ideal situation’ for making sure clients have adequate insurance in place is to refer them for insurance advice over doing it themselves.

The group of advisers who would ideally be referring their GI business can be split into two camps. There are 20% of advisers who favour referring clients for an advised phone conversation with a third-party, with a further 10% who prefer an online

53% of advisers said they do not discuss GI with their remortgage clients often

journey where clients can arrange policies independently. However, it’s clear that, while a growing number of advisers recognise referral as a route to doing GI business, they might not yet be fully embracing it.

Remortgaging, in particular, presents an area ripe for referral activity among advisers. Currently, Paymentshield data shows that remortgage clients represent a much smaller proportion of referred business compared to home movers and first-time buyers. But we also know that they are a frequently overlooked group for GI conversations in general.

Remortgage clients represent a clear opportunity for referral, particularly for advisers who either aren’t

discussing GI at all, or who might be finding it difficult to convert these conversations into sales.

To understand how this shift is playing out in practice, we spoke to advisers who have already embraced referral services to get an idea of what inspired them to take the leap, and how they’ve found integrating referral so far.

Charline Schott, a mortgage administrator at Warren & Co, a

30% say their ‘ideal situation’ for making sure clients have adequate insurance in place is to refer them

revenue gap

consent to be contacted, and at a time of their convenience.

brokerage in Gloucester, said that GI often fell down her to-do list due to the complex nature of quote generation. Recognising the potential of GI as a supplementary income stream, Charline trialled the referral service and has found that she’s “seeing a much higher conversion rate than when I handled this myself.”

Crucially, Charline feels comfortable using the service as her “clients know they’re speaking to someone who’s an insurance expert. That builds trust and makes a huge difference.”

We understand that advisers can be reluctant to hand over their wellearned client relationships to a thirdparty, which is why we have robust processes in place to secure client

Referrals of remortgage clients convert at 26%, compared to 15% when advisers initiate the GI conversation themselves 10% prefer an online journey where clients can arrange policies independently 20% of advisers favour referring clients for an advised phone conversation

remortgaging looks set to provide over the next 15 months.

Andrew Dunn, a broker at Q Financial Services in Telford, says: “What’s most valuable for me is having the option to refer our clients onto a team of experts, which gives everyone involved some peace of mind and assurance.”

Providing peace of mind is why our Adviser Hub allows advisers to track each referral they make, so they’re never out of the loop with how their

Time to act

By the end of 2025, 1.8 million borrowers will come to the end of their fixed-rate mortgages, per estimates from UK Finance. 2026 promises to be similarly plentiful.

For those advisers who remain keen to deliver an advised conversation themselves, our Adviser Hub, GI academy and the adviser toolkit on the Paymentshield website are continually updated and offer valuable support to advisers.

For advisers struggling to find the time to effectively meet this remortgaging wave, exploring how referral services can support your operations could really help to unlock that extra revenue and client appreciation.

Remortgaging presents a golden opportunity for the sector over the next year. With uncertainty around inflation and future rate changes continuing to loom over us, clients will always gain the most value from professional, expert advice that helps them navigate complex decisions. ●

customers are faring. The results from referring remortgage clients to Paymentshield speak for themselves. In 2025 alone, referrals of remortgage clients are currently converting at 26%, compared to 15% when advisers don’t refer and initiate the GI conversation themselves.

It’s important that advisers strongly consider referral services as one of the key strings to their bow, especially with the revenue opportunities that

By the end of 2025, 1.8 million borrowers will come to the end of fixed-rate mortgages

MADE TO MEASURE

MODERN PROTECTION FOR A CHANGING WORLD

by Marvin Onumonu

The shape of the mortgage market is changing, and with it the protection landscape. As the familiar boundaries of ‘vanilla’ mortgage lending fade, a new set of borrowers is stepping into focus: the self-employed, those with complex or multiple incomes, clients with historical credit issues, and older borrowers seeking later life lending, to name a few.

Justin Harper, chief marketing officer at LifeSearch, notes that these “non-vanilla” borrowers are moving into the mainstream.

He says: “Several of our newer partners serve communities that are typically underserved, such as renters, small businesses, the self-employed and those with specific health conditions. With the ever-present challenges of cost-of-living pressures and the legacy of Covid, we are seeing greater demand from all consumer segments.”

The Office for National Statistics (ONS) now counts more than 4.3 million self-employed people nationwide. Every year, more workers swap the nine-to-five for the flexibility, or necessity, of the gig economy.

Rising house prices, shifting family structures, and the legacy of past financial wobbles mean that more borrowers are stepping outside the old ‘one job, one payslip, one mortgage’ template. Demographic trends are also driving change,

with later life lending on the rise as more people look for security, flexibility, or simply a way to help their children onto the ladder.

Protection gap

Despite their resilience and adaptability, these borrowers often face financial lives that are anything but straightforward. For the selfemployed, income can fluctuate from month to month. For those with adverse credit or limited savings, the margin for error is slim. Older borrowers face different challenges around health, care, and inheritance.

In all these cases, the old safety nets – sick pay, redundancy cover and employer-backed insurance – are often missing.

Alan Lakey, director at CIExpert, says: “There is a real lack of awareness about the value of protection among the bulk of the consumer population, especially the self-employed.

“There continues to be a belief that the State will ‘save me’. Of course, the reality is very different – with Employment & Support Allowance you need to have paid enough National Insurance contributions to qualify for the benefit, and could receive up to just £92.05 each week. This is unlikely to be a level that many can rely or even survive on.”

Harper sees the same risks playing out across families, saying: “Families with mixed income streams, the self-employed and renters often lack an adequate financial safety net if illness or death occurs.

“Too many have little or no emergency savings or backup plan, and the self-employed, in particular, cannot rely on employer benefits or much support from the state.”

Mike Farrell, protection sales and marketing director at LV=, says: “Protection, in all forms, remains a vital part of financial planning. Clients, whether employed, self-employed or facing complex financial circumstances, need cover that reflects their individual risks. Delivering this requires insight and adaptability.”

A new landscape

At LifeSearch, Harper has seen a shift in who seeks protection advice. “We operate a partnerbased model in which most new customers are referred by other brands,” he says.

“Since the introduction of Consumer Duty, we have seen rising referrals from advisers in adjacent sectors such as mortgages, general insurance and wealth planning.”

These ‘non-vanilla’ clients are not a niche; they are the new mainstream. They include the builder who works as a subcontractor, the freelancer with multiple income streams, the retiree seeking later life funds, and the family that has bounced back from historical credit issues.

Lakey points out the complexity these borrowers face, saying: “The self-employed are at the mercy of circumstance, particularly those in higher-risk occupations such as builders and drivers, etcetera. With later life lending, there is

a clear fall off in their knowledge levels, and this often leads to inaction.”

Unique needs and risks

For these borrowers, the lack of employer benefits or state support is a critical vulnerability.

Lakey adds: “Those with adverse credit histories who might be denied a traditional mortgage are also typically required to pay a much higher interest rate. This means that the impact of a loss of earnings in these scenarios will be felt more harshly.”

Steve Griffiths, commercial director for retail mortgages at Shawbrook, agrees that the selfemployed face unique hurdles.

He says: “The incomes of self-employed individuals are often not as consistent as those of standard borrowers, and these fluctuations can often make them appear to be unreliable borrowers, or too risky to lend to by mainstream lenders.

“Their incomes are also more likely to be immediately impacted by economic pressures, Government policies and taxation, which could translate into to cashflow issues directly impacting their income.

“Many of these risks exist beyond their control, but the majority of business owners take the necessary steps to mitigate them, and this highlights the need for specialist providers and lenders who understand that, while their needs are different to standard borrowers, they should be supported in the same way.”

Harper adds: “More conversations now focus on keeping cover realistic rather than cutting it altogether, using shorter terms or reduced sums assured to stay protected. And certainly,

"I'll tell you what I've told other lion tamers, you should really consider income protection"

people are more concerned about protecting their income.”

Opportunity and responsibility

Brokers and advisers are now on the frontline of this new reality. The regulatory landscape has shifted fundamentally, especially with the introduction of the Financial Conduct Authority’s (FCA’s) Consumer Duty.

Emma Vaughan, managing director of Omni Protect, says: “Protection should be introduced right at the start of the mortgage journey –ideally during the initial fact-find.

“This ensures it’s positioned as a core part of the financial planning process rather than an optional add-on.

“For specialist clients, who often face greater financial vulnerability, early conversations allow brokers to tailor solutions that reflect the client’s full circumstances.

“It also helps meet Consumer Duty expectations by embedding suitability and fair value from the outset.”

Farrell agrees: "Successful advisers introduce protection early in the mortgage journey, setting expectations from day one and avoiding it becoming an afterthought.

“Recent developments, including Consumer Duty, are driving change in the protection industry. Businesses and networks are strengthening protection processes and advisers are expected to either write protection business or refer it – but they must not ignore it.”

Vaughan notes that regulation has set a new standard. He explains: “Consumer Duty has been a catalyst for positive change.

“We’ve enhanced our broker support by introducing structured advice templates, suitability checklists, and file review protocols that help evidence fair value and client understanding.

“For specialist borrowers, this means protection conversations are more transparent, better documented, and tailored to individual needs. It’s no longer enough to offer a product – brokers must show why it’s right for the client, and we’re equipping them to do just that.”

Harper agrees that the demands on advisers have grown, adding: “The demands of Consumer Duty will no doubt command distributors to be more specialist, and we are seeing more mortgage and wealth management firms approach LifeSearch to help meet their protection responsibilities.”

Making the conversation count

So, how can advisers make these conversations meaningful and overcome common objections?

Vaughan says: “The most effective strategies combine empathy with education.

“Brokers who use real-life case studies and scenario modelling can help clients visualise the impact of being unprotected.

“Tools like CIExpert and iPipeline are invaluable – they allow brokers to compare products not just on price, but on quality and underwriting flexibility. These tools also support Consumer Duty by helping brokers evidence suitability and value, especially for clients with complex needs.”

Harper echoes this focus on specialisation and sensitivity, noting: “As protection specialists, we have expertise across all types of protection insurance and insurer offerings. We have introduced more specialist teams who are more experienced in advising particular customer segments and handling more complex cases.

“With greater regulatory focus on vulnerable customers, we're mindful of financial vulnerabilities as well as health-related ones.

“For us, it's all about knowing your customer, not being afraid to have those more sensitive conversations, and the confidence that we possess through dealing with these issues on a day-to-day basis.”

Lakey emphasises the importance of clear communication, pointing out that plain English is essential, because people often slip back into using industry-specific jargon, which can seem like a foreign language to many.

Farrell emphasises that the right adviser tools can make protection discussions more meaningful. For example, LV='s Risk Reality Calculator enables advisers to produce personalised reports that help clients see protection gaps they might not be aware of, making it easier to initiate informed, tailored conversations.

Formal referral processes and digital solutions are also leading to better results for clients and businesses alike. LV=’s 24/7 pre-underwriting service allows advisers to obtain indicative terms for clients with complex needs, helping them set realistic expectations early in the process and improving conversion rates. This immediate access to underwriting information enables advisers to have more confident and informed conversations with their clients.

Overcoming objections

Concerns about affordability and eligibility are frequently raised. Lakey suggests a practical perspective, noting that critical illness cover

protecting clients from catastrophic consequences

Sally Waterfield , chief marketing officer at National Friendly

For self-employed individuals, contractors, and those with complex incomes or adverse credit histories, securing a mortgage is already an achievement. But without robust protection, that hard-won home remains vulnerable.

Non-standard mortgage borrowers can be overlooked in protection conversations, yet they face some of the greatest nancial fragility when illness or accident hits. National Friendly’s new 'Bruised Britain' research, surveying 5,000 adults, shows that 29% of self-employed people in the UK have never considered what they would do in the event of a non-fatal accident that impacted their earnings. Only 5% of self-employed people have income protection, and only 3% have accident-only income protection.

Advisers must treat protection as a core part of a ordability discussions rather than an optional extra. Rising living costs squeeze household budgets, making even a short-term loss of earnings catastrophic for those with irregular pay, complex incomes or adverse credit.

Products that are a ordable and accessible, such as accident-only income protection, help get people with diverse needs onto the protection ladder when standard underwriting excludes them.

The protection gap among non-standard borrowers isn't only a risk, but an opportunity to support those who need it the most.

typically costs about five-times more than life insurance, as the likelihood of being diagnosed with a critical illness is greater than that of experiencing an early death.

He says: “Highlighting the numbers of claimants each year – almost 21,000 in 2024 –and asking about friends and family who have received diagnoses can help to personalise the issue and impart an element of reality into the conversation.”

Harper continues: “A common misconception is that protection ‘won’t pay out’ or ‘isn’t for me’. Being able to relay real claims examples and case p

"What do you mean it's an 'Act of God'?"

studies, highlighting how income protection or critical illness cover has supported people like them help build trust and understanding.

“Focusing on practical, tailored cover helps more clients understand that some protection is better than none when budgets are stretched.”

Product innovation

The protection market is rapidly evolving to address these challenges. Lakey considers this progress vital, noting that providing both a lowercost core option and a more comprehensive, higher-priced plan allows advisers to focus on explaining the value rather than just the cost. He also observes that underwriting processes now appear stricter and slower than in the past, and that a moratorium plan would be well received.

Vaughan says: “Several providers have introduced modular product designs, simplified underwriting journeys, and digital pre-assessment tools. These innovations are particularly helpful for self-employed clients, older borrowers, and those with adverse credit.

We’ve also seen more inclusive definitions in critical illness cover and flexible premium structures that adapt to fluctuating income.

“These changes are making protection more accessible and helping brokers deliver better outcomes for clients who previously felt excluded.”

Harper also points to advancements on the insurer side, saying: “Short-term income protection, more modular cover, and simplified underwriting have made protection far more accessible.

“Insurers are also improving digital journeys – making the journey easier and quicker for brokers and clients alike, enabling faster decisions.”

For self-employed clients or those with variable incomes, there are now solutions tailored to fit.

Lakey says: “Short-term income protection plans are a convenient, low-cost means of obtaining income protection for the selfemployed who are generally more cautious with their spending than others.

“This trade-off between quality and cost can prove a first step on the ladder for those who truly need this protection.”

Harper notes: “Short-term income protection and guaranteed-benefit products are proving effective for those without steady payslips. Providers offering flexible deferred periods

or variable income assessments make a huge difference for this group.”

The cost-of-living crisis, though a challenging hurdle, can also catalyse protection conversations.

Lakey explains: “As with the Covid-19 experience, the cost-of-living crisis has created opportunities to initiate conversations about protection and has generated heightened awareness of potential financial loss.

“However, it seems that it needs an event, such as sickness or death in the family or within a friendship group, to galvanise some people into action.”

Harper says: “Tighter budgets mean people are more cautious – but also more conscious of risk.”

He outlines the LifeSearch approach, highlighting its focus as a protection specialist for over 25 years, with a sole commitment to protecting people properly.

Harper explains that the company sees itself as an advocate for customers, always aiming to act in their best interests. He believes that having access to the whole market allows LifeSearch to find suitable protection for clients from all backgrounds, rejecting the use of panels or inflated premiums.

The hybrid model combines technology with expert advisers, making comprehensive, feefree protection advice more accessible to those with complex financial situations, while still providing full adviser support when detailed guidance is needed.

Technology and the future

Vaughan is optimistic about recent developments, noting that technology is now handling much of the workload by automating pre-assessments, streamlining suitability documentation, and enabling real-time affordability checks.

She adds: “This allows advisers to focus on what they do best: building trust, understanding client needs, and delivering tailored advice.

“Platforms like the ones previously mentioned are already helping brokers compare products not just on price, but on quality and fit, which is essential for non-standard clients.”

Harper believes digitisation will underpin the next leap forward for protection, saying: “The protection market has remained static in terms of policy sales for the last two decades.

“Market concentration and an over-focus on price stifles innovation and limits access for consumers, particularly those that are underserved or considered as ‘non-standard’.

“The demands of Consumer Duty will no doubt command distributors to be more specialist, and we are seeing more mortgage and wealth management firms approach

LifeSearch to help meet their protection responsibilities.

Traditional products and distribution methods need to adapt to move on.

“Our partnership model and opportunities to embed protection into wider brand experiences and conversations offers new ways to engage with consumers at the right time, through the right channel, with a product that's right for them.

“With sustained commitment, there is plenty more opportunity to deliver our purpose – to protect more people properly.”

The opportunity

For brokers, this presents both a business and ethical opportunity.

Vaughan recommends changing the approach to client conversations by starting with empathy and understanding the their lifestyle, income patterns, and vulnerabilities before suggesting any products.

She advises using tools that make complex decisions easier to understand, and always recording the reasons behind any recommendations.

This approach helps to build trust, demonstrates compliance with Consumer Duty, and ensures the client feels listened to and protected, rather than simply being sold a product.

For Lakey, it’s about making the case for protection central.

He says: “The key thing for advisers is to explain why critical illness cover is an essential protection product.

“Working with a comparison system will allow them to understand and explain the differences between basic and comprehensive cover.

“If cost is an issue, then covering 50% of the mortgage is a valid means of ensuring that some protection is available.”

The risks faced by non-vanilla borrowers are real and immediate. The cost-of-living crisis hasn’t made protection less urgent; in many ways, it has made it more important than ever, even as people look for places to cut their spending.

Every conversation between adviser and client is a chance to bridge the gap between vulnerability and security, and to provide advice that will continue to be relevant and supportive for clients well into the future, no matter how their circumstances change.

In this new era, the challenge for the sector is clear: to meet the needs of today’s clients, and to ensure that protection is not viewed as an optional extra for those who land outside the traditional mainstream, but rather as the foundation of responsible, holistic advice. 

Brokers are thinking di erently

Second charge lending isn’t new, but the way brokers are using it has changed, and that’s extremely telling. Brokers are increasingly choosing second charges, not as a product of last resort, but as a core part of their advice toolkit. They’re using our packaging service more frequently and leaning on our lender panel to find answers for customers whose needs don’t fit into a standard remortgage or further advance. In short: brokers are thinking differently.

What’s driving change?

It starts with borrower behaviour. More customers are finding themselves in situations where traditional refinancing isn’t the right answer. A growing number of people, many of whom had previously spotless credit records, are now facing missed payments, defaults or rising unsecured debts.

This is borne out in a recent report by Grant Thornton, which shows that average credit card balances were on an upward trajectory throughout 2024. In fact, recent data from the FICO UK credit card market report shows that, despite a typical seasonal reduction in spending, balances grew to £1,895, 5.1% higher year-on-year. Also, the percentage of the balance being paid off by customers fell yearon-year by 7.7%.

In addition, the average balance of customers with three missed payments increased by 3.1% monthone-month and 8.1% year-on-year to £3,300. 10.1% more customers missed one payment compared to June 2025, with the average balance 6.4% higher than July 2024 at £2,385. The average balance for customers with two missed payments increased 6.9% year-on-year to £2,875.

This change ma ers. When customers with otherwise strong profiles pick up the odd default or get trapped in high-interest unsecured borrowing, a remortgage can suddenly look less appealing. The rate may not be favourable, they may not want to disturb their existing deal, and they certainly may not want to reset the clock on an a ractive fixed rate they fought hard to secure two or three years ago.

This is where second charges make sense. They allow the borrower to raise capital while preserving the terms of their first mortgage. That’s a powerful proposition, especially when advice is focused on long-term affordability and protecting existing products.

Learning fast

We’re also seeing much greater confidence in the market. Brokers are not only more aware of second charge options, but they’re also actively seeking them out.

Our own Lisa Muscro has said recently in The Intermediary that “brokers are making full use of the support on offer” from specialist partners, and “recognising the power of a strong packaging relationship” when dealing with complex cases.

She’s right. Our role isn’t just about placing cases. It’s about providing structure, lender access, and insight. The knowledge and experience of our advisers allows us to select the most suitable product from the outset for all needs and circumstances. It’s this support, and the outcomes we’re

EDDIE LAU is broker account manager at Norton Broker Services

More customers are nding [that] traditional re nancing isn’t the right answer”

achieving, that explains why more brokers are returning to us.

Whether it’s raising funds to clear debt, invest in home improvements, or even finance specialist purchases, we make it simple to assess second charge suitability and get the right outcome.

And it’s not just our business that is booming; the second charge market as a whole is on a positive growth trajectory. According to the Finance & Leasing Association (FLA), new business volumes grew by 15% in July 2025, with the value of new business reaching £201m, up 23% on the previous year. This is the highest level since June 2008, and not just a reflection of demand – it’s a reflection of be er advice.

As more brokers think beyond the remortgage, and as more clients find that their credit profile or current deal means a second charge is more appropriate, the market will continue to grow.

We don’t see this as temporary. This is the result of brokers broadening their thinking, building confidence in the options, and using packaging partners to make second charges work. It’s a smarter way to do business, and it’s exactly what customers need in a changing economy. ●

Secured loans and the value of thinking ahead

Having spent more than two decades in specialist lending before becoming a mortgage adviser, I have seen the industry from both sides. One thing that has become increasingly clear to me is that the relationship between adviser and client is paramount. Good advice is not just about meeting the need in front of you; it is about understanding the client’s circumstances and their medium to long-term goals.

If advisers focus only on the shortterm, there is a risk that opportunities will be missed and clients may end up with products that do not serve them well in the future. Looking at the bigger picture allows advisers to recommend solutions that align with where clients want to be in two, five or even 10 years’ time.

A common example is the firsttime buyer who, soon a er moving in, decides to carry out home improvements. If they do not have access to secured borrowing, they may turn to unsecured credit such as cards or personal loans, which can be costly and less sustainable. Unless their adviser has considered this need at the outset, the client may go elsewhere for finance – o en through online channels – and that can weaken the relationship.

Secured loans, or second charge mortgages, can help to avoid this. They provide a way for clients to raise funds without disturbing their main mortgage, and they keep the adviser at the centre of the process. What is important is that advisers raise the possibility of such products early and remain part of the conversation as clients’ circumstances evolve. The market for second charges has

returned to the levels seen before the financial crash in 2008, and demand is steady. Clients do not o en request them by name, but many want to release funds ahead of a remortgage. In some cases, high loan-to-income (LTI) ratios or limited time in their mortgage make a further advance difficult. In others, early repayment charges mean a remortgage is not suitable. A second charge can address these challenges in a way that preserves the client’s existing arrangement.

Ge ing advice right at the start is key. If a client’s long-term goals include raising funds for improvements, consolidating debts or investing in other opportunities, the initial mortgage recommendation should reflect that. If not, advisers may later find themselves constrained by lenders who do not consent to second charges.

There are also clear moments in the client lifecycle when secured loans should come into consideration. Product transfers are one example. When clients are up for renewal, their circumstances may have shi ed –perhaps a change of career, or income that has not kept pace with outgoings. If at that point they express a need

LIAM SCHEWITZ is director at Lima Money

If [borrowers] do not have access to secured borrowing, they may turn to unsecured credit such as cards or personal loans, which can be costly and less sustainable”

to consolidate, a second charge can provide a straightforward route. Advisers already have the information in front of them; it is simply a case of recognising the opportunity. Once advisers start to identify and act on these opportunities, confidence builds quickly.

Secured loans are not limited to home improvements and consolidation – they can support a wide range of needs, from funding a business to enabling a property transaction. The more familiar advisers become with these products, the more natural it is to position them as part of the conversation.

Ultimately, the role of the adviser is not just to recommend a product for today, but to help clients plan for tomorrow. By taking the time to understand long-term goals and being open to a wider range of solutions, advisers can strengthen their relationships and ensure clients achieve the outcomes that ma er most to them. ●

Another cracking month for second charge

The second charge market is definitely on a roll! Data from the Finance & Leasing Association (FLA) revealed that the value of new second charge mortgage business rose by 22% to £177m. The FLA said both the value and volume of new business conducted in June were at their highest levels in 2025.

The FLA also reported that the most popular purpose for using a second charge mortgage was for the consolidation of existing loans at 57.6%. Well, no surprise there. The fact is that second charge mortgages have always been an excellent way to consolidate other borrowing into a more manageable repayment without upse ing existing primary mortgages.

Even though second charge mortgages are becoming more popular, a remortgage is still more likely to be recommended by advisers to clients seeking to raise capital, even though there are many reasons why a second charge might be be er advice.

Yes, second charge loans are more expensive. Rates can indeed be greater than those charged for a remortgage, but against that, clients for the second charge option do not face potential charges from their first charge lender in respect of early repayment, which can be excessive.

Not only that, but a client’s credit profile might not be as good as it was when they took out their original mortgage, which throws the question of affordability into the mix again. Clients can end up with monthly costs considerably greater than they were used to, because the new remortgage could be much more expensive a er a new credit check.

When you add in the likelihood of early redemption penalties for

Even though second charge mortgages are becoming more popular, a remortgage is still more likely to be recommended by advisers to clients seeking to raise capital”

stopping the original mortgage early, a second charge mortgage becomes a more palatable solution.

It’s simpler, it isn’t tied to the original mortgage term and it should therefore be considered a more logical capital raising solution.

Awestruck over tech?

Automation, technology and fintech are all buzzwords that float around the lending market.

For many brokers working at the customer coalface, the way lenders describe themselves and their service is only relevant if their cases make it from enquiry to completion in the shortest possible time.

One accepted definition of fintech describes ‘new tech that seeks to improve and automate the delivery and use of financial services.’ There are many examples of firms in our industry that have managed to successfully incorporate fintech into their overall propositions, and brokers have benefi ed from the service upgrades that have come out of that collaboration.

However, it is important to remember that just pu ing ‘fintech’ into marketing material does not mean that the company is

automatically imbued with the tools to improve its service proposition.

I don’t think there is a set of standards that businesses have to meet to use the fintech title. Therefore anyone with, say, a new (to them) customer relationship management (CRM) system can start calling themselves fintech enabled.

I’d hate to think that some firms are just hoping that the description lends a certain tech-savvy gloss to their business, without actually doing the hard yards of making a real financial investment.

Ultimately, the proof lies in the customer journey. If there is a significant difference in the service that brokers receive as aa result of the tech investment, then I am all in favour.

What is not so good is where lenders say they have adopted new technology but there is no difference in the service levels. Brokers who are tempted by the promise of improvements are going to be disappointed.

Not just skin deep

My contention is that if you cut down to the bones of what brokers really want from their lenders, it is not the promise of tomorrow, it is the delivery of first-class service today – tech powered or not.

Brokers need to be able to see tangible benefits from the promise behind new technology enhancements. In short, they just want to know they can trust the lender they choose to get the job done. ●

Mortgage advisers should look again at second charges

As a specialist finance broker I spend a great deal of time talking to mortgage advisers about when a secured loan – more commonly called a second charge mortgage – might be the right option for their client. These products are not always well understood, yet they can be a valuable tool in the adviser’s kit when remortgaging or a further advance is not possible or practical.

A second charge mortgage simply sits behind the first charge lender. For example, if a client already has a mortgage in place but needs to raise additional funds, and their lender will not agree, or the cost of remortgaging is prohibitive because of early repayment charges, a second charge can provide the solution.

Clients look to raise money for many different reasons – home improvements, consolidating debts, paying a tax bill or covering school fees. A second charge allows them to do that without disturbing their existing mortgage.

There are even products available that allow a simultaneous second charge on completion. Many homeowners want to make changes to their property as soon as they move in, such as fi ing a new kitchen or bathroom. Rather than taking out unsecured borrowing, they have the option of arranging a secured loan at the same time as completion.

Not every case is straightforward, of course. If a client has had mortgage arrears, their first charge lender may not be willing to give consent for additional borrowing. In these cases, some second charge lenders will accept an equitable or unilateral charge, which allows the loan to proceed without that consent.

One of the strengths of the second charge market is its flexibility. Fixed rates can be tailored over two, three, four or five years to run alongside the client’s first charge arrangement.

Rates are lower now than they were in the a ermath of September 2022, though they will always depend on individual circumstances. In terms of affordability, there are products that will allow borrowing at up to 6.5-times gross income, which is o en higher than what is available in the first charge market. The ability to make overpayments adds further flexibility. It is worth emphasising that clients rarely set out wanting a second charge mortgage. What usually happens is that they have a borrowing need that their first charge lender cannot meet. That is where the adviser plays such an important role. Having the knowledge, and the right specialist partner, means advisers can consider every option and ensure the client reaches the right outcome.

SARAH STROUD is director at Tru e Specialist Finance

At Truffle, we see ourselves as an extension of the adviser’s team. We work closely with brokers, guiding them through how second charges work, what to look out for, and what products are available. We are here to share knowledge, to give advisers confidence, and to help them keep hold of their clients.

In many cases, the service provided on a second charge can also generate referrals, strengthening the adviser’s business in the long run.

Ultimately, secured loans exist to deliver the right outcome. By understanding how they work, advisers can make sure their clients have every option on the table – and that is what good advice is all about. ●

Property Predictions

Industry experts give their view on what might be on the agenda for Labour’s next Budget

Nick Mendes mortgage technical manager at John Charcol

While headline rates of Income Tax, National Insurance (NI) and VAT are unlikely to rise, I expect the Budget to lean heavily on ‘stealth’ measures. Extending the freeze on tax thresholds to 2030 looks highly likely, dragging more households into higher bands over time. For the housing market, reforms to property taxation are rmly on the table. Changes to Council Tax bands, a Stamp Duty overhaul, or the introduction of Capital Gains Tax (CGT) on higher-value main residences have all been suggested. Any such moves would have a tangible impact on buyer behaviour, particularly in London and the South East, where already fragile con dence could be further undermined.

For landlords, the prospect of NI being applied to rental income would be signi cant. Combined with recent pressures, it could accelerate the trend of smaller investors exiting the market, reducing available rental stock. With demand for rented homes still strong, this risks pushing rents higher and making a ordability an even bigger issue for tenants.

Fergus Allen head of bridging at Clifton Private Finance

One key proposal is replacing Stamp Duty and Council Tax with an annual levy on higher-value homes. This would mostly a ect homeowners in regions with high property prices, such as London and the South East. Instead of oneo charges, they could face ongoing yearly costs. There is also speculation that CGT could be applied to primary residences, which are currently exempt. This would make selling more expensive, especially in areas where house prices have risen signi cantly.

CGT changes would also impact investors and landlords, particularly those who renovate and

sell properties. This suggests that pro ts could be signi cantly reduced. The CGT exemption allowance has already been cut from £12,300 in 2022/23, to £6,000 in 2023/24, and now sits at just £3,000. Further reductions would expose more gains to taxation.

Additional reforms, such as higher Council Tax bands or an annual property levy, would reduce yields, particularly in high-value markets, signi cantly impacting pro ts. If Stamp Duty is scrapped, buyers might delay plans to avoid the upfront tax, while sellers could rush to complete before demand drops under a new system.

Rob Morgan chief investment analyst at Charles Stanley

A projected £30bn shortfall in the public nances will likely necessitate tax increases –not only to comply with scal rules, but also to reassure bond markets and keep Government borrowing costs in check. It’s unlikely that smaller revenue sources like CGT or Inheritance Tax (IHT) can make a meaningful dent. CGT may already be at a tipping point where higher rates discourage asset sales, which reduces overall tax receipts. Meanwhile, proposed IHT changes encouraging gifting – including pension withdrawals – have already accelerated wealth transfers to the younger generations. This can boost tax receipts, as gifted money is more likely to be spent and pension withdrawals beyond the tax-free lump sum are taxable. Tightening gifting rules, one of the rumours doing the rounds, could reverse this e ect, potentially dampening economic activity and tax revenues – so the sensible thing to do would be to steer clear. Only the major taxes can realistically generate the required revenue: Income Tax, VAT, NI, and Corporation Tax. Corporation Tax is likely o the table as the UK needs to attract investment. NI was already increased for employers, and further hikes could hurt job creation, so that’s likely a no-go area too.

That leaves Income Tax and VAT. Raising either would break manifesto pledges, but the Chancellor may view this as the lesser evil compared to a patchwork of smaller measures that risk undermining growth and con dence.

Alistair Nimmo is director of marketing at Family Building Society

The recently formed and independent Housing Policy and Delivery Oversight Committee, chaired by Sir Vince Cable and backed by Family Building Society responded to widespread speculation that the Chancellor is considering signi cant changes to property taxation.

The housing market is not working e ciently, and property taxation is a signi cant factor. The case for major reform of the whole property tax system is unarguable, but tinkering at the edges won’t work. One suggestion, adding NI tax on landlords would be most likely to lead to higher rents for tenants – a tax on working people.

Wholesale reform is needed to make the market work more e ciently and achieve improvements in housing provision for owners and tenants across the country.

The economic bene ts are clear, the right quality of homes in the right place seems obvious. But our market is beset by outdated planning regulations, spiralling cost of building materials and lack of a skilled workforce. These issues must be addressed, but that will take time. One quick x would be to reduce Stamp Duty, or

better still scrap it. If not, why not re-introduce a holiday? When Rishi Sunak did so during lockdown, economic activity was boosted. The market picked up and both vendors and buyers spent money on all the activities associated with buying and selling homes, and in turn generated additional tax and economic growth. A simple and elegant solution.

Mitchell Martyn is property expert at Pure Property Finance

Wealth taxes, adjustments to CGT, and even changes to the way in which Council Tax is calculated – no matter what we see, I urge the Government to strike a balance between what’s fair and what’s economically viable.

This next Budget will prove to be a pivotal moment in not just the UK’s nancial trajectory, but the viability of property investment within the nation as a whole. Interest rates on mortgages are slowly coming down, which signals somewhat of a conclusion to the turmoil witnessed throughout ‘the Covid years’. But one policy too far and the UK is at risk of being right back at square one.

The drop in base rate is good news for the population. It has enabled those on the fence around buying a house or taking out a loan to take the plunge and put their nancial plans into action. If this Budget lands correctly, we shouldn’t see much disturbance in the base rate. But if not, things could start going in the opposite direction. 

A silent risk to performance and wellbeing

Loneliness is o en imagined as something that happens in old age or isolation, but it is increasingly prevalent in workplaces – even in bustling open-plan offices or hyperconnected digital teams. This quiet epidemic affects not just wellbeing but also engagement, creativity, and organisational success. For leaders, understanding and addressing loneliness is not a ‘nice-to-have’ – it is a strategic necessity.

What is loneliness?

Psychologists define it as the subjective feeling of lacking meaningful social connection. A person may have colleagues around them all day, yet feel isolated if those interactions fail to meet their emotional needs. Conversely, solitude – chosen aloneness – can be positive and restorative. The key difference lies in perception. Loneliness has been described as a social pain signal, alerting us to unmet relational needs. Ignoring it has consequences.

Why it matters

We spend roughly a third of our waking hours in professional environments. The quality of our workplace relationships has a disproportionate impact on mental health and performance. Studies link loneliness at work with:

Lower engagement: Employees who feel disconnected are less likely to be innovative or commi ed.

Higher stress: Loneliness increases cortisol levels and reduces the body’s ability to regulate stress.

Reduced collaboration and trust: Psychological safety is a key predictor of team effectiveness. Physical health risks: Chronic

loneliness is associated with increased risk of cardiovascular disease, weakened immunity, and even mortality.

Modern drivers

In short: loneliness is not a private issue. It is an organisational risk factor. Several aspects of modern work amplify it:

1. Remote work: Video calls cannot fully replicate the microconnections of shared physical space. Many report ‘Zoom fatigue’ yet still feel disconnected.

2. High competition and individualisation: Cultures that reward individual heroics over team contribution can discourage genuine connection. Colleagues become rivals rather than allies.

3. Diversity without inclusion: Employees who feel ‘different’ — gender, ethnicity, age, working style — may find themselves socially isolated, even if formally included. Belonging requires more than representation.

4. Stigma around vulnerability: Admi ing loneliness can feel risky in professional contexts where strength and competence are prized. Employees may suffer in silence.

Leadership’s role

Research highlights several effective leadership approaches:

Model authentic connection: When leaders share appropriately about their own challenges, they normalise openness.

Build psychological safety: Teams where people feel safe to speak up perform be er.

Prioritise inclusion: Small actions – inviting different voices into meetings, acknowledging

AVERIL LEIMON is co-founder of White Water Group

contributions, celebrating diversity – reduce the experience of being ‘on the margins’.

Design for connection: Hybrid workplaces need intentional design. This might mean creating rituals – weekly check-ins, cross-team coffee chats – or physical spaces that promote interaction.

Recognise relationships as work: O en ‘relationship-building’ is treated as secondary to ‘real work’. In truth, strong relationships are the infrastructure of performance.

While organisations carry responsibility, individuals can also act: Nurture micro-connections: Even brief, positive exchanges act as a buffer to loneliness.

Seek allies and mentors: Building even one trusted relationship significantly reduces loneliness. Use curiosity: Asking genuine questions can transform surfacelevel chats into meaningful ones. Set boundaries with digital tools: Endless messaging can simulate connection without satisfying it. Replace some online exchanges with phone or in-person.

Competitive advantage

A workforce that feels connected collaborates be er, innovates more, and stays longer. In a competitive talent market, cultures of belonging are a differentiator. For leaders, the question is not whether loneliness exists in your organisation, but whether you are willing to address it. Creating connection is not fluffy work – it is foundational. ●

Diversity and inclusion in focus

We have just held our latest annual conference at Wyboston Lakes in Bedfordshire. The conference was held on the back of Access FS’s biggest business year to date, and included the largest number of a endees we have hosted. 200 advisers a ended, with 50% more lenders exhibiting compared to the 2024 event. The energy in the room was palpable – a testament to the ambition of our mortgage and protection advisers.

But as critical as scale and the celebration of commercial success is to a mortgage and protection brokerage, that was not the most important thing to come out of the day. At the conference, we launched our new Equality Council.

Making a commitment

The council is a pioneering initiative that positions Access FS as a leader in diversity and inclusion (D&I) within the financial services sector. The council is more than a commi ee. It represents a commitment to fostering a workplace – and a wider industry – where every voice is heard, valued, and empowered. The empowerment piece should not get lost in the noise.

Following a successful six-month trial in 2024, we launched a mentoring programme for advisers with new qualifications but limited experience at the start of 2025. Since then, Access FS has put 18 people through the training programme, including four advisers who were previously employed on the protection side of the business.

The mentoring programme is part of a ‘skills ecosystem’ that we are seeking to develop. The ethos that lies behind the mentoring programme is linked to the aims of the council.

The mission of the council is to create an inclusive environment by

amplifying underrepresented voices and dismantling systemic barriers that have long persisted in our sector.

As a brokerage, we serve diverse communities across the country, and it is our responsibility to reflect that diversity in our practices, policies, and culture. The council will champion fair representation for marginalised groups, promote allyship, and ensure equitable opportunities for all staff and advisers. This is not a superficial gesture, but a deliberate effort to embed D&I into the very fabric of Access FS.

Meaningful solutions

The council’s objectives are clear and actionable. It will rigorously review our company policies to ensure they align with best practices for inclusivity. It will advocate for changes where gaps exist, holding us accountable to our D&I commitments.

By engaging directly with employees and advisers, the council will identify challenges – whether they stem from unconscious bias, structural inequities, or cultural oversights – and propose practical solutions. This feedback loop, grounded in transparency and regular reporting, will ensure that D&I is not a box-ticking exercise but a core pillar of our operations.

Our ambition is to set a benchmark for the mortgage and protection industry, demonstrating that a commitment to inclusion is not only the right thing to do, but also a driver of innovation, collaboration, and success.

The council comprises six members: three from the Access FS staff and three drawn from our pool of advisers, who have registered their interest, with the adviser positions rotating quarterly to bring fresh perspectives and ideas.

The structure reflects our belief that inclusion thrives on diverse viewpoints and continuous renewal.

NICK JONES is mortgage sales and marketing director at Access

FS

The composition of our adviser base makes the council particularly meaningful. An overwhelming 92% of our advisers come from minority backgrounds, representing 23 distinct national communities. Meanwhile, 32% of our adviser team are women, a figure we are proud of but are commi ed to improving further.

These statistics are not just numbers; they represent the rich tapestry of experiences, cultures, and perspectives that make Access FS unique. The council will harness this diversity to drive meaningful change, ensuring that our brokerage mirrors the communities we serve and creates opportunities for all.

Top level buy-in

The initiative is being spearheaded by Amrit Bahee, our head of operations, Adrian Brewer, head of later life at Access FS, and Megan Hind, operations coordinator. While we do not want this initiative to be a top-down mandate, but rather a collaborative effort, we do need senior leadership involved in the push for greater diversity and inclusion.

We believe diversity is not just about representation, but about actively championing the voices of those who have historically been sidelined, and we want contributions from every level of our organisation – at the conference, we opened applications for the council, inviting anyone passionate about inclusion to join us as partners in this journey.

The response has been overwhelming, with advisers and staff expressing enthusiasm for shaping a fairer, more equitable future for Access FS. ●

Meet The Broker

LionHart

Mortgages

& Protection

Marvin Onumonu speaks with Charles Hart, business principal, director and mortgage broker at LionHart Mortgages & Protection

What inspired you to become a broker?

I was drawn to property at a young age as I was close with my dad, who initially owned pubs before selling those to move into residential property. I wanted to be like him, so when pressed with the option of more time in school or starting my own property journey, the decision was an easy one, and I was through the school gates and on my bike to the office before my teachers could convince me otherwise!

I love the property industry, having cut my teeth in estate agency between local and national brands. Having spent years climbing the corporate ladder I finally got to try the area manager role I had worked so hard for and realised it

was everything I didn’t want. I was determined to put my experience to use with a new challenge. So, having been witness to terrible mortgage advice and horrible customer service one too many times, I thought I’d better walk the talk and ordered my CeMAP papers.

What sets your fi rm apart from other brokerages?

Our motto, ‘Treat every client like they are your only client’, genuinely takes the client on a journey that we have been told time and again that they haven’t been offered elsewhere. We see a mortgage application as a journey, and we take our responsibility in that personally. It isn’t just a job, it’s our clients’ lives that we affect. That journey forges a

relationship with clients that can last decades, and we love that we have ongoing relationships throughout their life, not just when their rate is due to be reviewed.

I am especially passionate about new technologies and tools, so we not only embrace, but throw ourselves in head-first to new opportunities, being careful to ensure they marry up perfectly with a remarkable customer journey, rather than replace it. I will choose quality over quantity every single time, and our clients feel that too.

What opportunities are there at the moment?

The list is huge! I am so excited about the number of new lenders and policy changes that we have

seen recently and over the past few years. I don’t think anyone would have wished for the challenges we faced on the rollercoaster that was 2020 to 2024, but I believe now that we are on the other side there is significantly more innovation and opportunity out there for consumers.

Brokers had it relatively easy, I believe, between five and 10 years ago. The market was pretty stable, rates hadn’t ridden any rocket ships or done any base jumping for a while, lenders knew their corner of the market, and we had Help to Buy to save the day!

Fast forward to today and we are spoilt for choice with low (and 0%) deposit products, higher income multiples, not just for first-time buyers (FTBs), seriously longterm fixed but flexible rates, joint borrower sole proprietor (JBSP) options, lenders offering early switch product transfers (PTs), retirement interest-only mortgages (RIOs) now filling the chasm between ‘normal’ mortgages and equity release, lodger income being used towards affordability, credit repair ranges, one year’s self-employed figures and less, and much more! Despite a challenging journey, rates are also at a much healthier level.

Tough times cause more creativity, creativity brings more competition, so it’s a great time to be an adviser!

What are some of the main challenges?

While the protection market also has some fantastic policies and criteria available, I am sure others share our frustration with the amount of declines and exclusions by providers, lengthy underwriting timescales –thankful for the ‘Protection Promise’ from Aviva and others – and to be quite honest the timescales for gross payment references (GPRs) is utterly disgraceful in most cases.

Consumer Duty shouldn’t just apply to us, there are genuinely clients out there who want cover but give up chasing or lose faith in the system, it’s heartbreaking.

Artificial intelligence (AI) and tech are moving at light speed, and while that is super exciting, the dangers and risks are not lost on me if misunderstood or misused. There are radical and exciting ideas being discussed, but if matters such as remortgaging without affordability checks or an increase in executiononly transactions aren’t monitored closely, it will be the consumers that have the most to lose. We are proud to be with Mortgage Advice Bureau (MAB), who embrace and drive our ambition to be as efficient as possible with our time. I would rather spend my time with clients, solving problems, or educating the public, than stuck in a dark room typing into duplicated boxes.

No one benefits from having to enter the same data in four different places just to submit one mortgage! With all of the extra options and complexities in the market, our time – especially that spent with clients –is more valuable than ever.

Could lenders better support brokerages?

All lenders should understand the difference a good business development manager (BDM) makes! We have half a dozen BDMs who are genuinely able to, and regularly do, save a transaction or get cases over the line where they wouldn’t have without their input. There are others who don’t know their own criteria, don’t answer the phone, or even worse, don’t exist! Lenders cannot rely on an out-of-date criteria page, which happens more often than you think, or an inadequate chatbot to solve complex cases. A great BDM is worth their weight in gold.

In addition, I don’t think there is much in my life more frustrating than inconsistent or unclear underwriting decisions. Things will go wrong, that is just a fact of being a broker. It’s why we have a job! But all too often cases are delayed, and clients are stressed out because of rushed or unclear underwriting decisions, as well as irrelevant documents or

underwriting and support staff not knowing policy. One of my favourites is ‘Can you explain what the student loan deduction is for on the payslip?’ That caused an eight day delay! Thankfully, this is not the norm.

Are there any exciting plans in the pipeline?

I can’t share details of them all, but LionHart has always been about building a legacy and ‘grow, grow, grow’, so we can attract and retain the most amazing people in the industry and provide the best service bar none. We now offer all of our clients a Will or Mirror Will on completion at no cost to them. We will be expanding our protection offering to include business protection, working towards launching our commercial finance proposition, and investing in our affordable housing offering, as that is a huge passion for the team.

We’ve also got a stand at the London Home Show, run by Share to Buy, in September which we are super excited about!

Do you have a message for the industry?

We have such an amazing community in the mortgage and protection industry. I have met or connected socially with countless people that have influenced, inspired, reassured, and educated me, and I only hope I can give back in return. It can be a very lonely and high-pressure job without the right team around you, so if you haven’t found your people yet, keep looking, and don’t be afraid to put yourself out there and make new connections either way. There will be significantly more friends out there than foes.

Finally, it is such a privilege to be trusted by clients to advise them and directly impact their lives, we should never take that for granted.

This job can be testing, stressful and certainly demanding, but I am proud to carry that stress so my clients don’t have to. ●

Case Clinic

Want to gain insight into one of your own cases in the next issue? Get in touch with details at

HARPENDEN BS

CASE ONE

New-build flat with high service charges

Afirst-time buyer hopes to purchase a new-build flat for £300,000 with a 10% deposit. The annual service charge on the flat is £3,600, and there is also a ground rent of £350 per year.

Although the buyer earns £45,000 and passes initial affordability checks, some lenders reduced maximum borrowing due to the high ongoing charges. Others raised concerns about resale value and potential cladding risks, even though the building is EWS1-compliant.

UNITED TRUST BANK

United Trust Bank (UTB) requires the ground rent to not exceed 0.1% of the market value; however, we will consider up to 0.2% on referral prior to submission. This particular example would require a referral.

If approved, the monthly value of the combined ground rent and service charge at application will need to be factored back into the monthly affordability assessment.

If, in the view of the surveyor, an EWS1 form is required, the cladding must be of A1, A2 or B1 standard for us to consider lending. Further questions may arise if the resale value is more than 10% different to the market value.

We do not have a maximum service charge or ground rent amount. Instead, we are led by our valuers on whether the property is deemed to be suitable security. This also applies for re-saleability and EWS1 concerns. Please note, our maximum loan-to-value (LTV) is 85%.

BUCKINGHAMSHIRE BS

The society would not seek to reduce the loan amount if the affordability assessment supports the requested level of borrowing. However, the annual service charge may be considered excessive, and this could impact the society’s willingness to lend. In such cases, we would refer the matter to the valuation company for their opinion prior to issuing a decision in principle (DIP). The valuer would confirm whether the property is deemed suitable for lending. If the valuer indicates that an EWS1 form is required, this must be provided. Additionally, the society is unable to lend on properties located in blocks of flats with more than six storeys, regardless of which floor the proposed security is situated on.

TOGETHER

Together could support this applicant with a maximum 75% LTV mortgage, assuming it is of standard build and not over six floors. If this was the case, it would be considered ‘non-standard’ and capped at 65% LTV. If the building has a valid EWS1 we could look to lend on it but would require comments from a valuer to evidence this and would use these comments as our basis for the LTV. We would work the service charge and ground rent into affordability, and if this passes the affordability check we could proceed.

CASE TWO

Zero-hour contract with long service

Anurse on a zero-hour contract is hoping to purchase a £245,000 property with a 5% deposit. They have worked continuously with the same NHS Trust for four years, with consistent monthly income of around £2,200. Despite this consistency, the buyer has struggled to find a lender willing to support in light of the zero-hour contract.

UNITED TRUST BANK

UTB requires zero-hour contract applicants to be in role for a minimum of 12 months, to give a true reflection of the average income over that period and assess for affordability.

Four years in the role is perfectly adequate to evidence sustainability of income of around £2,200 per month. However, sadly in this example the loan-to-income (LTI) exceeds the maximum UTB would consider.

HARPENDEN BS

We can absolutely accept income from a zero-hour contract as long as we have two years’ history. Therefore, in this example, we could use all of the income declared.

BUCKINGHAMSHIRE BS

The society may be willing to consider this application, given the applicant’s strong and consistent track record in their professional role, both in terms of tenure and income level.

TOGETHER

Together could support this applicant with their zero-hours contract, although we would not quite be able to reach the 95% LTV needed.

The zero-hour contract worker would have to have been in employment for at least six months and have copies of their monthly payslips or three months if they are paid weekly. They will need to be provided to enable us to assess the hours worked and income received.

If the property is of standard build, we can support a mortgage of up to 75% LTV subject to valuation and credit profile.

CASE THREE

Parental gift via equity release

Afirst-time buyer is purchasing a £280,000 property with a 10% deposit gifted from their parents. The parents have released equity from their own mortgaged home. While the funds are legitimate and traceable, lenders have been hesitant due to concerns about financial vulnerability, particularly with equity release.

UNITED TRUST BANK

The source of funds is legitimate and traceable from UTB’s perspective, and we would expect that the applicant’s parents have taken the necessary advice before making a decision to gift the funds. Our solicitors will complete anti-money laundering and source of funds checks during their conveyancing of the application. Any anomalies or concerns will be raised accordingly.

HARPENDEN BS

We can accept a gifted deposit from immediate family, even where these funds have been raised through further finance. Our maximum LTV is 85%.

BUCKINGHAMSHIRE BS

The society may be able to consider this application, subject to our standard underwriting criteria. As part of the assessment, we would ensure that our vulnerability checks are completed to confirm that the parents fully understand the potential implications of increasing their own debt. Alternatively, the society’s Deposit Lite offering could be explored. This option does not involve raising funds from the parents’ property but instead places a charge on their property to support the application. We would just require consent for our change to be placed second from the equity release company and would be subject to lending criteria and LTV on the parents’ property.

TOGETHER

Together could support this applicant, although at a maximum 75% LTV assuming standard build. The gifted deposit will not be an issue as long as a gifted deposit form is provided, though potentially independent legal advice may be required. ●

Targeted support means supporting real people

When the FCA describes its new Targeted Support regime as “a framework for the next 20 to 30 years,” it sets an ambitious tone. The aim, to help millions make be er investment and retirement decisions, could transform financial wellbeing. But if this framework is to succeed, it must be built around how people actually behave with their money, not just the data that describes them on paper.

A step forward

The support the FCA’s bridge between generic guidance and full financial advice. By allowing firms to offer ready-made suggestions to consumers with “common characteristics,” it promises to close the advice gap for those who need help but cannot pay for personalised advice. That is progress. Yet the consultation still defines those “common characteristics” mostly in demographic and financial terms: age, assets, liabilities, income, and product holdings. These describe people but do not explain them. When segmentation ignores behaviour, Targeted Support risks delivering solutions that appear suitable in theory but fail in practice.

Behavioural vulnerability

The FCA rightly highlights the need to exclude from Targeted Support those with characteristics that could make a ready-made suggestion inappropriate, such as poor health that shortens life expectancy. But behavioural vulnerability can be just as decisive. Take two retirees with identical pensions, income needs, and life expectancies. One is calm and

methodical; the other impulsive and anxious. A flexible drawdown strategy might suit the first perfectly but could spell disaster for the second.

Traits such as composure, confidence, and financial comfort can now be measured reliably. Ignoring them leaves a blind spot that could cause consumer harm and regulatory risk.

Demographics alienate

The FCA’s own behavioural testing found that consumers dislike being shown the blunt demographic categories they have been placed in. “65-to-74-year-olds with £100k-£250k in a pension pot” does not make anyone feel understood.

The solution is not to hide segmentation but to base it on variables that feel authentic. Behavioural segmentation is more accurate, more engaging, and less likely to trigger the resistance that undermines confidence.

If a Targeted Support journey states openly, “This solution assumes a moderate comfort with market ups and downs,” consumers can recognise when that does or does not describe them. Transparency about behavioural assumptions makes the service both more honest and more compliant.

Tech makes this possible

The consultation stresses that rules should be future-proof. In practice, the future has already arrived. Behavioural-finance technology now allows firms to:

Map behavioural profiles through short, validated questionnaires. Cluster those profiles into evidencebased personas. Link each to a recommended approach.

GREG B DAVIES is head of behavioural nance at Oxford Risk

Communicate suggestions in ways proven to enhance understanding and comfort.

This is not theoretical. Oxford Risk’s data shows that investors with low composure are far less likely to hold their positions in volatile markets, and that adjusting communication style alone can improve confidence.

Consumer Duty

Consumer Duty demands that firms evidence “good outcomes” for their customers. Financial returns are only part of that picture. The ability to remain invested, the confidence to act when appropriate, and the comfort to sleep at night are equally vital measures of success.

Behavioural data make these outcomes measurable. Engagement rates, confidence scores, and adherence through volatility can all demonstrate that a Targeted Support service is working as intended.

Framework

Targeted Support is a welcome innovation, but its success depends on whether it recognises that real people, not spreadsheets, drive financial outcomes. The FCA has built a bridge between guidance and advice; behavioural insight can ensure that bridge is strong enough to carry consumers safely across it.

To be truly future-proof, the framework must treat behavioural characteristics as core data, not as optional extras. Only then will it live up to its promise: guidance that is not just technically sound, but humanly sustainable. ●

Cutting fallthroughs promises greatest dividend

It’s just been revealed that in the last year, 312,691 home purchases were cancelled a er their sale had been agreed, according to TwentyCi. That means more than one in five transactions fell through.

To blame is the sheer amount of time it takes to complete, with life events such as births, marriages, death, divorce and changing financial circumstances all taking their toll. The truth is that fall-throughs have been hi ing these levels for years.

What’s really changed is the sense of resignation and fatigue that had built up around this problem. While brokers and lenders have been squeezing the lemon to bolster margins in all kinds of other ways, this issue has been seen as untouchable, a fact of life, despite costing the whole industry billions of pounds a year.

So, the Government’s proposals in early October for more upfront information and a greater commitment from buyers should be welcomed.

It’s an exciting time for the mortgage space. There’s a sense that, alongside new smart data schemes that promise to make the homebuying process a whole lot more joined up, this problem isn’t unbeatable any longer.

The main thing lenders and intermediaries should know is that this isn’t a spectator sport. We’re already seeing huge investment and collaboration in the open network approach that will make all this possible, and new solutions are springing up in every corner, from agents right through to conveyancers and lenders. They will all want to ‘own the customer’ in the end, but they’re not all going to succeed.

Regardless of who wins that ba le, the impact fewer fall-throughs and faster completions could have on revenue and profit margins at lenders and intermediaries is impossible to measure, but hard to overstate. It’s not just about cancellations, either. The customer journey is being redesigned, which is opening the opportunity to offer ‘in-life’ products to boost margin growth, too.

Letting the dust settle

This all comes against a backdrop of other changes from the Financial Conduct Authority (FCA), the impact of which are uncertain. We’re talking about the removal of the interactive dialogue test (the interaction trigger) and the introduction of Modified Affordability Assessments (MAAs). Whether or not the la er will outweigh the former and lead to a rise in remortgages (advised sales) remains to be seen.

So, while we wait to see how the dust se les, it’s important to remember that cancellations will be costing you far more.

Yes, you can argue that many of these buyers and sellers do transact eventually a er a deal falls apart, but that’s too simplistic. Brokers invest time and money a racting customers, advising borrowers and dealing with partners like lenders and packagers. Lenders are unable to reallocate the capital they offered to a borrower when the sale falls through, and this has knock-on effects for their return on capital and what they can offer other customers.

All this can be avoided once the industry embraces Horizontal Digital integration (HDI), shorthand for the open networks and data standards that will come to define a new age of transparency and interoperability

between all the actors involved in a home purchase.

The industry has reached a level of digital maturity where this can become reality. There are companies out there that have already started building the technology we need, as well as organisations like the Open Property Data Association (OPDA) that are helping to steer the open data standards that make all this possible.

You won’t have to build your own tech stack, or necessarily even replace the systems you’ve got, though there is a ‘right way’ and ‘wrong way’ to configure technology to exploit shared digital infrastructure.

The big prize? Separate to the above, intermediaries stand to gain from sheer weight of numbers. If transaction times are slashed, none of us really have any idea how that will affect people’s appetite to move.

At the moment, it’s a frustrating inconvenience. If it took weeks not months and wasn’t as stressful, how many more people would buy a new home for lifestyle reasons? How many would chase a new career move or buy to be closer to family?

That could mean hundreds of thousands more advised sales a year, and brokers and lenders have a key role to play in ge ing us there.

If we can reduce completion times and make the process more transparent, the fall-throughs and delays that dissuade people from moving will fall sharply, and this has already been demonstrated by a series of industry pilots.

This isn’t an unbeatable problem, and tackling it will have the biggest impact on revenues. ●

Surveyors and intermediaries: The tech parallels

Surveyors and mortgage intermediaries are working in markets that look very different from 10, five, even three years ago. Technology has become increasingly central to how we deliver valuations, surveys and advice, but what hasn’t changed is the importance of human expertise. The real question isn’t whether we adopt new tools, but how we use them to enhance the work we already do.

Surveying demonstrates this shi clearly. Full property inspections will

and accountability, factors which no algorithm can replicate. This is especially important at a time when buyers are more cautious, asking more questions, and seeking reassurance at every step of the property journey.

Mortgage intermediaries will recognise these same dynamics in their own work. Advisers today rely on sourcing platforms, affordability calculators, customer relationship management systems (CRMs), and even open banking feeds. These tools make processes quicker and more transparent, but clients still want

always have their place, but digital solutions play a growing role in the process. Data-led decision engines, enhanced desktop valuations, and guided virtual inspections are speeding things up without lowering standards. From our perspective, the aim is not to reduce the role of surveyors, but to free them to apply their judgement where it adds the most value.

For me, this balance between efficiency and scrutiny is crucial. Clients and lenders expect faster outcomes, but they also need confidence in the result. That confidence comes from the surveyor’s eye for detail, local knowledge,

more than automation. They look for reassurance, interpretation, and tailored guidance. Technology provides the framework but it’s the adviser’s knowledge of the market, understanding of individual borrowing circumstances and successfully interpreting lending criteria that makes the advice so meaningful and highly valued.

The parallels are striking. Surveyors use desktop valuations and virtual inspections to deal with lower-risk properties, reserving time for complex cases. Advisers use automation to handle routine admin steps, focusing their expertise where client needs are more nuanced. In both professions,

MATTHEW CUMBER is managing director at Countrywide Surveying Services

the value lies in applying judgement at the right moments.

Looking ahead

New technologies – from artificial intelligence (AI) to richer datasets –will continue to shape the market. But success will not be defined by who has the most advanced systems, it will be defined by how well we integrate them into our work without losing sight of the fundamentals: delivering outcomes that are quick, consistent, accurate, transparent and grounded in human insight.

For intermediaries, this means something more than keeping pace with technology. It means being proactive in guiding clients through a homebuying process that is becoming increasingly data-driven and complex. Advisers are in a unique position to highlight the value of surveys, explain why lender and customer needs sometimes diverge, and show buyers how informed choices protect them in the long run. This ability to connect the dots between mortgage advice, property condition, and risk awareness is what truly sets advisers apart.

Surveying and mortgage advice may sit at different points in an everevolving housing journey, but the winning formula remains the same: smart use of technology, combined with trusted professional judgement. Surveyors and intermediaries who get that balance right will not only serve their clients be er but will also help shape a property market that is faster, more resilient, and built on confidence. ●

Transformation is a process, not a big bang

How many of us are si ing in companies, frustrated because we want to do something that may seem simple, but our tech won’t let us do it?

This is especially the case with building societies, banks and specialist lenders that have older legacy systems. With the pace of change ge ing ever faster and challenger banks able to pivot on a ninepence to get new products to market, it can be frustrating to either not be able to implement the changes you want, or to have to carry out constant, timeintensive, workarounds to make them happen.

At this time of global instability, we are in a continual flux of changes, o en with legacy platforms that are just incapable of making either the number or type of changes, certainly not without a lot of time and manpower to do so.

Add to this the number of rate change fluctuations which seem to be gathering pace. There have been 18 base rate changes since the start of 2022, 13 moving interest rates up and five moving them back down again. We have to go back to 1984-85 to find the last time there were this many in one go. But there are many staff who never managed a mortgage rate change before 2023, so it’s easy to see why some lenders are struggling to cope.

So some institutions are faced with a number of issues. The systems or platforms are too old to enable you to do what you want or need them to, leading to a lack of responsiveness to customer enquiries where quality of service then drops. Then you can’t innovate as your system won’t let you, so you’re prevented from bringing in the products and services you want

and need to. This is particularly frustrating if newer entrants are running away with more competitive or flexible products.

The second, developing issue is the emergence of artificial intelligence (AI) particularly generative artificial intelligence (AI). We are increasingly in a multi-tier society with some using AI to transform processes, other tinkering around the edges and some not knowing where to start. But – however keen you are to embrace AI – with an old legacy platform the challenges of integration can be impossible.

Arguably the biggest reason to move off a legacy system is the expertise and resource required. Many legacy platforms are built on frameworks that are decades old and very resource intense. The current workforce –particularly the grads coming in - are just not trained on the tech that these platforms were built on. They quite literally require a different language.

Bringing back talent

I actually know of banks who have had to pull people out of retirement to come and fix issues on legacy platforms because none of their current staff understand the system well enough.

For many CEOs and CTOs, however, the thought of changing from a legacy platform can be intimidating at best. Understandably, there are worries about how long it might take, the cost and the fear about migration and the potential for losing data.

The way to mitigate this is to look at the requirements you have to thrive and meet your goals over the next few years, then look for the providers who have the track record and the longevity to help you. To put your mind at rest, you need a partner that

MELANIE SPENCER is growth director at Target Group

will help you deliver what you need as efficiently as possible with security and performance at the heart.

That may not be one standalone provider as used to be the case. It is important to have best of breed, be it for mortgage originations, servicing, payments, savings, wealth management or business processing. Increasingly, you cannot find everything you need in just one systems provider, so it is important to have suppliers who will work together to seamlessly provide you with the best solutions.

Fundamentally, any new core system needs to be agile enough to enable your bank or building society to stay ahead of the game. To be able to introduce those new products and services quickly and easily when you want them.

For some organisations you may have requirements now, but ambitions to expand and grow into other areas in the future. In this case modular solutions are the answer. This enables an organisation to take the parts they need immediately, but work with a provider that can easily add in new, fully formulated modules in other product areas as your business develops.

Going through a transformation is a process, not a big bang. In many cases the legacy system still needs to run at the same time as any new system that you are implementing. But ultimately a new flexible system, fit for the modern era, will create efficiencies, can reduce headcount and enable an organisation to focus their resource where they need it the most, while expanding and pivoting with ease. ●

focus on... CAMBRIDGE

Each month, The Intermediary takes a close-up look at the housing market in a specific region and speaks to the experts supporting the area to find out what makes their territory unique

After last month’s focus on Oxford, it is only fitting that The Intermediary now sets its sights on its ageold rival, Cambridge. While the two cities may share a history of academic excellence and architectural grandeur, Cambridge’s housing market stands apart for its powerful fusion of tradition and technology. Anchored by its worldrenowned university and the thriving innovation corridor of the ‘Silicon Fen’, the city has become a magnet for students, professionals, and global investors alike. Beneath this polished exterior, Cambridge’s property market is one of complexity.

This month, The Intermediary explores how both external and internal forces are reshaping the market, revealing how Cambridge continues to balance heritage with progress in its ever-evolving housing landscape.

Cambridge’s property market remains one of the most valuable outside of London, even as prices have cooled slightly over the past year. The average home in the Cambridge

postcode area now stands at £450,000, with a median value of £393,000. Over the past year, prices have dipped by around 4% (£16,800).

Sales activity has softened slightly, with 4,900 transactions recorded – down 8.5% on the year – though the mid to upper market remains lively. The majority of sales occurred between £300,000 and £400,000 (24.6%), followed closely by homes in the £500,000 to £750,000 bracket (21.0%), reflecting the city’s affluent professional buyer base.

At the extremes, affordability and prestige remain sharply defined: properties in the CB9 8 postcode average at just £246,000, while those in the exclusive CB2 7 area command around £1.9m. Detached homes lead the market in terms of value at £591,000, with semidetached, terraced, and flats averaging £422,000, £387,000, and £280,000.

Stable demand

Cambridge’s property market continues to show quiet resilience, balancing steady demand with a measured sense of caution. According to Dan Mules at Fitch & Fitch:

The average home in the Cambridge postcode area now stands at £450,000, with a median value of £393,000. Over the past year, prices have dipped by around 4% (£16,800)”

JESSICA O’CONNOR is deputy editor at e Intermediary

“Cambridge benefits from a strong academia and knowledge economy – particularly in tech, biotech and research – which has always created a stable base demand for both owner-occupiers and people wanting property to rent.”

This constant flow of demand, he explains, is underpinned by limited supply as a result of tight land restrictions and planning policy, meaning that “average house prices continue to creep up.”

Mules adds that the mortgage appetite “seems resilient but remains cautious,” with buyers shifting focus beyond the city centre towards surrounding villages and suburban pockets, where he notes “property is more affordable and offers more variety and space.”

This view is echoed by Jahidu Jaman, mortgage and protection adviser at The Mortgage Providers,

Resilient but cautious

CDAN MULES director at Fitch & Fitch

ambridge benefits from a strong academia and knowledge economy – particularly in tech, biotech, and research – which has always created a stable base demand for both owneroccupiers and people wanting property to rent. On balance, I would say the mortgage appetite over recent months seems resilient but remains cautious. Supply of property is limited due to land restrictions and planning policy, but average house prices continue to creep up by circa 1.5% per year, currently around £500,000.

Supply of housing for sale seems especially constrained in the more desirable parts of the city, close to science and tech parks as well as the universities. We seem to be seeing more activity in the less central areas and more in the suburbs and surrounding villages, where property is more affordable and offers more variety and space.

We deal with a huge variety of customer circumstances within our core mortgage advisory firm, but we also have our Private Office arm for high net worth (HNW) clients, which can be both UK and non-UK based. Cambridge’s science and tech opportunities make this really relevant, so we o en deal with those whose affairs are more complex, possibly with multiple or international income streams. With the continued investment into Cambridge’s science and tech scene, we have continued to experience a stable demand.

e demand for rental property has always been very healthy. I spoke to someone recently who confirmed rents have increased by as much as 9% in the last year. is is owed largely due to high demand being created by students, academics and professionals coming to work in the city. However, although the demand is high, the yields based on the property prices are relatively low. e market that is familiar to us is the core of longstanding landlords who have owned investment property in the city for a long time, or those that are entering the market looking for opportunities to increase their yields with shorter term lets or properties with multiple occupants. Either way, as the demand for rental property continues to increase, we expect the market to remain buoyant and continue to innovate where it can.

Pockets of movement

AJAHIDU JAMAN mortgage and protection adviser at The Mortgage Providers

t a UK level, mortgage approvals bounced around during 2025. A er a recovery in spring, the number of approvals has flattened or dipped slightly in recent months, as buyers and brokers watch fiscal announcements and pricing. Locally in Cambridge, that has translated into steady enquiry and applications from employed professionals and first-time buyers (FTBs), but a slower pace of agreed sales compared with the strongest months.

House prices have only moved modestly year-on-year, and transaction volumes remain below the boom years. ere’s still a pronounced gap between affordability and wages for many buyers, but demand from certain buyer groups – especially buyers linked to the university and tech employers – keeps the market competitive.

First-time buyers are still important. Nationally, the share of lending to FTBs has been unusually strong, and in Cambridge smaller-value, well-located flats and terraces remain in demand.

In addition, rising rents in the city make ‘buy versus rent’ calculations more attractive for some would-be buyers, supporting first-time buyer demand.

Our core demographic consists of professionals – university, lifesciences, and tech employees – first-time buyers and local families moving into new developments.

ere has been a shi in the last year, with an increase in first-time buyer share and more enquiries from people priced out of London and other South East suburbs, who see Cambridge as a viable alternative.

ere’s also been a cautious return of some buy-to-let investors where cashflows make sense, but they remain selective.

New-build and early-phase estates are driving activity at the margins. e local council’s development log and Cambridge planning activity show a continued pipeline of medium-to-large sites that will keep new-build supply coming for the next few years.

ere are large new developments in places such as Marleigh and Waterbeach New Town. ey are bringing fresh stock and attracting family buyers, creating local pockets of movement even when markets elsewhere slow.

Cambridge South boasts a number of new transport projects – station projects and broader transport planning, including active travel and cycling provision, are ongoing and will change connectivity for some neighbourhoods, supporting commuter demand to new employment hubs. ese longer-term infrastructure items are part of why developers and families are targeting certain corridors.

who describes the local market as steady but selective.

He says: “At a UK level, mortgage approvals bounced around during 2025. After a recovery in spring, the number of approvals has flattened or dipped slightly in recent months as buyers and brokers watch fiscal announcements and pricing. Locally in Cambridge, that has translated into steady enquiry and applications

from employed professionals and first-time buyers, but a slower pace of agreed sales compared with the strongest months.”

Jaman also points to a “pronounced gap between affordability and wages,” particularly for those not backed by university or tech-sector incomes.

While demand from these groups keeps competition high, he warns that “buyers are price-sensitive and

holding off on non-urgent moves,” amid speculation over tax changes in the upcoming Budget.

Core demographics

Cambridge’s buyer profile reflects the city’s blend of academia and international appeal. With a population of around 471,000 and an average age just under 40 in 2022, the area attracts a broad mix of residents, ranging from career-driven young professionals to established families and global investors.

According to Jaman, his main demographic “consists of professionals – university, life-sciences and tech employees – first-time buyers and local families moving into new developments.”

Over the past year, he notes, there has been “an increase in first-time buyer [FTB] share, and more enquiries

New infrastructure and residential projects continue to reshape the city’s housing landscape. The average price of a newly built property in the area currently stands at £471,000”

from people priced out of London and other South East suburbs who see Cambridge as a viable alternative.”

Rising rents, he adds, have also made ‘buy versus rent’ calculations more attractive for some would-be buyers, fuelling continued FTB demand for smaller-value, welllocated flats and terraced homes.

Mules says his firm works with “a huge variety of customer circumstances,” from traditional residential borrowers to “high-networth clients which can be both UK and non-UK based.” This diversity, he explains, reflects the city’s global draw. He continues: “Cambridge’s science and tech opportunities make this really relevant, so we often deal with those whose affairs are more complex, possibly with multiple

or international income streams. With the continued investment into Cambridge’s science and tech scene, we have continued to experience a stable demand.”

Popular lenders

When it comes to securing finance, Cambridge’s borrowers benefit from a lending landscape as diverse as the city’s property market itself.

According to Jaman: “Locally the market uses a mix of high street banks and building societies, such as Nationwide, Halifax, Lloyds, NatWest, Barclays, Santander, HSBC, and the major building societies, for mainstream purchase and remortgage business.” Alongside these household names, specialist lenders play an increasingly important role. Jaman notes that “specialist mortgage and buy-to-let lenders, like Paragon, Precise and Kensington, are commonly used for buy-to-let, portfolio landlords and complex income cases.” With Cambridge’s diverse borrower base, he says placements “are a mix of high street throughput and specialist lenders for non-standard cases.”

Mules agrees, but highlights the influence of local institutions shaping the market. He explains: “The range of house prices in Cambridge and the local areas is really wide ranging; average detached house prices are now over the £1m mark so we explore every part of the lender market to broker the right outcome for our clients.”

Among those most established locally, he cites Cambridge Building Society as a standout for products and criteria “in keeping with their local market,” as well as a strong community focus. Mules also points to Cambridge & Counties Bank, founded in 2012 through a partnership between Trinity Hall and the Cambridgeshire local government pension scheme.

He adds: “With a relationship focus, they were set up to support local SMEs and encourage further economic growth in Cambridgeshire. Initially this was with commercial finance and investment, but they now support residential investment property lending as well.”

Emerging developments

Despite its abundance of historic charm, Cambridge continues to balance tradition with forward-

looking growth, as new infrastructure and residential projects continue to reshape the city’s housing landscape.

The average price of a newly built property in the area currently stands at £471,000, around 3% lower than last year, yet demand remains steady, particularly for homes in the £300,000 to £750,000 range.

According to Mules, there are “lots of ongoing infrastructural developments in and around Cambridge,” with the most notable being the Cambridge South Railway, which will connect Cambridge to Oxford. He notes that the latter project “will no doubt unlock opportunity for housing and economic growth in between,” providing a vital corridor between two of the UK’s leading innovation hubs. Beyond transport, Mules highlights that there are “lots of science and innovation spaces planned for 2026, alongside the redevelopment of the old Grafton Centre.”

Pointing to developments in Marleigh and Waterbeach New Town, Jaman says: “New-build and earlyphase estates are driving activity at the margins. They are bringing fresh stock and attracting family buyers, creating local pockets of movement even when markets elsewhere slow.”

He adds that Cambridge’s ongoing investment in transport infrastructure is “supporting demand for homes in new employment corridors,” helping to future-proof the city’s residential appeal while maintaining its reputation as a desirable place to live and work.

Rental dynamics

Perhaps unsurprisingly, Cambridge’s buy-to-let (BTL) market remains strong, underpinned by the city’s enduring appeal to students and academics. Around 22.5% of local housing stock is privately rented, slightly below the national average of 23.6%. However, rental appetite continues to outstrip supply.

According to Mules: “This is owed largely due to high demand being created by students, academics and professionals coming to work in the city. However, although the demand is high, the yields based on the property prices are relatively low.”

Mules describes the market as being sustained by “longstanding landlords who have owned investment property in the city for a long time,”

alongside new investors “looking for opportunities to increase their yields with shorter-term lets or properties with multiple occupants.” Despite the challenges, he remains upbeat: “As the demand for rental property continues to increase, we expect the market to remain buoyant and continue to innovate where it can.”

Jaman shares a similar sentiment. He explains that investor appetite is muted compared to previous years, mainly due to tighter regulation and more stringent lending criteria. However, many landlords are still active, especially “where rental yields cover costs,” and “specialist BTL lenders continue to operate and offer competitive products for portfolio landlords,” though higher-LTV deals are now rarer than in previous years.

Steady momentum

Despite wider economic headwinds and a market that prizes caution as much as confidence, Cambridge continues to show quiet resilience. Cambridge’s unique blend of worldclass academia and tech innovation has kept both buyers and investors engaged, albeit with a measured hand. Demand remains steady, underpinned by a mix of long-term residents, relocating students, and landlords who see the city as a safe bet even in uncertain times. As

As Mules puts it, in the face of nervy markets and fluctuating rates, “Cambridge continues to attract buyers from the UK and abroad.” ●

On the move...

S&U PLC has promoted Jack Coombs to chief operating officer. Coombs, who cofounded Aspen Bridging in 2017, will take on wider operational responsibilities across the group while continuing to play a hands-on role in Aspen’s trading activity.

just in myself, but also in the important contribution that Aspen is making.

“Aspen now makes up approximately a third of Group profit and we are confident that, alongside Advantage Finance, both businesses will continue to improve and grow in a sustainable and responsible way."

LHV Bank strengthens SME lending team with three senior promotions

Coombs said: “This promotion is a vote of confidence from the Group board, particularly Anthony Coombs our chairman and Graham Coombs our deputy chairman, not

Pepper Advantage appoints Andy Golding as rst group board chair

Pepper Advantage has appointed Andy Golding as its first group board chair, effective 1st October 2025. Golding is currently CEO of OSB Group PLC. His previous roles include chief executive of Saffron Building Society and senior positions at National Westminster Bank, John Charcol Limited, and Bradford & Bingley.

Golding said: “I am delighted to be joining the board of Pepper Advantage at such an important time in the company’s development.

“I relish the opportunity to help using my industry knowledge and experience and look forward to working with the executive team and board to further build on the strong foundations the company has created.”

Fraser Gemmell, group CEO of Pepper Advantage, said: “I look forward to working closely with Andy to strengthen Pepper Advantage’s position and spearhead the rollout of innovative technological solutions, including our proprietary credit management platform PRISM.”

He added: “I am very excited about the future prospects for Aspen and look forward to helping drive that alongside Ed Ahrens, Aspen’s CEO, and the rest of the senior management team.”

the rest of the senior management team.”

Gen H appoints Sara Palmer as sales and distribution

Gen H has appointed Sara Palmer as sales and distribution director. Reporting to chief commercial officer Pete Dockar, Palmer has joined Gen H’s management team and executive commi ee. She was most recently sales and distribution director at Shawbrook Retail Mortgages.

Palmer said: “I am extremely excited to begin this new chapter with Gen H and its fantastic team.

“I am joining a lender whose innovation is genuinely driven by its clear passion for unlocking homeownership for more borrowers.

LHV Bank has announced three internal promotions within its SME lending and operations teams. Kevin Glover has been appointed to the new role of head of SME product, risk and financial crime. He now assumes a strategic position focused on product development, risk oversight and financial crime prevention.

Ryan Lunn has been promoted to head of lending operations a er joining LHV in early 2024 as senior lending operations manager.In his new position, he will lead the operations team.

In Manchester, Sue Gibney has been promoted to lending manager, team leader. Having been with the bank for over three years, she will lead a team of lending managers.

products like Gen H’s, panel

“Intermediaries play such a key role in distributing forward-thinking products like Gen H’s, and I am very much looking forward to building strong relationships with our panel in the coming months and years.”

Conor McDermo , director of SME lending at LHV Bank, said: “Kevin, Ryan and Sue have each played a pivotal role in shaping how we work with brokers.

"These aren’t just promotions. They’re a natural step forward for people who’ve already shown they understand what brokers need: speed, clarity, and solutions that work in the real world.”

How our blended ICRs could help your client achieve the loan size they need

When I’m out and about on my travels I’m often asked how brokers can maximise their clients’ borrowing potential. I always tell them they need to set up a case in a way that’s advantageous to their clients.

So, how do you go about doing that? Let me explain how. One of the more nuanced areas of buy-to-let is how lenders assess affordability, particularly when it comes to the interest coverage ratio (ICR).

Typically, lenders will apply a standard ICR of between 125% and 140%* for personal ownership applications, depending on factors such as income tax liabilities and ownership structures. Basic rate taxpayers are usually assessed at 125% ICR and higher rate taxpayers at 140% ICR, while the ICR for additional rate taxpayers varies from lender to lender. The ICR can also vary depending on the property type, with HMOs and MUFBs often stressed higher than single dwelling properties.

But what happens when one of the applicants is a basic rate taxpayer and the other a higher or additional rate taxpayer? Many lenders will default to the higher ICR meaning the rental income must cover a higher proportion of the mortgage payment, potentially leading to a lower loan amount.

How we could help

At CHL Mortgages for Intermediaries, we understand the complexity of individual circumstances. As an experienced specialist lender, we’ll consider a blended approach to ICR affordability for borrowers who have different tax bands and shares of ownership or rental income, helping them achieve a larger loan amount.

Roger Morris Group Distribution Director

Mr and Mrs Green have recently inherited a large sum of money. They’ve decided to invest in property.

They’d like to purchase a three-bed property on the market for £290,000 with an estimated rental yield of £1,200 per month.

They’re looking for a 5 year mortgage at 75% LTV. However, with Mrs Green being a higher rate taxpayer, most lenders are applying an ICR of 140%, meaning they can only borrow £206,956 – well below the £217,500 they need to purchase at 75% LTV, leaving them to stump up a larger deposit or find a cheaper property.

Fortunately, we can offer blended ICRs, calculating borrowing based on the average ICR of all applicants. With a blended approach, we’d apply an ICR of 132.5% meaning Mr and Mrs Green could now borrow up to £218,670 with us, an increase of almost £12,000, meaning they can now achieve the loan amount required

What’s more, if Mr and Mrs Green considered shifting ownership structure from joint tenants to tenants in common with Mr Green holding 99% property share, we can offer an even more favourable blended ICR of 125.15%, meaning maximum borrowing rises to £231,513, that’s an increase of over £24,000.

With the increased loan size using our blended ICR and a change to tenants in common, Mr and Mrs Green can now not only afford the original three-bed property, they could even afford a more expensive four-bed property with a higher yield.

As always, landlords should seek professional tax advice when considering restructuring property holdings and make sure they declare it appropriately to HMRC, but helping your clients understand the advantages of blended ICRs and the different ownership structures can make a massive difference to investment strategies.