The Intermediary - February 2025 by theintermediary

Say hello to ModaMortgages, a new buy to let lender.

We’re here to speed things up, not slow things down. Our 100% online application is stripped back to the essentials, offering speed of service, saving time for everyone. Plus, we’re waiving valuation and application fees during our initial launch phase.

Smarter

ب One smarter, simpler product range supporting all landlords and property types.

ب £ for £ remortgages assessed at pay rate helping with affordability, even on shortterm fixed rates.

Faster

ب Quick, consistent decisions with instant DIPs.

ب Desktop valuations for remortgages on standard properties that meet eligibility.

Simpler

ب All underpinned by clear criteria so you know where you stand.

ب Simple process for portfolio landlords, no extra forms just a few additional questions to fully understand your application.

And if all that’s not enough, to celebrate our official launch we’re giving five lucky brokers in England and Wales the chance to win £250 of John Lewis vouchers when they register with us. All you need to do is visit modamortgages.co.uk, access our broker portal and register before 28 February 2025. Terms and conditions apply and are available on request.

modamortgages.co.uk

enquiries@modamortgages.co.uk

01978 80 33 33

From the editor...

Speak to anyone, in your work or personal life, and they will likely express the sentiment that January 2025 seemed to see us enter a time warp – and not the fun ‘Rocky Horror Picture Show’ kind – whereby the month seemed to last about 12 weeks.

We’ve ﬁnally got into February, and as I ﬁnd has increasingly become the case since turning 30 – how long ago, I won’t tell – I fully expect the year to start hurtling into overdrive, and it will be autumn before we’ve blinked.

So, I’d like to take a moment before the catapult snaps into action, to stop and smell the roses. February is a special month at The Intermediary, as it is a birthday of sorts. Two years ago this month, we launched the very print magazine you are reading now.

It was an odd time to be starting a print magazine. ‘Print is dead!’ they told us. ‘What are you thinking?’ they asked. We knew what we were doing, however, and ploughed through despite the naysayers. There is an appetite in this market for the printed word when done right. It is one that doesn’t seem to be abating, even as younger generations – supposedly all about TikTok and speed consumption of media –trickle in and take up greater market share.

In a world where everyone and their dog can shout on social media, and when many publishers are scaling back anything that isn’t simply focused on generating clicks, clicks, clicks, the curated print experience stands quite tall, as it turns out. Who knew? Well, we did.

We work hard on our digital media, to the minute news coverage on the site, social media presence, and all the other trappings of modern journalism. Nevertheless, amid all this, what we’ve found is that you the reader truly values the diﬀerent, more in-depth, and – at the risk of raising a few sardonic eyebrows – more mindful experience of reading a magazine.

Two years ago this mag started with a vision – high quality, no compromise, glossy ﬁnish (literally and ﬁguratively), and, you may have noticed, really cool covers. I look at us now, the only monthly print magazine le in the market, and not only that, but thriving, and I think even my British sensibilities can stand a moment of unabashed pride at what we’ve achieved.

Enough about us! We are out of the endless January malaise and well and truly into 2025. This year has started strong, with heightened activity and a Base Rate cut to boot. There may be turbulence ahead, though. Our feature this month explores the potential impact of impending Stamp Duty changes – one of a number of factors that could sow disarray.

As the market looks ahead to 2025, buoyed by a sense of optimism that the UK could be set for greater stability, just like mortgage brokers and lenders we are excited for yet another year of doing what we do best. There may be more shocks on the horizon, but we look forward to being with you every step of the way. ●

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 Senior Reporter

Marvin Onumonu Reporter

Zarah Choudhary Reporter editorial@theintermediary.co.uk

Stephen Watson BDM stephen@theintermediary.co.uk

Brian West Sales Director (Interim) brian@theintermediary.co.uk

Ryan Fowler ................................ Publisher

Felix Blakeston Associate Publisher

Helen Thorne Accounts nance@theintermediary.co.uk

Orson McAleer Designer

Bryan Hay Associate Editor Subscriptions subscriptions@theintermediary.co.uk

Contributors

Alex Upton | Alexis Rog | Alpa Bhakta

Andrew Bloom | Andrew Teeman

Averil Leimon | Ben Oliver | Bob Hunt

Charles Morley | Chelsea Pordage

Claire Askham | Craig Hall | David Castling

David Whittaker | Debbie Burton

Donna Francis | Grant Hendry | Harpal Singh

I hikar Mohamed | Ivan Vizor | Jacqui Edwards

James Briggs | Jeremy Duncombe | Jerry Mulle

Jonathan Fowler | Kelly Melville-Kelly

Laura omas | Liane Clarking | Lorna Shah

Louise Pengelly | Marc Baxter | Mark Blackwell

Martese Carton | Neal Moy | Nick Smith

Paresh Raja | Paula Bingham

Praven Subbramoney | Richard Keen

Rob Cli ord | Rob Stanton | Robin Johnson

Sian McIntyre | Simon Burnett | Spencer Wyer

Steve Carruthers | Steve Cox | Steve Goodall

Tony Marshall | Yann Murciano

ON THE PRECIPICE

Jessica O’Connor explores how Stamp Duty changes will impact the market

Broker business 54

A look at the practical realities of being a broker, from mental health to the monthly case clinic

Local focus 78

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

On the move 82

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

SECTORS

INTERVIEWS & PROFILES

The Interview 50

EQUIFINANCE

Tony Marshall on the rising tide of second charge, and ensuring the sector is primed for growth

In pro le 42

AFIN BANK

James Briggs discusses the lender’s ambitious launch and its mission to support the underserved

12, 58

BUCKINGHAMSHIRE BUILDING SOCIETY

Claire Askham on the role of lenders and brokers in keeping homeowning dreams alive

BRILLIANT SOLUTIONS

Ivan Vizor talks about the values and meaning behind the UK Mortgage Convention

FOR INTERMEDIARIES

Chelsea Pordage on the challenges and opportunities facing business development managers

Challenges and opportunities

Mortgage aﬀordability has experienced many ﬂuctuations over the years, driven by a wide-ranging set of economic shi s and market variables.

These dynamics have widened the gap between two key aspects of aﬀordability: ge ing onto the property ladder and managing current mortgage payments. This dichotomy underlines the complexity of today’s mortgage market, and the crucial role intermediaries play in guiding clients through it.

Saving challenges

For ﬁrst-time buyers (FTBs), saving for a deposit remains a signiﬁcant challenge. Many still rely on the ‘Bank of Mum and Dad’ to make homeownership possible, with recent data from Barclays Property Insights showing that 57% of renters believe it would be impossible to buy a home without an inheritance or loan from a family member.

However, cautious optimism is emerging as renters adopt disciplined

When identifying the three biggest barriers to homeownership, signi cant obstacles remain for renters. Twofths (40%) of respondents cited property prices, while 37% pointed to the amount needed for a deposit”

savings habits, with 35% of renters able to save independently for a deposit, and 17% saving with a friend or partner to share the cost. This trend is supported by the so ening of house prices and impending Stamp Duty changes, motivating buyers and sellers alike to act quickly.

When identifying the three biggest barriers to homeownership, significant obstacles remain for renters. Two-fi hs (40%) of respondents cited property prices, while 37% pointed to the amount needed for a deposit. Rising rents further hinder savings, making it increasingly difficult for many to enter the market.

Evolving trends

The data further outlined that rent and mortgage spending increased 1.8% year-on-year in December, the lowest rate of growth since August 2024. Though encouraging, costs continue to increase, and consumers’ conﬁdence in their ability to aﬀord their rental and mortgage payments dropped to 52% (down three percentage points) – the lowest level in 2024.

Meanwhile, remortgaging activity has slowed as homeowners explore rate-switching options with their existing lenders.

Extended mortgage terms are becoming more common, reﬂecting borrowers’ need for greater aﬀordability. This trend is likely to persist, marking a long-term shi in borrower behaviour.

Innovative solutions

In this challenging environment, lenders and intermediaries have a unique opportunity to support FTBs through a range of innovative mortgage solutions. 29% of new homeowners have used ﬁrsttime buyer schemes to assist their purchases, highlighting the importance of alternative pathways to

homeownership. For example, Joint Borrower Sole Proprietor (JBSP) mortgages, such as Barclays’ Mortgage Boost program, allow family members or friends to enhance a buyer’s aﬀordability without being listed on the property title deeds.

With the Property Insights report stating that 22% of renters believe homeownership is achievable within five years, solutions like Mortgage Boost could make a significant difference. Applicants can use a family member’s income to increase borrowing capacity while maintaining sole ownership of the property. This approach is versatile, benefiting FTBs, movers, and those remortgaging due to changes in circumstances.

The road ahead

Looking ahead to 2025, despite ongoing aﬀordability challenges, the UK housing market continues to demonstrate its resilience. Activity levels remain robust, with one in six existing homeowners (16%) intending to relocate this year and one in 10 (9%) now considering previously unaﬀordable properties in more desirable areas to be within their price range. Topping the list of priorities among prospective buyers are garages or driveways (40%), gardens (39%), and functional spaces (32%), such as pantries or utility rooms

For intermediaries, these trends highlight the importance of staying informed, leveraging innovative solutions, and maintaining strong relationships with lenders.

By providing tailored support, intermediaries can help more clients achieve their homeownership dreams and contribute to a vibrant and sustainable property market in 2025 and beyond. ●

SIAN MCINTYRE is head of acquisition and engagement at Barclays UK Life Moments

The return of a sleeping giant

I’ve never been much of a crystal ball gazer, outside of my annual wish for Leeds United glory in both the Premiership and The Champions League! While I don’t hold out too much hope for that personal aspiration, I feel much more confident and optimistic about 2025. This may partly be fuelled by the joy of my fi h wedding anniversary, a certain Mancunian band reforming, and a high-flying West Yorkshire team, but also that the UK mortgage market will continue to improve.

The market has proven itself to be resilient through a turbulent 2024, having adapted well to swap rate ﬂuctuations at the same time as embracing political change.

Easing pressure

2024 demanded greater than expected resilience from lenders, intermediaries and borrowers. This, thankfully, looks set to recede in 2025 as cost and rate pressures start to subside – thanks to lower inﬂation and two Bank of England base rate reductions last year and a further one early this.

This strong foundation has provided a positive springboard into 2025. The Intermediary Mortgage Lenders Association (IMLA) predicts that we will see gross mortgage lending reach £275bn, up 16% on its yearend forecast – which lest we forget represented a 6% rise on the turgid year of 2023.

We are expecting to see steady growth in lending this year, with IMLA forecasts also reﬂecting favourably on the buy-to-let (BTL) sector, which it predicts will improve to £38bn (up 14%), driven largely by improved aﬀordability as interest rates fall and rents continue to rise.

I also wouldn’t be surprised to see more landlords turning to houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) to further expand their portfolios.

The general feeling from the intermediary sector is that market activity is on the up, and ‘positivity’ is a word that is being used in abundance.

Savills has conﬁdently predicted that 2025 will be a positive year for house price movement, suggesting improved conﬁdence among buyers as it forecast robust average UK house price growth of 4%, with this likely to be supported by further base rate cuts throughout the year.

Lender innovation

Collaboration between intermediary and lender has never been more important, as the needs of the UK mortgage customer have altered signiﬁcantly in recent years, driving lenders to be more innovative in product design, delivery and implementation. It is incumbent on us all to educate the UK population on all the options available.

It is estimated that 1.8 million borrowers will come to the end of their deal in 2025, a signiﬁcant increase on the previous year. Consequently, it is likely that 2025 will see the sleeping

CHARLES MORLEY is director of mortgage distribution at Metro Bank

The next 12 months are likely to be viewed as more of a marathon than a sprint, but thankfully the course appears at, if not slightly downhill”

giant that is the remortgage market awake from its slumber and further spotlight the importance of advice, as we see 2-year and 5-year swap rates –at the time of writing – very close to parity, providing a further dilemma of choice and opportunity.

January and February are always months of reﬂection – and for many, of abstinence – as we reset and step into the starting blocks yet again.

The next 12 months are likely to be viewed as more of a marathon than a sprint, but thankfully the course appears ﬂat, if not slightly downhill as the opportunity for us all to succeed is most deﬁnitely there for the taking, with both UK Finance and IMLA predicting a larger mortgage market and increased customer demand.

So, as I cast aside my crystal ball, marvel at Leeds United’s exalted league position and my very happy marriage, I can do so while viewing the landscape of our mortgage sector as one of opportunity and increased stability. Positivity is seeping from every pore, driven by expected growth in both lending and house prices. ●

Diverse needs met with a specialist approach

The specialist residential mortgage market is expanding rapidly as more borrowers seek lending solutions beyond what high street lenders can oﬀer. Self-employed individuals, those with multiple income streams, and borrowers with complex credit histories o en struggle to meet traditional mortgage criteria. Given this growing demand, it’s unsurprising that the wider specialist mortgage sector is projected to grow by 70%, rising from £32bn to £54bn by 2029.

Meanwhile, data from the Mortgage Lending and Administration Return (MLAR) shows that the total outstanding value of residential mortgage loans in the UK reached £1,670.9bn in Q3 2024, a 0.6% increase from the previous quarter, marking its highest level since early 2023.

Additionally, the Royal Institution of Chartered Surveyors (RICS) reports continued growth in buyer enquiries and sales activity, reﬂecting positive momentum across the housing market. These ﬁgures highlight sustained demand for

homeownership, reinforcing the need for diverse mortgage products that accommodate a broader range of borrower circumstances.

Within this, incorporating a holistic approach which considers an applicant’s full ﬁnancial picture and history, rather than relying solely on credit scores, is essential.

Demand for exibility

A signiﬁcant trend shaping this market is the increasing need for larger loan sizes. The reason behind this is to ensure that specialist residential clients can secure the level of loans they need, and as property values have begun to rise – albeit at relatively low levels – we must ensure loan size criteria meets the changing demographics of the UK property market.

As such, we have recently enhanced maximum loan sizes across multiple product tiers and loan-to-value (LTV) thresholds so that our intermediary partners and their clients can access the funding required to buy their ﬁrst home, move up the property ladder or reﬁnance to more favourable terms. This additional funding, where

GRANT HENDRY is director of sales at Foundation Home Loans

appropriate and with responsible lending boundaries, is particularly important given today’s economic challenges. Rising living costs and financial uncertainty continue to impact affordability, leaving many borrowers outside conventional lending models and seeking what may in the past have been deemed ‘alternative’ financing options

Looking ahead

Specialist mortgages are no longer just an alternative for those unable to meet high street lending criteria. Whether supporting ﬁrst-time buyers, facilitating home moves, or suitable reﬁnancing options, they are becoming a far more mainstream solution for a growing segment of borrowers.

For advisers already established in this sector, the expanding market presents valuable opportunities to serve an even wider client base. Meanwhile, those new to specialist lending can build expertise by working closely with a range of lenders to stay ahead of loan size adjustments, evolving mortgage products, and shi ing borrower trends – all key factors in delivering tailored solutions for complex cases.

As lenders continue to reﬁne their products and expand criteria, intermediaries who embrace innovation and understand individual lending nuances will be wellpositioned to navigate this evolving market. Most importantly, they can help more clients achieve their homeownership and property goals with conﬁdence. ●

Putting affordability centre stage

• Products to get them moving like our first time buyer range, including Income Plus

• Powered-up processes including our new first time buyer affordability calculator

• People to support you, with our Business Development Managers available how and when you need them

Find out more

Four reasons to be optimistic in 2025

It’s been a turbulent couple of years for our sector. Rising interest rates and cost-ofliving pressures weighed heavily on borrowers, leading to one of the most challenging markets in nearly a decade.

However, there is enough evidence to suggest that the market is over the worst. Consumer conﬁdence is steadily returning, lender competition is ﬁerce, and we have a Government in power that says it’s determined to boost housing supply.

While we’re not out of the woods yet, those are certainly tailwinds for the market – and, as a result, we are starting to see green shoots appear.

With that, here are four reasons why we should be optimistic about the outlook for 2025.

A growing market

The mortgage market had been on an incredible run through much of the 2010s, growing for nine consecutive years to a post-Global Financial Crisis peak of £322bn in 2022.

However, soaring interest rates brought that progress to a juddering halt, with lending sliding more than 30% to £225bn in 2023.

Thankfully, the market rebounded last year, growing 4% to £235bn – and it is expected to continue that upward trajectory in 2025.

UK Finance predicts that lending will rise a further 11% to £260bn this year, with Zoopla forecasting a 5% uptick in housing transactions to 1.15 million.

That’s some way oﬀ the 2023 lending ﬁgure, but it’s progress, nonetheless. And if those predictions prove correct, brokers should see their revenues rise again this year.

Mortgage rates

While mortgage rates increased in December, the cost of borrowing is expected to fall over the course of 2025, which should help drive activity over

the next 12 months. Depending on who you ask, the base rate is expected to fall from 4.75% to between 3.5% and 4% next year, unless inﬂation proves stickier than expected.

While the base rate has, at best, an indirect eﬀect on the price of ﬁxed rate mortgages, a reduction in the benchmark rate should lead to lower mortgage rates for borrowers.

At the time of writing, the average 2-year ﬁxed rate was 5.52%, while the average 5-year ﬁx was 5.58%, according to Moneyfacts.

If the base rate comes down by another percentage point, as hoped, we could well see average mortgage rates in the 4% to 5% range again in 2025.

Improving availability

Product availability is a good indicator of lender appetite. On that basis, the signs look positive for the early part of 2025.

According to Moneyfacts, there were 6,486 products on the market in December, up from 6,402 the month before.

While that is lower than the 6,629 reported in June last year, the shelves are overﬂowing relative to December 2022, when there were just 3,730 products available to borrowers.

All the lenders I regularly speak to are hungry to lend in 2025, so I expect product availability to remain strong over the coming year. Therefore, most borrowers should be well catered for.

ROB CLIFFORD is chief executive at Stonebridge

UK Finance predicts that lending will rise a further 11% to £260bn this year, with Zoopla forecasting a 5% uptick in housing transactions to 1.15 million”

Moreover, I suspect that when rates se le next year, lenders will review lending criteria in a bid to win more business at the right margin. That’ll be a win-win for brokers and borrowers alike.

Borrower resilience

One of the things that has struck me over the past couple of years is how well borrowers have weathered the higher rate environment.

Currently, there are around 93,630 borrowers in arrears of 2.5% or more of the outstanding balance, according to UK Finance.

While that may sound like a lot, it only represents around 1% of all open mortgage accounts. If you go back to 2009, in the wake of the Global Financial Crisis, the number of borrowers who fell behind on their repayments exceeded 288,000 – or 2.5% of all mortgage holders.

With inflation now much lower than it was and the cost of borrowing expected to fall, I am confident borrowers will feel in a be er financial position this time next year. As ever, it falls to firms and their brokers to make the most of the opportunities this year will present. ●

Remortgaging will matter this year

The debate about product transfers (PTs) versus remortgage has ebbed and ﬂowed for many years, but over the past few, favour has fallen squarely in the PT camp.

Data published by UK Finance showed that in Q2 2023 some 84% of those remortgaging stayed with their current lender rather than remortgaging to another provider. It was a signiﬁcant upli on the previous year, when the average for 2022 as a whole was 77%.

Consensus suggests that product transfers still accounted for around 80% of reﬁnancing last year, but there’s potential for that to start to shi this year.

According to UK Finance data, the value of internal PT lending in 2024 was £224bn, down 7% compared to 2023. External remortgaging, by comparison, fell 10% to £59bn in the year. The trade body sees that balance potentially shi ing in 2025, forecasting continued steady growth in both house purchase and remortgage lending as aﬀordability improves further.

UK Finance forecasts remortgage activity to rebound by 13% this year to £88bn, reﬂecting the higher number of customers reaching the end of their ﬁxed-rate period. The Intermediary Mortgage Lenders Association (IMLA) said it expects the fall in the number of PTs to be greater than that of remortgages in 2024, with remortgaging enjoying a larger rise in 2025. We agree – interest rates were rising steadily in 2022 and reached their recent peak at 5.25% in July 2023, remaining there for the next 12 months.

Those with 5-year ﬁxed rates ending this year may still err towards transferring to a new deal with their existing lender, bypassing a full re-underwrite of their aﬀordability. For them, there is still going to be a

pre y he y upli in their monthly repayments as they are faced with mortgage rates between 4% and 5%, up from as low as a rate that may have started back in 2020 with a ‘1’.

The repercussions

This may mean that exploring the initial term – and therefore their protection – will need scrutiny. Most product transfers do not oﬀer a variation in term, and yet a longer term could mean that aﬀordability issues are addressed.

Borrowers may need, then, to realign their protection requirements. Borrowers may even feel under pressure to cancel protection, which cannot be in their interests. This is why advice is crucial.

For borrowers coming off 2-year fixed rates, the situation will be quite different, with many finding they qualify for a lower mortgage rate when they come to the end of their deal this year.

Many who are coming off product transfers this year will have bypassed a full affordability assessment when they last refinanced. They may also find their affordability has improved on other fronts, too, with annual wage inflation between September and November last year up 5.6%, according to the Office for National Statistics (ONS). For this cohort, too, remortgaging will offer opportunity.

By examining existing arrangements, brokers may save borrowers signiﬁcant sums and, for example, shorten terms and protection requirements.

These opportunities are present because the economic environment is slowly improving. Inﬂation is easing and energy prices are also pu ing less strain on most households’ ﬁnances than they were two years ago. That means disposable income is likely to be less tight for many.

Mortgage rates could also come down even further over the next 12

CRAIG HALL is director, strategic partnerships, nancial services at LSL Property Services

A signi cant proportion of borrowers are coming to the end of their deals this year”

months, though there’s quite a divide when it comes to how many times the Bank of England could cut the base rate this year. Markets are pricing in two cuts, potentially taking it down from to 4.25%.

However, a Reuters poll of economists carried out in mid-January suggested four cuts by the end of 2025 – that would take it down below 4%, though that forecast was subject to a he y caveat that if inﬂation starts to rise again there will be fewer.

Whatever happens, a signiﬁcant proportion of borrowers coming to the end of their deals this year will have seen their aﬀordability improve, and be presented with a greater likelihood they could save by switching lender.

As is usual, there are likely to be peaks and troughs of activity over the year, with June, September, October and December seeing big spikes in the number of terms maturing. That will drive competition between lenders, and we’d expect to see some compelling rate cuts in the run up to those periods as lenders vie for volume.

Purchase activity is set to abate post March’s end to Stamp Duty relief.

The two cohorts facing reﬁnancing this year will need advice. A full review could not only be worthwhile, but essential if borrowers are to receive the right product.

This may well turn out to be the year of the remortgage. ●

Q&A

Buckinghamshire Building Society

The Intermediary speaks with Claire Askham, head of mortgage sales at Buckinghamshire Building Society, about the role of lenders and brokers in keeping homeowning dreams alive

Can you tell us a bit about your background and your role at Buckinghamshire Building Society?

I’ve been in the financial industry since 2001, and have worked in broker environments, specialist lending, mortgage clubs and building societies, and in both first and second charge lending. I started out as a secured loan payout adviser for First National Bank when it was part of Abbey National Bank and then went to work for a secured loan brokerage on their prime team.

When the market disappeared overnight, I got an opportunity at Legal & General Mortgage Club, setting up its mortgage support services team. This was followed by sales leadership roles at Metro Bank and Vida Home Loans, where I was working when Covid-19 hit.

I was then fortunate to secure a key account manager role at Buckinghamshire Building Society, which I joined in the summer of 2020. I worked my way back up and have been head of mortgage sales since October 2021. My career history has given me a really good understanding of all areas of our industry and brought me to this point.

How

have you found the mortgage market over the past 12 months?

There’s no denying 2024 was another interesting one, as the market continued to try and recover and adapt to the higher interest rate environment.

It’s clear that affordability remained a challenge for many people – that was very much a theme for us throughout 2023. We saw an increase in applications for impaired credit, and debt consolidation was the most common reason for remortgage capital raising.

In light of these affordability challenges, we completed a thorough review of the

Buckinghamshire Building Society product range to make sure our mortgages remained as accessible as possible.

We tracked trends and spoke to brokers to find out what the barriers were, and to discover if there were any practical, common-sense changes we could make to help keep the market moving.

This review led to us adjusting our criteria, reducing fees, launching new products and even entering into completely new areas of lending for the society.

A big part of that affordability work focused on first-time buyers (FTBs), many of whom risked being excluded from owning a home altogether as a result of the higher rates and general cost-ofliving pressures.

What are your expectations for 2025?

There were some positive signs at the end of last year, with many of the regular surveys reporting increased housing activity and house price growth.

At the same time, it’s suggested that there could be four 0.25% base rate cuts this year. While this is promising for the direction of travel, some challenges and uncertainties remain, and we expect affordability will continue to be an issue this year.

Office for National Statistics (ONS) analysis released at the end of last year said the average house price across the UK is now 8.6-times the average household income, and is therefore unaffordable for 90% of households.

There was nothing in the Autumn Budget for first-time buyers, other than to cut the Stamp Duty threshold, so we expect they will continue to struggle. Even turning to the ‘Bank of Mum and Dad’ could be more challenging, as parents may be experiencing their own cost-of-living and remortgaging woes.

We also await the outcome and impact of some key regulatory reforms in renting, planning and

We talk to our brokers regularly, and it’s o en their valuable feedback that leads to us making that criteria tweak, or introducing that new product, which in turn helps them achieve a successful outcome for their clients. Brokers know to come to us when they have a scenario that mainstream lenders perhaps aren’t keen on”

Energy Performance Certificates (EPCs), which could come this year.

What are the prospects for fi rsttime buyers this year?

Any first-time buyers who are unable to secure a property before the Stamp Duty threshold returns to £300,000 – from £425,000 – on 1st April, may have been left reeling from what probably felt like yet another blow. However, we want them to know that all is not lost.

While we’ve yet to see any significant measures from Government to support them, they do have options to consider. First-time buyers are the foundation of the housing market and it’s in all of our interests, across the industry, to support them wherever possible.

To that end, we’ve made several changes here at Buckinghamshire Building Society. This includes launching our JBSP Deposit Lite mortgage to make it easier for parents to help children buy a home, by addressing both the deposit and affordability challenges in one product from one lender.

we saw enquiries for JBSPs double last year as a result. Another move was to extend gifted deposit criteria so they can also be accepted from siblings, grandparents, aunts and uncles, as well as from parents.

We also offer 95% loan-to-value (LTV) loans for FTBs, and can consider concessionary purchases where parents are selling a property for their child to live in.

This is in addition to many other flexible criteria designed to boost overall affordability, such as considering overtime and commission up to 100%, subject to a good track record, up to 100% of car allowance and up to 100% of town allowance, which now extends to more areas beyond London.

What part can the broker play in supporting fi rst-time buyers?

Obviously, it’s all well and good us introducing different products and criteria that we hope will put more options on the table for those struggling to get a foot on the property ladder. But that’s only one part of the puzzle.

We need first-time buyers to know that these options exist, and could offer them the solution they’ve been looking for. That, of course, is where brokers come in.

Brokers who understand the criteria nuances of smaller societies and specialist lenders – beyond the headlines they might get from a sourcing system – are able to offer really valuable and often eye-opening advice to their clients. Including to people who might have ruled out buying a home altogether.

It’s also a two-way street. We talk to our brokers regularly, and it’s often their valuable feedback that leads to us making that criteria tweak, or introducing that new product, which in turn helps them achieve a successful outcome for their clients. Brokers know to come to us when they have a scenario that mainstream lenders perhaps aren’t keen on, because, as a smaller building society, we are able to manually underwrite cases and assess them on individual

able to manually underwrite cases circumstances.

while we await more meaningful policy intervention from Government. ● by addressing both the deposit and affordability of our prime range, enabling us to consider

We have also integrated our joint borrower sole proprietor (JBSP) proposition across the majority of our prime range, enabling us to consider applicants based on our standard credit criteria, including debt management plans, if none have been registered in the last three years. This has proven to be a popular move, and

By working together

in this way, we can

hopefully continue to help keep the first-time buyer

market moving while we await more

Today’s lending challenges suggest a familiar conclusion

JERRY MULLE is UK managing director at Ohpen

Being able to pivot operationally to meet new niches and avoid customer detriment has never been more important than today. Lenders must also face the reality of the ineﬃciency delivered by archaic legacy systems.

In the 18 months since the Financial Conduct Authority’s (FCA) Consumer Duty rules came into eﬀect, how lenders as an industry interact with customers has undergone a change in mindset.

Central to the duty is a core principle requiring ﬁrms to act to deliver good outcomes for retail customers. The rules require ﬁrms to consider the needs, characteristics and objectives of their customers –including those with characteristics of vulnerability.

Though this refers just to existing customers, given it cannot extend to those without a formal relationship with the provider, it does prompt some interesting thinking.

In assessing where there may be vulnerability among a customer base, it can become clearer where underserved customers lie.

Let’s consider the impact of this new regulation, and some of the other factors in determining where we can anticipate the highest customer demand this year.

The power to exclude Regulation and technical change can inadvertently exclude cohorts – mortgage borrowers who became unable to remortgage due to the aﬀordability rules that came in under 2014’s mortgage market review are an obvious example of this.

There are many more examples – onerous leasehold terms, energy

eﬃciency standards, variable income assessments, the list goes on. Lenders are considering the type of vulnerabilities that exist in their back books and working out strategies to ensure those customers are supported to ensure the best outcomes they can reasonably expect.

In doing so, we’re seeing a developing understanding of what ﬁnancial inclusion and exclusion means. Lenders have a responsibility to support customers to achieve good outcomes, and over time that will mean evolving their proposition, product set and service delivery to meet the needs of those customers.

It is not just regulatory and technical change that can lead to exclusion, either. Changes to a borrower’s circumstances are increasingly common, and it looks likely that 2025 will hold its fair share of ﬁnancial challenges.

Domestic challenges

In her ﬁrst Budget, Chancellor Rachel Reeves announced that employers’ National Insurance (NI) contributions will rise from 13.8% to 15% from April 2025. Businesses warned that there would be a fallout, and we have seen a ra of redundancy announcements across a range of sectors. The Centre for Retail Research says almost 170,000 retail workers lost their jobs last year as 38 big retailers collapsed. This year may be just as tough – and many of these people will have mortgages.

With financial pressure o en comes pressure at home. Around 100,000 couples divorce each year in England and Wales, and untangling marital finances can be a nightmare. A recent research project led by the University of Bristol and Nuffield Foundation surveyed 2,415 individuals who had divorced in the previous five years.

Two-thirds owned their home. A third of those had homes with a net value of less than £100,000.

We talk a lot about the plight of ﬁrst-time buyers struggling to save suﬃcient deposits to get on the ladder. Perhaps we forget to talk enough about large numbers of homeowners who are faced with the same problems in the a ermath of a divorce – half the capital and a single income dramatically reduces your options when it comes to buying a er a split.

What does 2025 hold?

In January, Government borrowing costs hit a 16-year high as markets reacted to the potential impact of Labour’s promises to raise public sector pay and up public spending. British businesses and households are facing steep tax rises, and there have been several warnings that this could lead to a drop in economic growth and higher inﬂation.

In the US, Donald Trump is back in the Oval Office and has imposed significant trade tariffs on countries exporting goods and services there. The uncertainty is weighing on the UK and pushing up gilt yields. So far, the consequences of much of this is yet to be felt. Mortgage lenders are aware of all of this, and many are wellpositioned to support their customers through challenges. Others are not. Operational models have had to flex for a plethora of reasons over the last decade, placing pressure on old processes and systems. What today’s regulatory, economic, political and social environment illustrates is that the drivers might change, but the need to flex quickly to make the most of opportunity remains key to surviving in the long-term. ●

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

What can we expect from the mortgage market in 2025?

JEREMY DUNCOMBE is managing director of Accord Mortgages

The latest analysis released in January by Yorkshire Building Society – of which Accord is the intermediary-only lending arm – suggested that ﬁrsttime buyers bounced back during 2024. Positive developments, such as successive falls in the Bank Base Rate, boosted their aﬀordability potential.

Our predictions were based on the latest available ﬁgures to the end of October from UK Finance, which pointed to 330,000 ﬁrst-time buyer mortgage transactions during 2024 – up by 13.8% from the decade low of 290,000 in 2023.

The 2023 slump was due to cost-ofliving pressures, higher interest rates and burgeoning house prices, which deterred would-be buyers. Some of these factors have started to ease, with inﬂation reducing towards its target 2% and interest rates largely stabilising, albeit with periodic upticks triggered by market events.

Overall, house purchase activity also increased by an estimated 10% in 2024, and we expect to see 1.1 million transactions over the year, compared to 2023’s one million. Firsttime buyers continued to drive the majority of purchasing activity (54%), similar to 2023.

The Stamp Duty changes announced in the autumn Budget could trigger an uptick in completions in Q1, as both ﬁrst-time buyers and home-movers push to beat the deadline.

The reduction in the threshold means anyone buying a £500,000 home would pay an extra £10,000, and £25,000 if their property is worth over £500,000. Previously, properties costing up to £425,000 were exempt. Although buyers in some regions, like parts of the North, are

less likely to be affected, higher house prices could see buyers in property hotspots ge ing a higher moving bill than expected. Then, there is the added risk that the change could put existing homeowners off selling, potentially reducing the number of properties available and inflating prices for starter homes.

Other factors at play

All of this – coupled with geopolitical uncertainty surrounding world events – represent further risks for brokers to keep a watchful eye on, to best advise their clients.

While base rate cuts during 2024 are among the factors which contributed to increased first-time buyer confidence, and of course we’ve just seen the first cut of 2025, I’d urge caution regarding any hopes we might see materially lower mortgage rates in 2025. The market was expecting three base rate cuts this year, which had been priced in already.

Volatility resulting from rising gilt yields – and uncertainty surrounding what these could mean for Government borrowing and inﬂation – sent mortgage rates upwards from the start of January, although there have been some more downward movements in February.

We still believe the longer-term trajectory for borrowing costs will be gradually down, though we need to be realistic about how far. The historically low rates we saw postCredit Crunch are likely permanently consigned to the history books.

Reasons to be cheerful

Nevertheless, the surge in ﬁrst-time buyer numbers is encouraging in light of concerns that a perfect storm of factors centred around aﬀordability and deposits might be preventing the

next generation of homeowners from realising their ambitions.

Yorkshire Building Society’s policy paper – ‘Home Improvements –building an integrated strategy for UK housing’, called for enhanced Government support and a united industry approach to ﬁnding be er solutions to help this vital group achieve their ambitions.

Current developments represent a golden opportunity for brokers to deepen their client relationships by reaching out proactively to explain what all this could mean, and help them make appropriate choices.

Overall, the positive ﬁrst-time buyer trend we reported in early January may well play out through the rest of this year, and certainly Intermediary Mortgage Lenders Association (IMLA) and the Association of Mortgage Intermediaries (AMI) are forecasting growth in the lending market overall. However, we must collectively enable all types of borrowers to move, and build more houses so that there are suﬃcient suitable homes.

While the economy continues to show signs of volatility enroute to what we expect to be a more stable longer-term picture, people must acknowledge that rates are currently more reﬂective of realistic historical trends and factor this into their planning, basing their decisions on their individual circumstances.

We’ve faced much bigger issues in the past. Issues will continue to arise which shake the markets a li le or a lot, but experience tells us that they are ultimately resilient and will always bounce back. ●

Brokers report optimism, but more support is needed

Acting as the intermediaries between lenders and prospective buyers, it is hard to deny that brokers know be er than anyone what borrowers require when it comes to having their mortgage needs met.

On our mission to become a modern lender that can help more people fulﬁl their dreams of homeownership, we are commi ed to engaging the broker community regularly and listening to their hopes and concerns as they navigate the mortgage sector.

That is why we’ve commissioned new research among 500 UK brokers to be er understand their takes on the housing landscape, and what needs to change for the market to continue to grow and evolve.

Brokers are optimistic

The good news is that brokers are feeling positive about the future. In fact, 82% say they’re more optimistic now than at the start of 2024, and nearly four in ﬁve (79%) believe the housing market will grow over the next three years, giving more borrowers the chance to make their dreams of homeownership a reality.

The results give an indication as to the resilience of the housing market, and how brokers and lenders have worked together to support customers through tough times. Even against the backdrop of rising interest rates and the ongoing cost-of-living crisis, we’re seeing signs of hope, and their optimism reﬂects the market’s ability to adapt and bounce back.

Cause for concern

While brokers are optimistic, some concerns do remain when it comes to the factors impacting their clients and

the market as a whole. For example, 35% of brokers say wider economic and global uncertainty is a major concern for clients, and 27% are worried about high interest rates.

The cost-of-living crisis continues to concern 24% of brokers, while 22% point to high house prices and a lack of new homes being built as barriers to homeownership. These are not new issues for 2025, but tackling them will require close collaboration between lenders, brokers and policymakers to make sure we’re doing all we can to support borrowers.

Room for improvement

Four in 10 brokers say that the mortgage application process hasn’t sped up in the past two years – in fact, it may have even become slower. This is why 31% of brokers across the country are ready to embrace new technology to streamline the mortgage application process. To answer this call, No ingham Building Society is investing heavily in technology to make applications faster and smoother, and ensure brokers can be er serve their clients.

Perhaps most importantly, a third (31%) of brokers say that more support is still needed for customers who may be vulnerable, whether due to economic pressures or other factors.

We’re commi ed to helping brokers meet these challenges by developing and rolling out products tailored to modern borrower needs. We continue to amend our criteria based on feedback and market requirements, all to be er support contractors and other borrowers with complex income streams and make it easier for them to access the right mortgage.

Our ongoing focus is on developing solutions that reﬂect the changing needs of modern borrowers, ensuring

PRAVEN SUBBRAMONEY is chief lending o cer at Nottingham Building Society

more people have the opportunity to achieve homeownership.

It is vital that borrowers facing diﬃculties get the support and understanding they need. Addressing these issues will not only help individual customers, but also boost conﬁdence in the mortgage market overall.

Lenders step up

So, what does all this mean for us lenders? It’s clear that while brokers are optimistic about the future, they also need our support to help them deliver the best service to customers.

We believe collaboration and innovation are key to moving the sector forward. We’re commi ed to supporting brokers with the tools and resources they need to navigate today’s challenges and take advantage of future opportunities. Whether that’s creating more ﬂexible products, making the application process smoother with new technology, or oﬀering be er support for vulnerable customers – we recognise the role lenders must play in shaping a stronger mortgage market.

Like the brokers we surveyed, I feel optimistic about the year ahead, and conﬁdent in the resilience of our sector. The UK mortgage market has weathered storms time and again, and brokers are at the heart of that success.

We value the input of our broker partners, and by working together, embracing innovation, and continuing to adapt, we can ensure that our sector grows and thrives, delivering the best possible outcomes for borrowers across the country. ●

Meet The BDM

Harpenden for Intermediaries

The Intermediary speaks with Chelsea Pordage, business development manager (BDM) at Harpenden for Intermediaries

How and why did you become a BDM?

My path to becoming a BDM started when I landed my rst job as a cashier at my town’s local building society branch at just 16. Ever since joining the nancial services industry, I never looked back! At 17, I was o ered a role next door with our high street bank, and this allowed me to leave the tills behind and begin consulting with customers on their savings, investments and credit.

From there, I got a peek into the world of mortgages and found both the complexity of it all and the genuine di erence you could make for people incredibly rewarding. I knew there and then that this was my next goal.

An opportunity became available at the building society I had worked as a cashier for previously, on their

business development helpdesk, and I leapt for it.

A short while there saw me go from helpdesk team member to team leader, and this enabled me to get involved in a bunch of broker events and work more closely with the BDMs, giving me a full view of their day-to-day and the chance to realise that this was what I wanted to be.

So, when the time came to become a BDM myself, it felt very natural – it felt like this was what I’d been building all of my experience for, and I can de nitely say it was worth it.

What brought you to Harpenden Building Society?

At the same time that I was exploring BDM opportunities, the Harpenden Building Society were in the midst of a journey themselves, seeking

growth and development within the specialist lending market.

A er a few discussions with the team, I knew it was a challenge I wanted to accompany them on, and now two years down the line, I’m very glad I did.

We’ve accomplished a great deal when it comes to policy and product improvements as well as ne-tuning our manual underwriting approach, enabling us to provide bespoke solutions to those who don’t tick all the usual boxes.

What makes Harpenden Building Society stand out?

Here at the Harpenden Building Society, there is no ‘one-size- tsall’. We prefer to review cases individually, with each being assessed on their own merit.

We work in partnership with brokers, keeping a constant ow of communication”

We thrive on collaboration and therefore ensure we work very closely with our underwriters to apply a common-sense approach to our lending, meaning we’re the ideal provider for any clients with a tricker situation at hand.

Being a smaller, closer-knit lender gives us many advantages, including having a more direct line of authority to run exceptional cases through which enables us to be proactive in referral decisions. As a BDM, having the opportunity to speak directly to our senior leadership team and CEO on a regular basis allows for great conversations to take place that feed live information and data from the boots on the ground right to the top, and contribute to innovations that hit right where the market needs them to.

is ensures we stay relevant and continue to deliver products and policy in the more under-served areas of the market, where we know we can make a real di erence.

What are the challenges facing BDMs right now?

An ever-changing mortgage landscape is a regular battle for brokers and BDMs, and these past 12 months have been turbulent to say the least. However, as ever, the market has remained resilient, with lenders, intermediaries and their clients adapting at each turn.

Currently, the main challenges being faced are the upcoming tax changes and implications from March or April, particularly the Stamp Duty deadline, which is seeing increased pressures across the board, with everyone a ected trying their hardest to get through

to completion before increased rates come into play. Naturally, the closer we get to 31st March, the tougher this situation will get, and workloads will continue to mount for all parties involved. is means it is vital we are transparent with brokers and their clients on turnaround times, and where necessary, that we prepare and manage expectations should their mortgage not complete before the deadline.

What are the opportunities for BDMs?

When it comes to being a BDM, the opportunities are endless. e best part of what we do is relationship building and this opens up more doors than you can imagine. Whether it’s daily collaboration or touching base here and there, contacts are everything. e more of them you can develop, the more success you’ll nd for yourself, your organisation and the brokers you serve. We play a pivotal role in cultivating the policy and products we bring to the market, and this level of in uence and responsibility to deliver for the customer is not to be overlooked.

How do you work with brokers to ensure the best outcomes

for borrowers?

We work in partnership with brokers, keeping a constant ow of communication which feeds live updates back and forth, meaning we deliver our current proposition while listening to what trends intermediaries are noticing in the market, so we can utilise this to netune and adapt our o ering. e key is that we exchange information and remain openminded to the changing needs of borrowers and how we can provide better outcomes for them. Where merit is evident, we can apply exibility through our manual underwriting approach and create tailored solutions for individuals who

otherwise may not have quali ed for a mortgage elsewhere, and these kinds of cases best demonstrate the importance of a strong working relationship between BDM and broker, because understanding really is everything when it comes to complex lending.

What

advice would you give potential borrowers in the current climate?

I always remind borrowers that the advice of a broker is invaluable. With so many lenders in the market today o ering a vast range of products –some exclusive to intermediaries – sourcing your own mortgage at the best applicable rate is almost impossible without a helping hand. e property market is a whirlwind at the best of times, so be sure to seek out a trusted individual who you can rely on to guide you through any hurdles that may arise. e same goes for solicitors – so much goes on behind the scenes during the conveyancing process that many don’t get to see, and having a solid contact on this end to wade through the sea of paperwork calmly on your behalf will be a weight o your shoulders and give you time back to focus on the excitement of it all. ●

Harpenden Building Society

Established 1953

Products

• Residential, including large loan, second homes and impaired credit

• Self-build

• Buy-to-let

• Holiday let

Contact details

01582 463133

brokerteam@harpendenbs.co.uk

Action now will pave the way for future generations

As I write this month’s column, the sun is shining through the window, and for the ﬁrst time this year, I spo ed some spring ﬂowers on my morning walk – signalling that brighter days are just around the corner.

As such, I am feeling optimistic, a sentiment which is echoed in my work as I observe the impact our recent decision-making is having on aspirational homeowners.

If January is anything to go by, it is set to be a busy year in the mortgage market. And while recent years have taught me to expect the unexpected, it’s fair to say that things are starting to look up for aspiring ﬁrsttime buyers.

Toxic times behind

Over recent years, a toxic combination of historically high house prices, the increasing cost of living, limited housing stock and higher interest rates has made it diﬃcult for borrowers.

To help aspirational homeowners overcome these obstacles, we recently announced the launch of Income Plus – a range of new mortgages aimed at ﬁrst-time buyers with a minimum household income of £40,000 enabling them to borrow up to 5.5-times their earnings.

Together with improvements in how we assess affordability, we estimate these mortgages will increase the maximum we can offer a firsttime buyer by £66,000 compared to our standard mortgages – a figure that we are extremely proud of, and a tangible example of the

beneﬁt that changes made by lenders can have on individual borrowers.

A ordability ahead

We’ve made adjustments to our affordability model to give a more realistic view of what borrowers can afford to repay every month, in order to give first-time buyers a be er chance of ge ing a foot onto the property ladder.

Pu ing homeownership within reach of more people, generation a er generation, is what drives us.

We feel strongly that everyone deserves a place to call home, which is why we’ve tackled one of the main barriers facing would-be homeowners whose earnings are being outstripped by house prices and making saving a large deposit even harder.

We continue to push the Government to increase the supply of homes for ﬁrst-time buyers. We hope Income Plus being available up to 95%

MARTESE CARTON is director of mortgage distribution at Leeds Building Society

loan-to-value (LTV) on new-build houses will give further conﬁdence to developers that lenders are supporting aspiring homeowners to overcome aﬀordability challenges.

Act with purpose

If we are to come anywhere close to meeting the Government’s ambitious housing supply targets, lenders stepping up to the plate and supporting ﬁrst-time buyers will be essential.

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 and further bolster the future of the housing market. ●

The fundamentals in London’s midmarket are strong

The mood of the housing market going into 2025 has shi ed from “trepidation to cautious optimism.” So said Aneisha Berveridge, head of research at Hamptons, who is also of the view that that this year could mark the beginning of a “new housing cycle when London starts to outperform the rest of the country.”

The start of 2025 has brought reasons to be cheerful about the next 12 months, but has also exposed a degree of uncertainty on the broader economic outlook.

The December 2024 Royal Institution of Chartered Surveyors (RICS) Residential Market Survey points to the slightly brighter picture seen over recent months remaining in place, with most surveyors reporting ‘modestly positive’ expectations.

The volume of agreed sales improved slightly over the month, evidenced by the net balance moving to +7% from a reading of +1% in November, according to RICS.

Near-term sales expectations are mildly positive, albeit the latest net balance of +16% has been scaled back from readings of +19% and +29% submi ed over the two months prior. A net balance of +37% of contributors foresee sales activity rising over the coming year, broadly in line with the previous three months.

Tim Bannister, property expert at Rightmove, is also upbeat, saying he expects “higher price growth and more transactions” in the coming year.

The number of available properties per estate agent is at a decade-high for this time of year, and Rightmove recorded its busiest Boxing Day for new seller activity, with a record number of properties listed for sale by estate agents.

It is worth sounding a degree of caution as Stamp Duty increases, potentially fewer rate cuts from the Bank of England than previously expected for the year, and increasing taxes are all looming on the horizon.

London locals

The implications for London, as ever, vary considerably depending on borough and local dynamics. The average house price in London in October last year was £519,579, according to the Oﬃce for National Statistics (ONS), and while property values fell by 1.4% month-on-month, they are still 0.2% higher when compared with the previous year.

While an average price can give a general sense of the market’s health, it doesn’t tell the full story. London is a cluster of micro-markets all with diﬀerent values and levels of demand.

In Kensington and Chelsea, the most expensive borough in the capital, Rightmove data showed the average asking price in December last year was £1,650,916 – a 1% monthly fall and an annual drop of 3.7%.

Even this doesn’t give a holistic picture. The buyer proﬁle and demand for super prime stock – mainly in Central London, Knightsbridge, Mayfair and Chelsea – is aﬀected by, more o en than not, international demographic, geopolitical and economic trends.

Savills expects prime Central London values to fall by 4% on average in 2025, and the mood to remain challenging while the market adapts to the abolition of ‘non-dom’ status and a 5% Stamp Duty surcharge on second homes.

Compare that to buyers moving in prime residential areas slightly further out, such as Hampstead, South Kensington, Richmond or St John’s

ROBIN JOHNSON is MD at KFH Professional Services

Wood, and the drivers are usually quite diﬀerent. Pay and bonuses, proximity to the best schools, and easy transport links to the City or West End are more likely to ma er.

The tide is changing on the work from home culture, with an increase in the number of companies looking to get their employees back in the office five days a week, meaning rather than the exodus we saw in the early pandemic, there will be demand from a new influx of buyers.

Activity in Zone 3 and out is likely to be reasonably robust this year – the majority of those coming off very low fixed rates have taken the hit and continue to make payments. Stamp Duty increases will mostly not affect them, and there may be a material bump in transactions as parents move to areas with good state schools following VAT on private school fees coming in this month.

To some extent we’ve already seen this. Rightmove’s London trend analysis showed the average price in Merton in December 2024 was £752,890, a monthly increase of 1.2% and an annual rise of 8.4%.

It’s no coincidence that Merton, a leafy borough in South London, has just been named as one of the best places to live and retire in the UK, due to its low crime rate, natural areas and convenient transport links.

How the Government’s tax and spend policies play out over the coming months, and particularly how the bond markets respond, will have a bearing on activity this year. But the market fundamentals are strong, and we expect a relatively good year. ●

Too much choice has its pitfalls

Granted, yes, it's a very difficult process to get to the position of purchasing your first home. Trying to save while rents are higher than ever before is no easy feat. The cost-of-living crisis has made it ever more difficult for most, as we know all too well.

The silver lining, however, is that if you are fortunate enough to be able to get on the ladder and buy your ﬁrst home, choice is now plentiful.

A number of years ago – let's use 2019 for example – I'd o en have first-time buyers update me multiple times a week that they've put another offer in on a property and had it rejected. Sometimes, they'd come to me dishevelled, with hope lost – but finally, a er a mere 20 rejected offers on various properties, they had one accepted. Buyers wouldn't dare make amendments when going through the purchase process. Switching to another lender? No way, out of fear that the vendor might get the call for

another survey and then pull out of the sale and go to the next buyer in the queue. Renegotiate the purchase price? Unlikely – they'd be hit with a similar line from the estate agent: 'we could just sell it again for a higher price'. It was a stressful time for a buyer back then, even more so a ﬁrst-time buyer.

New normal

Today, however, ﬁrst-time buyers – and buyers on the whole, for that ma er – have a lot more choice. It's no news to any of us that the 'seller’s market' tag-line has shi ed. It's now a 'buyer’s market', and properties take a lot longer, generally speaking, to get a sale agreed.

What this means for buyers is that sometimes they're spoiled for choice. They might have an oﬀer accepted on a house, and then the next week another comes to market that has a slightly nicer kitchen, or the garden looks more tended to. So, the buyer switches property. But more choice doesn't always end up positively, which I'll address later in this article. It means

that, as brokers, we're o en making more and more amendments to applications, or re-applying as be er options have become available with another lender.

Years ago, before the dreaded goings on in 2020, this wasn't entirely commonplace. Now, brokers must meander through a much more long-winded process with clients. Sometimes amending products, loan amounts, changing solicitors, changing property – two, three, four times over.

A client might move from a green product mortgage, to needing a standard product as a property has a lower Energy Performance Certiﬁcate (EPC). Or they might go from a newbuild mortgage to something more niche, as the ideal property has come to market – but now, it's a Grade II listed timber-framed co age with three acres of a land and stables at the back. Changes a-plenty. What impact can this have on buyers? Well, ﬁrst there's more things to consider for them. With drastic

property purchase changes – and us as brokers having to change lenders – we o en see solicitors no longer being on panel. Therefore, potential abortive fees become evident for a client with their initial solicitor. Also, additional lender fees become payable, such as application fees or for valuation surveys.

In addition to potentially hurting a client's pocket, we can sometimes see even more serious implications. To proceed with a lender application, as we know, there's a hard search carried out. Clients, especially at a high loanto-value (LTV) where internal lender scoring is stringent, run the risk of being denied at application stage due to too many hard searches in quick succession reducing their credit score.

We have seen it before – a case is agreed at decision in principle (DIP) stage, but then it declines at full application just a couple of days a er.

and so on. So, buyers must be educated of the wider risks when making a redirection decision during their purchase journey.

Risks and results

As advisers, now more than ever, it's very important to have a discussion with clients from the outset about the risks of pulling out of a purchase and moving onto another.

Taking on the stress and upheaval of changing properties, starting legal processes again, and dealing with an ultimately exceptionally draining process is hard to swallow.

In a time of so much economic uncertainty, too, the risk of pulling out of a purchase perhaps a few months into the process and starting again, can sometimes be more of a shock than initially thought.

We've seen a lot of changes over the years – Stamp Duty increases, job uncertainty, cost-of-living increases,

If it's the right thing for the client and their family, then absolutely they should do it, but like anything, it isn't always plain sailing, and that needs to be highlighted – and with the more vulnerable ﬁrst-time buyer clients, it needs to be explained clearly and concisely.

If it's a change of property due to a light, superﬁcial reason – 'next door came to market and it has a porcelain sink rather than a stainless steel one, but everything else is the same' – then the client needs a bit more of a talking to!

What could lenders do diﬀerently to cater for the 'buyer’s market'? Maybe get rid of the need for complete application rekeys!

If we were able to amend an application from a 'green' new-build product to a standard product with a change in LTV, then it'd make it a li le easier for the client.

Granted, there's a need for new hard searches, documents and so on – and rightly so, advice changes – but

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

more ﬂuidity from lenders regarding application amendments would make the process less harsh on clients, and also more seamless for brokers, too, assuming it makes sense to remain with the same lender.

On the whole, buyers having plentiful choice is both a blessing and a curse. As long as rates head the right way, and market conﬁdence continues to build, then this will likely change naturally in the standard property cycle, as we eventually head towards more of a 'seller’s market'.

Who knows, we might even ﬁnd ourselves in a well-balanced market, for once! ●

What’s next for prime Central London in 2025?

Amid regulatory shi s, tax reforms, and changing investor priorities, the prime Central London (PCL) sector has faced some major challenges in 2024. However, the outlook for the market is rosier than many commentators would currently have you believe.

Tax changes

The Government’s autumn Budget introduced a 2% Stamp Duty surcharge on second-property purchases. From April, the nil-rate threshold will drop from £250,000 to £125,000, while the ﬁrst-time buyer threshold will go from £425,000 to £300,000.

These changes have likely caused some property investors to reconsider their plans, but we expect an uptick in activity levels in Q1 2025 as property investors look to complete their purchases under a lower tax burden. It’s important, therefore, that lenders and brokers prioritise speed to support this demand in what will be an increasingly competitive market.

Flexibility will also be an important quality to provide. Given the changes to the non-domicile tax status, which is being replaced by a residence-based regime, many property investors will be assessing their options.

However, the new scheme allows qualifying individuals to beneﬁt from favourable tax treatment for up to four years, including no tax on foreign income or gains brought into the UK. This transition period should, therefore, mitigate any signiﬁcant short-term impact on demand.

Private rental reforms

On the regulatory front, the Renters’ Rights Bill – currently making its way through Parliament – is likely

to become the Renters’ Rights Act in 2025. Under the proposed reforms, Section 21 ‘no-fault evictions’ are due to be abolished, as will ﬁxed-term tenancies. Both changes will have a signiﬁcant impact on the way in which landlords manage their tenancies and portfolios, but we aren’t expecting it to cause the ‘landlord exodus’ that many are saying is going to occur.

In fact, our recent survey research actually showed that two-thirds of surveyed landlords remained optimistic about their buy-to-let (BTL) properties. As a result, 38% plan to grow their portfolio in the next 12 months, and just 10% are looking to decrease their number of assets .

Bank of England

So, where does this optimism stem from? For the most part, it will be caused by the outlook for interest rates, which impose the greatest inﬂuence on PCL market activity.

The Bank of England (BoE) cut the base rate twice in 2024, and on both occasions we saw an increase in conﬁdence and activity across the property investment landscape. Looking to the next 12 months, Governor Bailey has indicated that the central bank is prepared to cut rates four times, which would leave the base rate at 4% – its lowest level since February 2023.

Lower rates will signiﬁcantly beneﬁt the PCL market, where high property values amplify borrowing costs. As rates fall, we anticipate that previously hesitant investors will reenter the market.

Demand from overseas

Demand from overseas is likely to remain resilient. Of course, the abolition of the non-domicile tax status raises uncertainty, but

ALPA BHAKTA is CEO of Butter eld Mortgages Limited

the desirability of London as an investment destination remains very much intact. This is supported by a recent prediction from Paul Finch at Beauchamp Estates, who says that estate agents are bracing for a “wave of American buyers.”

Looking to escape the domestic volatility and uncertainty that a second Trump Presidency could precipitate, this trend is indicative of a market that appeals to investors for its stability and returns.

Prospects for growth

The sector’s potential for capital growth and rental yields is one of the most signiﬁcant draws – both of which are trending positively to achieve growth in 2025. According to Knight Frank, the PCL market will grow by 2% in 2025, rising by an additional 18% in the four years to 2029.

The outlook for rental yields looks bright as well. With interest rates predicted to fall and rental price growth currently si ing at 11.6% in the capital, rental yields are likely to feel a signiﬁcant boost in the next 12 months. Such data is likely to a ract more property investors to the market in 2025, supporting demand and boosting the prospect of house price growth and elevated activity.

The outlook in 2025 is brighter compared to the challenges faced in 2024. However, hurdles remain, particularly in the areas of taxation and regulation.

Property investors and brokers should seek lenders with the expertise to help manage portfolios as eﬀectively as possible in a changing market. ●

The value of buy-to-let has to be seen in context

This summer will mark 10 years since former Chancellor George Osborne ﬁrst announced sweeping changes to the tax regime that had allowed landlords to claim tax relief on mortgage fees and mortgage interest payments.

A decade later, and private landlords are still under what some might characterise as a political onslaught.

In Rachel Reeves’ ﬁrst Budget as Chancellor of the Exchequer, she announced she was upping the Stamp Duty surcharge applied to the purchase of second homes and all additional properties from 3% to 5%.

In Scotland’s Budget, the Additional Dwellings Supplement under the Land and Buildings Transactions Tax was also put up, from 6% to 8%. Wales also hiked its surcharge by one percentage point. Landlords may have let out a sigh at the news of what looks like yet another reason not to invest in buy-tolet (BTL).

It may not be that simple, however. The Intermediary Mortgage Lenders Association (IMLA) published its outlook for the residential mortgage market as 2024 drew to a close. In it, the trade body pointed to a healthier buy-to-let mortgage sector than we have seen in a while.

IMLA’s analysis showed that the BTL market recovered last year a er a sharp contraction in 2023, with gross lending estimated to have reached £33.2bn in 2024, 10% above the 2023 total.

Buy-to-let house purchase lending showed a slightly faster increase of 12% to £9.6bn. In contrast to the wider market, buy-to-let remortgaging rose, reﬂecting improved aﬀordability.

The trade association has forecast a be er year again, expecting a 14% rise

in buy-to-let lending to £38bn in 2025, rising again to £42bn in 2026.

This is partly down to many of those remortgaging oﬀ very low rates onto much higher ones having gone through that pain.

Those who have struggled to meet aﬀordability criteria in the higher rate environment have either rebalanced loan-to-values (LTVs) across their portfolios or sold properties to balance their books.

It is also likely that growth in buyto-let lending will be driven by limited company borrowing.

A moving picture

While higher Stamp Duty may deter some landlords from purchasing further buy-to-lets, it is likely to be a mixed pictures depending on where those properties are based. Lower capital values on average in the North of England and South West will be far less aﬀected than landlords in expensive areas like London.

According to the Oﬃce for National Statistics’ (ONS) November index, the average house price in the North East stood at £168,791, while in London it now stands at £511,279.

Stamp Duty on the first example, if purchased as a buy-to-let, is £8,439. On the second, it is £38,627. That difference has a significant effect on the commercials of a deal, and there is no doubt that it’s affecting values. Prices in the North East were up 5.9% over the year to November 2024 while in London they came down 0.1%.

The upcoming Renters’ Rights Bill, expected to come into force at some point this year, is much more likely to put landlords oﬀ further investment across England and Wales.

As it stands, the legislation will abolish Section 21 evictions, strengthen tenants’ rights and require

STEVE GOODALL is managing director at e.surv

landlords and agents to publish an asking rent for their property while banning the acceptance of oﬀers made above this rate.

Government has also pledged to reinstate the requirement that all private rented property must achieve a minimum Band C rating Energy Performance Certiﬁcate (EPC) by 2030.

Whether or not you agree with the plans, they have the potential to dramatically shi the pricing dynamics in the rental market. That will feed into tenant aﬀordability constraints, especially in areas where supply is low and ge ing lower.

According to the Trust for London, from April 2021 to December 2023 some 45,000 rental properties were sold without replacement, accounting for 4.3% of London’s privately rented homes.

Properties are leaving the rental market at a much faster rate in the most aﬀordable locations to rent. During 2023, the stock of private rented sector homes in the most aﬀordable parts of the capital reduced by 3.3% a month as a proportion of available listings, compared to 2.6% a month across the rest of London.

This is a very complex set of factors aﬀecting the private rented sector, and 10 years of constant change has taken a severe toll.

There is a massive undersupply of rental stock, and with rising operating costs, that is likely to continue. For lenders, the value of buy-to-let must be seen in this context. ●

A long way from the worst

The year has started oﬀ in a positive fashion, with a large number of landlord borrowers deciding not to let the grass grow under their feet, particularly in a sector which – despite an increase in Stamp Duty costs – still presents a very sizeable investment opportunity for those willing and able to take it.

Certainly, no one would say the Budget was particularly positive for the sector, but even as early as December it was clear to see from our business applications and transaction levels, particularly purchase, that landlords were still commi ed to the sector and were feeling more positive.

Of course, a lot of that comes from having certainty about what the ‘rules of the game’ now are. No one will have enjoyed hearing from the Chancellor that the Stamp Duty surcharge for additional property purchases was going to be upped immediately to 5%, but le ing the dust se le on that decision, and just simply being aware of it, allows landlords to factor in those extra costs.

Plus, of course, in the immediate a ermath we did hear from landlords who were able to mitigate against those extra costs on deals they were already working on. Negotiating a lower purchase price, for instance.

More to be done

Overall, certainty tends to bring activity, and building through December and into January we saw that activity increase as both new and existing landlords sensed that, despite some positive words about improving the UK housing market, much still rests on the ability of the private rental sector (PRS) to house those who can’t – or don’t wish to – get on the housing ladder.

That disconnect between supply and demand is still as sharp as it has been for the last few years, which

continues to result in the strong rental yield ﬁgures we are seeing from all the regions of the UK in which Fleet lends.

Our latest ‘Rental Barometer Index’ shows this in abundance, with strong annual rental yield ﬁgures across all but one region, the West Midlands, and this had only seen a slight 0.5% drop.

In areas like the North East (9.3%), Yorkshire & Humberside (8.6%), and the North West (8.3%), we are seeing particularly strong yields, while even the lowest, Greater London, is showing a 5.8% yield. This will clearly lead to landlords seeking investment opportunities that can deliver the same level of yield, potentially in the same regions as they are currently invested in, but also further aﬁeld.

There’s no doubting that a continued shi in mortgage pricing is also helping investment activity, even if there have been some recent ups and downs in that regard. In the last quarter of 2024, both Fleet’s average 75% loan-to-value (LTV) 2-year and 5-year ﬁxed-rates had fallen from the previous quarter, and our anticipation is that we should continue to see this going in the right direction.

Of course, we did have a bump up in swaps during the middle of January which impacted pricing, but the good news coming out of the UK in terms of a dip in inﬂation and an increase in GDP sent swaps back in the other direction quite sharply.

It does show a level of volatility, which clearly both landlord borrowers and their advisers need to be on top of, but even as you read this, we may well have had a further cut in Bank Base Rate in February. This was wri en at the tail end of January, by the way.

The mood music as I write was swinging in that direction certainly, and with the Governor of the Bank of England Andrew Bailey being very bullish about four potential rate cuts this year, with another Monetary Policy Commi ee (MPC) member

STEVE COX is chief commercial o cer at Fleet Mortgages

talking about cuts up to a possible 150 basis points, then it’s possible to envisage the Base Rate being well into the 3% zone by the end of 2025.

That, as we all know, makes a considerable difference to landlord borrower affordability. Even now, we’re seeing an o en much-maligned demographic, the first-time landlord, also making a strong reappearance as more new investors recognise the strong income and capital growth that can still be achieved through the PRS.

Even if the Government is able to get anywhere near its 1.5 million new homes target by the end of the decade, population growth over the past 10 to 15 years alone still needs to be met by housing, and with many people being priced out of buying, the steadfast option remains a PRS property.

2024, according to the Intermediary Mortgage Lenders Association (IMLA), ended with approximately £33bn of buy-to-let lending, up from just over £30bn in 2023. It anticipates that this will rise again over the next year or two, up to £38bn in 2025 and £42bn in 2026, with buy-to-let purchase activity continuing to grow, of course alongside a strengthening reﬁnance market.

My own inclination is to suggest these ﬁgures might actually be a li le conservative, especially if we can continue the theme of the early weeks of 2025 well into the year ahead.

Landlords are resilient at even the worst of times, but this current environment feels like a long way from the ‘worst’; instead, I would hope advisers are able to sense and beneﬁt from greater buy-to-let activity levels.

As a specialist lender in this area, we certainly have an appetite to support you in these endeavours. ●

Unlocking PRS potential in 2025

The private rented sector (PRS) continues to play an essential role in the UK housing market. However, mounting pressures are constantly reshaping the buyto-let (BTL) landscape, making it increasingly intricate and demanding for landlords.

That said, this sector still presents opportunities, such as strong yields for certain property types and sustained proﬁtability for well-balanced portfolios.

Professional landlords, in particular, have become the driving force behind current market activity, relying more heavily on mortgage intermediaries to navigate complexities and secure suitable lenders and products to meet evolving demands.

One of the primary drivers of this shi is the heightened cost of borrowing, combined with stricter aﬀordability criteria. These factors are prompting landlords of all sizes to reassess their ﬁnancial strategies and the viability of their portfolios. For many, this means making tough decisions about whether to retain or sell properties.

Despite these challenges, landlord sentiment remains relatively optimistic as many modify their focus, oﬀering a promising outlook for 2025 which is not always reﬂected in the mainstream media.

Shifting focus

Professional landlords are increasingly turning their a ention to higher-yielding property types, such as semi-commercial and commercial properties. Recent data from Shawbrook shows that applications for semi-commercial property purchases have risen by 31% year-on-year, and commercial property purchases increased by 28%. Reﬁnancing trends illustrate a

cautious approach among landlords. The data shows that applications for reﬁnancing without additional capital raising have risen across all property types, while those involving capital raising have declined. This suggests that landlords are prioritising debt management in today’s higher interest rate environment.

By securing ﬁxed-rate mortgages through product transfers, landlords are focusing on optimising their existing portfolios rather than expanding or selling oﬀ assets. This prudent strategy highlights the importance of stability and long-term planning in uncertain times.

Opportunities

For intermediaries, these trends present signiﬁcant opportunities to connect and engage with landlords and developers to showcase their expertise and value, particularly to those who may have experienced a series of ﬁnancial challenges over the past 12 to 18 months.

A comprehensive understanding of specialist and bespoke lending options, along with their varied product oﬀerings, is crucial for navigating these challenges in an increasingly complex lending world, and for delivering tailored solutions to meet changing client needs. For instance, landlords with impaired credit proﬁles

DONNA FRANCIS is managing director at Envelop

Intermediaries

must consider all aspects of a product ... These are factors which can signi cantly impact borrowers”

can still secure ﬁnancing if advisers know where to explore.

Cultivating strong relationships with lenders and packagers allows intermediaries to provide greater levels of expert assistance, even for the most intricate cases.

Beyond the headline

Success in the current BTL market requires looking beyond headline rates. Intermediaries must consider all aspects of a product, including fees, aﬀordability, valuation types, automated valuation models (AVMs), and dual-solicitor options. These are factors which can signiﬁcantly impact borrowers, depending on their unique circumstances.

By collaborating with specialists like Envelop, intermediaries can enhance their expertise and provide comprehensive support throughout the financing and refinancing journey. With a growing number of specialist opportunities anticipated in 2025, proactive and knowledgeable intermediaries with strong relationships will be instrumental in shaping the future of the UK housing market, while helping landlords sustain, and even surpass, historic profitability levels. ●

Selective licencing laws will leave tenants worse o

While the concept of ‘unintended consequences’ has been around for centuries, the term itself was popularised by the sociologist Robert K Merton in a 1936 essay.

Merton identiﬁed ﬁve sources of unintended consequences. Due to word count limitations, I’ll spare you detailed explanations, though it won’t surprise you to hear that ‘ignorance’ and ‘error’ are the most common.

However, I will expand on the third source – ‘imperious immediacy of interest’, as Merton put it.

This is where an individual, or indeed a government, wants to press ahead with something so badly that they choose to ignore obvious unintended consequences.

An example of this in real life is the way councils are rushing to take advantage of the Government’s more relaxed approach to Selective Licencing Schemes (SLS), despite concerns as to how it will impact tenants.

Until last month, councils needed the permission of the Secretary of State if they wanted to licence more than 20% of private rented properties in their borough. However, they can now introduce schemes of any size without ﬁrst obtaining consent.

Barking & Dagenham Council (B&D) was seemingly the ﬁrst to take advantage. Last month, it announced plans to introduce a new SLS, capturing most of the private rented properties in the borough, from 6th April 2025.

Under the terms of B&D’s new scheme, private landlords will have to fork out £950 for a licence to operate, although they will receive a discount

of up to £250 if they achieve the highest standards when inspected.

B&D argues that the move will help tackle anti-social behaviour, reduce deprivation, raise the quality of management of private rented homes and oust dodgy landlords.

You can’t argue with any of that – if it works as intended, that is, and I’m afraid the jury is still out on that.

B&D claims it carried out “over 8,000 property inspections under previous schemes, identifying hazards in more than half of these homes and taking action to improve conditions.”

Mixed feelings

Residents are unconvinced. B&D surveyed more than 800 locals to determine whether its previous licencing scheme was a success. Just 21% said that the previous scheme had helped improve the condition and management of private rented properties in the area. Moreover, just 37% said the council should continue to use selective licencing to improve private rented sector (PRS) properties in the area, with 42% against the idea.

While private tenants were more inclined to agree with the idea of sticking with selective licencing than, say, landlords or local businesses, these ﬁndings are hardly a ringing endorsement for the scheme’s eﬀectiveness.

B&D has also warned that there may be inspection delays, with landlords having to wait six months or more. Perhaps it has a shortage of inspectors. However, I ﬁnd it odd that it has not considered this already, given that it started consulting on a new SLS in February last year.

So, if B&D is underprepared and residents don’t believe Selective Licensing Schemes are eﬀective, why the rush?

DAVID WHITTAKER is CEO of Keystone Property Finance

B&D’s 2024-25 budget consultation admits that its “overstretched budget is being pushed to the edge,” as it revealed a funding shortfall of £23m.

In a sense, you can’t blame them for targeting what they perceive to be ‘wealthy’ property owners. Politically speaking, it’s a low-risk move. That said, it’s not risk-free. Tenants will ultimately end up paying the price.

B&D knows this. During its consultation process, it admi ed there was a risk that the new regime may cause landlords to hike their rents or sell up, leading to a lower supply of homes to rent in the area.

If B&D’s intentions are to improve conditions for tenants, introducing something that makes it more expensive to rent and harder to ﬁnd a home isn’t going to achieve that.

With 27% of households in B&D relying on the PRS to put a roof over their head, a signiﬁcant proportion of local residents could be aﬀected.

My worry is that other councils in precarious ﬁnancial positions decide to follow suit.

I have nothing against licencing schemes, per se, but only where it can be proven that they drive up standards. At present, that evidence is lacking. Without that proof, it seems odd that any council would press ahead knowing that it may cause a big chunk of their residents to be worse oﬀ.

I hope I’m wrong and that councils are not so desperate to press ahead that they wilfully ignore the risks.

Equally, if I’m right and tenants begin to suﬀer, I hope they are just as quick to scrap these schemes as they were to introduce them. ●

Renters’ Rights Bill: Olive branch or sledgehammer?

If landlords had hoped that the new Government’s Renters’ Rights Bill would forget about the previous Renters (Reform) Bill’s proposal to abolish Section 21 ‘no fault evictions’, they were disappointed last year.

The threat hasn’t gone away – the new Bill, which has passed through the Commons and is now with the Lords, is expected to become law this summer, and also includes abolition.

But the new Bill’s possession grounds oﬀer a potential olive branch to landlords, hopefully counterbalancing any gloomy eﬀects from its other measures.

In our survey last spring, landlords told us that the abolition of the nofault eviction was a disappointment. Landlords said they needed to be able to take back control of their property.

Furthermore, they thought that abolition was likely to see increased demand as courts heard possession claims and landlords looked to use Section 8 powers instead.

In this they shared common ground with many Conservative MPs in the last Government. Following pressure by Tory backbenchers, an amendment to the Bill would have made abolition contingent on improvements to the court process. Instead, under the new Bill, abolition will happen as soon as it comes into force.

But at least the new version provides some certainty, compared to the many months of doubt, debate and delay before the General Election.

This certainty includes ﬁrmer details on expanded possession grounds. The Bill proposes mandatory grounds such as occupation by landlord or family, the sale of a residential property, when a superior lease ends, possession by a superior landlord, and possession to allow

compliance with enforcement action. Our latest survey shows that landlords have found some consolation in this. We asked landlords whether the new expanded possession grounds would be helpful. Nearly 40% said the possession grounds would be helpful, while 28% said they wouldn’t be.

But one landlord told us that they thought that the Section 8 process would still be too protracted.

They said: “I don’t believe in the abolition of Section 21 as it will put a lot of ﬁnancial pressure on landlords when a tenant does not pay rent and [they have] to go down the lengthy process of Section 8 to get a property back.”

The survey showed that nearly all of the landlords knew about the new Bill, with only 9% saying they were not aware of it.

Further measures

In other measures in the Bill, landlords can also take back student housing from student tenants, a measure based on an amendment to the old Bill.

Landlords can increase rents once a year to the market rate. To do this, they will need to serve a ‘Section 13’ notice, se ing out the new rent and giving at least two months’ notice of it taking eﬀect.

But tenants will be able to challenge proposed rents at the First-tier Tribunal, the workings of which the Bill pledges to reform. Currently, tenants face the risk that the Tribunal may increase rent beyond what the landlord initially proposed. This will no longer be the case, so tenants never pay more than what the landlord asked for.

Backdating rent increases will also end. Rent increases by any other means – such as rent review clauses –

ROB STANTON is sales and distribution director at Landbay

No decent landlord will object to treating tenants fairly, and some of the proposed reform is to be welcomed”

will not be permi ed. In addition, the new Bill introduces laws to end rental bidding wars.

The Decent Homes Standard, currently only applicable for social housing, will be applied to the private rental sector. While the old Bill also proposed this, this goes one step further by extending Awaab’s Law to the private sector. This law sets clear legal expectations about the timeframes within which landlords must take action to make homes safe where they contain serious hazards.

No decent landlord will object to treating tenants fairly, and some of the proposed reform is to be welcomed. But the Bill may still be a sledgehammer to crack a nut.

As one landlord told us: “Landlords should respond in good time to genuine issues, but they should, however, be allowed to deal with problem tenants swi ly and ﬁrmly.”

Good landlords should be seen as part of the solution to the housing crisis. The buy-to-let sector must be allowed to continue to meet rising demand for rental properties.

The Renters’ Rights Bill is now making its way through the House of Lords. However it comes out in the wash, we will continue to work with brokers to support landlords. ●

ON THE PRECIPICE

HOW STAMP DUTY CHANGES ARE SHAPING THE HOUSING MARKET

by Jessica O'Connor

Nearly four months on from the Autumn Budget, the property market finds itself finally facing down the much-discussed Stamp Duty Land Tax (SDLT) measures that could shape its trajectory in 2025 and beyond.

The Government’s decision not to extend the lower Stamp Duty threshold for first-time buyers delivered a potentially devastating blow to those already struggling to get on the ladder. While those already on the path were spurred on to hurtle to completion, the decision forced many aspiring homeowners to drastically rethink their budgets, delay their homeownership dreams, or abandon them altogether.

Meanwhile, landlords and second-home hopefuls are also feeling the squeeze.

The Budget introduced an increase in the Stamp Duty surcharge on second homes and additional properties from 3% to 5% – an attempt to cool speculative buying and placate the rising cries for affordable housing.

For the private rented sector (PRS), already under pressure from rising costs and regulatory tightening, this surcharge could be a doubleedged sword. Many landlords may decide to offload properties, reducing rental stock and driving up rents, facing an increasingly hostile investment environment that threatens to exacerbate the rental crisis.

These measures have created a cocktail of challenges and opportunities for buyers and

investors alike, as Stamp Duty continues to be a lightning rod for debate, its impact rippling across every corner of the housing market.

First-timers left behind

Currently, buyers pay no Stamp Duty on purchases up to £250,000, but from 1st April, that tax-free threshold will halve to £125,000 –forcing many to fork out thousands more in tax at the very point they can least afford it.

For first-time buyers, the hit is even greater, with the special nil-rate threshold, initially designed to help more aspiring homeowners onto the ladder, dropping from £425,000 to £300,000,

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, warns of the potential pitfalls of these changes, noting that struggling buyers may be saddled with increased mortgage costs.

He says: “Many buyers will have to find thousands more in tax. For the average property in England, that means an extra £2,500 to pay.

“If buyers don’t have that cash up front, they’ll likely have to borrow more, increasing the cost of their mortgage over time. Some buyers will be forced to delay their purchase, while others may be priced out of homeownership altogether.”

The repercussions extend beyond individual buyers, with wider market implications likely to follow.

Nicholas Mendes, mortgage technical manager at John Charcol, acknowledges that while the maximum saving of £2,500 may not seem gamechanging, it comes at a time when affordability is already stretched.

“This is relatively small compared to broader affordability challenges, particularly as mortgage rates remain a key factor in buyer decisionmaking,” he concedes.

“If buyers bring forward their purchases to meet the deadline, demand could ease slightly post-April, which may reduce pressure on house prices.”

However, for those unable to buy in time, particularly in high-cost areas, renting remains the only option – potentially pushing up rents as more would-be buyers are locked out of homeownership.

Homeownership hurdles

For many hopeful first-time buyers, the Government’s decision to lower Stamp Duty thresholds is not just a setback – it’s an eviction notice from their homeownership dreams. With budgets now even tighter, buyers may have to either compromise on location and property size to chase lower tax bills, or cough up thousands more just to get a foothold.

As Colby Short, CEO of GetAgent.co.uk, points out, this all comes at a time when house prices remain stubbornly high, and show “little sign of falling.”

The impact is twofold: fewer first-time buyers able to purchase and more forced to delay their plans, leading to increased demand in an already stretched rental market. If supply cannot keep up, rents could climb even higher, making saving for a deposit even tougher, in a vicious cycle.

Short notes: “The new rules will likely reduce access to the market for many first-time buyers, especially in the more expensive local markets where the local property values smash through the newly lowered SDLT thresholds.”

For some, the only viable option will be moving back in with their parents in order to save – a scenario many will have hoped to avoid. With Stamp Duty relief disappearing and affordability worsening, the 'Bank of Mum and Dad' is about to see a sharp rise in “boomerang” tenants.

Nowhere is the outlook more bleak than in London, where sky-high property prices and shrinking affordability are creating the perfect storm.

Martese Carton, director of mortgage distribution at Leeds Building Society, warns that the average first-time buyer renting privately in the capital will now need to save for an additional 12 months before they can afford a property.

“The Government’s decision not to increase the thresholds at which people start paying Stamp Duty will mean buyers will have to pay Stamp Duty on 93% of the houses currently on the market in England, up from 70% under current rules,” she says.

"Why couldn't it have been snakes?!"

“This clearly has huge repercussions for the mortgage industry and means that we all need to work together to support people stepping onto and up the property ladder.”

Buyer frenzy

With the deadline fast approaching, the market is bracing for a predictable, yet dramatic, surge in activity. First-time buyers eager to dodge the additional tax burden are scrambling to complete before 31st March 2025, injecting a short-term frenzy into the market.

Much like previous cliff-edge deadlines, this artificial urgency is driving demand – and, in many cases, house prices – higher, particularly in regions where affordability is already stretched.

"The main impact of the Stamp Duty changes is likely to be on the timing of property transactions," explains Robert Gardner, chief economist at Nationwide.

He predicts a flurry of completions in the first quarter of 2025, particularly in March, followed by a cooling period in the months that follow.

"This pattern has played out after previous Stamp Duty changes," he notes, although he expects the swings to be slightly less extreme this time, given that the expiry was well-signposted.

The impact, however, will not be felt evenly across the country.

Gardner highlights that the biggest shockwaves will hit the South East, where 40% of first-time

buyers currently purchase properties in the £300,000 to £425,000 bracket, leaving them facing an average extra cost of £2,900, at a time when saving that amount is not easy.

By contrast, in regions such as Yorkshire & The Humber, the North of England, and Northern Ireland – where fewer than 10% of first-time buyers purchase properties within this range –the fallout will be more muted.

Steve Pimblett, chief data officer at Rightmove, has already observed the rush, particularly in higher-priced areas where first-time buyers stand to lose the most. However, as the deadline gets closer, some of this urgency has started to wane.

“As the deadline has crept nearer, we’ve seen some of this first-time buyer activity cool as it has become less likely that new buyers will complete on time” he explains.

Pimblett remains optimistic, adding: “Because there is still good availability of homes that would be Stamp Duty free for first-time buyers in most areas of England, we think this sector will continue to be active this year beyond the deadline.”

Market optimism

Indeed, not everyone is convinced that the market will suffer a major downturn once the dust settles.

"We are already seeing a pre-Stamp Duty rush, with new buyer demand up 13% compared to last

year," says Ross Turrell, commercial director of CHL Mortgages, citing Zoopla data.

But beyond this surge, he argues, the overall impact will be less dramatic than some fear.

He adds: “The profound impact some commentators predict is unlikely.

“We do not expect a drop in market activity, though a slight softening in prices may emerge in the medium to long term.”

If history is any indicator, Turrell expects buyers to adjust their budgets in a bid to absorb the additional cost, suggesting that sellers may find themselves tempering their expectations.

“As has happened when Stamp Duty has risen in the past, buyers – from first-timers to portfolio landlords – will simply adjust their budgets to accommodate the additional SDLT.

“As a result, we may see asking prices dip slightly as the market corrects.”

Affordable alternatives

Whatever the wider market impacts, with the Stamp Duty deadline fast approaching, first-time buyers are staring down an affordability crunch.

Once the threshold drops in April 2025, those struggling to gather the extra funds will need to explore alternative routes to homeownership –because, realistically, waiting for a sudden market correction is not a reliable strategy.

Fortunately, there are still some options available, even if none of them are a perfect substitute for much-needed Stamp Duty relief.

Shared Ownership, where buyers purchase a portion of a property – typically between 25% and 75% – and pay rent on the remaining share, is likely to gain traction.

While it lowers the initial financial burden, buyers should be mindful that "staircasing" – the process of gradually increasing ownership – can come with additional costs, including higher property valuations and legal fees.

For those saving up, the Government’s First Homes scheme offers discounts of 30% to 50% on eligible new-build properties, aimed at local first-time buyers and key workers.

However, Short cautions: “These schemes are certainly worth exploring, but it’s vital to read the details carefully, because there is concern among some about how affordable they actually are, especially over a long period of time.”

This is because future resale prices are also capped, meaning potential gains are limited.

Mortgage options are also evolving to cater for struggling first-time buyers.

Leeds Building Society recently introduced its Income Plus mortgage, allowing applicants with a minimum household income of £40,000 to borrow up to 5.5-times

In Numbers

◆ Total SDLT transactions in Q4 2024 were 11% higher than in the previous quarter, and 19% higher than the same period in 2023

◆ Residential property transactions in Q4 2024 were 9% higher than in the previous quarter, and 20% higher than in Q4 2023

◆ Total SDLT receipts in Q4 2024 were 23% higher than in the previous quarter, and 31% higher than Q4 2023

◆ Residential property receipts in Q4 2024 were 16% higher than in the previous quarter, and 27% higher than Q4 2023

◆ FTB Relief claims increased by 10% between Q3 2024 and Q4 2024, from 37,600 to 41,500. Compared to Q4 2023 there was an increase of 34%

◆ £202m in Stamp Duty was relieved in Q4 2024, which represents an increase of 10% compared to Q3 2024 and an increase of 38% compared to Q4 2023

Source: HMRC Quarterly Stamp Duty Land Tax (SDLT) statistics

"Mum, bad news about our house purchase"

their earnings – an increase of around £66,000 compared with standard mortgage offerings.

Additionally, lenders like Skipton have introduced track record mortgages, which assess rental payment history to help long-term renters access home loans without requiring a traditional deposit.

Mendes calls for a broader approach to supporting first-timers, including more flexible lending criteria, an expansion of Governmentbacked schemes, and increased support for alternative homeownership models like rentto-buy. However, as he rightly notes, the issue extends far beyond Stamp Duty.

“Addressing the supply-demand imbalance through targeted housing policy and mortgage market reforms will be crucial in ensuring sustainable access to homeownership,” he notes.

Whatever happens with the Government's house building targets, in the short-term it will be up to lenders and brokers to help buyers navigate the shifting landscape.

Turrell stresses the importance of “open communication, speedy decisions in principle, and certainty” to help maintain market confidence, adding: “If the specialist finance sector can provide those qualities, the market can start the new tax year post-Stamp Duty changes on the front foot.

“It’s vital that lenders and brokers work closely together in the next few months to help the market navigate the changes with confidence.”

Second homes

In addition to pulling support for first-time buyers and homemovers, the Government used the Budget as a means to hike the second-home Stamp Duty surcharge from 3% to 5%, ushering in yet another blow to an already battered housing sector.

Citing the move as a “significant jump,” Stinton notes that this change is set to add over £6,000 in tax to the cost of buying an average priced home as a second property.

Yet another pressure on landlords does not automatically benefit prospective homebuyers. In fact, it could have the opposite effect.

“It was a blow to landlords, but also to renters, who rely on a healthy private rental market,” Stinton says. “Higher rents and reduced availability of rental homes could be an unintended but very real consequence.”

Indeed, landlords, already juggling higher mortgage rates, stricter regulations, and mounting operational costs, now face even steeper acquisition expenses.

The result? Fewer rental properties entering the market and higher rents for tenants, the very

people the Government claims to be helping. While Ministers may have painted this move as a victory for first-time buyers, the reality is far murkier.

As Mendes points out: “Additional costs may be passed on to tenants through higher rents, particularly in areas where rental supply is already constrained.”

Fewer landlords willing to expand their portfolios means fewer homes available to tenants in the UK's busy rental market – some of whom have ability to or interest in purchasing – and when demand outstrips supply, rents inevitably rise. This leaves tenants caught in a vicious cycle – struggling to save for a deposit while their rental costs spiral.

The Government argues that the surcharge increase will free up housing stock and generate £1.2bn in tax revenue by 2029. But as Short highlights, this policy risks impacting landlords' willingness to buy more properties, because the acquisition cost will increase, which means “profitability will be hampered.”

Those who do continue to invest will have little choice but to raise rents to offset the extra costs, further squeezing tenants.

And those who sell up? Their absence from the market will only deepen the rental housing crisis.

Calls for reform

As the deadline for the new Stamp Duty threshold quickly approaches, and landlords are already feeling the squeeze of the increased second home surcharge, the Government’s approach to the housing market is starting to look less like a balancing act and more like a slow-motion runaway train.

Rather than supporting first-time buyers, it has chosen to reduce the very Stamp Duty relief designed to help them, forcing many to find thousands more just to get on the ladder.

At the same time, landlords face yet another tax hike, squeezing the private rental sector at a time when demand for affordable housing has never been higher.

Buyers, renters, and investors alike are being hit from all sides, with affordability stretched to breaking point. However, beyond Government mishandling, Stinton argues that Stamp Duty itself is the real issue.

He says: "Stamp Duty has been long in need of reform. It’s outdated, expensive, and can be a real barrier to homeownership."

Instead of addressing its flaws, the Government has doubled down on a system that makes buying, selling, and investing more difficult.

Stinton suggests a more pragmatic approach – linking Stamp Duty bands to regional house

A sum of many parts

MARYLEN EDWARDS, DIRECTOR OF MORTGAGES AT MT FINANCE

The property market presents both opportunities and challenges for aspiring landlords. While property investors face additional Stamp Duty costs through the 5% surcharge on investment properties, careful timing and market research can still make property investment financially viable. Potential savings can be substantial for those who thoroughly understand the tax implications and market conditions.

Amid fluctuating rates and uncertain economic conditions, first-time landlords must look beyond quick savings. Critical factors like rental yields, property appreciation, and local market trends carry equal weight in making sound investment decisions.

While the Stamp Duty relief offers an attractive upfront financial incentive, buying a property remains a complex decision requiring careful consideration of multiple factors beyond immediate tax benefits.

This deadline represents more than a simple tax-saving opportunity – it's a pivotal moment for those seeking to diversify investment portfolios and establish a long-term financial strategy through property ownership. The key lies not merely in beating the rush, but in making well-informed investments that align with long-term financial goals.

As the deadline approaches, potential landlords must proceed thoughtfully and with caution, weighing the appeal of tax savings against the complexities of property investment, combining careful analysis with realistic expectations and a comprehensive understanding of broader market dynamics.

prices to avoid unfairly penalising buyers in high-cost areas, for example, or introducing fluid thresholds that rise with inflation.

While lower or abolished Stamp Duty means a loss in tax for the Government, the wider ecosystem of stimulated transactions – with all this entails for ancillary businesses and the economy – means it is not a simple negative.

No matter what the outcome, as Stinton notes: “The reality is, home buyers are already facing challenges with higher interest rates and an under-supply of housing.

“Hiking Stamp Duty at a time like this feels like another barrier rather than a solution.” ●

Could high street retail provide a housing boost?

The high street is dying. It’s a phrase we’ve all heard before and likely seen first-hand. As you walk through your local town centre, or visit your nearby high street, you will inevitably go past empty units that would have once been full.

The reasons are well documented –the rise of online shopping and home deliveries, increasing energy costs and the cost-of-living crisis, to name a few. So, why isn’t there a viable solution to tackle both the death of the high street and the shortfall of homes we have in the UK?

In recent years we’ve seen permitted development (PD) extended across a range of property types, including commercial property, and in 2020 it became even easier to convert commercial spaces into homes.

During this time, we’ve seen many commercial premises converted, particularly offices. It’s enabled developers to take dated buildings that no business wanted to rent or buy, and transform them into modern, energyefficient homes.

With the success of the office conversion in the last decade, and with office stock that can be easily converted running out, could high street retail units be the answer to the current housing crisis facing the UK?

Converting to a solution

In the year 2023-24 there were 221,070 homes built, according to Government data, and 8,825 of those were created through permitted development – a sizeable contribution, but perhaps not enough. Of these units, the vast amount (6,695) were due to conversions from offices, whereas just 803 were from commercial, business and service-use buildings.

This shows that if the conversion of high street premises had a bigger uptake, it could be a significant contributor to new housing in the coming years.

Of course, there are some barriers to high street retail conversion. One of the main reasons is that, for developers, it simply isn’t as costeffective as the units tend to be much smaller, and often dating back to Victorian times, making them more challenging to convert and provide economies of scale.

While the majority of the high streets will be these smaller premises, there are exceptions. Especially with the departure of some very wellknown department stores from our high streets in recent years.It could be these types of units that developers utilise to convert into homes.

Converting existing high street units would be of great benefit for several reasons. First, it’s often more sustainable to convert pre-existing buildings and retrofit them to ensure they are up to today’s standards than to build from scratch, and potentially demolish an existing building or clear the land.

Furthermore, retail units are in town centres or on a high street, and therefore close to transport networks and amenities – a big tick for many buyers and renters. Of course, while these won’t always be suitable for everyone, they could complement the kick-start to housebuilding the Government is aiming for, by providing developers access to existing property, not having to find new land in often built-up towns and cities.

Not all high street properties will, of course, be suitable. But the industry has funded imaginative schemes that have repurposed whole

NEAL MOY

is managing director at Paragon Development Finance

It’s often more sustainable to convert preexisting buildings ... than to build from scratch”

shopping precincts, adding housing units to the top of the building, while upgrading the commercial properties below. There are solutions.

We all know there’s a huge shortfall of homes in the UK to buy and rent, and we need innovative solutions to address this issue. While there are plans underway by the current Government to build hundreds of thousands of homes over the next few years, we have to question where they will be built, and if the labour resources are available to build them, when we have properties across the UK in popular areas sitting vacant which can be more easily converted. ●

Transforming the alternative finance landscape

As we navigate 2025, the alternative finance landscape is poised for significant growth and transformation. The year will be one of opportunity and uncertainty – two things we do not often see go hand in hand.

We are seeing small to mediumsized enterprises (SMEs) increasingly seek ﬂexible and convenient funding options that they cannot get from traditional lenders and banks.

Berkshire Hathaway’s ‘Business Wire’ recently reported that the sector is expected to hit a compound annual growth rate of 9.2% between 2024 and 2028.

As ever more businesses opportunistically enter the alternative lending space, SMEs seeking this service will need to prioritise experience, understanding and trust.

Growth on the horizon

The UK economy is projected to grow in 2025, with the Organisation for Economic Cooperation and Development (OECD) upgrading its expectations for 2025’s GDP increase from 1.2% to 1.7%. However, this was the result of increased Government spending announced in last year’s autumn Budget. In line with this, the OECD is also predicting higher inﬂation, averaging at around 2.7% across the year, which would be the highest among the G7 nations.

With this, we see both opportunity and challenges for SMEs across the UK, and while the growth prospects are encouraging, businesses must be aware of – and prepare for – the complexities that come with rising costs and inﬂationary pressures.

In line with the pressures outlined above, businesses will need to be

prepared for potential cashﬂow issues throughout the year.

With the increases to minimum wage and to employers’ National Insurance (NI) contributions, businesses will have to shell out a lot more money every month.

For smaller businesses that might already be struggling with the environment of rising costs and narrow profit margins over recent years, we anticipate that there will be a greater need for additional working capital to manage the increased strain.

Looking towards the global market, the past few years have seen a relative return to stability after the shock of the Covid-19 pandemic. In 2025, higher process and volatility could become the new status quo.

The Trump administration has signalled a shift away from globalisation with the new import tariffs, and while this is unlikely to have a huge direct impact on British SMEs given that the vast majority of UK to US exports are services rather than products, it is something to keep in mind.

The reactions and retaliations from affected companies could impact the wider global economy, hindering growth and leading to inﬂation – it could also be compounded by political uncertainty across Europe.

Advancing intelligence

Artificial intelligence (AI), as we have seen across every industry, is set to impact the lending sector in 2025.

With its ability to quickly process large amounts of data, the value of AI cannot be denied when it comes to automating admin tasks; however, it is important to note that this technology can only truly be used in addition to the people-first ethos that is vital to the lending industry.

Alongside new businesses looking to cash in on the AI goldrush, traditional banks and lenders are also touting AI platforms as a way to serve the customers that they have historically ignored.

However, SMEs seeking finance should exercise caution with these fully automated systems that ﬂatten the nuances of their businesses and offer unfavourable terms. Unlike lenders simply looking to capitalise on AI, at Reward Funding, we never outsource our decision-making or use robots. You deal directly with humans in the relevant team.

Two sides to the story

Overall, 2025 presents significant challenges for SMEs, driven by rising costs, inﬂation and global uncertainties. Economic pressures, such as higher employer contributions and wage increases, will strain cashﬂow for many small businesses.

Global volatility, including geopolitical shifts and regulatory changes, will add further complexity. Despite these headwinds, opportunities for growth remain.

For the alternative lending sector, this environment presents positive opportunities, but we must not fall into complacency.

By fostering trust and adapting to changing market needs, the alternative lending industry is wellpositioned to support SMEs through turbulent times. ●

NICK SMITH is group managing director at Reward Funding

Specialist support is vital in the property market

Covid-19 has affected many people in many ways. One of these effects was already happening, of course, in that it turbocharged non-standard working practices. Whether it’s self-employment or the gig economy, far more people have now taken control of their own livelihoods, and many more are permanently based from home.

This is just one of the major shifts that have reshaped borrower demographics in recent years. With this changing market in mind, it is important for companies like Masthaven and others in this sector to create financial products that align with the borrower’s changing lifestyle – in a way that is simply not happening with the high street banks.

Rather than making the borrower conform to the lender, the product should be centred around the customer, and this is where the specialist market excels.

Specialist buy-to-let

First, looking at buy-to-let (BTL), people’s views on the market are decidedly mixed. The Labour Government’s approach means a dampening as far as it being profitable to be a landlord.

There is a view that BTL is moving much more towards the professional landlord model rather than what people would refer to as the ‘dinner party landlord’. That comes with its own challenges.

For both BTL and the wider property market as a whole, we also have to look at the type of tenant and how that’s changing.

There will, for example, be an increasingly large number of smaller households. This is partly because

of family units being separated, as well as people living longer, staying single for longer, and other changing preferences and demographics.

As we get these kinds of changes to demographics, those specialist properties – like houses in multiple occupation (HMOs) – become part of the longer-term trend, seeing increased demand.

This all ties in further with the need for more housing in general. Specialist lenders will play a key role in boosting UK housing stock.

Look at it this way: even if the population stays constant, those people will need more separate ﬂats and houses per person than they would a generation ago. That’s not even accounting for the projected growth in the UK population.

Expanding the toolkit

These changes mean that every broker must have a broader understanding of the range of lending products available to them.

Secured loans, for example, are something which every Financial Conduct Authority (FCA) regulated broker should have in their locker, especially when someone wants to release equity.

If someone wants to borrow £50,000, it is often far cheaper to take a second charge loan than to have to refinance out to a new provider.

There are other times when it is better for the borrower to take a further advance on the existing lender or to refinance out, but a secured loan should be considered in each and every case.

The secured loan market reached £7bn a year of originations in 2007. Now it’s somewhere between £1.5bn and £1.8bn a year. Different sources say different figures, but what

ANDREW BLOOM is CEO at Masthaven Finance

Rather than making the borrower conform to the lender, the product should be centred around the customer”

everyone agrees on is that over the past couple of years this market has been growing strongly.

What I find extremely encouraging in the secured loan market is that, even with interest rates increasing so significantly – which has tempered down the demand for all lending products – the market has still grown. It has grown and it will continue to grow. Secured loans are an important division of ours at Masthaven, but importantly, it is just one of a suite of lending products which we provide to our intermediary partners.

A home of your own

Another example of why you would use the services of a specialist lender is when somebody wants to build their own home. Where do these clients go to get finance?

There are a lot of people in the UK who want to build new or substantially develop their existing house. This also plays into the need for more housing to be built overall in the UK.

The clear message is that people must go to a provider that meets their needs. That’s led by the intermediary market, which is exceptionally good at matching up the customers’ needs with the right lending provider. ●

What’s next for commercial real estate?

To say the commercial real estate (CRE) market has faced a challenging five years would be a huge understatement. The story is wellknown by now. With the onset of Covid-19 and lockdown, the CRE sector was put on its knees, with retail and hospitality outlets forced to close and offices vacant. No sooner had the world returned to something resembling normality than runaway inﬂation and the subsequent spike in interest rates placed huge financial strain on CRE landlords and asset managers – and, crucially, on the finances of the organisations that leased and used these buildings.

Between 2020 and 2024, the only question seemed to be how far occupancy rates and valuations in the CRE sector would fall. Overall, UK commercial property values are approximately 25% down on their pre-pandemic levels. Meanwhile, data from CoStar shows total volumes of CRE sales in the UK totalled £26bn in 2023 – the weakest annual return since 2009 following the Global Financial Crisis.

Rays of light started to puncture through in 2024. Figures from CBRE show that UK commercial property delivered a total return of 7.7%, based on growth in both rental and capital values. Not only was this higher than the total returns seen in 2022 and 2023, but it was also above the average annual return of 7.2% recorded by the CBRE UK Index since 2000.

Outlook for 2025

There were green shoots of recovery, but one swallow does not make a summer. 2025 is shaping up to be a crucial year in determining whether the return to growth can be sustained.

The early signs are positive. To cite CBRE’s most recent data: “Capital values for UK commercial real estate continued to rise during January, recording a 0.3% increase [...] Rental values increased by 0.2% monthon-month, while total returns for commercial property were 0.7%.”

Christian Smith, director at Savills, said: “The outlook for 2025 [for the CRE market] is fairly positive, with more stability and improvements in wider macro-economic factors.”

The word “fairly” stands out, underlining the important trends and challenges that investors must factor into their decision-making.

Nevertheless, the outlook is positive. Just as with the residential market, the fall in interest rates is a critical factor in fuelling that positivity.

Trends to watch

In truth, the predominant trends across the CRE sector remain similar to those that have dominated discussions in the market over recent years: the cost of debt, the rise of remote working, and the future of bricks and mortar retail.

As noted, the fall in interest rates has been – and will be – essential in injecting new life into the CRE sector, allowing existing and prospective investors to take a more bullish approach in financing their portfolios. We expect to see a lot of refinancing activity among commercial property investors in the coming months.

Trends in the office space are perhaps a little more nuanced. There is a steady stream of headlines about large organisations mandating a return to the office – Amazon, Apple, JPMorgan, Goldman Sachs, WPP, BlackRock, HSBC, Google, IMB – and many small to medium enterprises (SMEs) have followed suit amid

PARESH RAJA is CEO at Market Financial Solutions

concerns around productivity and collaboration.

Hybrid working remains commonplace, but people working more from the office has helped stabilise the CRE market. While occupancy rates are not on track to return to pre-pandemic levels – it’s unlikely they ever will – the market has recalibrated, presenting opportunities for investors now keen to enter the market.

Finally, retail. A resurgence can be seen here, as Mat Oakley, director of commercial research at Savills, wrote recently: “Having seen rents move upwards across 2025 and investor demand grow, we’re predicting that 2025 will see more institutional interest in UK retail than in the previous decade. Prime shopping centres, retail warehouse parks, and substantial high street parades should all be buys in 2025.”

Lenders must respond

As ever, it is essential that lenders monitor and adapt. Those with products catered to commercial and semi-commercial property must not only ensure that brokers and investors are suitably supported to take advantage of opportunities in the market, but they must also help them understand how the sector is evolving. Colliers predicts UK commercial property returns will reach double digits (11%) in 2025. But at Market Financial Solutions, we know that growth in this sector is only possible if the right products and services are delivered – it is essential we play our part in working with brokers and their clients to reinvigorate the market as it looks to turn a corner. ●

Bridging to invest overtaking chain-breaks

Aforecasted 25% increase in bridging finance over the next five years, in what is now over a £10bn industry in the UK, is undoubtedly music to the ears of brokers and lenders, and that’s not all. Whether you look at the latest Mintel report or Bridging & Development Lenders Association (BDLA) statistics, they tell a story of change and positivity overall, which we all need as we start 2025. Two elements are of particular interest: loan applications (up 6.7% in Q3) and a change in the main reason for a loan (24% investment).

Investment and confidence

An increase in loan applications shows a general awareness of bridging as people begin to explore wider solutions to fast finance for varying

reasons. It’s good to see the efforts of all brokers and lenders being rewarded and clients getting the finance they need.

However, a jump to 24% of bridging being accessed for investment –pushing chain-breaks down to 17% – is remarkable. Historically, bridging has been the go-to for deals falling out of bed, which will continue to be vital. However, loans for investment signal general confidence in bridging, the economic outlook, and how well brokers are serving clients.

Supporting investors

A quarter of bridging loans now are for investment, demonstrating the value of the speed at which they can be delivered and the competitive rates now available to clients. The market’s standard of service, regulation, and reputation have also increased vastly over the last decade.

RICHARD KEEN is national sales manager at Greenfield Bridging

Investors are savvy and increasingly aware that bridging can be viable in certain circumstances, or even essential to capitalise on opportunities. As mortgage rates settle at a higher level, clients also realise that bridging is more affordable and relative in terms of profit.

Investment encompasses many different circumstances, from purchase to renovation projects. As networks and brokers capitalise on the opportunity with investors, it’s essential to understand that lenders have different criteria for development and improvement, with varying risk, service, and ﬂexibility levels.

As bridging continues to grow, brokers and networks have an opportunity to ﬂex their muscles with partnerships with lenders that balance speed with rates and service. ●

In Pro le.

Afin Bank

Jessica O’Connor speaks with James Briggs, intermediary sales director at A n Bank, about the lender’s ambitious launch and its mission to support underserved borrowers

Against the backdrop of the everevolving financial landscape, a new player is poised to redefine banking for the African diaspora in the UK. Afin Bank, having recently secured its banking licence Authorisation with Restrictions (AwR) from the regulators, is gearing up to launch its services in 2025.

Backed by a £62m commitment from parent company WAICA Reinsurance Corporation Plc, one of Africa’s biggest reinsurance firms, Afin Bank insists it is not just another digital-only lender. Its mission is to provide financial solutions to Africans residing in the UK, as well as certain overseas borrowers eyeing the UK property market.

e Intermediary sat down with James Briggs, intermediary sales director, to delve deeper into Afin Bank’s vision, its unique proposition, and how it plans to make banking more accessible.

Serving the underserved

African communities in the UK often find themselves underserved by both traditional high street banks and specialist lenders. Whether due to visa status, a lack of credit history in the UK, or simply a lack of tailored financial products, many have struggled to access the lending they need to put down roots. That is precisely the gap Afin Bank was created to fill.

“We want to fill in some gaps in the market and offer something new to help support more enquiries,” Briggs adds.

Breaking barriers

Afin Bank’s decision to prioritise the African diaspora was not made by chance – it was born from a deep understanding of the challenges this community faces when trying to access finance in the UK.

“The inspiration to support this demographic came from the real experiences of people from Africa living in the UK trying to get a mortgage,” Briggs explains. “They created the business that became Afin Bank.”

He continues: “It was this idea that attracted our parent company, WAICA Re, which is based in various countries in Africa. They saw that there was an opportunity in the market due to the amount of people from these countries in the UK on work visas.”

Despite their significant contributions to the UK economy – particularly within sectors such as health, law, and finance – many African nationals struggle to secure mortgages.

“Our core mission is to support diaspora clients in securing finance,” explains Briggs. “The bank was originally founded to serve African communities working in and living in the UK who have been overlooked by mainstream lenders.”

While this remains the heart of Afin’s vision, its ambitions go beyond a single demographic.

Briggs says: “We also want to include other demographics that are underserved within the market. That includes self-employed borrowers, high net worth [HNW] borrowers, professionals, and young professionals.”

“Because of the complications many lenders have around work visas, where they might require longer visas, or because they want several years of credit history in the UK, this market is very underserved,” Briggs explains.

borrowers, professionals, and young in

By focusing on these overlooked groups, Afin Bank aims to do more than just compete – it wants to provide real solutions.

JAMES BRIGGS

Afin Bank aims to change that by offering lending solutions for those who have lived in the UK for as little as six months, breaking down the barriers that prevent many from owning a home.

Industry data also supports the growing demand for products tailored to this demographic.

some work with the sourcing providers

Briggs says: “We have engaged and done some work with the sourcing providers and criteria providers, and there is a growing demand to service these types of clients.

of

“Data from Twenty7Tec showed a 54% increase in searches for non-UK resident criteria in Q4 2023 compared to Q3.”

The struggle is not just about getting a mortgage – it starts even earlier.

Briggs explains: “If a landlord has four tenants to choose from, and you have only been living in the UK for six or nine months with next to no track record – it’s a real challenge.”

This makes it even harder to save for a deposit, trapping many in a system that prevents homeownership. Afin Bank’s goal is to provide a genuine pathway to financial stability.

Market gaps

Afin Bank is also tackling self-employed borrowers and those with irregular income streams.

“It’s all about understanding where the gaps are in the current propositions,” notes Briggs.

With around 16% of the UK workforce now self-employed, the demand for lending solutions that accommodate fluctuating incomes is only increasing. Nevertheless, traditional lenders continue to impose rigid criteria that create significant barriers.

He says: “Often, self-employed borrowers face challenges around consistency of income. Some lenders want evidence of two or three years of accounts – and many won’t even consider forecasted income.”

This outdated approach leaves many self-employed individuals locked out of homeownership.

“Self-employed people are greatly needed in the UK economy,” Briggs adds. “Many employed people are ultimately employed because there are self-employed people out there.”

The same challenges extend to others in the market, such as freelancers and those in temporary roles, who may have extensive experience in their fields but struggle to meet conventional lending criteria.

“It should be about the client’s experience, not necessarily just looking at their current commissions,” Briggs argues.

While embracing fintech to streamline processes, Afin Bank plans to take a different approach, adopting a manual underwriting model to accurately assess each client’s needs.

“We will always take a manual underwriting approach in handling our clients’ unique circumstances,” says Briggs.

Afin aims to ensure that self-employed borrowers and those with non-traditional income streams have access to the mortgage products they need – “without unnecessary obstacles.”

Supporting brokers

Afin Bank is clear that building strong relationships with brokers will be key to its success, with a plan for integrating into the market upon launch.

“We will have a phased approach to our distribution when we launch, which hopefully will be mid-2025,” he explains.

“We will have our panel partners, working with a couple of the clubs and networks upon launch.”

Rather than one-size-fits-all, Afin is committed to ensuring brokers have the flexibility to work in a way that suits their business.

“We’re not going to force people down a path that is not suitable for their business,” Briggs adds.

In fact, Afin plans to open distribution to both directly authorised (DA) and appointed representative (AR) brokers in stages, ensuring that service levels remain high.

Briggs says: “We have to be mindful of the service we offer to our intermediary partners – we want to get that right.”

Given the bank’s expected business mix –weighted towards residential mortgages, with a high proportion of purchase transactions –efficiency will be a top priority.

“Being able to very quickly be nimble and give quick decisions to our intermediary partners is really important to those kinds of clients,” Briggs notes.

To further strengthen its broker relationships, the bank is also investing in a dedicated intermediary experience team, “with the goal of supporting intermediaries face-to-face.”

The bank’s offerings will include residential and buy-to-let (BTL) mortgages. They are in the final stages of development, but will offer fixed rates at various loan-to-values (LTVs), including high LTVs for purchase transactions, to help first-time buyers and those struggling to secure financing.

Briggs says: “On the BTL side, we will be supporting landlords through our consumer buyto-let position, and we will also have an overseas buy-to-let, targeted at clients in certain countries, not just in the UK.”

Long-term ambition

Afin Bank may be launching with a focused proposition, but its ambitions stretch far.

“We are really ambitious as a bank, and this is just our launch position,” Briggs notes.

“We believe our proposition will appeal to other diaspora communities – people living and working in the UK from other parts of the world that are also underserved.”

While the bank’s immediate focus is on establishing its presence and refining its core offering, its long-term vision is clear.

“There’s lots to come – our proposition will grow as we are very ambitious,” Briggs concludes.

“But right now, these are our building stages and our launch, we are very excited for what is to come.” ●

The right lender makes a deal, the wrong one breaks it

Choosing the right lender is one of the most critical decisions in any development project. The right lender can provide more than just funding – it effectively becomes a strategic partner, offering flexibility, expertise, and support to help bring your vision to life.

On the other hand, the wrong lender can derail your plans with inﬂexible terms, hidden fees, unnecessary stress or delays that threaten the entire deal and eat into your timeline and proﬁts.

Choosing the right lender is essential to making – or breaking – a client’s development deal.

It has undoubtedly been a challenging few years for UK housebuilders, and access to finance has not been easy. So, developers would be forgiven for thinking that securing financing is one of the most critical steps in any property development project. Yet, many developers underestimate just how much the choice of lender can influence their project’s success.

A lender’s role goes beyond just approving a loan application. They set the terms that govern your project’s financial foundation and directly impact your ability to manage cash flow, meet deadlines, and navigate challenges. The ideal lender aligns with your project’s timeline, scale, and risk profile, ensuring you have the resources you need when you need them.

Getting it right

A good lender understands the unique challenges of property development and oﬀers tailored solutions that align with your vision. It will ensure that funds are disbursed on time, helping

you avoid costly delays, and can provide expert guidance on navigating ﬁnancial complexities.

Taking days to pay a drawdown certiﬁcate can impact the working capital of the developer. Moreover, the right lender fosters trust and a longterm partnership, which can lead to be er terms and smoother approvals for future projects.

In essence, the lender acts as an enabler, turning development plans into proﬁtable outcomes.

The risks

Choosing the wrong lender can have serious consequences that jeopardise an entire project. Delays in fund disbursement can stall construction timelines, leading to increased costs and missed market opportunities.

Rigid loan terms might leave a client unable to adapt to unforeseen circumstances, such as rising material costs. Hidden fees and unclear terms can inflate your financial burden, eroding your profits.

An aggressive lender that decides to enforce the security too quickly rather than working with you to help complete the project is a nightmare.

Additionally, lenders with li le experience in property development may lack the insight needed to support the client’s goals, leaving them without guidance when challenges arise. Ultimately, the wrong lender can turn a promising project into a ﬁnancial headache.

Factors to consider

Selecting the right lender requires a careful evaluation of several key factors to ensure they align with the project’s needs and goals.

Start by assessing their experience in property development – a lender with industry expertise will be er

YANN MURCIANO is CEO at BLEND

Find a lender that not only meets the client’s nancial needs, but also contributes to the project’s overall success”

understand the complexities of the project and oﬀer practical solutions. Transparency is equally important; you should feel conﬁdent that all terms, fees, and repayment schedules are clear and manageable.

There are few things more frustrating than terms that change at the last minute. Speed and efficiency in fund disbursement can make a significant difference, especially for time-sensitive developments.

Additionally, ﬂexibility in loan terms is crucial to adapt to unexpected changes in your project.

By thoroughly considering these factors, you can ﬁnd a lender that not only meets the client’s ﬁnancial needs, but also contributes to the project’s overall success.

To conclude, choosing the right lender is not just about securing ﬁnancing – it’s about ﬁnding a partner that shares the vision and is invested in its success.

Take the time to assess the options, ask the right questions, and prioritise transparency and ﬂexibility. With the right lender, your client can turn their development plans into proﬁtable realities. ●

Why brokers want bespoke pricing for business clients

DAVID CASTLING is head of intermediary distribution at Atom bank

Anew year is a time for many of us to make resolutions, to outline the things we want to see in the 12 months ahead. Brokers are no diﬀerent, and have been sharing their thoughts with us through our quarterly small to medium enterprise (SME) Pulse survey about the developments they would love to see in 2025 which would boost the prospects for their commercial clients.

It’s no huge surprise that top of the wishlist for brokers is lower interest rates. Price is a crucial consideration for any business considering raising funds, and the more competitively priced that funding is, the easier it will be for the business to make the sums add up.

The prospects appear positive on this front. Inﬂation seems to be more under control than in recent years, and that is translating into base rate reductions. While those cuts may be taking place more slowly than anticipated – or perhaps hoped –pricing for commercial loans looks to be heading in the right direction.

However, it’s not just pricing that brokers suggest is key. They also want to see be er lines of communication from lenders, being more open about not only the progress of cases but also the types of cases that they can support.

In addition, brokers pointed to accessibility, calling for lenders to make it easier for their clients to secure the funding they need, for example through more straightforward processes or relaxed lending criteria.

This is particularly notable, as once again, our Pulse survey for Q4 suggested that accessibility is a cause for concern. While a majority of

brokers report no issues in arranging ﬁnance for their commercial clients, the proportion of brokers experiencing problems has increased consistently over recent surveys, reaching 33%.

Clearly, if lenders want to win commercial business and build stronger relationships with brokers, it’s crucial to combine competitive pricing with greater transparency and ﬂexibility.

Recognising individuality

Another of the factors picked out by commercial brokers on their wishlist for 2025 that really stood out to me was a keenness for bespoke pricing.

I know from my conversations with our broker panel that the current approach employed by many lenders – of cookie-cu er pricing irrespective of the business case – can lead to frustrations.

The reality is that each business is diﬀerent, with its own circumstances and needs, and providing what is essentially an ‘oﬀ the peg’ product may not be best for them.

If the business is to achieve its ambitions, then it really needs funding that is actively designed with them in mind.

It’s something that we believe in strongly at Atom bank, with all business borrowers beneﬁting from bespoke pricing based on their circumstances. Brokers also have the option of obtaining a Quick Quote, giving the client a decent idea of what their funding is likely to cost through our portal.

There is no reason why providing a more personal service needs to slow things down, if you have the right processes in place.

For brokers wishing for a busier 2025, the Pulse survey provides some

reasons for optimism. Once again, a majority of brokers reported seeing demand from their commercial clients increase, compared with just 5% who suggested that demand was dropping.

The Budget caused some concerns among brokers, as their clients elected to hold oﬀ on borrowing plans over concerns around potential tax changes, but it would appear that some are content to push on now.

This increased activity is boosting the conﬁdence of brokers, too, with two-thirds stating that they feel optimistic about their prospects for 2025.

What lies ahead?

It’s genuinely encouraging to see so much optimism among commercial brokers for the future.

Advisers don’t need me to rehash the challenges that they and their clients have had to face head-on over recent years. Understandably, this has meant that some businesses have held oﬀ on taking the steps which might lead to growth and expansion down the line.

Nevertheless, our Pulse survey suggests that a growing number of businesses have decided that the time is right to push on – and to raise the funding required to support that development.

The ball is now in the lender’s court. We know that the demand is there, and that brokers want to build strong, fruitful relationships with lenders they can trust. It’s up to the funding sector to meet that demand, to deliver not just an eye-catching rate but an experience to match. ●

Getting more out of our housing stock

The start of the year o en sparks change, with buyers and tenants keen to make their next move and secure their ideal home. It’s a time of opportunity, tempered by the reality of limited options and intense competition. Yet, they face plenty of competition and limited choice.

The latest ﬁgures from Propertymark show that the average estate agent branch has 108 new prospective buyers registered – a twoyear high – but only 44 properties available. It’s a similar story in rentals, with an average of seven applications for each property – an imbalance that continues to drive both house prices and rents higher.

If we are to get closer to meeting this demand, we need more homes. This won’t only come down to developers building new properties; we also need to get more out of our existing housing stock.

Property investors know that giving properties a li le a ention and carrying out small changes can signiﬁcantly boost their appeal.

But what about more substantial projects, where the property undergoes signiﬁcant transformation? Refurbishment works

A simple faceli – a bit of TLC – can have a big impact on a property. Modest improvements, such as pu ing in a new kitchen or bathroom, can open up the property to new tenants, potentially pushing up rental income in the process.

Many investors have properties within their portfolios that have gone through this kind of ‘glow-up’ process, making them more a ractive to tenants in the local area.

However, we’re seeing an increasing number of investors keen to take on larger, more ambitious projects. These aren’t just about upgrading a kitchen, but involve substantial

works like adding an extension or converting a lo .

The reasoning is simple: transforming properties to appeal to a broader pool of tenants can result in be er yields. This is even more important with rising costs and Stamp Duty changes.

Importance of funding

While investors are eager to take on these exciting projects – and are actively identifying properties with potential – the challenge o en lies in securing funding to make those projects a reality.

Brokers tell us that one of the biggest challenges for advisers and their clients is ﬁnding lenders that truly understand these types of projects. Flexibility and a determination to get deals done are crucial, particularly for larger and more unusual refurbishment projects.

Recent feedback has shown strong demand for tailored funding solutions to support investors with larger refurbishment projects, reﬂecting the market’s appetite for more ambitious property upgrades.

By offering funding from day one at up to 70% of the current property value, we’ve supported numerous investors in pursuing ambitious deals with confidence. It’s partnerships like these that make all the difference in the success of these projects.

Looking to the exit

Brokers working with experienced property investors know that understanding the exit strategy from the outset is just as crucial as securing initial funding. It’s essential to have clarity on how the short-term ﬁnance will be repaid.

While many investors aim to sell the property a er the refurbishment work, this isn’t always the case. Some investors plan to retain the property as a long-term rental asset. Transitioning from bridging ﬁnance to buy-to-let

ALEX UPTON is managing director, specialist mortgages and bridging at Hampshire Trust Bank

Recent feedback has shown strong demand for tailored funding solutions to support investors with larger refurbishment projects”

(BTL) ﬁnance can be complex, which is why the choice of lender is so important.

Brokers value lenders that understand the diﬀerent stages of lending within property projects, ensuring their clients can move seamlessly from one phase to the next with the right ﬁnancial solutions in place.

Whether it’s development ﬁnance, bridging, or buy-to-let, we design bespoke solutions tailored to the needs of each individual client.

Working with a lender that oﬀers this level of expertise can eliminate delays and ensure a smooth, stress-free transition between funding products.

Ambitious projects

Investors will continue to target ambitious refurbishment projects, but those projects can only succeed with the support of ﬂexible lenders. Lenders that are willing to adapt and deliver tailored solutions will play a vital role in helping brokers and their clients navigate a market where demand continues to outstrip supply, ensuring more properties reach their full potential. ●

Don’t let your development lender frustrate your client’s project

At Magnet Capital we are a genuine solutions provider and experts in development finance.

Why choose Magnet Capital?

• No hidden costs. We are completely transparent about our pricing.

• Quick, decisive approach. No ‘double underwriting’ or slow credit committee process. Brokers and clients have direct access to genuine decision makers.

• Flexible funding. Our funds are provided by our equity partner in the business and therefore we aren’t limited by numerous investors or have the risk of funding lines being pulled.

• Lower fees. All our fees are based on net loan amounts and not gross.

• Better products. We don’t offer retained interest so the client doesn’t pay interest on a large interest slice from day one. Interest is rolled up or serviced if the client prefers.

• Loans from £200k to £2m.

• Low surveying fees - no QS monitoring for loans with build costs below £500k.

• ‘Commended’ Best Service from a Development Finance Provider 2022 at Business Moneyfacts Awards.

• Additional introducer fee can be added to the loan.

2025: The year of the second charge mortgage

This year is already shaping up to be another challenging period for everyone. Currently, the economy is not being helped by tax increases and additional red tape for employers, which will make them think carefully about reviewing hiring strategy.

In an a empt to stimulate growth in the economy, the Government has ﬂoated the idea of relaxing some of the criteria that, a er the crash of 2007-8, were put in place to make sure that lenders did not overextend mortgage clients.

While there is a possibility that ﬁrst charge criteria might or might not be relaxed, the fact remains that second charge lending relies less on rigid criteria and more on assessing individual circumstances.

Of course, all advisers must make recommendations based on a full fact-ﬁnd, and it is vital to ensure that clients’ best interests are being catered for.

Nevertheless, whereas ﬁrst charge mortgages are largely reliant on credit scoring, which might not take the clients’ unique ﬁnancial experiences into account, second charge mortgages are less constricted.

E ective solutions

As a provider, I have ‘skin in the game’ to promote second charge mortgages and naturally I want to draw more a ention to the beneﬁts of second charge borrowing. So, I make no apology for running through some of the main reasons where a second charge can be so eﬀective.

In no particular order, these are the main reasons I see every day why a second charge option should be considered by advisers:

To avoid early redemption charges (ERCs): If a client has an existing mortgage, remortgaging might lead to paying an early redemption fee which can be an unwelcome extra expense.

Where an existing mortgage might have particularly low rates: Remortgaging to a new product runs the risk of losing a good rate and increasing a client’s repayments. Where a client’s existing ﬁrst mortgage is on an interest-only basis: Remortgaging could mean they have to move to a repayment mortgage with more costly monthly payments.

When a client has suﬀered a dramatic change in circumstances such as loss of a job: Their credit score might mean that a remortgage becomes more diﬃcult to obtain.

While debt consolidation is one of the most popular reasons for adopting a second charge option, there are other equally valid reasons to consider a second charge mortgage.

Among them are home improvements for such projects as lo conversions, basements, conservatories, new central heating systems, bathrooms and kitchens, property redecoration or to refurbish a garden.

All of these require funding, but whether a client should switch mortgages to accommodate extra borrowing – with all the potential added costs – or leave an existing ﬁrst mortgage in place and opt for a second charge to ﬁnance the cost of the home improvements, should come down to a discussion.

Innovative uses

Other uses of second charge mortgages could be:

LAURA THOMAS is regional sales manager at Equi nance

Whereas rst charge mortgages are largely reliant on credit scoring ... second charge mortgages are less constricted”

Investing in business: If a client is self-employed, they might want to consider a second charge option to help them grow and expand. Being self-employed can make it diﬃcult to obtain a remortgage.

Unexpected large bills that had not been accounted for: Weddings, home repairs, and heating system replacement are only a few examples.

Payments and purchases: Paying school fees and the purchase of a second home are also candidates for ﬁnancing via the second charge option.

All of these examples assume that the adviser has done a full fact-ﬁnd and is willing to consider other paths rather than just plumping for a remortgage.

The advice sphere is evolving, and with Consumer Duty now ﬁrmly embedded in the compliance universe, the need has never been greater to demonstrate how lending decisions are leading to be er consumer outcomes. This provides intermediaries with the opportunity to embrace a more inclusive approach to selecting a suitable lending solution. ●

Embracing digital transformation in secured lending

The secured loans market is undergoing a dynamic transformation, driven by the demand for faster, more eﬃcient, and customer-centric processes. In an industry where speed and precision are critical, digital innovations like e-signatures, automated aﬀordability assessments, and streamlined document handling are no longer optional – they are essential.

Faster turnarounds

Speed has become a key diﬀerentiator in the secured lending space. Brokers and customers alike are prioritising lenders that can oﬀer quick decisions without compromising accuracy. The traditional model, reliant on extensive paperwork and manual checks, is being rapidly replaced.

At Central Trust we’ve seen a signiﬁcant reduction in processing times by streamlining the submission and underwriting process. Cases submi ed before 1pm o en receive a same-day response, with some applications even reaching binding oﬀer status within the same day.

Lenders are optimising internal workﬂows, embracing automation, and rethinking how applications are managed to deliver quicker outcomes.

Transforming the journey

While e-signatures have been around for years, their role in secured lending has become pivotal. They’re not just a convenience, they’re a catalyst for eﬃciency. The ability to e-sign mortgage deeds has eliminated postal delays, reduced the risk of document errors, and signiﬁcantly shortened the time to completion.

Since introducing e-signatures, Central Trust has observed a

measurable improvement in completion times. Mortgage deeds that once took several days to process can now be ﬁnalised in hours. This isn’t just a win for lenders – it’s a game-changer for brokers who face tight deadlines, and for customers who expect seamless, digital-ﬁrst experiences.

Customers are increasingly comfortable with digital transactions, and lenders that fail to meet these expectations risk falling behind. The industry’s growing conﬁdence in the security and legal validity of e-signatures has paved the way for widespread adoption.

Aﬀordability assessments have traditionally been a bo leneck. The need to collect detailed household expenditure data, coupled with manual veriﬁcation, o en led to delays and inconsistent outcomes.

Enter automated aﬀordability assessments – a trend reshaping the market. Since its launch, Central Trust’s fast-track aﬀordability model has seen 57% of eligible applications pass this streamlined process, dramatically reducing processing times.

The system focuses on key expenditure areas such as Council Tax, childcare, and service charges, eliminating the need for comprehensive household expenditure forms in many cases.

By relying on data-driven models, lenders can make objective, compliant aﬀordability decisions quickly and accurately. For brokers, this means fewer information requests, faster decisions, and more for relationships. Strong partnerships

The importance of strong brokerlender relationships remains unchanged. Brokers are the linchpin,

and the goal of digital transformation should be to enhance this relationship, not replace it.

At Central Trust, feedback from broker partners has been instrumental in shaping our digital strategy. A collaborative approach ensures that our digital innovations are not just technologically advanced, but also aligned with the real-world needs of brokers and customers.

What’s next?

The market will likely continue its trajectory towards greater digitalisation. Emerging technologies such as open banking, AI-driven credit assessments, and even blockchain for secure document handling are on the horizon.

With rapid change comes the need for continuous adaptation. Lenders must remain agile. It’s not just about adopting new tools, but embedding a culture of innovation.

At the heart of these changes is a simple truth: whether it’s faster application processing, smoother customer journeys, or more eﬃcient broker support, the ultimate goal is to deliver be er outcomes. In 2025, that means embracing technology not as a buzzword, but a fundamental.

The secured lending market is at an exciting crossroads. The convergence of technology and customer demand for eﬃciency is driving meaningful change. Lenders that embrace this transformation – investing in digital tools, streamlining processes, and strengthening broker relationships – will not just keep pace with the market; they’ll set the standard for the future. ●

DEBBIE BURTON is chief executive at Central Trust

The Inter view.

Jessica Bird speaks with Tony Marshall, CEO at Equi nance, about the rising tide of second charge, and how the market can ensure it is primed for continued growth

Tony Marshall has been at Equifinance for 10 years, and in the financial services sector since 1986 across various roles. As CEO, this experience has allowed him to deploy his skills to grow and develop Equifinance as well as utilise his expertise in the regulated environment.

When he joined Equifinance 10 years ago, alongside chief financial officer Chris Payne, the firm comprised six people, originated around £0.5m per month, and managed loan assets of around £7m. A decade later, the business has more than 70 staff, originations of around £20m per month, and a loan portfolio of over £400m. Originally, the product set was niche, with one solution focused around credit impairment. Now, Equifinance boasts in excess of 135 products and an entirely different proposition and place in the market, taking 10% to 15% of market share, with 80% of its business placed in the prime segment and supported by funding

Equi nance

from major institutions, and more recently the capital markets.

Through all this change, Marshall says: “The ethos of the business was always to supply products to the market that matched customer needs as well as supporting all our business partners to the best of our abilities. This culture was embedded right at the outset and has been maintained throughout.”

While the world faced its own challenges and opportunities, 2024 was a significant year for Equifinance. e Intermediary sat down with Marshall to discuss the firm’s growth, as well as its relationships with brokers, and what the coming years could mean for secured loans.

Transition into prime

Early in 2024, following on from work done toward the end of 2023, Equifinance entered into a £260m securitisation.

Marshall says: “That was a big deal for us, because we’re still a privately owned business – we’re not private equity or bank owned or backed. Prior to that, if you’d spoken to a corporate adviser, they might have said it was extremely difficult for us to do what we have done, but we achieved it.

“While doing that, we completely rejigged our capital structure – from senior funding right the way through to junior capital requirements. We were extremely fortunate in having Chris Payne’s expertise in-house, who has navigated us through all funding processes successfully.”

As a result of the securitisation, he explains, the firm was able to “start developing [its] products into the prime space more competitively.”

Prior to this, because of its funding structure, Equifinance was arguably less able to compete with the larger players in the space. This was not necessarily a bad thing, as it meant the business had to be creative with product development and create a “very diversified product range,” but Marshall explains that it did create challenges in terms of volume.

“As a result of the funding restructure and the securitisation, it gave us access to a cheaper cost of funding, so we were able to better compete from a price perspective,” he says.

“We have therefore been able to capture a greater market share out of that prime segment

of the market, and our volume has increased to a level we are comfortable with.

“Of course, between 2022 and 2024 we also saw other key market changes, including the advent of Consumer Duty and the wave of effects following Liz Truss’ mini-Budget.”

During this turbulence, Marshall says the product range for second charges has not changed too drastically – with a “fairly commoditised” prime market, followed by near-prime and further into niche products such as high loan-to-value (LTV) loans, which have grown organically over the years.

“We took the stance right from the outset –borne out of the way we are and were funded and how our business started – that our product range will be quite wide,” he explains.

“We market 100-plus products covering all segments, from prime and near-prime to high LTV prime. We have, over time and by virtue of the identification of gaps in the market and where other lenders didn’t wish to lend due to their criteria, endeavoured to take advantage of those spaces.

“That wide, diverse product range has helped us a great deal. As much as we are active in the prime space, particularly at the moment, we have those other products to support us.

“This provides some protection if the product became so commoditised in the prime space that it was no longer commercially viable, we do have those other solutions we can offer.”

In the prime and high-LTV prime spaces, Marshall says, products and propositions are led by price, after which lenders must have the right IT solutions to get decisions made as quickly as possible, and service levels to match.

In near-prime, by comparison, requirements are more niche. Here, the value of a proposition lies in its ability to cater for unusual circumstances. This means it is not entirely price led – though this is still important – but is more focused on complexity, criteria and risk.

Seconds in a surge

One particularly big development for the second charge space in 2024 was the arrival of new entrants. This added competition, Marshall says, can only be a good thing, particularly for lenders like Equifinance that have a broad product set and the ability to continue innovating.

He adds: “You have to be comfortable with the fact that you’re going to have competition.

“You can’t whinge or moan about it. The whole picture can’t be plain sailing all the time – there are going to be points where things aren’t going to go as you expected.

“The important thing is to be able to rethink and adjust strategy quickly in response to emerging threats and opportunities.

“As the market becomes more attractive to new entrants, that competition will become more prevalent. We have to congratulate ourselves that these firms want to broaden their operations into this market.”

Indeed, Marshall points out that prime rates in this market are nearing the same levels as prime first charges, and from a rate point of view are certainly more competitive than other forms of unsecured credit.

On the soapbox

While the second charge market has grown considerably over the years, with wide-ranging products available to help borrowers of all types and for many purposes, there is still work to be done to increase awareness.

The launch of notable new entrants, particularly a household name, will hopefully have some effect in this arena.

Marshall adds: “We would hope that those entities coming into the space will increase awareness of the industry and awareness of the product, and lead to more product development, and so on, which will assist consumers and give them more options.”

This might also help dispel some of the myths that have plagued seconds – such as that this is a product reserved for those with adverse credit, when in fact “80% to 90% of this market are what we would consider to be prime customers,” according to Marshall. Instead, this is more about the different uses of the full market suite of products and matching them to diverse customer needs.

Some of the lack of awareness around this product stems from the dynamic that “nobody gets out of bed thinking I want a second charge loan.” Instead, they have a problem in need of a solution. These customers then go down a couple of routes, either going to a comparison site and looking for a loan or looking at a remortgage via their broker.

Those in the first tranche will often discover that unsecured loans may not suit their needs.

“If it’s for consolidation or home improvement purposes, there might be a need to borrow £30,000-plus, which an unsecured lender isn’t likely to lend to a new applicant,” Marshall says. “Therefore, the product features do not suit the customer.”

For example, Equifinance can lend up to £250,000, making it an option for needs that unsecured credit simply does not fit.

Those that turn to a remortgage – which →

could provide higher loan amounts – may find that their lender is not willing to lend due to criteria or loan purpose, or that they have high early repayment charges (ERCs) on their first charge, and it could “cost a fortune to get out of it.”

It is rare to get a second charge customer who has not already applied for different products elsewhere during the journey.

While there might be good reasons to push for better education of consumers to bring second charges to the front of their minds, to better ensure they ask their brokers about these options, Marshall warns that this market “hasn’t got a megaphone loud enough” to do this kind of out-of-market campaigning.

The fact remains that there are assumptions made about seconds, including among brokers, and indeed those investors buying bonds, as Marshall points out. One such assumption might be the residual sense that a borrower opts for a second because they cannot get a loan elsewhere for negative reasons.

There is no quick fix to instantly prove to borrowers, brokers and the wider investment market that these products are tools like any other, built to fit certain circumstances.

Marshall says: “It’s difficult, because this market is not of a size yet – in terms of volume or origination – to form an impression and voice this balance to the consumer. The customer needs to be educated when they get here – you can’t have that kind of complex conversation via advertising and marketing.

“The only way this is going to happen is, over time, with better acceptance of the product, along with mortgage intermediaries becoming more familiar with it. It’s a combination of education and the way we distribute second charges as lenders. There’s no short-term panacea.”

One of these factors will also be seeing more household names entering the market, as well as larger second charge lenders becoming better known in the consumer sphere. This will likely, over time, lead to greater acceptance of seconds as part of the overall fabric of the mortgage sector.

Carrot and stick

In addition to continuing the work to raise the profile of this market, part of the picture for second charge growth is the impact of Consumer Duty. An overall emphasis in the market on the importance of considering all options open to a customer means seconds are naturally coming more to the fore as brokers fit to new regulatory demands.

However, Marshall says positive growth cannot be spurred on by the “stick” of regulation alone, and that to gain real buy-in, this market must continue improving its appeal, and its processes.

“How we distribute these products, as lenders, is naturally a little convoluted,” Marshall says. “Consumers just want to click a button and submit their payslip, an easy route to get to the product – but it’s not easy to get to a second charge product. We’ve got to work on all of those things.”

One sticking point is that in comparison to going to a bank and accessing pre-approved funds of, say, up to £20,000 and having near instant access to the money, a second charge of the same amount will potentially take six to eight weeks to turn around.

This difference is caused by a number of factors, including regulation and the necessity of having more processes in place for this type of lending, but Marshall believes that it is also due to “the fact that we have not developed our distribution systems to the level that the unsecured market has.”

While secured loans naturally necessitate greater oversight of lending decisions, there is work that can be done to make this process smoother and more appealing, thereby making it easier for brokers to advise their clients, when the deal is right.

Marshall says developing IT solutions is key, to provide “instantaneous decision-making,” as is implementing greater flexibility on valuations. Due to the risk to the consumer of securing a loan on their property, there must be “some kind of manual process” as part of the underwriting, but this does not mean that the seconds market cannot benefit from greater automation.

“We do from time to time see a case arrive, offer and complete in 24 hours – so it does happen,” Marshall says.

When it comes to continued misconceptions or doubts around the validity of this product or market, much of tackling this comes from simply continuing good practice.

“There is no one in this market that I am aware of that doesn’t want to do the right thing,” Marshall says.

“As long as everyone maintains that stance, acts professionally and provides the products to consumers with that culture, over time that stigma – if there is one – will drop away.”

Some of these misconceptions lie with mortgage advisers, as many have “never bought into the concept.” While Consumer Duty makes it more of an imperative to factor in these

products, Marshall does not want to “get brokers’ backs up,” noting that it is up to the secured loan market to promote the product in the best way, and make sure the processes work to make intermediaries’ lives easier.

Marshall says: “If regulation is the ‘stick’, then the ‘carrot’ is not just about financial incentives – it’s also got to be ease of transactions, and the knowledge that you’re really going to care for the client. It’s going to take a long time to build that trust.”

Equifinance on the rise

In 2025, Equifinance is focused on further building out this trust and awareness with the mortgage intermediary market.

Marshall says: “The brokers we distribute through do more than just selling a product –they create the lead, of course, but then they package the case as well, taking on the burden of the case’s administration, valuation, credit searching, placing. There’s a lot of costs borne by them before they get to the point of a loan completing.

“The last thing they want is a criteria sheet that says a lender will do it, and then the underwriter looks at it and says, ‘it fits the criteria but we’re not going to do it’. The criteria we produce for the brokers, we stand by.”

To make this work, Equifinance analyses how products perform over time and tweaks its criteria to ensure that what the broker is offered initially fits its lending appetite, market trends and consumer needs.

More than this, building the profile of the industry – and Equifinance itself – is about service level agreements (SLAs). Marshall notes that the firm pledges 48 hours to respond to a broker when a case is submitted, which it is “renowned for adhering to,” and if this is not possible, it places great store in communication as to why.

Equifinance also tries as much as possible not to go back to the broker with repeated requests, asking for all additional information in one go, where possible.

“Then, we just try to make the customer journey – post-underwriting through to completion – very slick ,” Marshall adds.

The secret to ensuring this level of certainty, smoothness and communication, he says, is employing the right people, and investing in their continued education and development, “building them into the culture.” For example, the underwriting administration support team at Equifinance is staffed with trainee underwriters. This means that once they progress to the next stage and gain a mandate,

they already have experience and with the firm’s processes and approach.

Looking ahead to the rest of this year, Marshall points to a second securitisation when Equifinance is ready, which should enable the firm to enhance its product range further.

Equifinance is also nearing the end of building its new IT solution, which Marshall says will make it “more efficient.”

While the name Equifinance continues to hold its weight, the firm is also looking forward to a brand refresh, and most importantly, a continued trajectory of stable growth.

“I’m not going to say we’ll grow exponentially this year,” Marshall explains. “We want to remain stable, growing but with no urgent desire to go past where we are now. During 2025 and beyond, we may start exploring other segments outside of this market.”

For seconds as a whole, while many assumed that the change and turbulence of the past few years would have caused this market to skyrocket – and there was certainly plenty of growth in 2024 – it did not reach the lofty heights some might have expected.

“We’ve got a perfect storm,” Marshall says. “Interest rates are going up, everybody’s used to lower rates, many of those people have credit and are becoming uncomfortable and need to consolidate – we in this industry expected a tidal wave of business and that hasn’t come about.”

All the factors have been primed to set seconds up as a great solution for many people, and while more are solving their problems in this product space, there are various factors muting its success. This might mean brokers are not pushing more holistic conversations around finances with their clients – missing an opportunity to discuss debt consolidation, for example, by not asking about non-mortgage life factors. It might also reflect a cultural discomfort, whereby Brits – despite the rising use of unsecured credit – are not comfortable discussing debt or financial difficulty. This is all the more reason for brokers to find ways to build trust and lead them into these broader discussions, rather than missing out.

“There’s lots of customers out there whose lives could have been made better a lot earlier,” Marshall says.

Despite growth having been less meteoric than many expected, Marshall has a positive outlook for 2025 in the second charge market.

“Subject to external events, it should be an exciting year,” he concludes. “All things being equal, there’s no reason why this product and this industry cannot grow.” ●

Case Clinic

Once the property is in a mortgageable condition, we could then look at providing a residential mortgage loan.

CASE ONE

Self-build mortgage with irregular income

Aclient earning £120,000 annually as a freelance consultant aims to secure a selfbuild mortgage to construct a £600,000 home on a plot of land purchased for £150,000.

The client plans to use £50,000 savings for the initial construction phase, but requires additional financing to complete the project.

Lenders are concerned about the irregularity of the client’s income, which has fluctuated significantly due to the nature of freelance work.

The client lacks detailed projections for the total build costs, and some lenders require a fixed-price building contract that the client has not secured.

WEST ONE LOANS

A client with an irregular income is not an issue for us at West One, and we often work with selfemployed or freelance professionals.

We currently do not have an all-encompassing mortgage product to offer for this case; however, we could initially look to provide a bridging loan to cover building costs, supporting the project with the knowledge and experience of our development finance team.

TOGETHER

While Together would need to look into the nature of the build to confirm its plausibility, the client would have options when it comes to affordability.

We could use projections of income for the coming year with an accountant’s reference form, comparing this with the previous two years income. Rather than using an average of those two years, Together could look to use the projection if it is confirmed by the client’s accountant.

We would still require a schedule of works and information regarding the affordability, but if we were comfortable with the professionals involved in the project, we could potentially look to help by offering 50% of the 90-day value on the land, and potentially cross-charging against any other properties owned.

HARPENDEN BS

Although we use the latest year’s income figures for affordability, in this instance we would probably average the income, and also look to see what the future income is likely to be.

However, we would require a final build costing to be in place in order to work out how much we could lend, which is 75% of the land value and the build cost.

It may be that £50,000 would not be enough to cover the difference between the amount we could

lend and the build cost, which must include a 20% contingency.

Without a confirmed costing in place, we would not be able to assist, but would be pleased to discuss further when the final figures have been delivered.

CASE TWO

Mixed-use property with limited deposit

Ayoung professional couple earning a combined annual income of £70,000 (£45,000 and £25,000) intend to buy a £350,000 mixed-use property that includes a ground-floor retail space and an upstairs residential unit.

The couple plan to live in the residential portion while renting out the retail space to supplement their income. However, they only have a 10% deposit and have struggled to find a lender willing to finance a property with a commercial element.

Many lenders require a significantly higher deposit or treat the property as a buy-to-let, which increases the affordability thresholds beyond the couple’s income.

The couple also lack prior experience as landlords, which has raised additional concerns for lenders.

HARPENDEN BS

We would be pleased to consider this property, however our maximum loan-to-value (LTV) is 80%.

If the couple are able to obtain the difference, we would treat the property as a residential, providing the residential area is at least 40% of the overall footprint. Also, there must be no internal access between the residential area and the commercial area. Lack of landlord experience would not be an issue – we lend to first-time landlords.

UNITED TRUST BANK

This property is a semi-commercial property if the flat upstairs and the commercial element underneath are on the same land registry title.

UTB Mortgages does not have a facility to consider any lending on this at the required borrowing amount.

One option may be for the couple to purchase the property using short-term finance such as

clinic

a bridging loan, although they would need a larger deposit.

Once acquired, they could set about splitting the title to create one residential property, which could then be refinanced using a traditional mortgage – albeit from a lender happy to lend on properties above commercial – and obtain a commercial mortgage to refinance the commercial property on the ground floor.

UTB would consider lending on a residential flat above commercial if it had separate title.

BUCKINGHAMSHIRE BS

The society is unable to consider lending for this case due to the retail space located beneath the residential property.

Since the society would have no control over the use of the retail unit, this could impact the property’s resale potential, given its mixed-use nature.

WEST ONE LOANS

How this property is categorised is crucial. At West One, we would not view it as buy-to-let (BTL), nor view the couple as landlords in the usual sense of the term. These are cases we often proceed with, though distinguishing the commercial element of the property on a separate title would be crucial.

TOGETHER

Together can consider this a regulated first charge mortgage when over 40% of the overall footprint is confirmed as being used for residential use. This would include shared areas, such as a driveway or garden. Although the max LTV we offer wouldn’t quite get to 90%, the experience level would be OK for Together to lend for this transaction.

CASE THREE

Mortgage with adverse credit history

Aclient with an annual salary of £40,000, employed full-time in a managerial role, wants to purchase a £250,000 property with a 10% deposit.

However, the client’s credit history includes several missed payments and a recent County

Court Judgment (CCJ) for £2,000, which was registered just 12 months prior.

The client faced financial hardship during a period of unemployment and was unable to keep up with some debts.

Since then, they have worked hard to recover financially, settling the outstanding amounts, but the CCJ remains a barrier.

WEST ONE LOANS

Clients who have suffered with historical credit issues are not rejected simply on those terms by West One.

In fact, we have integrated these types of borrowers into our criteria and product ranges to meet the needs of those with adverse criteria.

Our Prime Plus product would potentially be a suitable option, though it allows for a maximum LTV of 85%, meaning an increase in the client’s deposit would be necessary. However, we do offer enhanced ranges which can consist of more attractive rates, but they require the client to have had no CCJs within 24 months.

TOGETHER

Together would be fine to lend to this applicant assuming their demerit status was no more than three in the last 12.

The CCJ would not be an issue for us, as would still allow them to be within our lending policy.

While it is unlikely that we would be able to offer 90% LTV, as long as the borrower has been working for 12 months continuously then we could consider them for an application.

HARPENDEN BS

I am afraid we would not be able to assist with this case. The CCJ would need to have been satisfied for three years to apply for a standard residential mortgage at a maximum of 80% LTV.

Our Credit Repair product offers a maximum LTV of 70% and will require either the CCJ to be satisfied for at least 12 months or on application.

UNITED TRUST BANK

Unfortunately, this proposal falls outside of UTB Mortgages’ lending policy for two key reasons. As the applicant has a CCJ in the last 12 months we would only be able to offer our Near Prime product which has a maximum LTV of 85%. In addition, with the 10% deposit, the applicant’s required loan-to-income (LTI) of 5.6 exceeds our maximum of 4.5 for a 90% LTV application.

If the applicant had a 15% deposit, then our max LTI of 6.0 in conjunction with our Near Prime product may be suitable, subject to the affordability assessment.

BUCKINGHAMSHIRE BS

The society could consider this type of lending, but it would not be possible with an LTV of 90%. Due to the very recent CCJs and the previous several missed payments, it would be on the impaired product range which would be restricted to 70% LTV.

The society could consider this if the applicant had additional deposit. Family gift could be used to help support. The reason for the financial hardship would be acceptable. ●

Finding respect in a mental health crisis

When I worked originally as a clinical psychologist, I would have been thrilled to realise that the phrase ‘mental health’ would be ﬁnally be in use in the 2020s. The only problem is that at times it can be a misnomer.

I am all for a focus on building good mental health and wellbeing, through enhanced resilience, coping strategies, building character, grit and some stoicism. Yet currently, when people speak of their mental health, they o en allude to what they consider mental ill health – not the big issues of psychosis, paranoia, schizophrenia, bi-polar disease, clinical depression, which are of course the big guns. The term, nowadays, can just be used for feeling a bit ‘oﬀ ’, anxious, a bit low or anhedonic – lacking joy in life.

Older generations have responded with irritation, labelling the young as ‘snowﬂakes’, showing weakness and lack of character.

Cha ing to a peer the other day, he described my age group as having lived through a ‘golden era’. There were youth clubs and sports activities available to many as parents were not able to lay on a timetable of paid tutoring. We got to play and hang out more. There were libraries. O en one parent was a homemaker and the workers got home at a reasonable hour. Not all families were great, but they tended to be available.

Many of our parents had not had the opportunity for the further education, so while they encouraged oﬀspring to ‘stick in’ and use education for advancement and security, they had insuﬃcient knowledge to hot-house them into careers or convince them to follow in their own professional footsteps. We had freedom to choose our path.

We got away from home and lived independently without a great deal

of contact with parents – calls were expensive, le ers unlikely. Above all, the Government paid for us to study, and we could manage our rent even if it did require part-time jobs. We le university with li le or no debt, and were told the job market was waiting for us.

We got mortgages early – even if, as a woman, I was given a very hard time. Interest rates rose dramatically at points, but so did house prices, so we rode the wave of inﬂation and had equity in our property right through to retirement, when we also knew we had good pensions to fall back on.

Times have changed

The younger generations, in contrast, have experienced 14 years of austerity, cuts in all youth services, working parents under pressure, hot-housing with extra-curricular activities just to ﬁll the university application form – music exams, sporting wins, maths tutoring. Then came the global pandemic. Home schooling, separation from friends and colleagues.

Alongside all that, exposure to the internet – good and bad – changed relationships and oﬀered the paradox of choice on all sides. Having limitless examples to choose from, there is the expectation that you can achieve perfection in everything you do and own. That way disappointment lies.

As seekers of information, they check what every guru has to say about child-raising, running your career, personal health and ﬁtness. They o en feel they are failing because of a lack of alignment with the selfappointed experts in the ﬁeld.

While young people want to work hard, they have never necessarily felt that was contingent on going to a place of work. The debates on hybrid work o en demonstrate the variance in beliefs and the bias, oblivious at times to the facts and what the research tells us about productivity and wellbeing.

AVERIL LEIMON is co-founder at White Water Group

While our clients have always needed to work on recognising their strengths, building their confidence, finding ways of coping with challenges and staying resilient in the face of rising and falling markets, different generations hold different points of view about how it should be done.

Where once it was acceptable to work men – predominantly – to the bone and let them die soon a er retirement of heart a acks or strokes, younger people saw their parents on that treadmill and found it unacceptable. They want to factor in their health.

Good business

Above all, we need to ﬁnd respect rather than saying ‘it wasn’t like that in my day’, and ﬁnd ways to promote good business and good lives. The two are not diametrically opposed.

A happy worker with friends among their colleagues is likely to be more productive. If there is space for building family life and incorporating healthy habits, the wellbeing and commercial beneﬁts are both profound.

However, it is not entirely down to the company to make this happen. Each individual has a responsibility for growing their own resilience.

There is no room for passivity and helplessness. Coaching o en encourages agency in clients – taking control, shaping life how you want it to be. Se ing and pursuing goals.

Life is pressure. Otherwise, it isn’t worth ge ing up in the morning. We must develop the mental and physical techniques that stress-proof us and prepare us to learn through diversity, and take action where changes need to be made. Ask me how! ●

Brilliant Solutions Q&A

The Intermediary speaks with Ivan Vizor, head of key accounts at Brilliant Solutions, about the UK Mortgage Convention and the outlook for brokers in 2025

What are you most excited about for the fi rst UK Mortgage Convention?

This is going to be one of the biggest events of its kind for many years. I’ve been thinking about it for a while, actually two or three years, and once I’d conveyed the idea to Michael Craig, Brilliant Solutions’ MD, he instantly saw the vision and we pulled together a picture of the kind event we wanted, and how we would make it happen.

The first real buzz came when we started talking to sponsors – mortgage lenders and providers, from the big hitters on the high street to the more niche and specialist providers. The response has been incredible, everyone loved the idea of the event and they have piled in to join us, it’s been genuinely humbling.

It was originally planned as a smaller event to see how big the appetite might be, but from the day that it was first mentioned, the whole thing started to gain real momentum as people jumped to get involved.

more than that, it’s about their experience and their ability to engage, entertain, educate and take mortgage brokers on a journey that will leave them feeling excited, and feeling hopeful about themselves, their businesses and the future of the industry.

So, to answer your question, I’m truly excited that we have pulled together the top speakers and the right sponsors for the event, to bring their economic and industry knowledge, insights, predictions, strategies and opportunities.

With some other events, first and foremost it’s about the expo hall, where all the lenders are. It sometimes feels like the speaker programme is secondary. This event has been primarily focused around the conference and the speakers.

Is the event an extension of Brilliant Solutions’ own strategies?

I’m really fortunate to go to a lot of amazing industry events – big events that pull in so many brokers and really high quality speakers.

I put together a list of key speakers that I wanted to join us – some of the very best in an industry where we have so many fantastic speakers – and they all said yes. That’s when the levels of excitement actually went through the be presenting, but

However, what I see is that these events are only ever aimed at big networks and the larger directly authorised (DA) brokerages. What that means is that the DA broker, who very often works remotely, maybe as a one or two-person company, or even brokers from larger DA companies who work remotely, don’t get the opportunity to attend this kind of event.

Brilliant Solutions is unique, in that we’re the only specialist distributor that also has a mortgage club, so we have relationships with brokers across the whole spectrum of mortgage advising, and we can see how and where they work.

This has enabled us to identify the target audience and work to get them involved in the UK Mortgage Convention.

We have been committed to UK-wide events for many years, with monthly roadshows, breakfast events and round tables. Bringing education and collaborative events to mortgage brokers has been at the heart of Brilliant Solutions ethos for many years. I’ve been around the industry a long time now, and it’s great for me to be with a company

that continually commits to giving something back to the industry. Working at Brilliant, having that platform and that background, enables a perfect foundation to build this event from.

You mentioned that you’ve wanted to do this event for years, why has it been on your mind?

I travel around and attend all these fantastic events, and as I say, there are some amazing speakers in our industry. DA brokers in general will not have the opportunity to experience these often spectacular occasions, listening to those amazing speakers that enlightenment and inspire me personally, so organising the UK Mortgage Convention has given me an amazing chance to bring that same experience to more brokers.

Since Covid-19, many brokers have shifted to remote working, and our broker clients now include not just the larger companies, but also a significant number of smaller firms and independent brokerages that we’ve worked with for years.

For many of these brokers, especially the oneand two-person operations, working remotely can feel isolating, even lonely, and they don’t have the opportunity to connect with others, have a chat and a laugh, share frustrations about the industry, or celebrate the successes.

Bringing it to a personal level, I like to think of myself as very self-motivated, but I still need to be around people who inspire me, and I am lucky to have colleagues and peers that do just that.

More than anything, this event offers a chance for brokers to engage with their peers.

Many are doing incredible things in an industry that’s evolved so rapidly over the past few years, and they can share a coffee or a beer with others, hear their stories, and exchange ideas.

I can also guarantee they’ll have a really fun and fabulous day.

What are you hoping delegates get out of the day?

I hope they feel inspired. I hope they feel motivated. I hope they feel it’s been a fun, engaging day and they feel emboldened – for themselves and their businesses – with knowledge and tips and nuggets of information.

I hope that they feel that they’re in a good place to go back, feel positive, and incorporate some of the day’s learnings into their businesses.

In terms of relationship-building, what I would say to every delegate attending is to come with an open mind and a positive attitude. There are so

many things that will be going on there that will give them super networking opportunities and I hope they reconnect with old friends and build new friendships.

The important thing is that every single broker goes home wanting to come again next year.

A lot of people at the event will be looking for insight into how to deal with ongoing turbulence in 2025 –what are you looking out for in the year ahead?

I was hoping we might have a different game this year after the madness of 2020 to 2024.

Even in my time in the industry, this has been the most volatile period. It’s been absolutely crazy, and I was hoping that we might have a different ball to play with this year.

But – certainly for the coming few months –economic turbulence at home and abroad looks to be setting us up for another year of interest rate uncertainty, affordability concerns for clients, housing supply challenges.

There’s going to be a lot of the same, particularly for the first few months.

However, we’re lucky enough to be working in one of the most resilient industries in the world.

I’ve got no doubt that mortgage brokers, particularly those who take the time to equip themselves with as much knowledge as possible, will find the way through.

They’ll find the right pass at the right time, they’ll adapt their businesses as and when needed, and while there is the obvious uncertainty, there is also much to be positive about, and it could be an outstanding year for those that can adapt quickly.

The integration of technology and automation is going to be big going forward. In fact, I think we might have seen a lot more automations and integrations so far, had it not been for the madness of the market over the past few years. We’ll see a lot more of that.

We’ve still got sustainability and green living trying to find its path in the industry. While this area has been big, and has been on everyone’s tongues for quite a few years, I don’t think lenders have been able to find that exact gap in the market. Nevertheless, it will continue to grow, the issue isn’t going to go away, and that will certainly be a challenge for lenders.

Buy-to-let (BTL) mortgages again face new challenges, particularly after the Autumn Budget. However, I also feel a lot of energy and positivity across that sector, especially from the industry voices I’ve spoken with. While getting ready for the →

show, I spoke to a few of the experts, and they’re all very positive about BTL, and believe that again this sector will break the mould, uncover new opportunities, and move forward.

Above all, and with all these factors, the thing that I can definitely see happening for the foreseeable is that a lot more clients are going to be pushed into the complex and specialist arena.

Those that might have been previously classed as high street, mainstream clients will now need to finance and refinance with special lenders, for various reasons.

One of the things that has become clear in the past 12 to 18 months is that ever more lenders are actually rising to the challenge of the changing client profile.

These lenders are starting to look at their offerings and realise that they don’t have the products to necessarily fit, so we are seeing lenders adapt and innovate to make lending more accessible to everyone.

This expansion can be seen elsewhere, as well. I recently had a call from a mainstream lender asking about putting together a whole new Shariah-compliant product, something completely new for them. Lenders are definitely looking at new areas of lending.

Credit must go to lenders. A few years on from the onset of Covid-19, they are really identifying that there’s a whole new type of client in the market – these clients are the same people, but they have a whole new lending need. I hope we see that same lender innovation and flexibility continue throughout 2025.

So, looking beyond the event, what does 2025 look like for Brilliant Solutions?

Again, there will probably be more of the same aspects we saw in 2024. That was an absolutely fantastic year for us commercially.

Aside from that, we’ve been developing and evolving. We just see such a massively increased demand in our sector, and we’ve spent a lot of time over the past year evolving our whole ‘brilliant’ proposition to meet that.

For 2025, we’ve got a real focus on forging even stronger relationships.

We’ve brought out our brand new broker proposition ‘Brilliant Plus’, which rewards brokers who work closely with us, or who want to do so even more.

That side of it, for us, is massively important –our relationship with brokers across the UK. We place so much value on relationships, and that’s something we want to see evolve and grow

We get to know brokers, because we’ve been around for a long time, so we understand those who are working remotely and we do try and target them for our events”

in 2025. Our events programme is probably the biggest it’s ever been, including the amazing UK Mortgage Convention. We’ve got more roadshows, more round-tables.

When we first set out to do these events, we always try and target the remote brokers.

We get to know brokers, because we’ve been around for a long time, so we understand those who are working remotely and we do try and target them for our events. This year we want to do a lot more of that.

We’re fully committed to taking all our business platforms, the mortgage club, second charge, mortgage packaging, bridging, commercial, and everything else in between, to more brokers, especially as we’ve spent time and money refining, honing and evolving all platforms. We’re in a fantastic place for broker business across the board moving forward.

We’ve also got some really good stuff we’re working on for later on in the year that I can’t discuss in detail, and we’ve brought in some great third-party partnerships, from general insurance (GI) to IFAs, through to that Shariah relationship. We’ve got a lot more of that to come as well.

One of the big trends for 2025 that I see is that brokers will be looking at different opportunities. So, there’s a lot of brokers out there who have only ever done mainstream mortgages, but now they’re seeing the opportunity of other areas such as specialist lending, protection or third-party referral opportunities for pension and investment advice, wills or GI, so there will be a lot more third-party relationships created.

It has never been more important for a mortgage broker to build up trust with a distributor –whether that’s us or one of the others, it doesn’t matter, they need to be building a relationship, finding a distributor that covers as many channels as possible.

However the market is still how it has always been, in that it’s all about trust with a company that’s going to give you as many options as possible, to be able to do more business and help brokers grow and evolve their business throughout 2025 and beyond. ●

Take time to decide who you wish to work with in 2025

The easiest route isn’t always best. Brokers know this when it comes to securing the right mortgage deal for their clients, yet when it comes to conveyancing, too many still default to the path of least resistance. This is understandable – conveyancing is o en seen as a necessity rather than a diﬀerentiator.

But in 2025, that mindset needs an overhaul. Overpriced quotes, hidden fees, slow turnaround times, and poor communication don’t just reflect badly on conveyancers – they reflect badly on the brokers who introduce them. When a client receives an unexpected charge or struggles to get an update, their frustration isn’t just with the solicitor – it’s with the entire process. In a world where trust and reputation drive business, that’s a risk brokers can ill afford to take.

Transparency

The intermediary conveyancing market has been long overdue for reform, and while some firms continue to operate with opaque pricing models, others are stepping up to offer a more effective way forward. Too many providers advertise low upfront costs only to pile on additional charges for essentials like onboarding, ID checks, and administrative tasks.

It’s a business model borrowed straight from a budget airline – the initial price looks competitive, but by the time the transaction is complete, the client has paid far more than expected.

These hidden fees don’t just hurt the client’s wallet, they damage trust. When a client commits to a conveyancer, they assume the costs have been fully disclosed. When that turns out not to be the case, it’s the

broker who ends up in the ﬁring line. Transparency isn’t just one of those trending terms – it’s the diﬀerence between a seamless, professional transaction and one that leaves the client second-guessing their decisions.

Responsibility

A broker’s role certainly doesn’t end once the mortgage is secured. Clients trust their broker to guide them through the entire property transaction, including selecting a conveyancer that will provide as seamless and stress-free an experience as possible.

Too o en, brokers fall into the trap of choosing a ﬁrm simply because it’s familiar or easy, without actually questioning whether it truly serves their clients’ best interests.

That decision carries weight. When clients are hit with unexpected charges or struggle with delays, they don’t separate the conveyancer from the broker – they see them as part of the same process. The reputational damage that comes from a substandard conveyancing experience can be signiﬁcant, leading to lost referrals and diminished trust.

On the other hand, brokers who partner with ﬁrms that prioritise service, eﬃciency, and transparency stand to gain far more than just a smooth transaction. A positive experience builds client loyalty, encourages repeat business, and strengthens reputation.

The market has spoken

The past year has made one thing clear: clients and brokers alike are growing increasingly frustrated with the traditional conveyancing model.

We recently announced that conveybuddy has registered more than 1,000 brokers since our launch

in September, many of whom had become disillusioned with some of the industry’s biggest players, which continue to rely on hidden fees and outdated processes. Since this announcement, the ﬁgure has grown to more than 1,200, and counting.

Brokers who have moved away from ambiguous pricing structures in 2024 have found themselves in a much stronger position. Fewer complaints, faster transactions, and a more streamlined approach has meant be er outcomes. Those who took the time to reassess their partnerships didn’t just avoid headaches – they gained a serious edge.

Future-proo ng

The world of conveyancing distribution is shi ing, and intermediaries must be proactive.

Brokers should ask themselves whether their conveyancing partners are keeping up. Are they oﬀering modern solutions, or stuck in outdated ways of working? Are they prioritising transparency, or still relying on hidden fees to boost their margins? The choices brokers make now will determine their long-term success.

Working with a conveyancer should never feel like a risk. It should be a seamless extension of the broker’s service – one that enhances the client experience rather than complicating it. Those who choose wisely will not only protect their reputation but also future-proof their business for years to come.

The industry is changing. In 2025, brokers who take the time to choose their partners carefully will be the ones who come out on top. ●

HARPAL SINGH is CEO at conveybuddy

Divorcing clients: Beyond bricks and mortar

LORNA SHAH is managing director at Legal & General Retail Retirement

Conversations around divorce o en centre on the emotional impact of separation, which is understandable. However, the ﬁnancial repercussions are o en overlooked, and they can have a signiﬁcant impact as people move forward.

Going from two incomes to one, spli ing assets, and deciding what to do with a home that was probably jointly owned, are all decisions separating couples will have to make – and they o en do so with a distinct lack of appropriate advice.

Property wealth

The impact is o en most acutely felt by people who are later in life, where property wealth will be an important consideration. Our research has revealed that 60% of all people who divorce over 50 will discuss the value of their joint home as they prepare to separate, underlining its importance from both a sentimental and ﬁnancial perspective.

This is not surprising, given that people over 55 hold the majority

of housing wealth in the UK, with property assets totalling more than £3.5tn, according to the Oﬃce for National Statistics (ONS). Aside from the property’s value, for many, staying in their family home is a priority. Perhaps that is why our research also revealed that 18% of over-50s will buy their partner out using savings, with one in 20 couples looking to equity release in order to do so.

Financial advice

Despite the financial complexities that divorcing couples face – and particularly those separating over 50 – only 8% take financial advice about their separation, leaving many to navigate this major change in the dark. This figure becomes more alarming when we consider that over-50s will o en be at a crossroads, and the decisions they make could have a greater impact on their retirement income.

Financial advice increases the likelihood clients can achieve fair and sustainable ﬁnancial se lements, particularly when clients seek this advice early in the process.

For clients looking to stay in their homes post-divorce, equity release can be an a ractive option, as it allows homeowners to access the equity tied up in their property without the need to sell it. The funds from this can be used for a variety of purposes, such as covering the cost of the divorce itself – which many underestimate – or enabling one partner to buy out the other.

However, it’s essential that clients fully understand the implications of equity release, such as its impact on inheritance, the potential for reduced means-tested beneﬁts, and the long-term ﬁnancial commitments involved. For some, downsizing may

be a be er option, or using other savings and investments.

Ultimately, when advising clients about their property wealth options at the point of divorce, it is essential to explore every avenue available and give good guidance to separate the emotional pull of an asset, such as a long-standing family home, from the ﬁnancial realities they face. A holistic view of all income options for their retirement is really important.

Path forward

Key to engaging with clients at such an emotionally charged juncture in their life is reminding them that options do exist, and a path forward is possible.

For those divorcing, the ﬁnancial and emotional challenges can seem hopelessly intertwined. However, accessing advice and guidance at the earliest possible stage sets them up best to face the decisions ahead of them. ●

A year for growth in later life lending

With 2025 now well underway, and 2024 having been a particularly turbulent year, even with some obvious events to take place, it’s hard to envisage the next 12 months being as volatile or as turbulent as the last.

Of course, such a statement might well come back to bite me in 12 months’ time, but certainly within the scope of the UK mortgage, property and later life lending markets, I’m ﬁnding it hard to see the ‘big ticket’ events which fundamentally altered the advice space being anywhere near what they were in 2024.

In that sense, the year begins with a far greater degree of certainty than a year ago, with what I think is a much more calm environment to navigate, while at the same time – certainly within the later life lending space – we must also recognise we have a much more complex, changeable and complicated market which, good news alert, will require access to advice more than ever before.

At the end of last year, Air hosted an Academy Summit: Budget Special event online, and we heard from a wide variety of sources about the growth potential for our sector, and the growing needs of those either in, or entering, later life. We also heard about how this converges with a greater product oﬀering and therefore a bigger advice requirement.

This should be music to the ears of all advisers, but it’s also clear that we currently have nowhere near the suﬃcient number of advisers active in the later life advice space to meet demand.

According to the Equity Release Council – and we must be aware that not all later life advisers will be members – there are currently around 1,800 registered individuals among 750 active ﬁrms.

Being ‘active’ isn’t necessarily deﬁned as those who are actively writing business, either.

We have many advisers who can, provide advice, recommendations and place business with providers, but far from all of them do.

Why might this be? Some say they simply don’t see any demand, or don’t see any relevant clients who might ﬁt the bill.

To which you might respond: do you work with clients who are over 50?

Because it seems fairly obvious that if you do, then you’re working with clients whose circumstances right now may or will be applicable to later life lending solutions, or certainly will be in the near future.

Time and expertise

The other pushback is o en around experience, or knowledge, or both, and we must accept our sector is fastmoving. In the past 12 to 18 months there has, of course, been a lot of product changes and shi s, and these do require eﬀort and resource in order to keep on top of.

Plus, time is precious for the vast majority of advisers, and the question is how best can they use it, and can they ﬁnd it to a end education and support events – such as those run by Air.

The answer might well lie in terms of where the market has come from, and where it is going. It seems highly likely that advisers and ﬁrms will continue to see more and more clients for whom a tailored, later life lending product option is going to be the most appropriate solution; one that will deliver them the best outcome.

And as we know, Consumer Duty is all about the delivery of this.

We know older homeowners and borrowers are currently si ing upon trillions of housing equity, we know more and more people are taking mortgage debt into later life, we know more and more homeowners have

PAUL GLYNN is CEO of Air

poor pension provision, we know there are growing responsibilities, wants and needs among older people, including helping younger generations onto the property ladder, and we know we have an ageing population.

I could go on, but you get the point that this equates to more older clients needing mortgage advice well past any ‘traditional’ retirement age, and they – I would suspect – will want to keep on using the advisers that have served them so well, for so long.

However, for some ﬁrms this is going to necessitate a shi , a growing knowledge of later life options, and a commitment to delivering the best for the client regardless of what product areas they currently advise on.

We have an encouraging number in terms of the 20,000-plus mainstream mortgage advisers currently active in the market, and we really need to do much more to encourage them to deliver holistic advice that spans all sectors, particularly later life lending.

The good news for them is that there is no shortage of institutions and bodies there to help them make a roaring success of increased client demand and need.

What we do know is that if we do have a calmer market in 2025, then this might – and really should – present the opportunity for all advisers and ﬁrms to progress their propositions into later life and beyond.

The clients are already there, the need is already there, the products and solutions are already there –make sure you get all you need to take advantage of this and make the most of a huge opportunity in the year ahead. ●

Steady growth or eeting market frenzy?

When you tell someone you work in financial services, I suspect they imagine either a grey office with grey people shuffling paper, or the excesses of the ‘Wolf of Wall Street’.

Thankfully, neither of these pictures is true – although we have seen some spectacular ups and downs over the past 20 years. The impact of Pension Freedoms on retirement planning and the infamous Liz Truss mini-Budget of Autumn 2022 spring to mind.

The la er was particularly challenging for the residential property market, and while we saw the Bank of England reduce rates recently, there is still a long way to go until we hit mortgage rates at levels seen in 2020. Even the equity release market – where rates are pegged to gilts – did not escape unscathed, and we went from record lending of £6.2bn (2022) to £2.32bn (2024).

Now, I would be lying if I did not acknowledge that we would like to have seen more lending last year, but the picture is actually far from gloomy. Indeed, Q4 2024 was the third consecutive quarter when we saw growth in both total customer numbers and total lending.

While there is still a long way to go, the dial is moving in the right direction, and we are starting to see more product innovation as well.

Welcome products

In late 2023, Legal & General launched the first Mandatory Payment Term Lifetime Mortgage (PTLM) products which, for the first time, mandated payments for a set period, allowing customers to benefit from increased

loan-to-values (LTVs) as a result. This was especially welcome in a low LTV environment following the 2022 Budget.

Keen to extend the same protections to PTLM customers, the council worked hard with its Standards Commi ee to develop standards which covered these innovative mortgages, and these were launched in February 2024.

No ERCs

Due to the duration of equity release products, early repayment charges (ERCs) can be unpopular with customers, but more2life tackled this in 2024 by releasing a product which boasted a slightly higher rate, but no ERCs should the customer choose to redeem. With interest rates higher than we’ve seen for a few years, Standard Life Home Finance and Pure also unveiled interest served ranges, which oﬀered lower rates for customers prepared to make regular voluntary payments.

Livemore also stepped up, launching products which catered to nonstandard construction and – in 2025

KELLY MELVILLE-KELLY is director of risk, policy and compliance at the Equity Release Council

– a lifetime mortgage with a six month oﬀer period aimed at home movers and buyers.

It’s not only providers that have stepped up, but advisers as well. Equity Release Supermarket released its new business-to-business platform, Equity Release Partners, and Mortgage Advice Bureau integrated equity release into its later life services.

Following three consecutive quarters of growth, 2025 has the potential to be a pivotal year for the equity release market.

Innovation is gathering pace, lenders are adapting, and advisers are embracing new ways to serve customers be er.

While we may not be in for a Hollywood-style rollercoaster, a period of steady, sustainable expansion is exactly what the industry needs. That, in the long run, is far more rewarding than any ﬂeeting market frenzy. ●

Save time and conver t more deals by accessing over 200 valuer ﬁrms covering ever y proper ty type, in ever y area of the

The VAS team includes 10 Char tered Surveyors who together have amassed over 250 years' experience. They are skilled in valuations across all proper ty types and UK locations, having served in local, regional, and international real estate consultancy environments. the most suitable valuation ﬁrm for every oppor tunity. Lenders and brokers have access to a personalised dashboard to keep track of case progress.

proper t y categories

VAS has significantly broadened its range of valuation specialties, enhancing our ability to find precisely the right valuer firm to carry out the repor t, regardless of complexity or uniqueness.

Taking the pain out of valuations

Set against a backdrop of the cost-of-living crisis, many millions of customers still to experience rate shock, a relatively flat housing market, and increased regulation and Government charters, growing a successful lending business is only possible with a continual focus on detail, reviewing and improving processes and policies.

Data released by the Financial Conduct Authority (FCA) in December suggests that a minimum of around 1.7 million mortgages have benefited from one or more of the options set out in the Charter, with around 149,000 mortgages temporarily reducing monthly payments. This is good news for customers, of course, but it’s only possible through the extraordinary eﬀorts of lenders.

Delivering better

Winning new business also looks set to be a challenge. The latest data from UK Finance suggests that while gross mortgage lending is expected to grow slightly from £235bn in 2024 to £260bn in 2025, this is still significantly below the £315bn market we knew in 2022.

For lenders, the challenge isn’t just about staying competitive; it’s about finding ways to deliver a better experience to customers while keeping costs under control and adapting to broader societal goals – for example, reducing environmental impact.

In this competitive environment that is full of economic pressures, improving operational efficiency is vital. This is often seen as an internal exercise – a way to cut costs and enhance productivity. However, if done well, it can create significant advantages for lenders and customers alike, freeing up resources to focus on service innovation and customer service, enabling faster, more confident decisions for customers.

Efficiency isn’t just about doing things cheaper – it’s about doing it smarter.

One area where efficiency and customer experience intersect is property valuations. The traditional reliance on physical valuations, or even desktop valuations, can be slow and wasteful, especially given the number of applications that are declined where the valuation does not meet the applicant’s expectations.

New alternatives

In these situations, a ‘slow no’ doesn’t just cost money, it can also damage a lender’s reputation. Lenders know that delays and uncertainty in the mortgage process reduce customer conversion, but until recently, alternatives have been limited to automated valuation models (AVMs), which are faster and cheaper, but increase the lender’s risk, because they don’t have any form of recourse.

By combining CLSQ’s advanced data modelling with insurance-backed property valuation decisions, VerifyQ allows lenders to increase their instant property valuation decisions. For borrowers, this means faster lending decisions and a smoother journey. For lenders, it not only reduces costs and risk, but also massively reduces waste, because most of its cost is payable only on completion, therefore in negative margin, creating a win-win scenario.

This isn’t just about providing a data-based assessment of property value; it’s about providing confidence – incorporating a range of data sources and aligning with a lender’s specific criteria, backed by AA-rated insurance. This insurance covers losses on outstanding loan amounts in the event of repossession for up to five years, giving lenders a safeguard that’s unique in the market.

By reducing the need for physical valuations, lenders can significantly cut down on energy consumption and carbon emissions.

SPENCER

WYER is strategic development director at CLSQ

In this competitive environment that is full of economic pressures, improving operational e ciency is vital”

We estimate that each physical valuation generates around 4.4kg CO2e – a small but meaningful step towards meeting environmental, social, and governance (ESG) targets.

Sustainability isn’t just about optics; it’s becoming a key part of how lenders diﬀerentiate themselves and build long-term trust with both customers and investors.

Competing for customers

The path ahead for lenders is clear – to succeed in a competitive market, they must go beyond competing on price or criteria. Customer experience, in the form of faster decisions with certainty when applying for a mortgage, will be the defining factor, and efficiency will be the result. There are solutions that oﬀer a way to deliver a better experience for brokers and borrowers while managing risk and reducing costs. Innovation can help lenders achieve their commercial and strategic goals without compromise.

As the mortgage market moves forward into 2025, the challenge for lenders isn’t just about keeping up; it’s about finding ways to lead. By adopting the right solutions, lenders can position themselves ahead of the competition – oﬀering better service, greater confidence, and a genuine commitment to sustainability. ●

Things that keep you awake at night

For companies, a breach of their systems, cloud access or client or customer data is a terrifying prospect. A cyber a ack can cause panic among customers and feed a litigation frenzy.

The threat is doubly compounded by insurance arrangements that will exclude certain types of a ack. Unlike forest ﬁres, there is no historical data upon which to model cybera acks. Cybercrime is no respecter of geography or seasons.

For individuals, the threat of companies losing their personal and private data to criminals and fraudsters is even more terrifying.

Looking at the numbers

The Oﬃce for National Statistics (ONS) publishes crime stats against households and people aged 16 years and over – using data from police recorded crime and the Crime Survey for England and Wales – every six months.

In the year to the end of June 2024, more than 3.5 million people were victims of fraud. Fraud makes up 37% of all crimes experienced by the UK public, making it the most commi ed crime in the country. The ONS ﬁgures reveal that there was a 19% increase in consumer and retail fraud, to approximately 963,000 incidents, compared with the previous year.

Overall, police recorded fraud was 11% higher – by a whopping 1.3 million offences – compared with year ending June 2023. Most of that rise came from offences referred from UK Finance – they reported a 22% increase to 569,933 offences, compared with the previous year when there were 465,894 offences.

The actual ﬁgures are likely far, far higher. The Crime in England and Wales: Annual Trend and Demographic dataset estimates that only one in seven fraud oﬀences were

reported to the police or Action Fraud over the 12-month period to the end of June last year. According to the recorded ﬁgures, approximately 2.7 million fraud incidents involved a loss of money or property, and the victim was fully reimbursed in 1.9 million of these incidents. That means it’s probable that almost 19 million frauds took place over that one year, with 13.3 million of those individuals reimbursed fully.

Reckoning with risks

Just think about those numbers. We are talking billions of pounds – much of it lost through banks as a consequence of customers being scammed. The risks presented by cybercrime are mindbogglingly numerous: from the loss of individuals’ data, property and money to the rising cost of insuring against those losses, reputational damage and even criminal charges.

According to the National Fraud Intelligence Bureau, four-ﬁ hs of reported fraud is cyber-enabled. For example, the National Economic Crime Centre and National Crime Agency teams were involved in the successful takedown of one of the biggest online marketplaces selling stolen credentials to criminals worldwide recently.

Known as Genesis, this was an online marketplace for criminals seeking to defraud victims. The site hosted more than 80 million credentials and digital ﬁngerprints stolen from more than two million victims, which were sold on the marketplace as ‘bots’.

These ‘bots’ contained real-time data that had been harvested from victims’ devices during malicious a acks. This data could then be used by criminals for a range of illicit activity against individuals and companies, including accessing online banking to move victims’ money out directly, or to use credentials to pay for goods and

STEVE CARRUTHERS is business development director at MSO Mortgages

services for their beneﬁt. Cyber security and digital fraud threats grow year-on-year, and it takes deeper and deeper pockets for ﬁrms to invest in the protection and defences they need to keep pace.

In financial services it can be made more challenging within the bounds of considerable regulation by multiple regulators. As cyber criminals find new and ever more complex ways to play the system, it’s o en impossible for firms to keep up, let alone get ahead.

During the last Mortgage Eﬃciency Survey we carried out, we found that lenders’ views of the risk presented by cybercrime and digital fraud varied according to the size of their perceived potential exposure. In many cases, smaller lenders pointed to their investment in InfoSec posts and the building of speciﬁc departments to address threats.

For larger lenders, provisions and huge infrastructure investments formed a large part of their response. We found there was a real tension between the need to bring in external expertise by integrating with thirdparty systems and the cracks this could open up in their own cyber security. To quote one participant, “cybercrime is the thing that keeps us awake at night.”

There is absolutely no doubt that these threats are only going to grow more sophisticated and diverse, and lenders of all sizes must recognise the many doorways criminals can use to access and subvert their organisations and customers. ●

Innovation fuels greater personalisation

In today’s rapidly evolving financial landscape, personalisation has become a key tool for financial institutions looking to enhance their customer experience and attract new clients.

With the global Islamic fintech market predicted to reach $179bn by 2026, according to the ‘Global Islamic Fintech Report 2022’, customers across the Gulf Cooperation Council (GCC) are increasingly benefiting from financial products that are flexible, tailored and responsive to their immediate needs – while anticipating future behaviours and requirements.

The drive towards greater personalisation in Islamic banking is being fuelled by a range of innovative technologies, with artificial intelligence (AI) and machine learning (ML) at the forefront of creating a more customer-centric experience. These tools not only allow financial institutions to analyse vast amounts of data, but will also help elevate the banking experience, with the potential for innovations such as AIpowered agents handling the bulk of interactions in a seamless manner.

Increased personalisation is already delivering benefits to both consumers and businesses. Customers benefit from interactions that feel intuitive, while receiving oﬀers and communications that resonate with their needs. This is vital in a region like the GCC, where trust and word of mouth is very important.

Personalisation matters

For clients based in the GCC, personalisation is essential for those requiring Sharia-compliant finance.

Compared to high and ultra-high net worth individuals, mass aﬄuent GCC-based customers seeking

Sharia-compliant financing for UK property purchases have often been underserved and overlooked by mainstream providers, with conventional banks struggling to adapt to meet their specific needs.

Traditionally, these lenders would require a UK address, identification and credit footprint to progress a purchase, but enhanced digitalisation now allows them to oﬀer a personalised approach for investors based thousands of miles away.

Taking a digital-first approach has already helped to streamline the customer journey at Nomo. Customers can benefit from multi-currency accounts and products which oﬀer tailored financial solutions, ensuring they enjoy the benefits of speed, convenience and transparency.

Technology’s role

Through the use of cloud computing and predictive analytics, financial organisations can deliver services aligned, and capable of evolving, with the customer’s financial journey.

Technologies such as blockchain could also be used to manage the property purchase process, reducing the cost significantly for consumers while securely storing user data, although regulatory developments are needed for this to become a reality.

For institutions providing property financing solutions, technology can be used to home in on client preferences, including the type of property, preferred locations and financing terms. This tailored service ensures that the customer receives relevant and timely property finance oﬀers.

Innovation in action

Innovative technologies are at the centre of this tech revolution. For instance, Nomo is currently testing its

MARC BAXTER is director, head of products and propositions at Nomo Bank

own generative AI platform, capable of adapting marketing content across diﬀerent Arabic dialects.

As customer-centricity becomes the norm, products will become more tailored, designed in response to customer behavioural trends. This will foster authentic customer engagement, while helping to reduce the cost to serve them.

We are also exploring other tools and technologies to improve how we understand our customers. These include Customer Data Platforms (CDPs), which unify data from various sources and personalisation engines, using algorithms to oﬀer tailored recommendations and oﬀers to customers in real time.

Nomo is about to explore the use of GPS location-based services to ensure customers receive customised oﬀers based on their location. This aims to provide more relevant and timely product oﬀerings.

The future

These new technologies will play an even greater role in shaping financial personalisation. The evolution of AIdriven personalisation will continue to unlock opportunities for GCC customers looking to invest in the UK property market.

Innovations in the business-toconsumer relationship go beyond technology – it’s about solving fundamental customer needs and helping them achieve their goals.

In a world of rising expectations and rapid change, institutions that focus on applying innovations will create winning customer value propositions and drive success. ●

AI agents: The next in the mortgage

The mortgage industry is on the brink of a digital revolution thanks to the rise of artificial intelligence (AI). The status quo within the industry for brokers and lenders incorporates lots of labour-intensive paperwork and administrative tasks that invite human error.

As a result, the mortgage industry has gained a reputation for being sluggish, creating frustration for both professionals and borrowers.

However, with the advent of AI agents, this all looks to be changing for the better.

In need of change

The mortgage industry is notorious for its complex and time-consuming workflows. From the initial application to the final approval, every step involves extensive documentation, rigorous compliance checks, and meticulous data validation.

These tasks are tedious and prone to errors, which often leads to delays, financial losses, and dissatisfied clients.

Mortgage brokers, in particular, tend to find themselves buried under mountains of paperwork and administration. They spend countless hours sifting through documents, verifying information, and ensuring compliance with everchanging regulations. This leaves little time for what truly matters –building strong client relationships, sourcing better deals, and focusing on strategic growth.

Due to the heavily regulated nature of the industry, the mortgage sector has been slow to adopt new technologies. While other sectors, such as retail and healthcare, have embraced digital transformation quite quickly, the mortgage space has lagged.

This reluctance to innovate has created a gap that AI agents are now ready to fill. By leveraging this technology, the mortgage industry can finally move away from outdated practices and embrace a future defined by efficiency, accuracy, and automation.

What are AI agents?

AI agents are autonomous systems powered by advanced AI and machine learning algorithms. Unlike traditional AI tools, which require human input at every stage, AI agents are designed to operate independently. They can learn from data, adapt to new information, and make real-time decisions without much – if any – human intervention.

In the mortgage industry, AI agents act as intelligent assistants capable of handling a wide range of tasks. From document processing and compliance checks to data analysis and fraud detection, these systems are equipped to tackle the most labourintensive aspects of the mortgage process.

By automating these tasks, AI agents free up valuable time for brokers and bankers, allowing them to focus on higher-value activities while also providing a superior service for borrowers.

Transforming the process

The integration of AI agents into the mortgage industry is already yielding significant benefits. How these manifest down the road remains to be seen, but for now, the outlook is incredibly promising.

Here are a few key areas where this technology is reshaping the landscape:

big thing space

1 Eliminating paperwork

One of the most significant pain points in the mortgage process is the sheer volume of paperwork involved. AI agents can automate the collection, processing, and validation of documents, ensuring that all necessary information is accurate and compliant with the latest regulations. This reduces the risk of errors while also creating a paper-free workflow that is faster and more efficient.

2 Faster approvals

Traditionally, loan approvals can take days or even weeks, as brokers manually review credit histories, income statements, and borrower profiles. AI agents, however, can analyse this data in real-time, significantly reducing approval times. By automating the underwriting process, these systems enable lenders to provide instant decisions, which enhances the overall borrower experience.

3 Reducing admin

From lead generation to compliance management, AI agents take over the repetitive and timeconsuming tasks that brokers often dread. This allows professionals to reclaim their time and focus on strategic activities, such as building client relationships and exploring new business opportunities.

4Fraud detection

Fraud is a major concern in the mortgage industry, with billions of pounds lost each year due to fraudulent applications.

AI agents can detect anomalies and patterns in data that might be missed by human eyes. By identifying potential red flags early in the process, these systems help protect both lenders and borrowers from financial losses.

IFTHIKAR MOHAMED is director at WIS Mortgages and Insurance Services

5 Borrower experience

AI agents are not just beneficial for brokers and bankers – they also enhance the mortgage journey for borrowers, too. Through virtual assistants and personalised recommendations, these systems provide borrowers with real-time updates, answer their questions, and guide them through the mortgage process in a bespoke way. This creates a more transparent, efficient, and user-friendly experience.

Why AI agents matter now

While other industries have embraced technological advancements quite quickly, the mortgage sector has been slower to adapt. This has created a unique opportunity for early adopters of AI agents. With few competitors in this space, mortgage professionals who integrate this technology now can gain a significant competitive edge.

By adopting AI agents, brokers and bankers can address their most pressing challenges, such as inefficiencies, errors, and compliance issues. More importantly, they can position themselves as innovators in an evolving industry. As the demand for faster, more transparent, and more personalised mortgage services grows, AI agents will play a key role in meeting these expectations.

The mortgage industry is at a turning point, and AI agents are leading the charge toward a brighter future. By automating tedious tasks, reducing errors, and enhancing the borrower experience, this technology will transform the way mortgages are processed and managed.

For brokers, bankers, and lenders, the message is clear: embracing AI agents is no longer optional – it’s essential to staying competitive in a rapidly changing landscape. ●

Right data, right time, right reason

Akey point of gathering and managing data for clients is to support their decision-making. Already, we are seeing changes and opportunities in how the information we have could materially help lenders over the coming months.

Chancellor Rachel Reeves sat down with regulators in January to suggest that boosting growth by relaxing mortgage lending rules should be on the table. Financial Conduct Authority (FCA) chief executive Nikhil Rathi confirmed that the regulator will be “simplifying responsible lending and advice rules for mortgages, supporting homeownership and opening a discussion on the balance between access to lending and levels of defaults.”

The FCA will also open a consultation on removing maturing interest-only mortgage and other “outdated guidance,” and work with Government to remove overlapping standards, such as the Mortgage Charter which came in during 2023. The areas to be examined include financial stress-testing rules that limit how much first-time buyers can borrow. Currently, lenders are required to limit the number of mortgage loans made at or greater than 4.5-times loan-to-income (LTI) to no more than 15% of their residential lending – the flow limit rule that came in following the global financial crash.

Last year, Nationwide called on the Government to review that on the basis that it was constraining lending to first-time buyers. The Intermediary Mortgage Lenders Association (IMLA) has consistently argued that the limit is not consistent with the wider FCA aﬀordability regime, as it “constrains lending that the FCA regime deems aﬀordable and disproportionately impacts first-time buyers.”

Reports also suggest further loosening of stress testing aﬀordability

is under review. In 2022, the Bank of England scrapped the mandatory 3% stress test, which came in at the same time as the flow limit. However, most lenders still test aﬀordability at or above their standard variable rate, often between 6% and 10%.

If that is relaxed, and rental payments are used more widely to demonstrate aﬀordability, it would mean many more first-time buyers pass aﬀordability tests. There’s also talk of cutting capital adequacy ratios for 90% loan-to-value (LTV) mortgages.

Energy performance

December also saw an interesting move from Halifax on LTI criteria. They now take into account the Energy Performance Certificate (EPC) rating of the property when underwriting aﬀordability. Halifax Intermediaries and Scottish Widows Bank head Amanda Bryden says: “We know that typically, more energy efficient homes are cheaper to run. Using [EPC] data and energy bill analysis, we’re able to reflect that in mortgage aﬀordability.”

Homes with a rating of A or B will see an increase in the amount Halifax will be able to lend. Homes rated C, D and E will see no change, and Bands F and G will see a small reduction.

The amounts aren’t huge, but there is an incentive for borrowers to go for more energy efficient properties.

It’s an interesting idea, particularly in the context of higher energy bills and the UK’s commitment to cut carbon emissions to net zero by 2050.

In 2022, residential buildings accounted for a fifth of greenhouse gas emissions in the UK, according to Government statistics. The Climate Change Committee has said the UK will not meet its emissions targets “without near complete decarbonisation of the housing stock.”

While strict standards apply to new-build homes, there is still a huge

MARK BLACKWELL is COO of CoreLogic UK

question when it comes to cutting emissions from existing stock.

During the Budget, Labour committed £500m to its Warm Homes Local Grant, intended to provide energy performance upgrades and low carbon heating via local authorities. However, the grants are only available to low income households in England. Of homes with an EPC, around eight million in England (58%) and 460,000 in Wales (62%) were rated below Band C, according to the Office for National Statistics (ONS).

For years now, lenders have been under pressure to oﬀer green mortgages designed to incentivise borrowers to improve their homes’ energy efficiency. Halifax’s move is an interesting development that will be welcome for some borrowers.

There is a wider consideration, however – linking LTI to a property’s energy efficiency rewards those who already have energy efficient homes.

For those whose homes are hard to upgrade, not suitable for heat pumps or insulation, or who cannot aﬀord the outlay, there’s a danger that, over time, they are penalised on how much they can borrow.

Some might argue that there is an imperative to lend more against lower EPC banded homes, with a contingency that the additional borrowing is spent on improvements to their energy efficiency.

These issues require dependable robust property data and processes for gathering that information if lenders are to make the right steps forward while not excluding some borrowers.

There is rarely a silver bullet for big challenges, but we know from experience that the right blend of data sets and expertise can turn those challenges into opportunities. ●

Automation: The future of specialist lending

The specialist lending sector stands at a pivotal moment. Brokers are grappling with rising administrative demands, constantly shi ing compliance standards, and growing client expectations, and the need for innovation has never been greater.

At its core, specialist lending is built on relationships, trust, and accuracy. However, outdated manual processes have long hindered brokers’ ability to deliver seamless and eﬃcient services.

The future of specialist lending lies in leveraging artiﬁcial intelligence (AI) to streamline processes, reduce manual workloads, and ultimately improve outcomes for brokers and clients alike.

A game-changer

Automation is no longer a buzzword, it’s a necessity in today’s fast-paced financial environment. Our recent partnership with Y3S, a leading specialist loan broker, exemplifies how automation can redefine the way brokers operate by addressing key pain points such as biometric identity verification (IDV), antimoney laundering (AML) checks, and document processing.

In specialist lending, where the stakes are high, these tasks can no longer rely solely on manual intervention. These processes demand not only accuracy, but also signiﬁcant time and resources, which can be tackled head-on by automating key tasks that were once labour-intensive, error-prone, and slow.

With automated AI technology, brokers can complete tasks that once took hours in just minutes. For example, our system extracts and veriﬁes essential information from

documents such as bank statements, payslips and tax returns with unmatched precision. The results speak for themselves: faster decisionmaking, greater accuracy, and significantly reduced administrative burdens, freeing brokers to focus on building trust with clients and offering personalised financial advice.

. Building trust

In an industry as tightly regulated as ﬁnancial services, compliance isn’t just box-ticking – it’s a core responsibility. However, keeping up with ever-changing regulations can overwhelm even the most experienced brokers. By automating processes, veriﬁcation can be conducted consistently and accurately, mitigating the risk of human error and fraud.

The ability to offer an automated, secure, and compliant workflow has become a vital differentiator in specialist lending. With heightened regulatory scrutiny, brokers need solutions that not only keep them compliant, but do so without sacrificing efficiency.

Trust is certainly the cornerstone of any broker-client relationship. Clients expect brokers to safeguard their sensitive information while providing sound ﬁnancial guidance.

Innovation

No single organisation can drive industry-wide change alone – it requires partnerships that combine technological expertise with realworld experience.

Barney Drake, CEO of Y3S, encapsulated this shared mission perfectly: “At Y3S, safeguarding our brokers and their clients is a top priority. Our partnership with Sikoia demonstrates our dedication to staying

ALEXIS ROG is CEO and founder at Sikoia

ahead of the curve in fraud prevention and compliance, giving brokers greater conﬁdence in the solutions we oﬀer.”

This serves as a model for how ﬁntech innovation can drive meaningful change in a traditionally slow-moving sector, and what’s possible when expertise meets cu ingedge technology.

An automated future

Looking ahead, the future of specialist lending will be deﬁned by automation. Our vision at Sikoia is clear: we aim to lead the industry into a new era where manual tasks are minimised, compliance becomes seamless, and brokers can focus on delivering exceptional client service.

We foresee a time when brokers no longer see regulatory requirements as obstacles, but as automated processes working silently in the background. Administrative tasks won’t detract from client engagement, but will enhance it, thanks to intuitive, AIdriven solutions.

Brokers who adopt these technologies will gain a competitive edge, providing faster, more accurate services with more time to build meaningful relationships.

There’s more work to be done. By embracing automation, brokers can not only meet rising demands but exceed client expectations, se ing a new standard for the industry.

Brokers and ﬁnancial institutions seeking to streamline their workﬂows, enhance compliance, and deliver be er outcomes, will be the ones helping shape the future of specialist lending – one automated process at a time. ●

Enhance services and increase retention

Loyal portfolio landlord clients can be worth their weight in gold. These clients don’t just require financing, they often have multiple opportunities to raise capital for numerous financing projects, and the complexity of their portfolios means they require tailored solutions.

Building strong relationships with portfolio landlords can lead to a reliable, consistent stream of business. With so much on their plates, these landlords appreciate working with brokers who truly understand their needs and can offer a holistic approach to simplify their property management.

Specialist support

One way to increase the benefits you offer to your portfolio landlord clients is by helping them with their insurance needs. You don’t need to become an insurance expert to do this – partnering with a specialist makes it simple to deliver enhanced protection services while saving your clients time and money. It’s a win-win for everyone involved.

Landlord insurance is an essential tool for protecting their investments, but it can feel like just one more thing for a busy landlord to manage. Cover can be arranged for individual property risks, or for entire portfolios.

While some landlords handle their insurance directly and others seek advice from brokers, by offering this service yourself, your clients are more likely to come back to you time and time again.

The market opportunity here is significant. Research shows there are 2.82 million private landlords in the UK, and 13% of them are portfolio landlords who own four or more

properties. That’s nearly 370,000 potential clients who own 2.2 million properties between them.

These landlords aren’t just looking for help with a single mortgage or a simple policy – they need ongoing support from experts who understand the complexities of managing multiple investments.

Diverse solutions

By helping your portfolio landlord clients secure the right insurance, you can become an invaluable part of their support team. At Solstar, for example, we specialise in arranging landlord insurance that is designed to meet the unique needs of portfolio landlords. From houses and ﬂats to holiday lets, and even properties undergoing renovation, we offer solutions that protect their entire portfolio.

The range of protection we provide goes beyond basic buildings and contents insurance. Our policies can include accidental and malicious damage, rent protection, and legal cover for tenant disputes. Home Emergency Protection can also be arranged – this is ideal for landlords who prefer a hands-off approach to their properties, as this level of protection can reduce the need for property management services and provides their tenants with 24-hour access to services such as plumbers, glaziers, locksmiths or builders, without ever having to contact the landlord.

For brokers, there are clear benefits to helping clients with insurance. Not only can they deepen relationships with portfolio landlords and add value to their businesses, but they can also enjoy a consistent revenue stream through referral commissions. With an insurance partner, like Solstar, you don’t need to worry about the

JACQUI EDWARDS is senior insurance executive at Solstar

Building strong relationships with portfolio landlords can lead to a reliable, consistent stream of business”

complexities of insurance – we handle the heavy lifting, so you can focus on providing the best possible service to your clients.

Portfolio landlords are among the most valuable clients a broker can have. They’re loyal, they have recurring needs, and they’re often looking for trusted partners who can simplify their busy lives. By stepping in to assist with their insurance needs, you’re offering a service that makes their lives easier and positions you as a key player in their success.

The best part? You don’t have to navigate this alone. With the right partner, you can confidently deliver a solution that protects their properties, their income, and their peace of mind. ●

Evolution of home insurance panels

There have been several noteworthy changes in the general insurance (GI) market over the past year when it comes to home insurance panels. In particular, we’ve seen the rise of managing general agents (MGAs) to greater prominence on panels, and the shift towards insurer hosted pricing (IHP).

While this behind-the-scenes activity may initially seem one step removed from advisers, it matters because these changes are providing greater resilience, agility and sustainability to the market.

For Paymentshield, they can also help support broader quotability –that is, how often advisers are getting a quote that is suitable for the specific needs of their client.

We believe an effective insurance panel isn’t just about quantity, it’s about having the right blend of insurers that provide breadth of cover, and ultimately means advisers can provide a more compelling offer to their clients.

While not insurers, MGAs have underwriting authority from an insurer and can do everything from setting risk ratings and pricing to issuing policies and managing claims. However, the ultimate liability for the cost of each claim still sits with the insurer.

The reason people are noticing MGAs more is perhaps down to many insurers choosing to exit personal lines markets in the last year. When you consider the costs associated with meeting the constantly developing regulatory requirements – that rightly place increasing emphasis on positive customer outcomes – some insurers have found it challenging to maintain their profitably. Understandably, they have had to make strategic choices about their preferred markets.

For advisers and their clients, there are clear benefits to MGAs stepping in

where insurers have stepped out. First, MGAs can offer greater ﬂexibility in underwriting appetite. Typically, an insurer is a large corporate entity with more complex frameworks and processes they need to work within, whereas MGAs can potentially be slightly quicker to react to market and customer changes when needed.

Second, while not completely immune to insurers withdrawing from the market, if an MGA loses its capacity insurer, they tend to be geared up to quickly sourcing alternative capacity from another insurer. This reduces the impact on providers like Paymentshield, and in turn the end customer, by ensuring the robustness of the panel can be preserved to the best possible extent.

Finally, there is a cost consideration. Any gaps in the market do tend to generate an increase in prices, and MGAs are helping to fill that gap. Often, they’re able to negotiate rates directly with the insurer, allowing them to operate competitively, and they have an element of autonomy that allows them to target certain property profiles with stronger pricing.

Agile updates

The second big trend we’re seeing also relates to pricing. There has been a move in the market towards the IHP model. This model feeds risk details directly from an adviser-facing platform – such as our Adviser Hub – to insurers or MGAs and allows for ‘real-time’ pricing.

It means that insurers and MGAs can adjust pricing in response to market conditions and insights into customer profiles, rather than relying on pre-determined pricing structures. This could mean updates to products in days, or even hours.

The other big bonus to IHP is that it’s also able to integrate with a range of enrichment data points, such as credit scoring and geographical checks.

LOUISE PENGELLY is proposition director at Paymentshield

We believe an effective insurance panel isn’t just about quantity, it’s about having the right blend of insurers that provide breadth of cover”

This in turn allows for a greater level of underwriting sophistication, and subsequently, more accurate rates.

The majority of Paymentshield’s home insurance panel is now on the IHP model. Over the past year or so, we’ve been working hard to accelerate this transition, which allows for communication between the information advisers feed into our platform and the IHP product of an insurer or MGA.

So, home insurance panels might be changing in their make-up and processes, but they remain a real strength. When done well, they offer greater ﬂexibility and availability within a competitive framework, and help ensure clients are subject to less market volatility. The two trends outlined above are certainly adding to this value.

This can be really important context for advisers when discussing GI with clients, helping them to position the value they’re able to add and the type of cover they can access.

For clients, it can serve as further reassurance that their home insurance journey will end in securing the right product for them at the right price. ●

The importance of insurance in

Whole of life insurance is a valuable tool in the financial planner’s kit, and one which is often unutilised, particularly when it comes to affluent clients with potential Inheritance Tax (IHT) liabilities, or those who wish to ensure that they are guaranteed to leave a legacy.

‘Whole of life’ is a type of life insurance policy that provides coverage for the entire lifespan of the insured individual, compared to term life insurance, which covers a specific period such as during a mortgage term.

It offers a guaranteed payout upon the death of the insured, regardless of when it occurs, rather than a term policy which expires having delivered no financial benefit to the premium payer.

Key benefits

ɐ Guaranteed death benefit: The primary advantage of whole of life insurance is the certainty of a death benefit. This lump sum payment can provide a financial security package for clients’ loved ones, ensuring that funds are available for expenses such as remaining mortgage balances, funeral costs, and a lump sum legacy to fund future beneficiaries’ needs, like education.

ɐ Estate planning: Whole of life insurance plays a crucial role in estate planning, particularly for high-net-worth (HNW) individuals. The death benefit can be used to cover potential inheritance tax liabilities, ensuring that assets can be passed onto heirs without the financial strain of liquidation. It can also be used to equalise inheritances among family members where assets are not easily liquidated for financial or sentimental reasons.

ɐ Cash value accumulation: Many whole of life insurance policies accumulate cash value over time. This cash value grows tax-deferred and can be accessed through policy loans or withdrawals, providing a source of funds for emergencies or opportunities.

ɐ Inheritance Tax planning: If the policy is written in interest, the payout does not form parts of the estate, meaning it can be used to cover IHT liabilities without increasing the taxable estate, and can be paid out prior to probate. This ensures that beneficiaries can receive the full value of the estate

without needing to potentially sell assets to pay inheritance tax.

ɐ Guaranteed premiums: Some policies offer fixed premiums, so your costs remain predictable. This provides surety as to how the premiums will be funded ongoing, utilising excess annual gift allowances to fund the premium or fixed withdrawals from an investment vehicle to fund the guaranteed premium till death.

ɐ Lower cost premiums: Alternatively, some policies provide the option to commit to lower premiums in the earlier years – typically reviewed every 10 years – which allows the client to afford to cover a potential liability in the short-term while implementing a financial planning strategy to reduce future potential liabilities such as IHT.

Despite its numerous benefits, whole of life insurance is often underutilised in financial planning. Several factors contribute to this:

ɐ Cost: Whole of life insurance guaranteed premiums are generally higher than term life insurance premiums, making it seem less affordable. However, it’s important to consider the long-term value and guaranteed payout of whole of life insurance compared to the temporary coverage of term life insurance.

ɐ Complexity: Policies can be complex, with various features and options that may be difficult to understand. This can lead to confusion and hesitation among clients, as well as a lack of confidence among advisers in recommending it.

ɐ Misconceptions: There are common misconceptions about whole of life insurance, such as it being solely for the wealthy or

whole of life financial planning

only for covering final expenses. These misconceptions can prevent individuals from considering its broader applications in financial planning.

ɐ Focus on short-term needs: Many advisers and clients tend to focus on short-term financial needs, neglecting the long-term benefits of whole of life insurance. This can lead to missed opportunities for estate planning, legacy creation, and tax-advantaged wealth accumulation.

ɐ Lack of education: Insufficient education and training among advisers about the features and benefits of whole of life insurance can limit its recommendation to clients. Similarly, clients may lack awareness of the potential advantages of this type of policy.

Overcoming the barriers

To promote the appropriate use of whole of life insurance, it’s essential to address these barriers.

Advisers need comprehensive training on the various types of whole of life insurance policies, their features, and their applications in different financial planning scenarios. Clients should also be educated about the benefits and how it can fit into their overall financial goals.

Clear and concise explanations of policy costs, features, and benefits are crucial. Advisers should provide clients with detailed illustrations and comparisons to help them make informed decisions.

Encouraging a long-term perspective in financial planning is essential. Advisers should emphasise the value of whole of life insurance for estate planning, legacy creation, and tax-advantaged wealth accumulation.

Recognising that each client’s needs are unique, advisers should tailor whole of life insurance

ANDREW TEEMAN is business principal and adviser at Mortgage Advice Bureau

recommendations to individual circumstances and financial goals.

Building trust between advisers and clients is paramount. Clients need to feel confident that their adviser understands their needs and is recommending the most suitable solutions for their long-term financial wellbeing.

Conclusion

Whole of life insurance is a powerful tool in financial planning, offering guaranteed death benefits, cash value accumulation, estate planning advantages, and tax benefits.

Despite its importance, it remains underutilsed due to factors like cost concerns, complexity, misconceptions, and a lack of education. By addressing these barriers through education, transparency, a focus on longterm planning, and customised solutions, advisers can help clients understand the true value of whole of life insurance and incorporate it effectively into their financial plans.

This will ensure that individuals have the financial security and peace of mind they need throughout their lives, and can leave a lasting legacy for their loved ones. ●

Clear and concise explanations of policy, costs, features and benefits are crucial. Advisers should provide clients with detailed illustrations and comparisons”

Each month, The Intermediary takes a close-up look at the housing market in a speci c region and speaks to the experts supporting the area to nd out what makes their territory unique

Focus on... Doncaster

The property market in Doncaster is undergoing a transformation, shaped by shifting local trends and the influence of wider economic factors. As homebuyers and investors adapt to changes in property demand, spurred on by the upcoming Stamp Duty deadline, and ongoing changes in mortgage availability, the area continues to reflect broader patterns seen across the UK.

Locally, Doncaster is experiencing a mix of opportunities and challenges that are redefining its appeal to firsttime buyers, seasoned investors, and home movers alike.

This month, The Intermediary sat down with property experts from the area to examine this dynamic landscape, exploring how brokers and buyers have been navigating Doncaster’s evolving housing market, even in the face of broader challenges.

Current values

The average property price in Doncaster stands at £181,000, compared to an average of £346,00 in England and Wales overall. Despite a modest yearly decline of £3,500 (2%) the month before, December 2024 showed prices remaining steady.

Established properties typically sell for £179,000, while newly built homes command a higher average of £215,000.

In 2024, there were 8,600 property transactions, marking a significant 22.6% drop (2,700 fewer sales).

The most active price bracket was £100,000 to £150,000, accounting for 25.8% of sales, followed closely by the £150,000 to £200,000 range, with 24.5% market share.

Doncaster’s most affordable area is DN32 7, with an average price of £56,700, while DN10 5 tops the scale at £435,000.

Detached homes average £288,000 while semi-detached homes are priced at an average of £165,000. Terraced homes in the region typically set buyers back £110,000, as flats cost around £113,000.

Resilient market

While the national market has seen fluctuations due to rising interest rates and inflation, Doncaster has remained steady, attracting buyers who prioritise long-term value over short-term speculation.

Ben Oliver, senior mortgage and protection adviser at Just Mortgages, says figures indicate a robust housing market, with both property values and rental prices experiencing significant growth over the past year.

Paula Bingham, managing director at Belle Maison Mortgages, adds: “Doncaster balances resilience with affordability, drawing steady demand from families and first-time buyers despite broader economic headwinds.”

JESSICA O’CONNOR is senior reporter at e Intermediary

She explains that, while some areas have seen dramatic price fluctuations or speculative buying sprees, Doncaster remains grounded in value and long-term potential, adding: “Buyers here aren’t chasing fleeting trends – they’re securing value in areas where practicality meets future promise.”

This pragmatic approach has allowed the market to maintain steady growth without the volatility seen in other parts of the country. However, even a resilient market is not immune to shifting buyer behaviour.

Liane Clarking, adviser at Ideal Financial Management, points out that while demand remains strong, some buyers are moving with greater

caution due to the cost-of-living crisis and rising interest rates.

As a result, there has been a resurgence in Shared Ownership schemes, which were last widely popular in 2021, as well as increased reliance on family support.

Clarking observes that while activity remains strong, properties are also taking a bit longer to sell compared to the previous year.

National trends

Mortgage trends reflect a market that is both cautious and active, shaped by economic conditions and evolving buyer priorities.

Simon Burnett of Burnett Mortgages highlights the market’s steady performance despite national economic challenges. Nevertheless, he notes that while house prices have softened, affordability remains a key issue – particularly for first-time buyers and families looking to upsize.

In addition, interest rate fluctuations have played a significant role in shaping mortgage activity.

Burnett explains: “When rates initially increased, I think most buyers took a ‘wait and see’ approach, but with a reduction in the Bank of England base rate, we’ve seen confidence return.”

This has led to an increase in mortgage applications as buyers regain a sense of stability in their borrowing options.

Oliver has observed a growing appetite for residential mortgages, supported by an increase in average house prices and the number of properties purchased with mortgages. However, he cautions that rising mortgage rates may impact future borrowing trends, as some buyers reassess affordability before committing.

Remortgaging activity has also surged, with homeowners eager to

Stable demand

WLIANE CLARKING adviser at Ideal Financial Management

ith more and more people working from home, properties with a potential home office space are increasing. Our key demographic consists of first-time buyers, growing families looking for their forever home, and BTL investors. Over the past year, more clients are opting for longer fixed-rate mortgage deals due to concerns about rising interest rates, seeking longer stability, along with an increase in the number of people turning to independent mortgage brokers to ensure they secure the best deal available across the whole of market.

Doncaster has seen ongoing regeneration, including the redevelopment of Doncaster city centre and improvements in transport links. The GatewayEast development is expected to bring further investment, while new housing developments in areas like Bessacarr, Edenthorpe, and Armthorpe remain popular with buyers.

Upgrades to rail and road infrastructure are also making Doncaster an increasingly attractive location for commuters.

secure a deal before facing higher monthly repayments.

Clarking says: “Over the past few months, there has been consistent demand for residential mortgages, particularly among home movers.”

Bingham adds that many prospective buyers are actively seeking clarity on their borrowing capacity, as they navigate affordability challenges and evolving lender criteria.

Another trend is increasing demand for energy-efficient homes. Clarking notes: “Buyers are paying closer attention to Energy Performance Certificate (EPC) ratings. Lenders now offer a separate product for energy efficient properties for both home movers and remortgages.”

Buyer demographics

Affordability is a challenge throughout the region, particularly

for those looking to enter the market for the first time.

This has been further compounded by increasing mortgage rates, influenced by higher Government borrowing and elevated 10-year gilt yields, which could present additional hurdles for prospective buyers.

Despite these challenges, Burnett points to a notable uptick in firsttime buyer activity, saying: “Firsttime buyers seem a lot more active, particularly those receiving family support for deposits.”

However, he also highlights a shift in borrower demographics, with more individuals in their 40s and 50s remortgaging or investing in property, as well as a growing number of self-employed applicants seeking specialist products.

There has also been an increase in the number of buyers turning to

independent mortgage brokers to navigate an increasingly complex lending environment.

Popular lenders

When it comes to the lenders most active in Doncaster, there is a clear mix of high street and specialist.

Clarking frequently works with mainstream lenders such as Nationwide, Santander, Barclays, and NatWest, while also turning to specialist lenders like Accord Mortgages and Kent Reliance for more tailored solutions. She also considers Leeds Building Society and The Nottingham Building Society particularly useful for buy-tolet (BTL).

“The usual larger lenders, such as Nationwide BS, Santander, NatWest, Halifax, and Barclays, are offering competitive rates at most loan-tovalues (LTVs), so they tend to be the obvious choice,” Burnett says.

However, he has also noticed an increase in clients with adverse credit, leading to a rise in demand for specialist lenders like Aldermore and Vida Homeloans.

However, Bingham emphasises that “mortgage choices are deeply personal – what works for one client may not

suit another. Clients with complex incomes, adverse credit histories, or niche requirements often find better outcomes with lesser-known lenders or specialist providers who tailor criteria to unique needs.”

New developments

Doncaster’s evolving property landscape is being driven by regeneration projects and infrastructure investments that aim to transform the city’s appeal.

While the average price of a newly built home currently stands at £213,000 – down 7% over the past year – interest in modern developments remains strong, with 408 new-build sales recorded.

Oliver notes: “The city’s ongoing growth and development initiatives may lead to emerging neighbourhoods and new housing projects.

“Staying informed about local planning applications and council announcements can provide insights into potential investment opportunities.”

Burnett reinforces this optimism, stating that “Doncaster is benefiting from significant regeneration and infrastructure investment, which is boosting property demand.”

Cautious optimism

PAULA BINGHAM managing director and mortgage adviser at Belle Maison Mortgages

While national price growth has outpaced the region, the town’s appeal lies in its accessibility, with homes typically costing a fraction of the UK average.

Many prospective buyers are proactively seeking clarity on borrowing capacity. This surge in inquiries reflects a mix of cautious optimism and strategic planning.

While affordability checks have become more rigorous, the underlying desire to secure homes in well-connected suburbs or near regeneration hubs underscores a resilient, forward-looking market.

A notable shift is emerging in mortgage preferences, with borrowers increasingly opting for a mix of 2-year and 5-year fixed-rate deals despite the higher upfront costs of shorter terms. Some are betting on potential rate cuts in the near term. Others – particularly families and those prioritising budget certainty – are locking into 5-year fixes to safeguard against ongoing volatility.

Added urgency is also shaping behaviour, as buyers and investors rush to complete transactions ahead of impending Stamp Duty changes. This has led to a surge in demand for rapid conveyancing and fast lender turnaround times, with clients keen to avoid additional costs.

One of the most ambitious projects on the horizon is the £300m Urban Centre Masterplan, a transformative scheme designed to breathe new life into Doncaster’s city centre. This redevelopment aims to enhance retail, leisure, and office spaces, creating a more vibrant urban environment.

Meanwhile, large-scale housing developments in Armthorpe, Rossington, and Edenthorpe are catering to growing families, offering modern homes in well-connected locations.

Beyond residential projects, Doncaster’s economy is being further strengthened by the GatewayEast Business Hub, a burgeoning employment zone near Doncaster Sheffield Airport. Expected to attract professionals and businesses, this development is set to drive local economic growth and boost housing demand.

Another flagship project shaping the region is Unity Yorkshire, which Bingham describes as “a cornerstone of Doncaster’s future, transforming 618 acres near Junction 5 of the M18 into a visionary mixed-use hub.”

This development integrates industrial, residential, retail, and leisure spaces, anchored by a 2.9km link road that enhances regional connectivity, with plans for 3,000 new homes, 7,000 jobs, and over two million square feet of employment space.

Rental appetite

Despite facing regulatory and economic challenges, particularly following The Renters’ Rights Bill’s recent Second Reading in the House of Lords, Doncaster’s rental market remains resilient.

21.2% of Doncaster’s housing stock is privately rented, only slightly below the national average for England and Wales of 23.6%.

Burnett acknowledges that while sector is not as strong as it was prior to taxation changes, landlords are adapting to higher mortgage rates, lender affordability rules, and evolving tax policies.

“Tenant demand remains strong, particularly for family homes in the suburbs outside of the city centre,” he notes, though many landlords are now reviewing their portfolios in light of Energy Performance Certificate (EPC)

Residential appetite

FBEN OLIVER senior mortgage and protection adviser at Just Mortgages

igures indicate a robust housing market in Doncaster, with both property values and rental prices experiencing significant growth over the past year. The rising property values in Doncaster present opportunities for investors seeking capital appreciation. Additionally, increasing rental prices suggest a favourable environment for BTL investments, offering the potential for attractive rental yields.

There has been a noticeable increase in appetite for residential mortgages, as evidenced by the increase in average house prices and the number of properties purchased with mortgages. However, the rise in mortgage rates may impact future borrowing trends.

Like most places, the market faces challenges such as housing affordability, especially for first-time buyers, due to the consistent rise in property prices.

The increase in mortgage rates, influenced by higher Government borrowing and elevated 10-year gilt yields, could pose difficulties for prospective buyers.

Current trends in the Doncaster housing market include a steady increase in both property prices and rental rates.

This growth reflects broader regional patterns, with areas in the North of England experiencing revitalisation efforts and attracting new residents.

Adapting to challenges

SIMON BURNETT mortgage and protection adviser at Burnett Mortgages

While we’ve witnessed some softening in house prices, the region remains affordable and attractive, particularly for first-time buyers and families looking to upsize. The demand for property is still strong, especially in wellconnected areas with good transport links and schools.

Meanwhile, the rental market remains buoyant, driven by a shortage of available properties and increasing tenant demand, which remains strong, particularly for family homes in the suburbs.

The BTL market in Doncaster remains fairly positive, but of course nowhere near as strong as it was prior to the many changes in taxation! Landlords are adapting to new challenges, such as higher mortgage rates and lender affordability rules, and considering the viability of their portfolios moving forward. Many are now reviewing their portfolios in light of EPC efficiency requirements, CGT and other taxation changes. Many are looking to purchase through a limited company rather than in their personal name.

In summary, I believe the Doncaster property market remains affordable, stable, and full of opportunity for buyers, homeowners, and investors. While interest rate changes have influenced the market, demand remains strong, and with major regeneration projects underway, I am confident the market will grow in 2025!

requirements, Capital Gains Tax (CGT), and other regulatory changes. A growing number are choosing to purchase through limited companies.

Bingham says investor interest in Doncaster’s rental market persists despite rising costs and stricter legislation: “Landlords are demonstrating flexibility, adapting their strategies to align with market shifts while maintaining a focus on long-term viability.”

Clarking says that well-located properties remain particularly attractive, especially to professionals who benefit from Doncaster’s strong transport links and local amenities.

“The buy-to-let market has remained resilient, with demand for rental properties still strong,” she says.

Lasting appeal

While rising interest rates, tax changes, and affordability concerns have led to shifts in buyer and landlord strategies, the market’s resilience remains evident, adapting to economic fluctuations and new consumer priorities.

“Opportunities remain for those willing to navigate [these] evolving dynamics,” Bingham notes.

With infrastructure investment driving growth, an increasing focus on energy-efficient homes, and diverse mortgage options available, Doncaster is well-positioned.

As Burnett concludes: “The Doncaster property market remains affordable, stable, and full of opportunity for buyers, homeowners, and investors.” ●

Doncaster postcode area. Source: www.plumplot.co.uk

On the move...

Quilter hires distribution director for mortgage network

Quilter Financial Planning has appointed Zara Bray as distribution director for its mortgage network.

She will report into Stephen Frye , managing director of Quilter Financial Planning.

Unity Trust Bank adds independent nonexecutive director

Bray joins from Legal & General Mortgage Club where she was head of strategic accounts.

Bray will lead the strategy for its mortgage and protection propositions, ensuring they meet customer needs.

LV= has appointed Sarah Hills as wealth proposition director.

Hills has over 20 years of experience in ﬁnancial services, having held senior roles at Ascentric, Standard Life Aberdeen, and AXA Wealth. Most recently, she was head of platform proposition strategy at M&G Wealth.

Frye said: “Her extensive experience will be invaluable in continuing to provide high-quality support for our mortgage and protection advisers, ensuring they continue to have access to a best-in-class proposition.”

Bray added: “[Quilter Financial Planning] has an excellent reputation in the market, and I am looking forward to helping push on its growth ambitions.”

LV= appoints wealth proposition director

customer-centric values and respected brand – I’m really looking forward to becoming part of such a great company.”

Katherine Carnegie, chief commercial oﬃcer at LV=, said: “We’re thrilled to welcome Sarah to LV=.

“She brings with her signiﬁcant experience and a proven track record in the wealth space.

Hills will lead the LV= wealth team, focusing on the growth of the company’s wealth business.

will be invaluable in continuing to have access director and look forward to using my and platform solutions which

Unity Trust Bank has appointed British economist Lord John Eatwell as independent non-executive director.

Eatwell has served as a professor, political adviser, and member of the House of Lords. Eatwell taught economics at Cambridge and served as President of Queens’ College for over 20 years. He began focusing on policy issues related to employment, growth, and ﬁnance in the 1980s, becoming an economic adviser to former Labour Party Leader Neil Kinnock.

Hills said: “I’m delighted to join LV= as wealth proposition director and look forward to using my experience to drive growth in this critical area of the business. As a mutual, LV= has a strong culture,

P“As well as being an expert in the design, delivery and management of wealth propositions, Sarah has a deep understanding of product development, investments and platform solutions which will further strengthen our proposition to our customers and advisers.”

Eatwell said: “Unity has a ‘double bo om-line’ strategy of careful and responsible ﬁnancing alongside a commitment to social purpose [...] I’m looking forward to being involved in its next stage of growth.”

Alan Hughes, chairman of Unity Trust Bank, said: “John’s extensive experience, knowledge, and insights will be a tremendous asset to Unity."

Frank Pennal joins Pluto Finance as non-executive adviser

luto Finance, provider of private credit for residential and commercial property developers, has appointed

industry veteran Frank Pennal as non-executive adviser.

Justin Faiz, chief executive oﬃcer of Pluto Finance, said: “Frank joins Pluto’s Advisory Panel at a very exciting time.

Pennal brings experience to Pluto from senior property ﬁnance and lending positions, most notably as CEO of Close Brothers Property Lending, a role he held for 19 years.

Pennal was also a director of Close Brothers Limited from 2008 and served on the group executive from 2019 until his retirement in 2023.

banks from property ﬁnance, non-

“Against a backdrop of a critical undersupply of housing, ambitious Government housebuilding targets, and the withdrawal of traditional banks from property ﬁnance, nonbank lenders now play a key role in ﬁlling the funding gap and meeting this societal need.

“Frank’s experience and strategic advice will be instrumental in helping Pluto capitalise on this opportunity and we are delighted to welcome him to the team.”

Pennal added: “I have keenly observed Pluto’s growth as it has become one of the UK’s leading providers of ﬁnance for vital housebuilding projects.

“I have also been impressed by the strength of its relationships with developers, as evidenced by its strong rates of repeat business, and its ability to a ract high quality institutional capital to fund its growing loan book and pipeline.

“This is an exciting time to join Pluto’s Advisory Panel, and I look forward to working with Justin and the team to help achieve its ambitious growth targets.”

LORD JOHN EATWELL

FRANK PENNAL

SARAH HILLS

ZARA BRAY