The Intermediary – August 2025

OPINION The latest word across residential, buy-to-let, later life, specialist and more

INTERVIEW Eric Bierry on lending tech and the SBS evolution

BROKER BUSINESS Tips and tricks, from attracting talent to placing cases

Intermediary.

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OPINION The latest word across residential, buy-to-let, later life, specialist and more

INTERVIEW Eric Bierry on lending tech and the SBS evolution

BROKER BUSINESS Tips and tricks, from attracting talent to placing cases

Intermediary.

Intermediary The

www.theintermediary.co.uk | Issue 31 | August 2025 | £6

BEYOND THE HEADLINES Turning a page in the estate agency sector

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

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modamortgages.co.uk enquiries@modamortgages.co.uk 01978 80 33 33 INTERMEDIARIES ONLY: ModaMortgages and Chetwood Bank are trading names of Chetwood Financial Limited, company number 09964966. Chetwood Financial Limited is a company registered in England and Wales.

Registered office: Ellice Way Wrexham LL13 7YT. Chetwood Financial Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 740551. Buy to let mortgages for business purposes are not regulated by the Financial Conduct Authority and you will not have any of the protections that the Financial Conduct Authority offers in respect of regulated mortgage contracts or consumer buy to let mortgages. If you wish, you may check the Financial Services Register on the Financial Conduct Authority’s website http://www.fca.org.uk/firms/systemsreporting/register or by contacting the Financial Conduct Authority on 0800 111 6768.

02-03-03 (5)

From the editor...

A

s the sun continues to pelt cheerily in through our home office windows – giving us a glimpse of the kind of summer that seemed to pass us by last year – it’s safe to say that the past month has seen hopes and hearts start to li a li le in Ol’ Blighty.

In what I’m sure our readers will agree is equally exciting news, in the weeks just gone we have seen the women bring football home once again in the Euros, and the Monetary Policy Commi ee (MPC) lower the base rate to 4.0%, the lowest level since March 2023. This is the fi h consecutive reduction, and even the most pessimistic among us –among which I usually number – should be about ready to call it a trend.

While my local pub wasn’t replete with screaming fans – and an entire brass band that, impressively, popped up out of nowhere – for the MPC announcement, many of those in the know still felt an upswelling of positive emotion that can be hard to come by in these fraught times.

The move was described by many as a welcome boost for borrowers and the market, and indeed, we’ve seen some immediate results, with lenders reducing and reviewing their rates populating the headlines.

Overall, I dare say the picture is looking quite positive. For the first time since the 2022 miniBudget, average 2-year fixed rate deals have dipped below 5%. Meanwhile, lenders have shown a willingness to expand their mortgage offerings with flexibility around borrowing

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capacity in mind. House prices have remained resilient, and improvements in affordability mean that buyers don’t need to wait for an expected – but unlikely – drop to start seeing their dream home become a potential reality.

Of course, the picture gets a li le gloomier when you turn to look at the buy-to-let (BTL) market. The Royal Institution of Chartered Surveyors (RICS) has reported the steepest drop in new rental listings since the Covid-19 lockdown of 2020, pu ing an upward pressure on rents, and no one can have avoided the knowledge that landlords are feeling a squeeze just as much as their tenants.

With the Renters’ Rights Bill rumbling down the track, landlords are also increasingly wary of how this change could make their lives harder.

Expert forecasts are predicting a decline in BTL lending through the rest of the year.

Next month, our popular BTL Focus returns to make sense of this turbulent market. It will tackle all the difficult and practical realities our readers need to understand to make sense of the rented sector, and to make the most for their clients, regardless of the storm clouds brewing on the horizon.

Keep an eye out for all the expert insight in that issue. In the meantime, and with lots to discuss across all sectors of the market this month, I think it’s acceptable to take a moment to bask in the warmth. ●

Jessica Bird @jess_jbird

@IntermediaryUK

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OPINION The latest word across residential, buy-to-let, later life, specialist and more

INTERVIEW Eric Bierry on lending tech and the SBS evolution

BROKER BUSINESS Tips and tricks, from attracting talent to placing cases

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BEYOND THE HEADLINES Turning a page in the estate agency sector

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August 2025 | The Intermediary

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Contents

INTERVIEWS & PROFILES

Feature 36

24

B E YO N D T H E H E A D L I N E S

Jessica O’Connor asks how the estate agency industry can turn a new page

REGULARS

The Interview 24

Broker business 72

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

Local focus 86

S BS

Eric Bierry discusses business evolution and the lending tech landscape

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

In Profile 46

On the move 90

Mark Harrison on the importance of culture in the lender’s success

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

SECTORS AT-A-GLANCE

BREEZE CAPITAL

Q&As 30, 70 CUMBERL AND BUIL DING SOCI ETY

Lisa Hodgson talks working with intermediaries and the changing holiday let market

Residential 6 Buy-to-let 28 Specialist Finance 44 Later Life Lending 58 Protection 62 Second Charge 68 Technology 82

L ENDERHIVE

James Armitage on how brokering can embrace the modern age

Meet the Broker 74 T RINIT Y FINANCIAL

Jed Newton gives his view on brokering in the current market

Meet the BDMs 20, 42

86

AFIN BANK F O U N DAT I O N H O M E L OA N S

Tippie Malgwi and Ginny English discuss the challenges and opportunities for BDMs

The Intermediary | February 2023

3

RESIDENTIAL Opinion

Reliance on LISAs shows buyers need our help

O

ur recent survey of savers generated a host of insights for anyone with an interest in the housing market.

Perhaps what shone through most was just how important the Lifetime ISA (LISA) is to potential homebuyers.

Almost all LISA-holders we spoke with – a whopping 98% – said they were reliant to some degree on the cash bonus that comes with the accounts in order to purchase a home. Almost half said they were ‘very reliant’ on the 25% bonus of up to £1,000 paid each year.

That’s an enormous proportion of aspiring homeowners who are playing their part, in terms of putting money aside where possible, but who remain aware that without a helping hand from the Government, their saving efforts may be frustrated by persistent house price growth.

While recent weeks have seen plenty of speculation about ISA limits being scaled back, savers are calling for it to be made more, not less, generous.

Almost half of those we spoke to wanted to see the annual limit for Lifetime ISAs, which currently stands at £4,000, to be increased.

There was similar appetite for the 25% redemption charge – which is levied on Lifetime ISAs if they are used for purposes other than property purchase or for retirement – to be lowered or removed entirely.

Fit for purpose Earlier this year, the Treasury Select Committee announced an investigation into the Lifetime ISA, questioning whether it was fit for purpose in its current form.

It noted the frequent complaints about the level of penalty fees being

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The Intermediary | August 2025

levied on savers, as well as the fact that the rules around the products have not been updated since 2017.

These products can only be put towards purchases of properties costing less than £450,000, and given the house price growth we have seen in recent years, that means buyers are being frozen out of using their Lifetime ISA savings towards purchasing in certain areas, particularly in the South East.

Our research shows the Lifetime ISA is playing a big role in the purchasing plans of would-be buyers. But it could play an even more impactful role if it was brought up to date, with more generous caps in place.

The deposit difficulty While it would be welcome for the Lifetime ISA to be updated and improved, as an industry we also need to consider other ways to support would-be buyers who have struggled to save a mammoth deposit.

High loan-to-value (LTV) lending is obviously a good place to start, providing borrowers with more options at 95% LTV or higher. The situation here has greatly improved of late, with data from Moneyfacts showing that in July there were around 447 products available at 95% LTV, compared with 361 a year ago and just 188 the year before. There have been similarly encouraging improvements in the number of 90% LTV products on the market, too.

While these products will always be in the minority compared to those open to borrowers with larger deposits, any measures which make it easier for lenders to provide high LTV mortgages should be welcomed.

That’s why the new, permanent Mortgage Guarantee Scheme announced by the Government is

CHRIS STOREY is chief commercial officer at Atom bank

Measures which make it easier for lenders to provide high LTV mortgages should be welcomed” such a positive – and will hopefully result in more substantial options for aspiring homeowners.

The changes made to the high loan-to-income (LTI) caps should also prompt lenders to go a little further in providing funding which will truly make a difference to those potential first-time buyers.

Regulators and the Government are removing those potential barriers and hurdles which may have caused some lenders to be a little more cautious about providing more generous funding.

The onus is now on lenders to step up and respond.

Clearing the path The path to homeownership isn’t an easy one currently. Aspiring buyers need all the help they can get, and not just from the Government. Lenders must be serious about providing true support, and that means higher LTVs, a more flexible approach to LTI, and catering for those who may have the odd black mark in their credit history.

Focusing on family support and the ‘Bank of Mum and Dad’ risks freezing out whole swathes of younger people from homeownership. Lenders must step up and deliver the support that buyers so desperately need. ●

RESIDENTIAL Opinion

Lending that knits into real-life working patterns

T

he UK labour market is no longer defined by the nine-to-five.

From public sector shift workers to university lecturers and contractbased professionals, working patterns are increasingly fluid. While the job may be constant, the way it’s delivered and remunerated often isn’t.

This isn’t a new trend. Health and social care workers have long relied on flexible schedules, from core contracted hours to top-up shifts known as bank work. In higher education, academics routinely blend salaried teaching with consultancy, examining duties or research fellowships. For brokers, this creates a growing client base whose income can be steady in total but complicated in form.

Lending knowledge A payslip with five components shouldn’t raise flags if those components are consistent, proven and part of the professional role. Shift allowances, night duty payments, overtime and bonuses may not be classed as ‘basic salary’, but they are expected, and in many cases contractual.

Many clients in the public sector are doing vital, high-demand work.

Their earnings may fluctuate slightly, but their profession does not. For lenders, the real challenge isn’t risk.

It’s recognition.

Standardised lending models often fail to account for this. A teacher working regular overtime for afterschool tuition, a police officer rotating between day and night shifts, or a nurse topping up with weekend bank hours aren’t outliers. They’re examples of how the world of work really functions. The potential clients

being turned away are those who power the nation’s infrastructure.

Where a track record exists of typically six months or more, there is little justification for excluding these income elements. In fact, failing to do so can unfairly penalise some of the most stable and employable individuals in the market.

Allowances, overtime, shift uplifts, and income from bank or locum work are the norm in professions such as midwifery or firefighting.

There’s also a need for flexibility around contract types. Many bank workers are technically on zero-hours arrangements, yet work as frequently and earn as much as full-time peers. The distinction is technical, not financial. With many NHS departments advertising shifts well in advance, the income can be consistent, even predictable.

It’s important that lenders can distinguish between gig economy unpredictability and structured, professional flexibility. The former might carry risk. The latter does not. Especially when underpinned by professional registration, skills shortages and public funding.

A global view Another area to consider when working with these clients is whether a lender can accept applications from overseas customers. Skilled worker visa holders and those on ancestry or British National Overseas (BNO) visas are critical to staffing key sectors like education and healthcare. Provided they have a right to reside and a proven employment record, their applications warrant the same level of consideration.

It matters that underwriting teams have the experience and training to understand these sectors. Manual

CHRISTOPHER BLEWITT is head of mortgage distribution at Darlington Building Society

underwriting, collaboration with broker-facing teams, and internal training can all contribute to better decision-making. It’s not about making exceptions. It’s about building policy around how modern professional life actually works.

A lender’s role isn’t to standardise borrowers. It’s to make intelligent, case-by-case decisions. It’s important they look beyond the contract type or payslip format and understand what the income really represents.

The broker partnership This approach ultimately benefits brokers. It extends the product options available for clients who might otherwise be underserved. It enables cases to be placed more smoothly and more often. It helps to build long-term relationships with clients who value understanding over box-ticking.

Key workers and other professionals remember the lenders and brokers who treated them fairly and offered them choice. Particularly when they’ve experienced rejection elsewhere. A wider product armoury today builds the client bank of tomorrow.

In a market where real-world understanding is in short supply, brokers who work with lenders willing to go further can position themselves not only as solutionfinders but as advocates. That’s where progress lies. Not in relaxing risk criteria, but in recognising that some of the UK’s most valued professionals don’t fit neatly into a standard model. They work differently, earn differently and deserve to be assessed accordingly. ● August 2025 | The Intermediary

7

RESIDENTIAL Opinion

Multi-dimensional

W

hat do we mean by value in today’s market?

Perhaps more importantly, what will we mean by value tomorrow?

Accurately assessing lenders’ capital valuation exposure increasingly requires more than an understanding of market sentiment and liquidity.

While buyer demand and funding availability remain fundamental for loan-to-value (LTV) purposes, they provide only a partial view of the underlying risk.

Lenders must account for a broad spectrum of variables that can materially impact asset performance and, ultimately, resale value.

This includes: ɐ The property's physical condition; ɐ Its age, build type, warranties, management charges and incentives; ɐ Exposure to environmental risks such as flood, subsidence or contamination; ɐ Current and historical land use and designation under new green, brown and grey belt definitions; ɐ Tenure, including ongoing leasehold complexities; ɐ The integrity and durability of construction type and fabric.

Evolving legislative frameworks – such as building safety or net zero mandates – and uncertainties surrounding future planning or land-use policy also matter and are hard to quantify. Legal title issues, restrictive covenants, easements or absent documentation can cause costly delays on sale. Where legal or historical data is incomplete, latent risk is inbuilt. How, then, can lenders address these issues in a way that is

8

The Intermediary | August 2025

both comprehensive and commercially viable? At e.surv we have an answer to this question – one we hope to share later this year. It comes down to access to comprehensive datasets that provide enough nuance to be materially useful.

It’s a matter of scale.

Take automated valuation models (AVMs). Data comes from across the market. It must be timely, real-time and of a scale that eliminates the deviation that single anomalies can create. People need to be involved to ensure the validity and integrity of that data. In future, AVM services will unite automation, remote digital valuations and proprietary insight.

Seamless application programming interface (API) integration offers fast and scalable deployment into various business workflows. Data must be improved, checked and auditable.

Ensuring it comes from one place keeps third-party risk to a minimum, giving regulators confidence and lenders security.

This approach is true of developing markets. The creation of new towns as well as large scale, often multiple, developments that can double or even triple the population of previously smaller towns and villages have massive implications for the value of existing homes, as well as posing all of the usual challenges new-build comes with.

The number of lenders using our new-build hub to gain intelligence has grown at pace since the Chancellor’s announcement on housing, now more than a year ago. Lenders can track their volume and concentration risk across more than 16,000 new-build developments in real-time, allowing for smarter origination strategies based on quantifiable facts.

RESIDENTIAL Opinion

risk management

Specialist markets are equally important. On 17th July, the Government published an update on the next phase of its Remediation Acceleration Plan, first announced in December 2024. The legislation, set to be brought forward “as soon as Parliamentary timetable allows,” will require landlords of buildings 18 metres or more in height with unsafe cladding to complete remediation by the end of 2029, and landlords of buildings 11 to 18 metres in height to complete remediation by the end of 2031.

Those who fail to comply without reasonable excuse could face unlimited fines or imprisonment.

New legislation will also give named bodies, such as Homes England and local authorities, powers to remediate buildings with unsafe cladding if the landlord fails to do so.

Understanding progress and exposure will be crucial for lenders – with very real financial implications inevitably hitting in the next few years.

Getting a grip on back books now is imperative to manage refinancing decisions, and up to date information is now an absolute necessity.

Greater responsibility My final point to illustrate the breadth of challenges facing lenders is about dealing with customers who are coming to the end of their product terms. The Financial Conduct Authority’s (FCA) July policy statement, PS25/11 Mortgage Rule Review: First steps to simplify our rules and increase flexibility, introduces a new rule into the MCOB Handbook “to clarify that firms must deal fairly with customers whose

STEVE GOODALL is managing director at e.surv

mortgage terms have expired.”

This states: “Firms must not take repossession action unless all other reasonable attempts to resolve the position have failed. These requirements are supported by the Consumer Duty.”

While not a significant change to previous expectations put on lenders in this scenario, putting this responsibility into regulation more permanently strengthens the need for lenders to calibrate their own capital risk exposure.

Whether these properties remain on their back books or are, eventually, repossessed and sold, accurate valuation matters. This is perhaps particularly true for building societies in the mid-tier, whose liquidity is under constant watch by the Prudential Regulation Authority (PRA).

For lenders, developing a multidimensional understanding of all these factors are critical. It enables more accurate pricing of risk, betterinformed lending decisions, and improved resilience of the back book in the face of ongoing market and regulatory shifts. ● August 2025 | The Intermediary

9

RESIDENTIAL Opinion

Mortgage prisoners are alive if not well

T

housands of borrowers are still trapped on skyhigh standard variable rates (SVRs) in closed mortgage books, many of which are held by investors outside of the UK. The story of their plight has been in and out of the news for almost 18 years, following the 2007 Credit Crunch and 2008 financial crash.

While their numbers have dwindled since then as loans redeem or homes are repossessed, it’s estimated there are still around 47,000 mortgage prisoners unable to refinance onto a new contract with an active lender.

This contingent of borrowers are those who took out mortgages at up to 125% loan-to-value (LTV), who self-certified their incomes and took interest-only loans and have no means to repay the outstanding balance.

While borrowers in this position with an active mortgage lender can move to a more affordable rate under Financial Conduct Authority (FCA) rules, those in closed books held by investors that lack the permissions to originate mortgage contracts are stuck. Often, they’re paying standard variable rates up to 15% – which is, frankly, scandalous when the UK base rate is 4%.

You’d think this is a clear breach of the Consumer Duty rules. These are vulnerable borrowers. The outcomes they face are entirely predictable to most reasonable people – and they’re not good. The products are outrageously priced, the value is abysmal, even detrimental, and the support these borrowers are given is being told, for the most part, tough luck.

The kicker is that the FCA can do nothing about it where the investors operate outside their purview. US pension funds, insurance companies, private equity funds – they are free to ignore the Consumer Duty to their hearts’ content.

10

The Intermediary | August 2025

This leaves the UK market with a conundrum, however. The borrowers are in the UK and ought to be protected

by UK law. They are not.

Contractually, bondholders who have invested in securitised UK mortgages must appoint a fully regulated third-party administrator or servicer – and they are on the hook with the FCA. This is causing an almighty scrum in the market – investors care about their returns. Legal contracts that govern securitised assets and the returns promised therein are extremely difficult to alter years down the line. The only player in the chain with a reason to care about this conflict is the administrator.

To complicate matters further, some administrators hold permissions to originate new mortgage contracts – something that is required to take a mortgage prisoner off SVR and onto a new fixed rate. Other administrators do not.

There’s a ruckus over whether origination permissions make the servicer a ‘co-manufacturer’ of mortgage contracts. The majority of servicers want absolutely nothing to do with this responsibility. Legally, this side argues, they have no role in setting the criteria or pricing of that loan and are simply carrying out the contract’s obligations on behalf of the investor.

The other side takes a contrary view – they’re the only ones with the power to apply the Consumer Duty rules for borrowers trapped in these mortgage books. If they do not take responsibility, who will?

Waiting game We’re at an absolute stalemate at the moment – and it doesn’t look like things are going to resolve any time soon. In a review of the number of people affected in 2021, the FCA estimated that there were 195,000 mortgages held in closed mortgage

SARAH DAVIDSON is head of research at WPB

books with inactive lenders – 2.3% of the total number of residential mortgages.

In 2019, it estimated that there were 250,000. The longer this goes on, the more of these mortgages are repaid – at however extortionate a rate – or properties repossessed and sold. The theory is that eventually securities will redeem, and the problem will have gone by default.

Except there’s a really big fly in this ointment: there’s more than one kind of mortgage prisoner.

First you have the credit and/or affordability prisoners whose financial circumstances, credit rating, loan-toincome (LTI) ratio, age or repayment strategy renders them unable to remortgage.

Then you’ve got the property prisoners, where cladding, fire safety, energy efficiency and flood risk make the property unmortgageable.

Finally, the contract prisoners, those unfortunates who bought leaseholds with onerous service charges and doubling ground rents.

Many thousands of these mortgages have also been securitised or sold as a whole loan book to investors outside of the FCA’s jurisdiction. Sorry folks, but this isn’t a problem that is going away for many decades to come.

There is no easy answer to this – it’s a nightmare scenario where everybody and nobody is right and wrong.

Expect the plight of these borrowers to come sharply into focus if interest rates move against them. ●

RESIDENTIAL Opinion

Why high LTV mortgages matter more than ever

W

ith the cost of everyday life climbing and property prices still daunting, it’s little wonder that many aspiring homeowners are starting to ask, “Is it still worth it?”

The dream of owning a home has always required a degree of sacrifice, but in today’s climate, it’s not just about cutting out coffees, avocados or holiday plans. For many, it’s about stretching deposits to their limit and making long-term financial commitments in a world that feels anything but predictable.

Despite all this, the aspiration for homeownership endures. That’s why the industry, lenders, brokers, and policymakers alike, must continue on its quest to find meaningful, practical answers for those questioning whether the sacrifices are really worth it.

One of those answers lies in the availability of high loan-to-value (LTV) lending, which continues to be a vital route onto the property ladder for thousands of first-time buyers.

A tricky balance The cost-of-living crisis, wage stagnation, and rising house prices have made saving a substantial deposit increasingly difficult. The recent Stamp Duty changes – which reduced the nil-rate threshold for first-time buyers from £425,000 to £300,000 – have further compounded affordability pressures. Purchases between £300,001 and £500,000 now face a 5% charge, and relief has been removed entirely for homes priced above £500,000.

Following this announcement – and in the subsequent months – data from Twenty7tec shows that 90%-plus loan-

to-value (LTV) borrowing among firsttime buyers increased from 48.84% to 49.49%, with nearly half now relying on high LTV mortgages to get on the ladder. These products are now suggested to account for over 22% of all borrowing, reflecting the financial stretch many are making just to take that first step onto the ladder.

For lenders, the challenge lies in balancing risk with support. While lending at higher LTVs naturally requires robust underwriting and careful pricing, it’s an area in which smaller, more agile mutuals can make a meaningful difference. Our close alignment with borrower needs – combined with a flexible, innovative approach, manual underwriting, and a strong commitment to responsible lending – puts us in an excellent position to provide targeted support.

But we also need support in ensuring that our product offering reaches the right type of borrower.

In today’s environment, the role of the mortgage intermediary has never been more critical. As product types diversify and economic conditions evolve, borrowers increasingly need tailored advice to help them navigate a market full of options, many of which they don’t even realise exist.

This is especially true in the high LTV space, where mortgages often involve stricter affordability assessments, risk-based pricing, longer terms and even financial support from family members. Here, advisers play a vital role in educating borrowers on the implications of stretching their deposit and in helping them choose a structure that supports long-term financial resilience.

Affordability remains front and centre in borrowers’ minds. Following the aforementioned Stamp Duty changes, first-time buyer activity saw

DAVID LOWNDS is head of products and marketing at Hanley Economic Building Society

a notable shift, with a drop in search volumes and a shift toward properties priced below the £300,000 threshold.

However, there are signs of resilience in the market.

Rightmove’s latest data shows that while average asking prices dipped by 1.2% in July, the largest July drop in over two decades, the number of property sales agreed was 5% higher than this time last year.

Simultaneously, lower mortgage rates have improved buyer affordability. A 2-year fixed rate now averages 4.53%, down from 5.34% last year, saving borrowers almost £150 a month on average.

However, high LTV lending isn’t just about numbers, it’s about opportunity. It’s about giving younger buyers, single-income households, and regional renters a realistic path to homeownership. While it must be delivered sensibly and sustainably, especially in light of regulatory considerations, it deserves a place in every responsible lender’s toolkit.

As affordability remains under pressure and homeownership aspirations persist, it is essential that lenders continue to develop innovative products backed with responsible underwriting.

It’s equally vital that brokers remain confident and equipped to guide borrowers through what is often the biggest financial decision of their lives.

For many, owning a home still matters. If we can offer the right support – through a combination of products, advice, and accessibility – then maybe, just maybe, the sacrifices won’t feel quite so steep after all. ● August 2025 | The Intermediary

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RESIDENTIAL Opinion

Grasp the opportunities

A

s the summer holidays draw to a close and September approaches, it seems a good time to take stock of the second half of the year. Back to school and back to work always heralds a bump in mortgage activity, and we expect no difference this year.

The market outlook Setting to one side politics – so consistently changeable it seems pointless to dwell too long on it – the outlook for the housing market in the UK is relatively benign.

Consumer price inflation rose by 3.6% in the 12 months to June 2025, up from 3.4% in the 12 months to May, according to the Office for National Statistics (ONS). On a monthly basis, the consumer price index (CPI) rose by 0.3% in June 2025, compared with a rise of 0.1% in June 2024.

Over the past year, the rate of inflation has fallen a lot, and the Bank of England is on record saying “inflationary pressures have eased enough” to allow for four rate cuts over the past 12 months.

We saw a further quarter point cut announced at August’s Monetary

14

The Intermediary | February 2025

Policy Committee meeting, taking the base rate down from 4.25% to 4.00%.

If price pressures continue to ease, the Bank of England governor has said there should be room to reduce interest rates further over time.

When and by how much depends on how the economy bears up under ongoing global trade negotiations, geopolitics and domestic confidence levels.

Whether we see another cut before 2025 is up, mortgage rates are already very competitive, with the lower end of the risk curve priced significantly below base. Multiple high street lenders are already operating with sub-4% rates, with best buys likely to drop further in September if the Bank does bring rates down. The usual burst of September activity across both purchase and remortgage will also put pressure on lenders to keep pricing down.

For those buying, it’s a keen market.

House prices have eased in many parts of the country, with some attractive opportunities now a realistic prospect for those hoping to get onto the ladder for the first time.

Rightmove’s July index showed the average price of property coming to the market for sale dropped by 1.2%

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

(-£4,531) that month, to £373,709. The number of available homes is still at a decade-high level, and agents told the property platform that summer sellers are pricing even more competitively to attract buyer interest.

London has been the biggest regional driver of new seller asking price falls, down 1.5% and led by inner London, which saw asking prices down 2.1% on average.

RESIDENTIAL Opinion

... while we can Rightmove’s analysis shows that improving buyer affordability is stimulating stronger activity. The number of sales being agreed is 5% higher than at this time last year, while the number of potential future buyers contacting estate agents about homes for sale is 6% higher than last year.

The Government has committed to a permanent Mortgage Guarantee Scheme, providing lenders with a Government-backed guarantee against a fixed proportion of any potential losses made on eligible loans, continuing to support the 95% loan-to-value (LTV) end of the market. Along with the Prudential Regulation Authority’s (PRA) loanto-income (LTI) capital ratio review and interim suspension of the current 15% threshold on 4.5-times income cap, affordability prospects are good.

This followed the previous relaxing of stress-testing, with several lenders stating that this would increase average borrowing capacity by £30,000 to £35,000.

Labour and protection Protection will be vitally important as people re-finance and buy to protect against tightening labour market.

In September, we’re also expecting a sizable refinancing boost, providing intermediaries with the opportune moment to broach the subject with clients.

As affordability eases and monthly payments are likely to come down on remortgage, the argument for directing some of those savings towards income protection or other relevant cover is stronger than it has been for some time.

New opportunities It may be time for brokers to rethink whether to look at new markets.

The new-build sector is going to be a key business stream for mortgage intermediaries over the next four years. We know that support for new-build is significant, with £16bn of new public investment destined to fund 500,000 new homes, at the same time unlocking over £53bn of private investment, according to Government estimates.

The bulk of Labour’s focus is in supporting affordable homes, with Shared Ownership housing provision an important part of that. This market is undoubtedly more specialist, but it does represent a strong growth opportunity, and is perhaps worth a

second look. One person’s challenge is another’s opportunity, and so it is in the buy-to-let (BTL) market at the moment.

Amid scaremongering headlines in the national media, the truth is that the commercials in the private rented sector are very strong for landlords prepared to manage portfolios as a sustained business concern.

Buy-to-let remains healthy Rental growth is very strong and shows no sign of abating. The selloff in properties by smaller portfolio landlords is seemingly continuing, yet with rates lower and prices down, buying opportunities are everywhere.

Landlords continue to wait for the outcome of the Minimum Energy Efficiency Standards consultation and confirmation of when and if this will come to bear. This may trigger landlords to rebalance portfolios along with carrying out necessary retrofit requirements.

When you stand back and look at how well the market is performing, it is even more extraordinary given the prevailing economic uncertainty.

But that is the truth of the moment we are in, and we should all grasp it while it lasts. ●

February 2025 | The Intermediary

15

RESIDENTIAL Opinion

Is the regulator devaluing advice?

H

ere at Equifinance, we are totally committed to the intermediary sector as our distribution channel. As a result of the relationships we have put together over time, our business has flourished. The professionalism and support of our partners has meant that we have built up a strong reserve of trust over the quality – and quantity – of the applications we receive.

While it is early days, I am not sure whether fellow mortgage practitioners have had a chance yet to digest the news that the regulator is considering limiting the requirement to give advice during client conversations in favour of more execution-only solutions.

Under consultation paper (CP25/11), the Financial Conduct Authority (FCA) would seem to be flagging the possibility of undoing and unpicking its existing guidance on mortgage advice, which culminated in the adoption of Consumer Duty just last year, and its insistence on making sure that properly considered customer outcomes are the ultimate focus for all advisers.

The layers of regulation – from Treating Customers Fairly (TCF) to Consumer Duty – have reinforced the importance of clients receiving proper advice based around a comprehensive fact-find, followed by a recommendation predicated on extensive research.

Doesn’t it seem an odd time for the regulator to be talking about the possibility of extending the use of execution-only as a viable alternative to proper advice? The whole thrust of advice has been to help ensure that consumers have protection from the lazy option of ‘selling’ a single product or one from a suite of products.

Everything about advice has been geared to trying to reach an equitable lending solution for clients based on

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The Intermediary | August 2025

the gathering of their personal and financial details.

Execution-only flies in the face of giving customers a professional service, and definitely contradicts the canon of consumer protection which has been built up over many years.

If adopted, the losers would be the customers who continue to rely on advice and receiving a recommendation from a whole-ofmarket practitioner. Being left to navigate everything from affordability and lender criteria, as well as finding out about legal representation and the whole valuation process, could potentially put clients at risk through lack of vital information.

Of course, it can be argued that not everyone requires advice. Those with a greater knowledge of finance and who are aware of the potential pitfalls do not necessarily require the help. But, for those of us wanting to understand the ins and outs of mortgage finance, we need to know that the multitude of possible solutions have been sifted through to ensure that any recommendation is a valid choice that meets our particular requirements.

The regulator is seeking feedback from the industry based on a desire to help encourage consumer choice and greater convenience. A laudable

Proper advice is key to consumer safety

LAURA THOMAS is regional sales manager at Equifinance

Advisers should pat themselves on the back for giving peace of mind to so many new borrowers” ambition, but while this is just a consultation, there is no indication that this more than an old fashioned fishing expedition to get the result that they want.

If I was being cynical, and execution-only was expanded, the main winners would be those high street lenders that have always disliked their reliance on intermediary business because procuration fees cut into profits. An expansion of execution-only would mean an increase in direct business from consumers and a reduction in the cost of procuration fees.

I think that everyone would agree that the mortgage process can be a long one. However, how much of that is down to money laundering legislation and lender caution in assessing individual risk from clients?

The consultation paper states that 97% of new mortgages have been advised since 2015, which in my eyes is something to be proud of. Advisers should pat themselves on the back for giving peace of mind to so many new borrowers.

We don’t want to see the positive results of proper qualified advice diluted in favour of what effectively is a cut price service under execution-only. ●

RESIDENTIAL Opinion

Making remortgage applications headache-free

A

s predicted by UK Finance in December last year, 2025 has been characterised by a strong performance in remortgage volumes. Data from Legal & General shows a significant increase in remortgaging activity in the UK housing market, with figures for Q1 2025 showing that broker searches for remortgage products soared 34% since Q4 2024.

With the changes to Stamp Duty that came in April, March saw a surge in activity and September is set for another big bump in volumes. There are several reasons to expect this positive trend to continue.

Mortgage rates have become even more competitive. Lenders have been pushing the lower loan-to-value (LTV) deals below 4% for months now, illustrating just how tough the game is proving to retain customers coming up to refinance.

While the summer months have seen a slight so ening, typical for this time of year, a large tranche of fixed rates is due to end as we move into the Autumn. According to UK Finance, roughly 1.8 million fixed rate mortgages are set to reach maturity in 2025, up from around 1.6 million in 2024. A further 1.9 million fixed rate deals expire in 2026.

While there remains a swathe of borrowers coming up to the end of very low 5-year fixes, the majority of those refinancing over the next 18 months will be facing the prospect of their monthly repayments falling.

According to research from Compare the Market – based on data from a Freedom of Information request to the Financial Conduct Authority (FCA) and data from the Bank of England – around 940,000

homeowners are coming off 2-year fixed rates in 2025.

Moneyfacts data showed average fixed mortgage rates fell for the fi h consecutive month at the start of July, with the average 2-year fixed mortgage dropping to 5.09%, its lowest point since September 2022 when rates hovered around 4.24%.

Similarly, typical 5-year fixed prices dipped to 5.08% and were last lower in October 2024 at 5.07%. It’s likely that we’ll see rates come down further as lenders vie for the best customers.

Product transfer volumes, supported for several years by borrowers’ need to avoid lengthy affordability checks on much larger mortgage payments, have seen a drop in popularity this year. This is hi ing lender margins – remortgage origination is more expensive to underwrite and source. It is this that is driving such fierce rate competition.

But lenders’ desire to maximise customer retention using pricing has also encouraged more borrowers to switch.

Easy street At the start of the year, remortgaging to another lender triggered a full reunderwrite of a borrower’s affordability. While there are always those willing to go through the admin this presents, the majority of people will trade a couple of basis points for an easy life.

That dynamic has shi ed. In July, the Financial Conduct Authority (FCA) published the first in a series of measures expected in the coming months, designed to make the process of remortgaging easier.

The requirement for a full affordability assessment when reducing the term of a mortgage has now been removed, though the

HAMZA BEHZAD is business development director at Finova

FCA still expects firms to consider affordability in line with their responsible lending policy and the Consumer Duty. In addition, the modified affordability assessment has been amended to include new mortgage contracts with new lenders where it is more affordable than either the customer’s current mortgage, or a new mortgage product that is available to that customer from their current lender.

While the changes are permissible rather than mandatory, we expect to see more lenders allow borrowers on lower LTVs, particularly where outstanding balances are small, to forgo a full underwrite.

This is likely to further incentivise intermediaries to source deals from alternative lenders when clients approach their refinancing deadlines, and it’s this that should be concerning for lenders that have been relying on the market to support their retention business. It won’t be enough in this new environment.

Borrowers in a strong position no longer face a stark choice between hassle or no hassle. The FCA’s rule changes will make pricing even keener and the importance of service critical.

Where lenders do not have the cost of funds needed to compete with the high street banks on price, borrowers will need the offer of something else worth their while if they are to accept a slightly higher rate. This is where the process of retention really ma ers – certainly for direct to customer remortgaging, but crucially, also for brokers. Lenders in this bracket tend to rely heavily on intermediaries – making their remortgage applications as headache-free as possible is set to be the gamechanger from now on. ● August 2025 | The Intermediary

17

RESIDENTIAL Opinion

Flexible affordability assessments

A

ffordability assessments can be one of the main barriers facing would-be homeowners who may be restricted by their salary and loan-to-income (LTI) ratios, but following recent clarification from the Financial Conduct Authority (FCA) about stress-testing rules, a number of lenders have made changes to the way they assess a borrower’s affordability.

Previous high loan-to-income limits were restricting many lenders’ ability to support aspiring homeowners and the UK growth agenda. But the refreshed guidance from the FCA clarified how to incorporate future interest rate movements into stresstesting. It emphasised that banks and building societies have flexibility in choosing a suitable stress rate, linking to reversion rates or future product rates, rather than applying a fixed margin above current standard variable rates.

At Leeds, we’ve just reduced stress testing rates by up to 1.24%, meaning that a borrowers can now access more lending, and we have lowered the minimum household income needed to borrow more than 4.5-times annual income.

Thanks to the changes, joint or single applicants earning £30,000 per year will now be able to apply for a mortgage. This is down from £40,000 annual income and significantly broadens access to the housing market for many creditworthy borrowers. With a 95% loan-tovalue (LTV)

18

The Intermediary

mortgage, a borrower on an income of £30,000 would be able to purchase a property worth up to £173,000, compared to £141,000 before.

What does this mean?

Well first, as a lender, this is hugely positive news and allows us to deliver on our purpose of putting homeownership within reach of more people, generation after generation. The rule clarification means that we can confidently lend more to our members and support their homeownership dreams, while continuing to assess affordability in a responsible way, using a range of criteria and underwriting checks to ensure prudent lending.

We are mindful of balancing more generous affordability with responsible lending” Clearly, the changes benefit borrowers by unlocking more lending to allow them to step onto or climb up the property ladder. Reduced stress buffers also benefit those who are looking to remortgage. Clients coming to the end of fixed rates can now access a wider range of deals and switch lenders more easily without triggering income limits.

Avoiding unnecessarily restrictive affordability tests, particularly in a falling interest rate environment, is also great

MARTESE CARTON is director of mortgage distribution at Leeds Building Society

news for brokers. It means that intermediaries can say ‘yes’ to more clients, and revisit affordability on cases where applications previously fell short.

This is a great opportunity for brokers to engage with clients and educate them on what the changes could mean for their case. Brokers can re-run affordability checks, and we have recently updated our improved affordability calculator to facilitate this.

Historically, stress-testing requirements have unduly held some borrowers back from achieving their homeownership aspirations, so we are pleased to be able to lend more to our customers as a result of these changes in affordability assessments.

Despite increased flexibility, both borrowers and brokers can be confident that lenders will still apply robust affordability checks and underwriting. A lower stress rate allows lenders to factor in a more a realistic cushion above a borrower’s expected monthly costs.

Like all lenders, we are mindful of balancing more generous affordability with responsible lending – balancing growth and protecting our members.

We welcome the clarification on lending rules which will allow us to help more people achieve their homeownership dreams and support the Government’s plan for growth.

We will continue to update our stress rate assumptions and affordability models to align with market conditions and regulatory expectations.

In collaboration with our intermediary partners, we’ll continue to seek the best outcomes for borrowers, as we have done for 150 years. ●

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Meet The BDM Afin bank

The Intermediary speaks with Tippie Malgwi, business development director at Afin bank How and why did you become a BDM? I have over 15 years of banking, lending and wealth management experience, within the UK and in Africa. My experience spans specialist lending, high net worth (HNW) banking, and financial planning, working with brokers, client advisers and direct clients.

I was recognised by the Africa Business Chamber (AFBC) as a 2024 Top 100 African Business professional in the UK. I was also 20

The Intermediary | August 2025

awarded the Chartered Bankers Institute UK young banker of the year (2020), for my award-winning proposal focused on creating a financial solution for vulnerable individuals living with life-changing conditions. I believe that I have a duty. Banks – and by extension bankers – have great power, but with that power comes responsibility. It is our collective responsibility, as frontline representatives, to actively champion positive societal change, and being a business development manager (BDM) within a bank like Afin Bank enables me to do that.

What brought you to Afin Bank?

I am passionate about financial empowerment and providing innovative banking solutions to underserved segments of society, and Afin Bank’s proposition of ‘mortgages for all’ focusing on the underserved self-employed, and the diaspora population living and working in the UK via the visa system, truly resonates with me.

I look forward to supporting this vibrant diaspora – our doctors,

MEET THE BDM

engineers, healthcare workers, IT workers, and the various other professionals who add so much societal value and now call the UK home, achieve their vision of UK homeownership.

What makes Afin Bank stand out?

Afin Bank is a new digital bank, specifically built to empower underserved communities, especially those contributing to the UK’s growth and diversity. Financial empowerment is our raison d’etre, and all our products, systems and distribution partners feed into this purpose. This is evident in how we tailor our products to support our target market. Examples include a minimum six months if UK residency required for visa holders, acceptance of complex or forecasted income for self-employed borrowers, and enhanced loan-to-incomes (LTIs) and loan-to-values (LTVs) for professionally qualified clients.

Our aim at Afin Bank is to deliver a seamless mortgage journey uniquely tailored to our client’s needs.

What are the challenges facing BDMs right now?

A wise banker once said, “appetite and policy can be two different things.” There are several instances where published criteria and credit appetite differ; this could be very challenging and frustrating for BDMs. At Afin Bank, we have the appetite to support our core clientele of employed visa holders and selfemployed clients, with our policies specifically created to support them on their home buying journey.

What are the opportunities for BDMs? The opportunities are endless! Afin Bank is launching with a suite of fixed and variable rate residential and buy-to-let (BTL) mortgage

products for visa holders and selfemployed borrowers. This is just the starting blocks on our roadmap towards financial empowerment.

We are equally as excited about our upcoming product pipeline aiming to support HNW borrowers, expatriate clients, and an expanded product range – watch this space!

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

Earlier this year, we commissioned two research studies to uncover the attitudes and pain points of our priority audiences, the African diaspora and the self-employed.

92% of the Africa diaspora feel underserved by UK banks, with the main pain points being visa status, nationality and lack of UK credit history. 76% of self-employed workers also feel underserved by UK banks, with their pain points being complex or multiple income, and thin credit history. The banking industry is failing these non-standard applicants, with brokers facing significant challenges supporting these diverse borrowers.

Afin Bank seeks to remedy that by introducing greater flexibility and understanding as part of our mortgage range. Brokers can introduce their diaspora clients of all nationalities, on several visa types, with thin or no UK credit records to Afin. For self-employed borrowers, projected income is considered together with net retained profits and director’s loan accounts.

Our broker partners have welcomed our new proposition, and we look forward to further refining our offering with their support.

92% of the Africa diaspora feel underserved

by UK banks” Despite having a good income and a healthy deposit saved, they have been declined a mortgage by their high street bank due to their nationality and visa status.

This is prevalent across the UK within the professional services sector – scores of doctors, nurses, accountants, lawyers, and engineers find themselves stuck in the rental spiral solely for the reason of systemic mortgage barriers.

Afin Bank is here to change that narrative and, together with our broker partners, right these wrongs to this underserved segment of society, who contribute significantly to the UK’s growth and diversity.

My advice to potential borrowers caught within this rental spiral – come to Afin Bank.

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

Outside of work, you will find me getting my hands dirty in the garden, getting my feet dirtier running a Tough Mudder obstacle course, or cleaning up after my two rambunctious little daughters – I wouldn’t have it any other way! ●

Afin bank

Established 2021 (VOP in 2024)

What advice would you give potential borrowers in the current climate?

Products Mortgage and buy-to-let products, specialising in visa holders and selfemployed borrowers

I had a recent conversation with a surgeon of West African origin, currently working within the NHS.

Contact Tippie.Malgwi@Afinbank.com 07353 963884 August 2025 | The Intermediary

21

RESIDENTIAL Opinion

Reforms must work for first-time buyers and savers alike

I

n today’s market, brokers are on the front line of helping first-time buyers navigate a path to homeownership – a path increasingly obstructed by rising house prices, deposit shortfalls, and affordability challenges. That’s why the Chancellor’s Mansion House speech and subsequent commitment to a permanent Government-backed Mortgage Guarantee Scheme is a welcome step forward, providing it is done in a sensible and prudent way that supports customers, particularly when times are hard.

Supporting first-time buyers into homeownership is at the heart of what we do in the mutual sector, and this measure is a vital step in helping those with smaller deposits access the market.

The housing challenge in the UK is not just about supply, it’s about affordability. Many would-be homeowners, especially younger people and those affected by economic instability, have been locked out of the market due to rising house prices and deposit shortfalls. Underwriting more higher loan-to-value (LTV) mortgages through this scheme provides an important lifeline and helps shi the balance for those on lower incomes.

We’re also supportive of the Bank of England’s recommendation to allow a higher mortgage lending limit over 4.5-times income, alongside the Financial Conduct Authority’s (FCA) work to simplify remortgaging rules. These reforms reflect a broader willingness to engage with the realities faced by today’s first-time buyers.

For our part, we must continue to ensure that the mortgages people take on are right for their circumstances, especially if times become hard.

These initiatives must also go hand in

22

The Intermediary | August 2025

hand with be er financial education and long-term saving incentives that support deposit-building, including the preservation and promotion of the Cash ISA. Delaying potential plans to cut Cash ISA limits, and being willing to take more time to consult with industry experts as well as listening further to the public, is a positive step forward.

In the lead up to the Mansion House speech there was significant pushback from customers, the press, and the financial services sector, and we applaud the Treasury’s willingness to engage meaningfully with our industry to explore other possible solutions.

Empowering customers As advocates for responsible saving, we remain firm in our commitment to promoting Cash ISAs as an accessible and impactful tool for financial empowerment. For many of our customers, particularly those saving for a deposit on their first home, Cash ISAs provide a tax-efficient way to grow savings without undue complexity or risk.

For the moment, the Cash ISA and its existing limits are safe, but reform of this savings product may still come, with more details expected to be confirmed in the Autumn budget.

Many customers choose Cash ISAs as they simply cannot afford to risk losing their hard-earned capital investing in stocks and shares. For those that can, access to low-cost financial advice remains a barrier, with less than 9% of the UK population receiving financial advice last year.

Too many people remain unsure of how or where to invest their money, particularly those from underserved communities or younger savers navigating the financial

JONATHAN WESTHOFF is chief executive at West Brom Building Society.

Many would-be homeowners [...] have been locked out of the market” landscape for the first time. If we want people to invest, we need more initiatives to bridge the ‘advice gap’.

We also welcome the FCA’s current consultation to provide a simpler regulatory framework in this area.

The Chancellor also confirmed that there will be a marketing campaign to inform customers of the merits of investing in the Stock Market and how this could further benefit customers’ long-term savings. Any messaging to customers that reinforces and raises awareness of these established savings products – and the importance of savings – is a positive, providing the risks are also made clear.

Empowering people with access to trusted, affordable financial advice is not only key to increasing engagement and building trust with financial providers, but also vital to improving confidence and outcomes in long-term investment. By investing in tools, platforms, and education initiatives that demystify financial planning, the Government and financial sector can encourage a broader culture of investment, ultimately strengthening economic resilience and social mobility across the UK. As a mutual, we want our customers to build a secure future for themselves and their families, and as such would welcome any strategies or initiatives the Government introduces which helps us and brokers achieve this. ●

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The Interview.

SBS

Riding the wave

Jessica Bird speaks with Eric Bierry, CEO at SBS, about the evolution of the business and the lending tech landscape

G

lobal fintech company SBS services more than 1,500 institutions across 80 countries, including the likes of Santander, Société Générale, and Kensington Mortgages.

It provides a cloud-native, API-first platform that supports core banking and lending, payments, compliance and digital engagement.

In almost 28 years in fintech, CEO Eric Bierry has seen this market go through many stages of evolution – experience that he brought with him when he joined the firm in 2016, going on to lead the merger between Sopra Banking Software and Axway in late 2024.

The Intermediary sat down with Bierry to understand SBS’ recent evolution, and how tech is shaping the future of financial services.

24

The Intermediary | August 2025

To stay at the crest of the wave, four years ago the business made the decision to transform from a service-focused firm to a software company. This meant moving away from a model of bespoke tailoring for each new client, to focusing on creating an optimised product.

Bierry says: “Our heritage is that we were tailoring a lot of solutions for our clients, which was seen at that time as a benefit for them as we were doing exactly what they were expecting. But when we looked at the speed of the banking market, especially, the ability to go super fast is critical; when everything has been done very specifically for the client, the ability to move fast becomes very difficult.

“We wanted to rationalise the way we were going to market, and which products have to be, let’s say, ‘protected’ for the future.”

This was not a change that happened easily or overnight, he adds: “It took us nearly three years to pilot the company within that new strategy, and ensure that our clients were not only following our strategy, but accepting the plan to standardise a lot more.”

The rationale to make this change, in the first instance, was to improve business outcomes for clients, but it also had the added benefit of allowing SBS to reduce costs and improve its own business performance.

Building bricks

In the UK, SBS has a particularly strong grounding in providing software solutions for the building society market, numbering 21 clients in that sector alone. The willingness of building societies to engage with modern technology strategies might surprise some, considering their lower profit margins and physical roots in both communities and historical processes.

For Bierry, the two are not mutually exclusive, particularly as SBS respects the traditions that underpin the mutual model.

He explains: “There is a very strong competitive advantage that building societies have in the market, which is the ability to really engage physically, closely with their members.

“Of course, many other big financial players are compensating for their inability to be

T H E I N T E RV I E W SBS

close to their clients by enabling more digital options. That has been the reality of the past six to eight years. But the role of these building societies to address the market in their own way is crucial.”

While building societies have tended to maintain their physical local presence, they are still investing in automation and digital processes to support efficiency and growth.

Most of this, Bierry explains, has happened in ways that those outside the institutions might not see or be aware of.

While building societies might still be seen as “more old-school” when it comes to the digital perspective, this is largely due to the focus of tech advancement being in the back office, where other financial institutions prioritise customer-facing tech.

Looking ahead, however, Bierry warns that this model must change.

He says: “That model is not going to be enough for building societies. Many of them, when they have less than £3bn or £4bn assets under management will start to be too small to stay independent.

“They have two options to stay independent – to modernise and diversify to engage with a larger client base and with more services, or continuing to reduce their costs.

“Of course, many of the CEOs of building societies are more business developers than people aiming to just reduce costs. Also, just reducing costs is going to put them on the menu for consolidation.

“We don’t see the building society market growing by itself – we see there being more consolidation, because of the margins. But we do also see that they are keen to find ways to grow and diversify.

“That’s an opportunity for us to bring what we are doing with banks across Europe and give them that support.”

A factor further shaping the use of tech in the building society market is that these lenders are “not as much in competition as others,” and while competition can spark innovation, this allows them to “share many things” rather than view progress as something to be coveted.

Broader picture

Looking beyond building societies to the UK financial services market at large, Bierry sees many opportunities for greater digital adoption.

He says: “Compared to European markets, the UK market has a bigger appetite for digital and the adoption of new models.

“When looking at the complexity of mortgage business, the UK is the most advanced mature

market compared to many other countries in Europe, so that appetite to move forward and take risk is stronger. That’s a very important differentiator.”

This could, in part, be due to the UK model of shorter terms meaning a greater need for tech and efficiency as people engage with their mortgage provider, and potentially change lender, more regularly. Bierry also adds that the regulatory environment has a lot to do with it.

“The regulated approach is not seen as the first driver for moving things forward in the UK, unlike many other countries,” he explains.

“For example, faster payments has not been a regulatory decision, and it worked here a lot earlier than in other countries in Europe. In the UK, we see the ability of the market to move itself without waiting for the Government to make the decision.”

Challenge of change

Whether a building society with 200 years of history in a local area, or large financial institutions with vast embedded systems, the challenge is always going to centre around how to evolve and adapt without taking a toll on daily operations.

This is particularly the case when it comes to processing platforms, says Bierry, as engagement platforms tend to be less reliant on legacy systems.

He continues: “On the processing side, it’s very difficult for a bank or financial institution to see the benefit and support the risk of migration. That’s the first blocking factor.

“Their core business is not going to change, so why take the risk and put so much money on the table to make that move?”

Another hindrance to progress is the fact that, historically, many financial institutions felt they were differentiated in the way they were going about providing mortgages and savings products. This meant having systems that were tailored to their business down to the minute specifics. That, Bierry says, no longer makes sense.

He says: “They must accept standardisation – processing is processing, we can spend tonnes of hours and not find anything that really differentiates one brand from the other.

The differentiation comes in the way they originate, engage, design the products, and drive aftercare.

“There are many ways for financial institutions to differentiate themselves, but processing alone is not one of them.”

Of course, whether or not it is the right move to standardise, migrating legacy systems is still → August 2025 | The Intermediary

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T H E I N T E RV I E W SBS

a hard task for many, not least when this might be seen as a hygiene factor – shifting in order to continue functioning smoothly, rather than to create any clear business or profit gain.

To make this transition easier, Bierry says: “Those legacies can stay, but they can stay with conditions – adopting a standard, opening up those legacy systems and adopting all the necessary APIs, and bringing down the time to market expected by financial institutions.”

He adds: “We are already seeing the benefit for 18 or 19 of the building societies we work with today, which have adopted these standardised systems. Then, they can focus on the product catalogue and how they engage with clients.”

Standardisation is also a benefit for those smaller businesses that may not have the resources adopt the most advanced, bespoke technology. Instead, without having to invest in tailored specifics, smaller businesses are better able to compete and focus on growth, which has a broader positive effect on the health of the overall market, through better competition.

Bierry says: “This is not an easy decision to make at first, but once made it is an easy execution. A building society with less than £1bn of assets under management cannot afford to do a two-year IT programme, so their only way to survive is to stay focused on growth and business development, how they want to be seen as different as a niche player, rather than spending money and time on IT and back office processes.”

AI insecurity

Any discussion of the tech underpinning the modern lending landscape inevitably rolls around to artificial intelligence (AI), either with excitement for its capabilities, or trepidation about the brave new world it heralds.

For Bierry, the discussion is moot until financial services gets better at leveraging data.

He says: “Historically, financial institutions don’t like to use the data they already have. It comes from their DNA – a history where people were coming to their bank in person to deposit physical money is still part of their processes.

“So, the first step is accepting the use of data – with or without the use of AI.” When it comes to the dawning use of AI in financial services, whether a reality or a a future discussion, the biggest fear tends to be around the safety of customer data. This is not unfounded, and the growing conversation around public large language models (LLMs) is fuelling this concern. However, not all systems are created equal, and SBS has its own 26

The Intermediary | August 2025

proprietary AI system, allowing it to be used locally by a lender, without either pulling in unvetted external data or allowing internal data to be dispersed elsewhere or “exposed to the public cloud.”

While this format is more limited in scope than LLMs such as ChatGPT, it is about finding systems and tools that are fit for purpose and work with the “real use cases lenders are expecting to deliver to the market.”

With the realities of audit trails, GDPR compliance and Consumer Duty requirements pressing heavily on all financial services businesses, those in this market that do not enter into the tech and AI conversation are not just going to struggle to compete, but may face nasty compliance shocks along the way.

When it comes to this progress, Bierry adds: “For those of our clients that have not yet matured into using these systems, it’s not because of privacy concerns, it’s because they need to have the right data. They need to decide the way they want to leverage that data, and they need to decide what kind of use case they would like to go to the market.”

Naysayers in all markets will warn against the use of AI, of course. Bierry notes that often this is about a misunderstanding of the solutions out there, and a lack of awareness that closed systems do exist.

On the subject of growing this awareness, he says: “This is going to take years. And the speed of the market is not going to allow for the fact that teaching people is going to take years.”

Part of the solution to this is transparency and communication, not least because AI comes in various diverse forms, many of which the average person interacts with throughout their day without even realising.

For example, it is important to distinguish between generative and predictive AI. Predictive AI is widely used – from making shopping recommendations to risk modelling and identifying suspicious patterns in fraud detection. Generative AI, meanwhile, is the “next stage” in the evolution. This is centred around the actual creation of content, from personalised marketing through, potentially, to mortgage agreements and KFI documents.

The vast majority of the use cases in financial services at this stage are predictive. Bierry points to the use, for example, in preventing or anticipating defaults.

He says: “It’s a lot better to engage with your client three months before a default, proposing something to help them, rather than waiting for the default and then entering into a very difficult conversation.”

T H E I N T E RV I E W SBS

As it stands, “nothing is missing” to implement these systems, which can provide a net positive for both the lender and the consumer. Bierry explains: “If you have two or three years’ experience with the client, plus their profile, some evidence of events that might trigger something, you can run your model and find that there is an 80% chance they are going to face a problem in three months. Then, the person taking care of the client can make the decision to engage with and assist them.

“That client is going to be more loyal longterm, and if you explain that usage to clients, no one is going to think it’s dangerous.

Everyone benefits – the risk to the bank is reduced and the client feels well-served.”

This will become easier with younger generations, who arguably are less focused on the theoretical risk, and have already proven more willing to engage with systems like Open Banking. Indeed, the next generation will likely move elsewhere if the use of tech does not fit their standards.

To help bring others on the journey who might still be reluctant, Bierry says: “It’s the responsibility of the financial institutions to clearly publish the way they are using the data of their client. They are more or less already obliged to do that. Then, engage with some use cases and be super transparent.”

The future

Despite being cautious to engage in too much prophesying, Bierry paints an interesting picture of the future. In five years, he says, the next generation may go through the mortgage process having never engaged with someone from the bank.

“They don’t want a mortgage, they want a house,” he says. “In their minds, why should they talk to someone? They will consider it a waste of time to talk to a third-party, even if it’s the source of the finance.”

Meanwhile, banks need volume to be sustainable, and considering the current trajectory of issues like the cost of living and house prices, they will be looking to maintain that volume in an environment when buyer numbers are slowing down.

Bierry points to other markets in which finance has become an embedded concept, where the institution providing it does not factor in for many consumers – buying an iPhone via monthly payments, for example.

Meanwhile, he adds that in China, the ‘super app’ WeChat (Weixin) already acts as one of the biggest auto finance competitors – it has the

customer’s financial data, due to already being used as a payment app, so can make instant credit decisions.

“In five years, for cars, I’m convinced we’ll never see the name of the company putting up the money,” he says. “If we can do that with cars at £100,000, then why not a house at £1m?

No matter what some consumers who prefer face-to-face want, the market will move.”

While the ability to walk into a car dealership for a test drive and leave an hour later with finance and the car might feel like an extreme example, given the rate of progress in the UK’s mortgage market, this is a reality that lenders must take into account.

The other huge topic on the horizon is that of the carbon footprint. For a tech company, SBS’ focus on something so deeply grounded in the physical world might seem like a disconnect, but for anyone following the news around the environmental impact of AI servers, this subject looms large.

In five years, Bierry believes, the regulators will want a CO2 footprint label included on all software. He adds: “The way we design the products is influencing the consumption of carbon emissions.

“So, we started to train our people in the engineering and [research and development (R&D)] teams on eco-design five years ago.

“We did this to reduce our hyperscaler consumption. The reason to start with was not ESG, but reducing costs.

“Since then, the trends – and the expectations from the board and stock exchange – have drastically changed. Now, that eco-design is becoming mandatory.”

While this has been part of SBS’ DNA for a while, Bierry says there are still questions. For example, the business must consider how to balance the fact that AI consumption is “bigger than the product itself.”

While preparing for the customer of the future, changing market dynamics and the predicted role of regulation and carbon footprint reporting, Bierry says SBS is excited for its own product and innovation roadmap, deleveraging its debt, and moving toward another potential acquisition in 2026 to achieve an ambitious revenue target of £1bn for 74Software (which includes both SBS and Axway) by 2028.

Bierry concludes: “We think that the next step is that building societies shouldn’t be taking up their time over processing platforms and originations.

“What’s going to be exciting for us is to give them an answer to those challenges.” ● August 2025 | The Intermediary

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B U Y - TO - L E T Opinion

AVMs in buy-to-let: Scale, speed and greater flexibility

I

f there’s one thing that is absolutely certain about the buy-to-let (BTL) market, it’s the fact that timing can absolutely make or break a deal. Whether it’s locking in a rate, jumping at an investment opportunity or meeting ever-tighter deadlines, brokers are busting a gut to support landlords and get deals over the line. In response, lenders are equipping themselves with tools and technology to prioritise agility and efficiency to keep pace.

Automated valuation models (AVMs) are a fantastic example, and are helping to transform the buy-tolet market, delivering greater speed, efficiency and cost savings for lenders, brokers and their landlord clients.

AVM 101 An AVM is a valuation that combines mathematical or statistical modelling with databases of existing properties and transactions to calculate property and rental values. They prove most effective when there are similar properties nearby that can provide comparable evidence – for example, a property on a housing estate or a street of terraced houses.

For real accuracy, AVMs work best when recent physical valuations can feed into the data model.

Where AVMs have proven less suitable is for those atypical properties. For example, finding comparable, local data for a bespoke house in multiple occupation (HMO) conversion or a multi-unit freehold block (MUFB) is not always possible.

Gaps in valuation data can also limit the ability of an AVM. It’s one of the reasons why the BTL market was slow to adopt the technology.

However, as property data has advanced and market intelligence has

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improved, so has AVM technology and adoption. Now, the AVM ecosystem is far more advanced and sophisticated, meaning it can now draw upon data such as the number of bedrooms in a property and whether it has multiple kitchens.

While it still may not suit every property, the benefits to portfolio landlords are hard to ignore. This is especially true for those looking to remortgage their entire portfolio.

Prior to automated valuations, these landlords would need to apply to have all of these properties revalued at the same time using individual physical valuations.

Not only is this at a significant cost, but it’s hugely time-consuming, with the landlord needing to be present at each property and to coordinate with every single tenant.

At Landbay, we integrated AVMs around 18 months ago, and the results so far have been really promising.

Alongside individual examples, we are finding that landlords are saving, on average, £500 on valuation fees.

Using the portfolio landlord as another example, one of our clients saved nearly £4,000 in fees on their portfolio. For a landlord with 20 properties under their belt, they could be looking at savings of £10,000 just by removing valuation fees.

Given the current market landscape and the cost pressures facing landlords, this is a significant saving.

Alongside efficiencies for brokers, we have found that AVMs speed up the time to offer and are three-times faster than a standard application.

In addition to saving £4,000, that same landlord reached offer stage within 14 working days. We have seen other examples where we can issue an offer within 24 hours of the decision in principle (DIP).

ROB STANTON is sales and distribution director at Landbay

Broker-led tech In our view, AVMs really succeed when they are directly integrated into a broker portal, where they can deliver efficiencies for brokers by streamlining the application process.

By choosing an AVM at the outset, brokers trigger both policy and product rules that run in real-time.

It will quickly determine if a case is suitable for an AVM, and if not, it will automatically switch to an equivalent standard product without needing to start again.

Alongside the right platforms, the products must remain competitive and alive to the needs of the market.

Just recently, we expanded our AVM proposition through our Limited Edition range, increasing both the maximum loan amount and the maximum loan-to-value (LTV). Across all four products, the maximum LTV has risen from 65%, to 70% and 75% LTV, while the maximum loan amount has increased by 15% – from £478,500 to £562,500.

The aim is to unlock AVMs and make them available to a wider pool of cases, giving both broker partners and their landlord clients greater flexibility and enhanced options, whether they are set to purchase or refinance.

AVMs present a fantastic opportunity for brokers to fast-track applications without compromising accuracy or service. Given the tough demands facing both landlords and the brokers supporting them, it is a solution that is well in tune with the realities of today’s BTL market, where speed, cost and certainty are all the upmost priority. ●

B U Y - TO - L E T Opinion

A consolidation is gradually taking place

I

t’s hard to overstate just how much the UK’s rental landscape has shi ed since the invention of the buy-to-let (BTL) mortgage in the mid1990s. Before this, being a landlord was only really reserved for those with the deepest pockets. But the arrival of buy-to-let finance opened the door to a new breed of middle-class investor, who drove the growth in the number of rented homes for the next two decades.

But the rapid expansion of buy-tolet was never going to be without its challenges. By 2016, policymakers were becoming increasingly uneasy that investors were crowding out first-time buyers. A host of tax rises were introduced – higher Stamp Duty rates and less generous mortgage interest relief – designed to level the playing field.

Shifting landscape The landscape shi ed again in 2022, as rising interest rates piled pressure on landlords’ finances, prompting a rethink of whether property investment still stacks up.

Since then, there has been an explosion in the number of companies set up to hold buy-to-let property.

Today, there are around 400,000 companies set up to hold property, and around three-quarters of new investor purchases now go into a limited company. Yet, it’s worth noting that most privately rented homes are still held in personal names – a reminder that change, while rapid, is rarely absolute.

This corporate shi has also had the effect of opening up the market to non-UK investors. Tax rules tend to be lighter touch for UK-based companies, and there are o en more favourable finance options available for domestic

companies than for international investors who purchase property in their own name. This has opened the door to an increasing number of nonUK national investors – both those living in the UK and those investing from afar.

Since 2016, the share of newly incorporated buy-to-let companies with at least one non-UK shareholder has climbed from 13% to 20% in 2025.

This is a trend that has occurred in nine of the last 10 years. This year alone, some 67,000 new buyto-let companies are expected to be established, with about 13,500 estimated to be owned, at least in part, by non-UK nationals.

But it’s not just the numbers that are changing – it’s the faces, too. In line with wider post-Brexit migration trends, the dominance of EU nationals among new buy-to-let shareholders has fallen from 65% in 2016 to 49% in 2025. There has also been a decline in shareholders from English-speaking countries, or the ‘Anglosphere’. Only Irish nationals remain in the top 10 in 2025, compared to a list that included Americans, South Africans, and Australians back in 2016.

In their place, investors from South Asia and Africa have emerged as the dominant force. Indian nationals have been the largest group of nonUK shareholders every year since 2023, founding 684 new buy-to-let companies in the first half of 2025 alone. Nigerians aren’t far behind, with 647 new companies set up in the same period.

At the centre London, predictably, remains the epicentre of international investment – 27% of new buy-to-let companies in the capital have non-UK shareholders this year. But the real growth in

DAVID FELL is lead analyst at Hamptons

Investors from South Asia and Africa have emerged as the dominant force. Indian nationals have been the largest group of non-UK shareholders every year since 2023, founding 684 new buy-to-let companies in the first half of 2025” foreign ownership is happening elsewhere. The share of new non-UK national landlords has more than doubled in the East Midlands, West Midlands, and Scotland between 2016 and 2025.

So, what does all this mean for the future? The profile of the UK landlord is evolving – by age, by origin, and by ambition. With the average landlord now in their 60s, and the hurdles to homeownership higher than ever, it’s clear that younger generations are less likely to follow in their footsteps.

Rather, a consolidation is gradually taking place – fewer landlords, but with larger portfolios – driven in part by the Government’s desire to professionalise the sector. However, this isn’t just a domestic story: as local appetite wanes, overseas investors are increasingly stepping in. ● August 2025 | The Intermediary

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Q&A

The Cumberland

The Intermediary speaks with Lisa Hodgson, senior sales manager, intermediary lending at The Cumberland, about the intermediated market and the changing holiday let scene

How is the move into the intermediary market progressing?

The Cumberland’s intermediary journey has evolved significantly in recent years. While the society has been active in the broker market for some time, the formation of a dedicated intermediary team for residential, holiday let and buy-to-let (BTL) four years ago marked a turning point.

Since then, visibility has grown and distribution has widened, with tools like the residential broker portal and affordability calculator helping to modernise the experience. Brokers frequently praise the platform for being intuitive and timesaving, supporting faster case submission without compromising on the society’s bespoke, manual underwriting ethos.

Visibility has been key. Through more sourcing system integrations and regular business development meetings both online and face-toface, brokers are increasingly discovering a lender that many hadn’t previously worked with, despite our longstanding presence, particularly in holiday lets. As one broker recently told us, “We always knew you were in the background, but now we can actually see you.”

It’s a transformation that hasn’t gone unnoticed.

Relationships with brokers are more collaborative than ever, with the team regularly using informal panels, direct feedback, and day-to-day case conversations to inform everything from product design to service improvements.

The team itself has grown from seven to 21 strong, and the commitment to service remains constant. We offer case-by-case underwriting, direct access to decision-makers and a culture that listens to broker needs.

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What should brokers expect from The Cumberland when they onboard for the first time?

Above all, brokers should expect a highly personal service. Every broker is allocated a named business development manager (BDM), backed by admin support and senior leadership who are equally accessible. There’s no call centre, no chatbots, just real people on the other end of the phone.

This accessibility underpins everything. It could be a product query, policy clarification or simply a quick sense check, but our brokers know they can get through to someone who understands the case. That responsiveness has helped forge lasting relationships, especially when dealing with more nuanced scenarios.

We continue to adapt our criteria based on broker input. One recent example is the ability to consider self-employed applicants with just one year of trading history, subject to conditions.

In some cases, personal bank statements aren’t required either.

These kinds of pragmatic updates give brokers the confidence to place cases that might not fit other lenders.

What has your holiday let listing on Mortgage Brain meant for brokers?

The addition of holiday let products on multiple sourcing systems has been a real step-change.

Previously, brokers had to manually compare The Cumberland’s rates against the wider market,

Q&A

often juggling separate documents and assumptions.

Now, the society appears directly in brokers’ sourcing results, making comparisons much easier.

The change has opened doors.

It’s improved visibility among existing partners and attracted enquiries from brokers who’ve never previously placed holiday let business with us, despite our 20-year track record in the sector.

The result is a more diverse pipeline and stronger recognition of a product suite that was already highly competitive.

Ease of access is one benefit, but what’s really resonated with brokers is the depth of our collective understanding.

The team has long supported holiday let borrowers through regulatory shifts and licensing requirements. That consistency and staying in the market when others paused or exited hasn’t gone unnoticed.

What do brokers need to know about The Cumberland’s regional lending focus, and does that apply for holiday let?

Regionally, in relation to our residential owner-occupied proposition, The Cumberland continues to prioritise strong relationships across its operating area, which includes Cumbria, Lancashire, parts of North Yorkshire and Scotland.

These are markets that the team understands deeply.

We will be considering expanding our residential

proposition in time; however, we are also mindful of not diluting the first-class service we offer our intermediary partners.

That said, the holiday let proposition has always been national. Whether the property is in Cornwall, Norfolk or the Welsh coast, we lend up to 75% loan-tovalue (LTV) and support a range of ownership structures, including limited companies.

What makes The Cumberland’s holiday let proposition stand out?

There are plenty of features that brokers consistently highlight.

We manually underwrite cases which allows us to be flexible in our approach. We lend to limited companies without the requirement of a personal guarantee in most cases. Some of our other niche areas include up to three units on one title, we lend up to the oldest applicant’s 86th birthday, and we provide lending for holiday let properties on mainland UK, including the isles of Anglesey, Arran, Isle of Wight and Isles of Mull, Skye & Harris.

Second is the society’s support for portfolio landlords. Up to six mortgaged holiday lets can be held with The Cumberland under our intermediary proposition, with cases above that referred to the commercial team. Between the two teams, borrowers can be supported across up to 20 properties, giving room for growth and scale.

And finally, a quick but important detail: there are no application fees for product transfers. That might sound small, but it’s a meaningful cost-saving for existing borrowers looking to stay with the lender, and reflects our broader approach to fairness and long-term relationships. ● LISA HODGSON

Intermediary roll-out and digital evolution 2021: The intermediary lending team is established A dedicated team of relationship managers was created to drive broker–focused lending and uphold The Cumberland’s ‘Kinder Banking’ purpose.

January 2024: Working with sourcing platforms The Cumberland began working with Twenty7tec, Mortgage Brain and Iress Trigold to raise visibility among brokers and increase the reach of its distribution.

September 2024: Mortgage affordability calculator launches online A broker-facing affordability calculator was launched on The Cumberland’s website, enabling real-time eligibility checks and reducing average processing times by up to two days. It earned high adviser ratings for usability.

October 2024: Broker portal launch In late October, The Cumberland launched a comprehensive intermediary portal in partnership with fintech firm Mast.

The platform supports the full mortgage lifecycle from enquiry through to application and completion – automating administrative tasks like document uploads and enhancing turnaround efficiency.

Early 2025: Growing the network partnerships The Cumberland actively expanded distribution through directly authorised (DA) and appointed representative (AR) relationships, as well as partnerships with networks like Sesame, Mortgage Advice Bureau (MAB) and Quilter Financial Planning.

August 2025: Partnership with Paradigm Mortgage Services The Cumberland secured its first mortgage club partnership with Paradigm, making its specialist holiday let products available to Paradigm member brokers.

B U Y - TO - L E T Opinion

A crucial final four months of the year

A

ugust’s base rate cut by the Bank of England’s (BoE) came at an opportune moment, promising to stimulate activity across the UK property market. It will likely provide a shot in the arm for the market as it reawakens from its summer slumber.

Speculation remains – of course it does – about how many more cuts we will see this year. The BoE meets three more times before Christmas.

For now, however, the base rate resides at a two-year low, and borrowers will have been pleased to see the Monetary Policy Commi ee (MPC) act.

In the buy-to-let (BTL) space, lower borrowing costs will help soothe the transitionary pains that many landlords have been experiencing under the new Labour Government over this past year.

Keir Starmer et al inherited a BTL sector that has faced a huge range of changes and challenges over the previous decade, but a lack of clarity across a ra of policies have prevented a smooth transition.

Not all doom and gloom As noted, a falling base rate will go a long way to allaying concerns around policy and regulation.

Moreover, the performance of the property market itself paints a positive picture for BTL investors; the average UK house price, for instance, reached £298,237 in July 2025, a 2.4% uptick from a year before. Zoopla data, meanwhile, shows that rental prices have grown 21% over the last three years.

Clearly, it’s not all doom and gloom, as so many headlines would have brokers and BTL landlords believe – and recent data underlines this point.

Indeed, a survey of more than 2,000 private landlords in England by the TDS Charitable Foundation found that 23% have increased the number of

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properties they rent out over the last year, up from 19% in 2024.

Fundamentally, the market is in rude health, and while rising property prices and elevated borrowing costs – at least compared to the historic lows of 2008 to 2021 – continue to place a squeeze on landlords from an affordability perspective, there are still opportunities across the country for those looking to start or grow a BTL portfolio.

Final four On top of the BoE’s next three meetings, there is another key event approaching: the Autumn Budget.

The date of the Budget has not yet been announced – at the time of writing – but it is likely to land in late October or early November. While I would not expect fireworks, it will undoubtedly be a hugely important and influential announcement.

When Chancellor Reeves delivers her Budget, her party will have had some 16 months in power – enough time to fully assess the state of the economy and the public coffers. This will be her – and Labour’s – chance to truly put their stamp on this Parliament. The property market is almost certain to feature prominently in her speech.

The are issues that landlords, and their brokers, will want clarity on:

PARESH RAJA is CEO at Market Financial Solutions

non-dom reforms, planning laws, housebuilding investment, Energy Performance Certificate (EPC) regulations, Capital Gains Tax on property investments, and of course any further tightening of rules governing the private rented sector (PRS) and holiday lets market.

Hopefully the Budget addresses most, if not all, of these important policy areas, which have been in flux in recent years thanks to a series of bold claims, promises and u-turns.

As ever, lenders and brokers will have an equally important role to play. Si ing and waiting for decisive Government action is seldom a wise move; lenders must instil confidence in the market through competitive, flexible products, while brokers will need to provide that additional layer of support to clients to help them navigate both political and economic shi s in the months ahead.

Combined, this will ensure that BTL investors – both current and prospective – can act with confidence, and this ought to allow the market to enjoy a strong end to 2025. ●

Autumn brings the chance for certainty in areas previously in flux for landlords

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Reading the rental signals

I

f there’s one thing we know about the buy-to-let (BTL) market in 2025, it’s that nothing stands still for long.

Our own ‘Rental Barometer’ for Q2 2025 highlights this, and also draws a ention to the dynamic and – o en highly – regionalised nature of the private rental sector (PRS).

Now, with the release of the Office for National Statistics’ (ONS) latest UK rental price statistics up to May 2025, we have an opportunity to cross-reference two powerful datasets to be er understand what’s really happening on the ground, and to provide some insight into how mortgage advisers can best respond.

The headline from our own data is continued rental yield resilience.

Yields edged up to 7.5% on average across England and Wales, up 0.1% on the quarter, though marginally down on an annual basis. The ONS paints a similarly consistent picture, reporting a 7% annual increase in UK private rents to May. Both datasets agree: rental income remains a key pillar of buy-to-let viability, especially as landlords continue to balance capital growth ambitions with income generation.

What’s interesting – and useful for advisers – is how these two sets of data complement each other. For example, both Fleet and the ONS place Wales at or near the top of regional growth metrics. Fleet reports it as the highestyielding region this quarter at 9%, while the ONS shows Wales’ average rent prices leading with 8.5% rental price growth – above the UK average.

Similarly, the North West scores high across both sources, reinforcing its status as a hotspot for strong yields and solid rental inflation.

That alignment offers a level of reassurance for advisers looking to help clients assess long-term investment potential. If the independent ONS and a leading

buy-to-let lender such as ourselves are both seeing upward movement in rents and yields in the same regions, that’s a robust signal. Interestingly, the ONS includes both within-tenancy and new tenancy increases in rental pricing within its data, which gives a strong catch-all picture, and clearly highlights that in nearly all regions of England and Wales, rental yield levels are solid and continuing to deliver what landlords are seeking.

So, what does all this mean for advisers working with landlord clients now and over the second half of 2025 and beyond? First, it reinforces the need to look beyond the headlines.

Dig into the detail Regional differences are clearly there and must be taken into account – whether in yield, rental growth or property affordability – because advisers have to understand how unique that regional picture might be, and consequently dig into the detail when assessing borrowing capacity, cash flow potential, and return on investment. A client buying in Manchester will face a very different rental economics profile to one buying in Milton Keynes or Cardiff, even if the loan amount is the same.

Second, advisers should be ready for questions about timing. With the Bank Base Rate now at 4.00% and Fleet’s average 2-year and 5-year fixed rates down to 4.35% and 5.13% respectively – both below the peer average – many landlords are actively reviewing their funding options in a more competitive product environment. Whether that means a remortgage for be er pricing, a new purchase to grow a portfolio, or an exit from high-debt loans, advisers need to be across product trends and landlord appetite.Third, clients will want context. They’re reading about landlord licensing in Wales, and Energy Performance Certificate (EPC) deadlines in England. Many will be

LOUISA RITCHIE is national account manager at Fleet Mortgages

wondering whether to hold, grow or exit. With Fleet’s data showing that 81% of applications are now through limited company structures, and 55% from landlords with four or more properties, it’s clear the professional end of the market is accommodating all of this change and still expanding.

Advisers should be equipped to talk about incorporation, long-term tax efficiency, and how to use refinancing strategically.

Fourth, advisers must be prepared for more granular questions about affordability. Clients will require support recalibrating their borrowing expectations or structuring deals differently – perhaps releasing equity, or transitioning into higher-yielding property types such as houses in multiple occupation (HMO) or multiunit freehold block (MUFB) properties to maximise income potential.

Finally, advisers should know they don’t have to do this alone. At Fleet, we continue to deliver competitive pricing, a growing range of products, options and criteria, and a deep understanding of landlord needs.

We continue to lend to the kinds of experienced landlords and new entrants who are shaping the next generation of private rental provision.

We also provide transparent criteria, consistent underwriting, and regional insight to support every adviser conversation.

In summary, the data tells us that buy-to-let remains a complex but opportunity-rich environment.

The ONS and Fleet numbers may differ in places, but together they show a market that is active, resilient, and increasingly professionalised.

For advisers, that means staying informed, staying proactive, and above all, staying close to clients. ● August 2025 | The Intermediary

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RENTERS’ RIGHTS BILL RISKS UNDERMINING RENTAL SUPPLY

F

ew will have shed a tear over the resignation of Homelessness Minister Rushanara Ali. The optics of any politician, let alone one charged with tackling homelessness, turfing out their tenants and whacking up the rent were never going to be pre y.

But the headlines tell only part of the story. In fact, Ali had done nothing illegal. Property lawyer and landlord champion Suzanne Smith described the story in the following nutshell: “A case of a landlord with a low-yielding property whose tenants moved out during a periodic tenancy (rolling on a week-by-week or month-by-month basis), a er having been told the landlord was intending to sell, but without having been served a Section 21 notice. The landlord tried to sell it, gave up, and found new tenants at a higher rent, with a new yield of around 5%.”

In other words, it was a fairly routine course of action in today’s private rented sector (PRS). The key point here is that, while the move was

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lawful under current rules, it will not be once the Renters’ Rights Bill (RRB) becomes law, most likely later this year or early 2026.

The Bill will ban landlords from increasing rent within six months of a tenant leaving a property if that tenancy ended because the landlord intended to sell. Landlords will only be allowed to increase rents once a year, with two months’ notice, to the market rate – the price that would be achieved if the property was newly advertised to let. If a tenant believes the proposed rent increase exceeds the market rate, they can then challenge this at a tribunal. This is a notoriously slow process, and during the time it takes for a ruling to be made, the tenant will continue to pay the old level of rent. Even if the tribunal were to find in the landlord’s favour, there would be no requirement for the tenant to make up the difference for the rental period under dispute.

Battening down The prospect of the RRB is already influencing landlord behaviour.

Pegasus Insight’s Q2 2025 Landlord Trends research found that 61% of landlords planned to raise rents in the next 12 months, with an average upli of 6%, notably higher than historical norms. For comparison, average planned rent increases were in the 3% to 4% range in earlier Pegasus surveys in 2022 and 2023, suggesting a sharp change in sentiment.

Portfolio running costs are cited as the primary driver, but, for many landlords, the looming RRB is prompting pre-emptive adjustments.

Nor is this just about rent rises.

The same research revealed that only 6% of landlords intend to purchase more buy-to-let (BTL) property in the next 12 months, a record low since Pegasus began tracking the question, and down from 18% in Q1 2022.

Meanwhile, 38% say they plan to sell property in the coming year.

The consequences for the PRS could be serious.

The sector currently houses just under 20% of UK households, ranging from students and young professionals to families with children

(34% of private renters in 2023/24) and older people (9% are over 65).

Overall demand for rental property shows no sign of flagging, and if more landlords choose to sell, supply will shrink further.

The RRB’s headline measures – abolishing fixed-term Assured Shorthold Tenancies (ASTs) and Section 21 ‘no-fault’ evictions – are intended to give tenants greater security. However, they also reduce landlords’ ability to manage their assets flexibly.

In future, removing a tenant will mean proving one of a limited set of grounds – such as selling, moving in, arrears or anti-social behaviour – and, in most cases, going to court.

With County Court cases already taking an average of almost a year to process, it’s unsurprising that many landlords are looking to leave the market before these rules take effect.

Tenants take the brunt As we have established, the Bill also includes limits on rent increases (once per year), curbs on advance rent

payments, a landlord database and mandatory acceptance of tenants with pets unless refusal is ‘reasonable’.

Each measure has its rationale, but, cumulatively, they add cost, reduce flexibility, and increase perceived risk for landlords.

If landlords raise rents now in anticipation of tighter rules, or sell up entirely, the immediate losers are tenants. Competition for homes is already fierce in many areas, and rising rents will squeeze household budgets further.

None of this is to argue against tenant protections in principle.

Bad landlords exist, and strong enforcement is vital. But regulation that ignores supply-and-demand realities can have the opposite of its intended effect.

If the Government truly wants to improve conditions for renters, it must also address the chronic housing shortage. That means building far more homes across tenures, increasing social housing, and creating a policy environment in which good landlords want to stay in the market. Without

KATE DAVIES is executive director at the Intermediary Mortgage Lenders Association

that, legislative ‘victories’ for tenants could be hollow.

And as for Rushanara Ali, she may have been guilty of poor political judgment, but, in the cold light of economics, her decision was entirely rational. The looming RRB means that thousands of other landlords are making similar calculations, and they don’t have to resign when they do. ● August 2025 | The Intermediary

35

BEYOND THE HEADLINES RESTORING TRUST AND PRIORITISING CONSUMERS IN ESTATE AGENCY

by Jessica O'Connor It is not often that estate agency practices make it to prime-time television, but the recent BBC Panorama investigation, ‘Undercover Estate Agent,’ shone an uncomfortable spotlight on the industry.

While the revelations have inspired criticism, they also opened a rare and valuable window. In sparking industry-wide debate, this has afforded property professionals across the sector an opportunity to examine their own practices – to ask whether the balance between commercial interest and consumer choice is being struck fairly, and to consider how stronger standards, clearer guidance, and closer cooperation could turn a moment of scrutiny into a platform for lasting improvement.

Hidden pressures Conditional selling, in the property world, is the practice of linking the acceptance or progression of an offer to the use of a specific mortgage broker, solicitor, or other in-house service. While there is nothing untoward about an agent recommending a trusted contact – such arrangements can even streamline communication, cut delays and benefit the buyer – the problems begin when recommendations turn into requirements.

A spokesperson for Connells, one of the agencies named in the programme, says: “We maintain a strict zero-tolerance approach to conditional selling, ensuring transparency and fairness throughout the process.

“This is monitored through our ongoing programme of branch audits and mystery shops, which play a vital role in helping us deliver high standards across our offices.

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"We also recognise the wider role we play, working closely with industry bodies and engaging with local Trading Standards.”

That sentiment aligns with the stance of National Trading Standards, responsible for overseeing compliance with estate agency law. Its guidance on conditional selling is clear: estate agents who fail to pass on offers purely because the buyer declines additional linked services – such as mortgage advice or conveyancing – are “in breach of their professional requirements and can face sanctions.” It also describes conditional selling as “unacceptable,” noting that has the potential to cause “considerable financial loss and emotional turmoil” for buyers and sellers.

Part of the challenge is that the practice often goes unnoticed and unreported. Offers may be rejected for many reasons, and most prospective buyers “rightly assume that, if an agent tells them their offer has been rejected, the process has been honest.”

Broker perspectives For brokers, the recent revelations landed less like a bolt from the blue and more like confirmation of what many had known for years.

Nick Jones, mortgage sales and marketing director of Access FS, says: “While I was troubled by the findings of the Panorama investigation into conditional selling, I wasn’t entirely surprised by them.

"After all, Access FS has been campaigning against conditional selling for years.

“It’s disheartening to see practices that prioritise corporate profits over clients’ best interests – especially when they may lead to sellers receiving lower offers.”

Gerard Boon, managing director of Boon Brokers, sees conditional selling as corrosive to trust, saying: “This undermines confidence in the entire house-buying process, and that can deter people from putting homes on the market or trying to get a foot on the property ladder.”

For Boon, the real danger lies in how these practices quietly distort competition and leave consumers in the dark. He adds: “Conditional selling damages public trust by creating barriers to fair competition and perpetuating misinformation by barring impartial advice.

Simply put, conditional selling results in buyers feeling coerced and confused.”

He argues that the recent news should serve as a rallying point for both brokers and regulators to insist on greater clarity for buyers and sellers at every stage.

Rhys Schofield, founder of Peak Mortgages and Protection, feels a certain vindication that the issue has been exposed in such a public way.

“The issue has always been getting someone on record to talk about it, because the people who are the victims don't want to risk losing the house, because they are by definition in a vulnerable situation,” he explains.

Indeed, Schofield points out that the homebuying process is already unfamiliar and stressful for most buyers: “People don’t do this very often, they don't know what they're looking for and what are the pitfalls.”

For Emily Franks, director of Emily’s Mortgage Services, the programme only reinforced what she had already experienced. She says: “Having worked in a corporate estate agency, I am not surprised by it. Being outside of a corporate for the last four years, it really just cemented the fact that I needed to really give a voice to this.”

She stresses that referrals themselves are not the issue, adding: “The corporate culture is about getting profit by any means necessary and that's what needs to stop. If a client walks down to an estate agent after meeting with me and rings me back and says: ‘I've just met the broker in the estate agents; I really like them. I want to work with them. That's who I'm going to use.’ I'd understand that I'm probably not the right broker for them. But it's the ones that are forced into it; that needs to stop.”

Public opinion Public perception of estate agents has rarely been glowing. High fees, aggressive sales tactics, and an alignment with sellers over buyers have all fed into a certain wariness among the public. Indeed, polling by Ipsos as part of its Veracity Index for 2024 found that just 37% of the public expressed confidence in estate agents.

Franks says: “There are lots of good estate agents out there. I've worked with them, and they are very good. They are a vital part of a property transaction regardless of what anybody says, but at the moment, people see them as a necessary evil. That’s because there are a few out there that are tarnishing the name of the good ones.”

Nathan Emerson, CEO of Propertymark, suggests that some of this public cynicism stems from the inherent dynamics of the job.

He explains: “When you're buying and selling a house, there’s the financial adviser, the person who needs to buy, and the person whose house is for sale, and the agent is in the middle. Myriad things can go wrong. Buyers and sellers can pull out at will, and you can have chains falling through. People often look for somebody to blame, and very often, because the person they've had the most communication with is the agent, blame falls upon them.”

It is the visibility of the agent, Emerson argues, that means that regardless of actual fault, they are often left fielding frustrated phone calls.

Changing that perception will require a greater emphasis on transparency, accountability, and demonstrable professionalism – not just doing the right thing, but being seen to do it.

“We need to get to a point where the public can have the same trust in an estate agent that they do in their solicitor or surveyor,” Emerson says, pointing to the role of qualifications, regulatory oversight, and consistent service standards in building that trust.

Mike Robson, managing partner and finance director at Avocado Property Agents, believes cultural change within agencies is key. He says: “If we want to rebuild trust, it has to start with transparency. People are far more forgiving if they feel they’re being dealt with honestly, even when the news isn’t good.”

Some agents are already shifting towards models that allow them to build long-term, relationship-based business rather than chasing quick wins. The growth of self-employed agent models is helping to humanise the profession.

Robson explains: “What the documentary highlighted wasn’t the work of a few rogue branches, but a deeper cultural issue. A system that prioritises upsells and commission stacking over what should be a simple objective: helping people move home with clarity and care.

“That’s exactly why we built a different kind of model, one that allows agents to focus entirely on the client without being pressured by referral quotas or scripts.”

Without tackling both the real and perceived conflicts of interest that conditional selling can represent, the sector will ultimately struggle to

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August 2025 | The Intermediary

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"Sorry sir, you don't meet the requirements for the VIP entrance" shake its reputation. As Robson puts it: “Trust is earned in the same way it’s lost – gradually, and through consistent actions.”

Agent insights For many agents, this is another test of an already fragile public image. Nikki Davies, independent agent with eXp UK, says: “I think the general public are still cautious with estate agents and the programme only served to reinforce public perception.”

She acknowledges that this perception is shaped not just by splashy headlines, but by the opacity of day-to-day practices. Agents, she points out, are “legally obliged to be transparent regarding all fees and commission payments and to disclose this in writing along with the amount received,” but concedes that “most of the time this is buried in the terms and conditions, largely unnoticed by the clients.”

In her experience, the biggest kickbacks often go to “the low fee agents […] and this is how they make up the fees, unbeknownst to the clients.”

For Davies, the solution lies in stripping away the layers that can obscure intent. She notes: “It’s about accountability, integrity, and genuine personal commitment to clients. The larger a company, the more mouths to feed and overheads, so there's more pressure to get market share and volume.”

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In her opinion, the smaller quality-overquantity model is preferable, where she can personally “have a handle on [clients’] experience in buying and selling from the start” and “steer them towards trusted advisers, most of whom don’t pay referral fees but are simply very good at what they do.”

While it may not be the most profitable way to operate, she says: “I can sleep at night knowing I'm trying to do the right thing.”

Robson cites a structural flaw at the heart of the problem: “When buyers are blocked from viewings unless they speak to a mortgage adviser, or sellers are promised a marketing plan that never arrives, that’s not poor service, it’s company policy. Most agents enter the industry with good intentions. When you put decent people in a flawed system, they often end up disillusioned or forced to conform to survive.”

For Robson, the fix starts with restoring trust: “From the first conversation, agents need to communicate openly, price responsibly, and remain accountable through every stage, from digital marketing to completion day.”

That transparency, he argues, flourishes when agents are given ownership of their work, without pressure to hit referral quotas or follow scripts.

Without those distractions, they can focus on service and strategy – and clients will notice the difference.

Similarly, Emerson says that “good estate agency, just like good financial advising, can absolutely change people's lives for the better.

You never hear when it goes right, you only ever hear when it goes wrong.”

In his experience, the deciding factor is “the communication cycle” – ensuring fluid contact between agents, brokers and solicitors, so that clients feel supported rather than left in the dark.

He adds: “There are so many transactions where good financial advisers and good estate agents work together to get the person from A to B. When that works, it works brilliantly.”

Frameworks for reform Recent events may have reignited calls for reform, but it is worth noting that the estate agency sector is not without oversight. The Estate Agents Act 1979 sets out legal duties, including the requirement to pass on all offers promptly and in writing, while bodies such as The Property Ombudsman (TPO) enforce a Code of Practice covering everything from marketing to the disclosure of referral fees.

A TPO spokesperson explains that “under the Code of Practice, estate agents must disclose in writing any financial benefit they may receive from a referral, including referral fees, at the earliest opportunity.”

Nevertheless, unlike the financial services sector, which is governed by a statutory regulator in the Financial Conduct Authority (FCA), estate agency has no official regulator with equivalent powers to license, monitor, and sanction practitioners. Oversight is instead pieced together from ombudsman schemes, trading standards teams, and voluntary memberships.

Professional qualifications are one way of raising the bar – but as of now, they remain optional. Industry bodies like Propertymark have developed their own benchmarks, and the longdiscussed Regulation of Property Agents (RoPA) proposals hint at a single, formalised framework in the future.

Davies notes: “The Propertymark Level 3 qualification teaches agents new and old everything they need to know to do the job correctly and to put the client first.”

Franks adds: “I was part of the National Association of Estate Agents (NAEA) for a little while because I wanted to make sure that I had the highest level of education I could have in the sector I was working in.”

Both note that the technical knowledge and ethical grounding such training provides is invaluable, but without making it mandatory, there will always be those in the profession who bypass it.

p

PREPARING CLIENTS FOR CONDITIONAL SELLING: ◆ Educate early: Brief clients from the outset on the tactics they might encounter. ◆ Clarify their rights: Make sure they know they are free to choose their own mortgage adviser, and that pressuring them to use in-house services is unlawful. ◆ Encourage direct questions: Tell them to ask outright if an offer depends on them using certain services. ◆ Highlight red flags: Warn about delayed offers, insistence on in-house brokers, or hints that an external adviser could harm their chances. ◆ Reinforce their choice: Assure them it is fine to pick any broker, but if they want to stay with you, they should stand firm and get any unusual requests in writing. ◆ Provide tools: Give letter templates for challenging or reporting conditional selling. ◆ Document everything: Keep a paper trail of all interactions and report issues promptly.

"As a pairing, might I recommend a full-bodied in-house broker?"

Emerson sees qualifications as just one part of a broader, ongoing effort: “Raising professional standards is a constant thing for us. We’ve been doing a lot more consumer facing stuff. We had just over nine million interactions with consumers last year alone, which four or five years ago would have been unheard of.”

He adds: “We've also changed our branding that's going out now, so we have a new compliance level, where we have certified and accredited logos that are starting to be sent out to members to go in their windows when they pass a certain benchmark.

“This is saying: these agents are certified and accredited, they reach a certain standard of operations and qualifications, and we are monitoring them on an ongoing basis.”

However, Emerson warns that only those agencies already aiming to set high professional standards are likely to engage.

While the framework exists, then, the crux of the issue is that it is unevenly applied, and codes are not always enforced. Ultimately, as Robson points out, the strength of any system lies in its application. He says: “Estate agents are already legally bound by various codes and obligations, many of which were being blatantly ignored in that documentary, and up and down the country. So yes, enforce what we have. But more

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importantly, create a framework where good agents are supported, not suffocated.”

While much of the discussion around reform has centred on mandatory qualifications, many believe this would only scratch the surface. For real change to take root, experts believe this must be part of a much broader package of cultural, regulatory, and economic reforms.

Robson explains: “Regulation can certainly help. But it won’t fix the culture on its own. Many of the behaviours shown in the documentary were already in breach of existing codes and legislation, they just weren’t enforced.”

He adds: “We also need to look at the root issue: incentives that encourage shortcuts. The industry would benefit from a shift in focus from aggressive short-term selling to long-term client satisfaction. That’s not something you can legislate into existence; it requires leadership, values, and better business models.

“Regulation can’t teach empathy, and it won’t instil pride in the job. But when you build a framework that supports agents as professionals, gives them responsibility, and encourages accountability – the behaviour tends to follow.”

For Jones, the solution lies in combining cultural reform with firm regulatory muscle.

He explains: “To restore trust, the estate agency industry needs to enforce stricter regulations –

cracking down on conditional selling and the processes that encourage it – mandating clear disclosures about in-house service incentives.

Estate agents should commit to transparent, client-focused practices, ensuring buyers are fully informed of all options without pressure.”

He calls for “a blanket ban on conditional selling practices,” to be enforced by regulators, as well as “ongoing ethical training programmes” for agents and “a transparent public register of complaints,” alongside mandatory rules requiring agents to present all offers equally.

Boon agrees that professional ethics alone will never be enough to change the system.

He says: “To restore trust, clear, enforceable rules should prohibit financial incentives or commissions between estate agents and mortgage brokers, ensuring referrals are made without sales-related payments. The most important change is legislation.”

In his view, legislation should mirror the conveyancing sector’s current rules, where referrals can still be made, but financial incentives are removed from the equation.

Indeed, some argue that this is as much about business models as the rules themselves. Davies points out, as with many industries, that “it can be a race to the bottom on fees which means some agents need an additional source of income.”

She adds: “Setting a standard minimum fee across the board could remove the need for referral fees.”

Scholfield links the prevalence of low fees directly to the lack of barriers to entry in the profession, saying: “Agents will bemoan the fact that UK agents probably get paid the least out of anywhere in the world […] but the thing is, fees are low because anyone can do it.

“If you created a minimum qualification and some sort of formal regulatory body that you have to be a member of, all of a sudden you add credibility to this role and you can justify charging a fee that actually covers the costs of running your office.”

Sanctions and standards Franks has taken her frustration public, launching a Change.org petition. It argues that estate agents should face the same regulatory scrutiny as other key players in the homebuying process – with sanctions that carry real weight.

Franks says: “My hope is that the estate agents that are breaking the rules and breaking the law are held accountable. Everybody involved in a property transaction has a level of regulation; we have a level of standards that we have to adhere to. There are possible prison sentences

as a consequence of not doing our jobs properly.

There are financial implications of not doing our job properly. Estate agents are the only ones that are not held accountable.”

Scholfield stresses that the framework is already there in principle, but is toothless without proper oversight. A lack of credible enforcement leaves the industry relying on self-policing, which is not reassuring when “the public perception of estate agencies is that they probably have a bit of a wonky moral compass.”

While Boon acknowledges that professional ethics are important, he stresses that “history shows that relying on people's professional conscience alone will be insufficient. Stronger regulation and oversight are essential to eliminate loopholes.”

Empowering buyers Improving the industry’s reputation is not solely the job of regulators or agents – mortgage brokers also have a role to play in preparing clients to make informed, confident decisions.

Jones warns that “many consumers are completely unaware that they have a right to choose their own mortgage adviser, free from pressure by estate agents corrupted by corporate pressure and incentives that drive them to act in a way that is not compatible with the best interests of their clients.”

Access FS provides free letter templates for brokers and clients – one to challenge estate agents directly, and another to escalate the matter to the Ombudsman – so advisers can push back on behalf of their customers.

Documenting all interactions and reporting suspicious practices immediately can go a long way toward holding bad actors accountable.

Boon adds that brokers should be proactive in dispelling myths and “clearly explaining the risks of using estate agent-affiliated brokers” so clients understand they are free to choose “without risking property viewings or offers.”

Building trust starts with early, open conversations from the very first meeting with a client. That includes making sure clients know their options and advising them to “stick to [their] guns,” which Franks sees as part of a broker’s core responsibility – “giving them the power of education and choice.”

This kind of vigilance from brokers is not a replacement for industry-wide reform, but it is a vital part of the picture that brings together brokers, agents, and industry bodies around the shared goal of higher standards.

Structural changes will take time, but brokers can start shifting the experience for their clients immediately. ● August 2025 | The Intermediary

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Meet The BDM

Foundation Home Loans

The Intermediary speaks with Ginny English, regional account manager East at Foundation Home Loans How and why did you become a BDM? I had been part of the internal business development manager team with Foundation Home Loans for about 18 months, and during that time I was living in Cornwall. In April 2024, I relocated to Hornchurch to be closer to family. Around the same time, the regional account manager position became vacant in the East region which felt like a perfect fit.

I had already made it known that I wanted to progress my career within the business. I enjoyed my time as an IBDM but wanted to be out in the field, meeting brokers face-to-face and playing a direct role in growing 42

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relationships. The timing worked in my favour, and having built a good track record internally, I was offered the role.

Becoming a BDM felt like a natural next step. It gave me the chance to use my broker knowledge, expand my network, and work in a way that plays to my strengths – building trust, listening to what brokers need, and finding ways to add value.

What brought you to Foundation Home Loans?

My career in the mortgage industry began in the late 1980s, working as a mortgage adviser for building societies in the corporate sector.

In April 2003, I moved into the independent broker market, staying with my last firm for 15 years.

Over that time, I gained a detailed understanding of the market from a broker’s perspective. I experienced first-hand the challenges and opportunities advisers face, from placing complex cases to managing client expectations.

After 15 years with the same brokerage, I decided it was time for a new challenge. I wanted to bring my knowledge and experience into a role where I could have a broader impact. Foundation Home Loans appealed because of its reputation for specialist lending and its commitment to supporting brokers.

Having been a broker myself, I knew

MEET THE BDM

the value of working with a lender that understands the realities of dayto-day advising.

What makes Foundation Home Loans stand out?

For me, it’s our ability to make the complex simple. Many of our cases involve clients who don’t fit the standard mould, such as selfemployed borrowers, landlords with large portfolios, or applicants with imperfect credit histories.

We have a wide range of criteria that offer brokers real flexibility in finding solutions for clients who may have been turned away by high street lenders. Our manual underwriting allows us to look at the bigger picture rather than rely on a credit score. Brokers can also speak directly to our underwriters, which makes the process clearer and faster.

Our application process is streamlined, which saves time for both brokers and clients. That combination of broad criteria, personal underwriting, and efficiency is what sets us apart in the market.

What are the challenges facing BDMs right now?

The mortgage market is constantly changing. One of the biggest challenges is keeping up with competitor criteria, product changes, and market trends. Brokers expect us to know exactly how our products compare so they can place cases with confidence. Managing time is another challenge. Brokers want fast responses, so balancing time on the road with keeping on top of emails, calls, and case updates is essential.

Prioritising well ensures that every broker gets the support they need.

What are the opportunities for BDMs? There is huge potential to make a difference. The more visible and proactive we are, the stronger the

Prioritising well ensures that every broker gets the support they need” trust we build with brokers. Meeting them in person and demonstrating how we can help their clients is one of the most rewarding aspects.

It’s also an opportunity to educate.

Many brokers focus on certain types of cases and may not realise how our criteria can help with a client they think is unplaceable. By taking the time to explain the options, we can win new business and help brokers grow their offering.

In a competitive market, BDMs who put in the effort to build strong, lasting relationships stand out.

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

My approach is built on regular, meaningful contact. I make sure brokers have accurate, up-to-date information about our products and criteria. On existing cases, I work closely with brokers to resolve issues quickly. If an underwriter needs more details, I liaise with the broker to get things moving. Being accessible and responsive makes a real difference and reassures brokers that someone is actively working on their case.

I’m also honest about what will and won’t work. If a case isn’t right for us, I’ll say so, and if there’s a better option within our range, I’ll suggest it. That honesty helps build long-term trust.

What advice would you give potential borrowers in the current climate?

For first-time buyers and homeowners, it’s important to check for them to credit file before approaching a broker so there are

no unexpected delays. To be clear on their budget and what they can afford each month, factoring in possible changes to interest rates. And to make sure they fully understand the advice their broker gives them – and don’t be afraid to ask questions.

For landlords, seek professional mortgage advice before committing to a purchase. Research the location carefully, considering tenant demand and potential yield. Get tax advice early and understand their obligations. Be realistic about the time needed for property management and approach it with a long-term view.

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

Outside of work, I’m a keen amateur gardener and enjoy spending time outdoors. I also love live music and theatre and try to see performances whenever I can. As a child, I wanted to be a TV presenter. That never became a career, but in 2010 I had the chance to present at a Navy Days event in Plymouth with the BBC. It was only a brief taste of that world, but it was a memorable experience and something I still look back on fondly. ●

Foundation Home Loans Established in 2015

Products ● Portfolio and non-portfolio BTL ● Holiday lets, HMOs and MUFBs ● Consumer BTL ● Mixed use/semi-commercial ● Residential lending, including complex income, self-employment, key workers ● Green mortgages Contact Information

virginia.english@foundationhomeloans.co.uk

07887 561491

August 2025 | The Intermediary

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S P E C I A L I S T F I NA NC E Opinion

In any market, it is all about delivery

W

hatever the market weather, quick decisions and the efficient delivery of property finance are hugely important to brokers and their developer clients.

Earlier this year, we a ended the annual MIPIM conference in Cannes. While the weather le a lot to be desired, we did learn a lot from brokers about their priorities.

The usual always applies – lower rates, higher leverage – but what came across loud and clear was how much deliverability ma ers.

Lenders will claim across the board that they deliver fast, efficiently underwri en, finance.

Many undoubtedly do. But there’s considerable variation between lenders about what that deliverability means when the chips are down.

Getting deals over the line For brokers and their clients, ge ing a deal over the line is the ultimate goal, but there’s no point ge ing a deal done if the terms don’t stack up. This is where the market is increasingly seeing hold-ups, frustration and even deals collapsing a er weeks of work.

Brokers tend to know where to go to get terms that stack up for their clients – one lender might be the go-to on higher levered loans at a slightly higher rate, with more conditions a ached. Another may offer certainty, with a rate that reflects that.

Experience will tell brokers where to take each deal, but it’s also worth understanding what drives lenders’ appetite for certain types of business.

It comes down to how lenders are funded – how a lender’s own capital stack is structured ma ers not just for pricing and criteria, but crucially when it comes to deliverability.

There is a lot of money looking for a home in residential property development debt in the UK at

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the moment. Large retail banks, investment banks, institutional investors, and private equity funds are all interested in gaining some exposure to residential development debt – it’s a decent hedge against equity volatility and provides an asset-backed income uncorrelated to bond markets.

How a lender’s funding lines are provided are dictated by the investor’s needs, appetites and the covenants that exist within their own governance.

Where an investor wants safety, rates will be lower, criteria less flexible and gearing less adventurous. For investors more interested in higher returns, terms will go further up the risk curve.

This deals with the cost side of a deal, but the real factor that takes that deal over the line is how much autonomy the funder gives the originating lender to make underwriting judgements, and whether they manage any discretionary capital.

Bridging loans typically turn over in around six to 12 months. Refurb work is usually seen as lower risk than ground-up development, and the lending decision will more likely fall to pricing for that risk.

But as the industry knows, this market is a pre y fixed size. Over the past five to 10 years, investor appetite to fund residential property debt in this way has outgrown the natural size of the short-term market. This has seen a bleed of funding lines over to the development finance market in the small to mid-sized development tier.

Bridging and development finance have long been thrown together in the same breath, but as those who specialise in the la er know, they’re far from the same thing.

Underwriting decisions are necessarily much more involved than for a more straightforward bridging loan.

Borrower experience, relationships and leverage are absolutely key, and loan sizes are o en much bigger.

PARIK CHANDRA is partner and head of private credit at Downing Property Finance

This has created some tension for specialist lenders, many of which have focused on bridging but recently extended into development on the assumption that these loans can be made on a similar basis. The funding lines and investor appetite is there, but increasingly we are seeing investors become much more involved in underwriting decisions – and it’s largely where originating lenders are less experienced in pure development finance.

Not only does this additional layer of diligence add significantly to the time it takes to complete a deal, it also – more o en than not – results in the final terms bearing li le relation to those initially offered in principle.

In development, changing the commercials of a deal in the middle of an application can kill it overnight.

These loans are longer term, o en up to three years, and there is less wiggle room to dither on terms until the last moment.

This type of behaviour is ge ing more frequent, according to the brokers we speak to – lenders that assume development is a straightforward extension of bridging are stumbling at the final hurdle.

Investors aren’t happy, and criteria becomes even more restrictive and pricing higher.

Certainty in autonomy For developers, and consequently their brokers, this means working with a lender that has the autonomy to underwrite without having to defer every decision to an investor, giving them certainty on deliverability.

Delivering on the terms expected in the time agreed as is as important as headline rates and fees. ●

In Profile.

Breeze Capital The Intermediary speaks with Mark Harrison, managing director at Breeze Capital, about the importance of culture in the lender’s success

I

n 2022, Mark Harrison, managing director, founded Breeze Capital with the goal of establishing a lender that, through its products, culture and relationships, represented the new face of the shortterm finance market. The Intermediary sat down with Harrison to discuss the practical realities of managing a modern lender, his future plans, and the critical role that culture plays in shaping a business that is fit for purpose.

Funding for the future

Breeze Capital’s funding comes from both an ultrahigh-net-worth (UHNW) family, and a partnership with Shawbrook. While UHNW funding is often seen as the ultimate solution, Harrison emphasises the importance of this dual model for greater flexibility.

When it comes to the proposition itself, Harrison’s background with the Financial Conduct Authority (FCA) helped shape the approach – running an unregulated business with the same principles and rigour as if it were regulated. This is not just a matter of good practice, but preparation, as he posits that regulation could be introduced for currently unregulated parts of the short-term market within the next five years.

He explains: “We are transparent in everything we do. Some lenders offer attractive terms up front, only to change them later. We’ve never done that. What we offer on day one is what we deliver, unless something unforeseen arises during valuation.”

When a deal cannot proceed, Breeze Capital makes a point of explaining the reasons clearly.

Brokers are given direct access to underwriters to understand the details of each case.

A competitive balance

The short-term finance market has seen a surge in new entrants over the past year. To stay competitive, Harrison suggests that many lenders feel the pressure to either lower their rates or increase their risk appetite in order to “grab a slice of the market.”

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He is clear, however, that Breeze Capital will not compromise its risk standards: He explains: “I wouldn’t want to increase our risk level. While we do aim to offer competitive pricing, it’s not a race to the bottom.”

This is a difficult puzzle to solve. Where Breeze Capital finds a solution, Harrison says, is in the strength of its service, and its focus on relationships and flexibility, as well as its willingness to find the solutions where possible.

He explains: “We win by being the lender that takes time to assess complex deals others won’t touch.

“If it was just about rates and fees, [artificial intelligence (AI)] could do it all without brokers.

Relationships still matter, and I don’t see that changing.”

Driving change

Breeze Capital, despite being launched in a new era for short-term finance, was created with the history of this market in mind.

Harrison says: “Bridging and development finance used to be the black sheep of the lending world. 20 years ago, it was seen as a last resort and residential lenders often looked down on it.

“I used to be one of those lenders, partly because I didn’t understand the intricacies of short-term lending and the role it could play in the property sector.

“Now, you have high street banks wanting a slice of the action, which shows how far the industry has come and how the product has evolved.”

This was not helped by the fact that the lure of fast, high returns attracted some aggressive and short-sighted players to the market. Having witnessed many lending relationships during his career, Harrison launched Breeze with the mission to do things better.

“I had a clear idea of the culture I wanted and how I wanted borrowers to feel,” he explains.

“We treat people with respect, and we expect the same in return. If someone treats us poorly, we simply won’t work with them. This applies to brokers and borrowers alike. It’s about mutual

I N P RO F I L E

respect. We are fortunate that we work with some fantastic brokers, but respect is a two-way street”.

Talent and culture

From the outset, culture has been a cornerstone of Breeze Capital’s strategy.

Not only does Harrison want to ensure his people avoid the “Sunday scaries,” but he also wants to build a business that moves away from the “male, pale, stale” stereotype still prevalent in parts of the financial sector.

To attract the right talent in a competitive market, Breeze Capital often recruits from outside the industry and invests in training. A significant focus is also placed on improving gender representation, with a high proportion of female hires to ensure diversity at every level.

“This takes more time, but we’ve built a positive and inclusive culture,” says Harrison.

“Many of our team came from environments where they felt intimidated or excluded. That’s not what we’re about.”

For the business, this focus on culture ecourages openness and accountability, with those on the ground able to affect change and voice their ideas or concerns without fear. This, in turn, avoids ‘group think’ within decision-making and mitigates risk.

The effects are obvious in the everyday, Harrison adds: “The energy is higher, people are more positive, and the industry needed this shift.”

A key hire in this cultural transformation was Natalie Smethurst as director of credit risk in 2022. Harrison, who describes himself as a natural salesperson, views Smethurst as the essential counterpart to his style, and an important source of challenge and balance to keep the machinery of the business running smoothly.

“She keeps the business grounded,” he says. “I might want to say yes to everything, but not every deal should go through. Natalie ensures that we protect our investors’ capital.

“If I’m not being challenged, I know I’m probably making the wrong decisions. It’s all about balance.”

Products and projects

Over the past year, Breeze Capital has seen a particular trend, with refurbishment becoming one of its most popular products, accounting for about 80% of its current business. Harrison attributes this to both market conditions and the business’ own internal strengths.

“Ground-up developers have faced real challenges,” he says.

“Even with a change in Government, planning processes haven’t improved. Many developers are turning to refurbishments, particularly those allowed under permitted development.”

The success of Breeze’s refurb proposition, Harrison says, is also due to the lender’s ability to distinguish itself competitively, with strong rates and flexible service grounded in market expertise.

He adds: “We work with excellent surveyors, valuers and lawyers who really understand the refurbishment process, and these thirdparty partners are key to making property refurbishments a success. We don’t apply a onesize-fits-all approach either, and this case-by-case flexibility pays dividends.”

While Harrison does not anticipate a major improvement for ground-up developers in the near term, he does outline a number of opportunities for those in this market to keep moving and make the most of the situation. This includes office to residential conversions, and semi-commercial refurbishments.

Future opportunities

In the bridging market, Harrison looks ahead to a world in which automated valuation models (AVMs), which Breeze Capital already has in play, become standard.

This means working towards better and more valuable data, particularly on those properties that do not perfectly fit the bill.

Despite these advancements, Harrison believes there are still lessons to be learned from MARK HARRISON the past.

He explains: “20 years ago, bridging was all about the asset. You could get funding at 60% loan-to-value [LTV] within 24 hours.

“Now, the product has shifted toward more underwriting and more checks. It’s become a hybrid of residential lending, especially if you want more competitive rates and fees.”

For Breeze Capital, the future means expanding the sales and marketing team, and potentially offering other property-related products, such as revolving credit.

Harrison aims, ultimately, to provide a greater range of solutions for customers who buy into the brand he has built.

“I want to grow the business the right way, with the right people and culture,” he concludes.

“We’re not trying to become a massive organisation. We aim to stay small, nimble and profitable. We enjoy what we do, and we do it well.” ● August 2025 | The Intermediary

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S P E C I A L I S T F I NA NC E Opinion

The value of experience over headline figures

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t is entirely understandable that borrowers, and in turn brokers, tend to focus on interest rates, day one advances and maximum leverage. These headline terms provide an immediate way to compare lenders and often carry significant weight in the client’s decision.

While such figures are obviously important, they offer only a partial view. They tell little about whether a case is likely to complete, or whether the borrower’s plans can be achieved within the proposed structure.

The assumption that sharper terms lead to better outcomes remains common, but in many cases, it conceals important questions around process, clarity and consistency.

Conditions have shifted Although 2025 has continued to see growth in the bridging sector, confidence across the wider lending environment remains subdued.

According to the Finance & Leasing Association (FLA), new consumer finance business rose by just 1% in April, while mortgage lending has failed to hit the levels that many were expecting. This indicates a market that is recovering, but doing so cautiously.

Against this backdrop, the pressure on brokers has not lessened. Clients continue to seek favourable terms, often with an expectation of speed and certainty. Yet the risk of deals falling through remains persistent. In such an environment, the ability to deliver, rather than simply promise, becomes more significant.

A disconnect It is worth noting that a lender’s terms, even when attractive, do not necessarily reflect their ability to complete. There are many reasons

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a deal might fail to progress, from unexpected criteria to communication delays or inflexible legal processes.

These issues are not always visible in the early stages of a transaction.

Where they do occur, they often stem from a mismatch between how a deal is presented and what is required to make it work in practice.

This is not always due to inexperience or oversight. More often, it reflects a market in which speed is prioritised over precision, and where a favourable headline becomes the primary focus of decision-making.

Lenders with longer track records and extensive experience tend to approach cases differently, particularly in bridging. Rather than leading with a figure, they begin by understanding the requirements and the structure. They ask the necessary questions early on, and are able to provide a clear indication of whether a deal will proceed – and that the terms provided are deliverable.

This does not guarantee completion.

But it reduces the likelihood of delays, sudden retractions or revisions, and client frustration. In many instances, it is this early-stage realism that allows a deal to move forward smoothly.

Clarity from the outset also improves communication between lender and broker and helps ensure that all parties are aligned.

There is growing recognition among brokers that scattergun sourcing is not without its limitations. Sending a deal to multiple lenders in pursuit of the best terms can sometimes result in better rates. Yet it also increases the risk of miscommunication, conflicting feedback and missed deadlines. In contrast, brokers who choose to work more closely with a smaller number of lenders on a ‘horses for courses’ basis often report better

GAVIN DIAMOND is CEO at Inspired Lending

outcomes. These relationships tend to be built on mutual understanding of how cases are handled, what risks are acceptable, and how to structure terms that are both competitive and workable.

This is not about loyalty for its own sake. It reflects a more strategic approach to case placement. One that values consistency, delivery and longterm performance.

Timely opportunity The middle of the year often brings a natural pause in market activity.

It may therefore provide a useful moment to reflect on how lending decisions are made. For brokers, this includes reviewing which lenders are consistently delivering, and which approaches are proving most effective in managing client expectations.

It is also a chance to consider what is being prioritised. If success continues to be measured primarily in terms of headline rate, rather than outcome, there is a risk that more deals will fall away late in the process. In a cautious market, the margin for such disruption is narrow.

While rates, fees and leverage will always play a role in client decisionmaking, they do not capture the full picture. Experience, by contrast, tends to be less visible, but no less valuable. It is reflected in how issues are anticipated, how information is communicated, and how cases are guided to conclusion.

In many respects, it is this experience that determines whether the deal that looks best on paper is also the one that completes. ●

S P E C I A L I S T F I NA NC E Opinion

Reframing lending for key workers and professionals

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n a mortgage market that is constantly adjusting to a variety of economic pressures, geopolitical influences and affordability constraints, there’s an increasing emphasis on treating residential borrowers based on their personal circumstances, rather than trying to fit square pegs into round holes.

Two borrower groups that clearly highlight the need for a more tailored approach are key workers and professionals. Both are central to the functioning of our economy and public services, and on the surface, many appear to meet mainstream lending criteria. Yet their income structures, career paths or credit histories often don’t align with traditional affordability assessments, leaving them underserved by high street lenders.

This disconnect hasn’t always been openly acknowledged, but the rise of the specialist residential lending market is starting to change that.

More lenders are now stepping in to bridge the gap by offering solutions that reflect the real-world complexity of today’s borrowers through criteria, products and policies that go beyond a rigid tick-box approach.

Key workers such as teachers, NHS clinicians, emergency service workers and armed forces, among many others, represent a large and critical segment of the UK labour force. According to the latest Office for National Statistics (ONS) figures, employment in the public sector was estimated at 6.15 million in March 2025, up 7,000 (0.1%) compared with December 2024, and 35,000 (0.6%) compared with March 2024.

The data outlined that the NHS employed an estimated record high of 2.06 million people in March

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2025, an increase of 9,000 (0.4%) compared with December 2024, and an increase of 44,000 (2.2%) compared with March 2024. But despite their indispensable roles, many of those working in the public sector still face affordability challenges due to combination of low income roles, wage stagnation and high property prices.

Take housing costs – the latest Halifax House Price Index puts the UK average at £296,6655 as of June 2025, an annual change of +2.5%. Even with some regional softening, this remains out of reach for many public sector workers, especially first-time buyers.

Specialist sense While job stability among key workers is typically higher than average, traditional lenders often fail to recognise this as a counterbalance to relatively lower incomes. That’s where specialist lenders step in.

Our enhanced key worker range, for instance, now includes products with up to 5.5-times income multiples for borrowers in qualifying roles, giving key workers the ability to live in and support the communities they serve.

At the other end of the spectrum are professionals such as accountants, solicitors, company directors, consultants, architects and many others, whose earning potential and career trajectories are typically strong, but whose income structures don’t always reflect this in the eyes of mainstream lenders.

Increasingly, these professionals are self-employed, rely on multiple income streams, or may have credit events that put them beyond prime criteria. Despite this, these borrowers remain among the most creditworthy.

Specialist lenders have updated their criteria in recent years to reflect

GRANT HENDRY is director of sales at Foundation Home Loans

this, offering higher loan-to-incomes (LTIs) and considering cases with complex income, offset structures, or credit blips.

For example, our Professional mortgage range also includes options like interest-only borrowing, which can support short-term cashflow management for professionals with high equity but fluctuating monthly income – a scenario common among self-employed consultants, partners, directors or those transitioning between roles.

For both key workers and professionals, the key differentiator in the specialist market is manual underwriting. Instead of relying solely on algorithms and fixed credit models, underwriters are armed with the ability to assess each case on its individual merits, considering future potential, job stability, and both past and current financial behaviour.

The broker market is uniquely placed to support in bridging the gap between borrower complexity and lender capability.

Brokers who understand the breadth of specialist lending options – and who partner with lenders willing to look beyond the ‘norm’ – are playing a vital role in supporting these customer groups that are too often overlooked.

In doing so, they are also helping to drive a more inclusive, flexible and solutions-focused residential lending market, a direction which more accurately reflects the evolving needs of modern borrowers. ●

S P E C I A L I S T F I NA NC E Opinion

Why no exit often means no entry

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peed is often seen as the holy grail in bridging finance, and rightly so, but speed without clarity is a risk that few lenders are prepared to take.

While borrowers are typically focused on accessing funds quickly, and most bridging lenders are well-equipped to deliver, a clearly defined exit strategy remains critical.

It’s this combination of pace and purpose that enables funding to flow.

Without it, many applications won’t make it past the first conversation.

The principle is simple: bridging finance is short-term by design.

Whether the loan is intended to support a chain-break, fund a time-sensitive purchase, or provide capital ahead of refinancing, lenders need assurance that the money can be repaid, usually within six to 18 months.

That’s why a robust exit plan, whether via sale, long-term refinance or portfolio restructuring, is at the heart of every successful application.

The question every lender asks is: “How is this loan going to be repaid?”

If the exit is a property sale, lenders want evidence of valuation accuracy, marketability, and comparable sales.

If it’s refinancing, they’ll assess the borrower’s eligibility for term lending at the point of exit, not just now. In portfolio scenarios, they’ll expect detailed business plans that map out income generation, debt servicing

and viable refinance structures to calculate risk in today’s high-stakes property market.

This outlines how far the bridging sector has come in recent years when it comes to the increased professionalism on show from lenders throughout the sector, and the subsequent rise in intermediary and borrower perception of a product type which hasn’t always had the best reputation.

The result is a sustained growth in activity and enquiry levels, as evident in recent Bridging & Development Lenders Association (BDLA) data which saw bridging completions remain steady at £2.8bn in Q1, matching the record set in Q4 2024.

That’s particularly impressive given that Q1 is typically a quieter period, but perhaps more telling is the 55.3% quarterly surge in applications, reaching £18.34bn.

If these convert, we’re likely to see continued momentum well into the second half of the year.

The long game However, it’s important to keep in mind that this surge in applications doesn’t automatically translate into approvals. Such applications need to be carefully collated and packaged effectively to ensure exit routes are clear and supported by relevant, wellsupported evidence. In many cases, a deal falls apart not because of the property or borrower, but because the exit wasn’t properly mapped out from the outset.

This is where specialist packaging partners can really prove their worth. By supporting brokers and their clients to define, document, and validate their exit strategies, we can significantly improve the chances of both approval and timely completion.

It’s not just about getting a decision in principle (DIP), it’s about understanding the long game in

DONNA FRANCIS is managing director at Envelop

Foresight can save a deal and, more importantly, it can protect the client’s [...] financial position” terms of planning for valuation risks, mortgage affordability at exit, or potential market volatility.

That foresight can save a deal and, more importantly, it can protect the client’s deposit, opportunity, and financial position.

Bridging finance is fast, flexible, and becoming increasingly mainstream, but this is only the case if the lender believes in the borrower’s ability to exit. With the cost of failed deals on the rise, and bridging demand reaching new highs, brokers must prioritise clear, credible exit strategies from day one. Because in this market, no exit often means no entry. ●

August 2025 | The Intermediary

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S P E C I A L I S T F I NA NC E Opinion

Standing Together

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raud remains one of the most pressing and persistent threats facing the short-term property finance sector. In a market built on speed, complexity and trust, the impact of fraudulent activity can be swift and severe, causing significant damage to lender balance sheets and undermining confidence among customers.

As bridging and development lending continues to grow in both volume and sophistication, so too does the threat posed by those seeking to exploit it.

It’s often said that fraudsters only need to get it right once. In a single successful instance, a criminal can inflict damage that takes months, or even years, for a lender to repair.

What makes this even more dangerous in the context of our market is that bridging loans tend to be high value, time sensitive, and frequently involve third-party intermediaries.

All of this creates a fertile environment for those with malicious intent, especially when you factor in

the growing accessibility of tools that enable digital deception.

In recent years, the capability to commit fraud has become commoditised. Sophisticated identity falsification, synthetic borrower profiles and forged documentation are no longer the preserve of organised crime groups. These tools are now widely available and can be used by anyone with the intent and the knowhow. The barriers to entry are lower than ever, and that’s a serious concern.

Driving the issue Understanding what drives fraud is essential if we are to tackle it effectively. The fraud diamond model gives us a useful framework: pressure, opportunity, capability and rationalisation.

While all four play a role, it’s the opportunity and capability elements where we, as an industry, can make the most difference. That is the true battleground, because we cannot remove the personal pressures or motivations that lead someone to rationalise fraud, but we can certainly reduce their chances of succeeding.

That’s why I’m proud to announce the launch of a major new initiative

VIC JANNELS is CEO of the Bridging & Development Lenders Association (BDLA)

from the BDLA. Working in collaboration with Synectics Solutions – the data intelligence specialists behind the SIRA platform – we are introducing a bespoke early warning fraud intelligence sharing system tailored specifically to the needs of bridging and development lenders.

This new solution will allow BDLA members to share real-time alerts when suspicious patterns or anomalies arise, helping to raise red flags and reduce the risk of fraud before it takes hold.

For the first time, lenders of all sizes will have access to a level of

S P E C I A L I S T F I NA NC E Opinion

Against Fraud fraud prevention insight traditionally reserved for major banks and financial institutions. And because this platform is underpinned by the National SIRA system and built with full compliance to GDPR and UK data protection standards, members can collaborate with total confidence that data is being handled securely and appropriately.

The system will be rolled out over the coming months and is designed to support, not replace, lenders’ existing fraud tools and due diligence practices, by removing the silos that often exist between lenders and enabling faster, smarter decisions based on shared experience.

Quite simply, it’s about giving our members the ability to act on red flags before a case reaches formal underwriting, reducing exposure and increasing protection across the board.

Big mission This reflects the BDLA’s wider mission to support responsible, ethical and transparent lending. Fraud prevention isn’t just about safeguarding lenders – it’s about protecting the integrity of the market and ensuring a level playing field for all.

With our membership approaching 100 lenders and associates, the strength of our collective voice has never been more evident. This is collaboration in action: practical, focused, and built around the realworld challenges our members face every day.

The need for such a system could not be clearer. As the bridging market expands – approaching £13bn in loan books at the beginning of 2025 – it brings with it greater visibility, greater complexity, and unfortunately, greater risk.

Fraud is not just a regulatory concern or a technical issue; it is a strategic challenge that requires industry-wide alignment. We cannot afford to tackle it alone. And we shouldn’t have to.

As we look ahead, the outlook for bridging and development finance remains incredibly strong. Demand continues to grow, particularly in areas such as refurbishment, conversions, and development funding.

Institutional appetite for shortterm lending is rising. But with that opportunity comes responsibility.

If we want to maintain trust and

Fraud prevention [is] about protecting the integrity of the market and ensuring a level playing field for all” continue to grow sustainably, we must demonstrate that we are taking fraud seriously – and acting proactively. The launch of our early warning fraud platform is a landmark moment. It gives lenders a vital new tool in the fight against financial crime and reinforces the BDLA’s role at the forefront of positive industry change. For existing members, it’s a new layer of protection and a tangible example of the benefits that collaboration brings.

For those who are not yet part of the BDLA, it is perhaps a timely reminder of what we can achieve when we stand together. In an environment where fraudsters only need to succeed once, this initiative ensures we are ready, together, to stop them before they do. ●

S P E C I A L I S T F I NA NC E Opinion

Grasping the Build to Rent opportunity

B

uild to Rent (BTR) has reshaped the UK’s housing market over the past decade.

But without urgent support, the next phase of growth is at risk. New data shows that while completions remain steady, the pipeline is weakening.

For the sixth consecutive quarter, start-on-site activity has lagged behind completions, and the number of new schemes in planning has dropped 18% since Q1. Outside London, regional growth has stalled entirely.

In response, the British Property Federation and the Association for Rental Living have launched the Build to Rent Alliance, a sector-wide effort to advocate for the policy reforms necessary to unlock delivery. While high-value urban centres may still absorb the costs and delays associated with development, many other areas are struggling. Viability is under pressure, planning remains slow, and investor confidence is being tested.

BTR can still play a pivotal role in accelerating housing delivery.

But it needs coordinated support, particularly in the regions, to regain momentum.

Structural value Over the past 10 years, BTR has helped establish a new category of purposedesigned rental housing that reflects the expectations of a generation for whom renting is a lifestyle choice, not a temporary stopgap.

Professionally managed schemes, inclusive service packages and shared amenities are becoming standard for tenants who value flexibility, convenience and community.

The sector has shown its ability to deliver quality at scale while also revitalising underused urban sites and contributing to wider regeneration.

As affordability pressures keep many would-be buyers in the rental market for longer, this type of

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housing is increasingly essential.

The challenge now is not demand, but delivery. Without a pipeline of viable projects, especially outside London, the progress of the last decade risks stalling.

NEIL LEITCH is managing director of development finance at Hampshire Trust Bank

The ground up At Hampshire Trust Bank (HTB), we continue to see strong demand for BTR funding, particularly in the regions.

Our recent transactions reflect a clear trend: renters expect more from their homes and are willing to pay for better design, greater efficiency and a higher quality of finish. Developers who respond to that are creating schemes that outperform local expectations.

Many of these projects are being delivered by small to medium (SME) developers operating at modest scale and often on more complex sites.

Some are building to retain assets for income. Others are planning a term exit or sale to the institutional market.

These schemes require structuring that reflects both the asset and the strategy behind it.

We are working with developers delivering conversions under permitted development rights (PDR), large-scale refurbishments and new-builds with bespoke amenity packages. These schemes are varied and, in many cases, highly specialised.

Supporting them takes more than standard lending. It requires a clear understanding of the business plan and the route to exit.

Space to lead Brokers play a vital role in bringing these deals together. Those who engage early are best placed to help shape the structure, identify the exit strategy and evidence the assumptions behind the rental yield.

That clarity allows lenders to make better-informed decisions.

Exit planning is essential.

Whether the intention is to refinance onto a term facility or to sell to an

institutional buyer, the rationale needs to be credible.

If a borrower is projecting a rental premium, lenders will want to understand what underpins it. That could be layout, location, build quality or amenities. Whatever the case, the assumptions must be evidenced.

Brokers who understand how tenant expectations are evolving, and who can support that with comparables or local insight, will deliver greater value. The most effective deals we see are those where the broker anticipates the questions and comes ready with the answers.

Looking ahead Build to Rent is no longer a niche. It is a core part of the UK’s housing mix, and its continued success depends on recognising that not all delivery looks the same.

At HTB, we are committed to supporting the kind of developers who are driving BTR forward at a local level. These are schemes shaped by knowledge of place, delivered with intent and designed for longterm impact. Our role is to structure support that matches the ambition of the developer, not the other way around.

There is still time to get this right.

But it depends on those closest to the ground – the developers, the brokers and the lenders – being heard and supported. ●

S P E C I A L I S T F I NA NC E Opinion

The wealthy are investing abroad

T

he Government’s first year in the driving seat has brought a wave of change for the UK’s high-net-worth (HNW) individuals.

With sweeping tax reforms and growing economic uncertainty, many wealthy individuals are turning their a ention, and their capital, to overseas property markets.

In 2024, around 7,500 millionaires le the UK, according to the Henley Private Wealth Migration Report. A worrying statistic in itself, yet so far in 2025 that figure has already surged to 16,500, the largest outflow on record.

What is causing this trend? The Government’s overhaul of the nondomicile tax regime, alongside increases in Capital Gains and Inheritance Taxes, has made domestic investment less appealing. For many HNW individuals, the UK is no longer the most efficient place to grow or protect their wealth.

Positive prospects At the same time, the weakening of the British pound in 2024 and early 2025 has created new opportunities abroad. Investors converting GBP into USD or EUR are finding they can secure properties at a relative discount, enhancing their potential returns. This currency advantage, combined with more favourable tax regimes overseas, is driving a surge in international property investment.

This isn’t just about tax efficiency.

Investing abroad allows HNW property investors to diversify their portfolios geographically, reducing exposure to domestic political and economic volatility. Many are targeting stable, high-growth markets with strong rental demand such as Spain, Italy and Switzerland. These regions offer not only a ractive yields but also long-term capital growth.

Technology has also played a role, as advances in remote property

management and digital platforms have made it easier than ever to oversee international assets. What was once a logistical challenge is now a streamlined process, enabling investors to manage properties across borders with greater ease.

We’re seeing this trend at Together.

Recently, we partnered with Enness to deliver a bridging loan of £4m for a client renovating a second home in Ibiza.

The applicant used their UK property portfolio as security, and the funds were released quickly to complete the works ahead of the summer season. With tourist demand growing, speed was essential, and a 12-month regulated bridging loan proved to be the ideal solution.

On top of this, the customer was also able to use the funds to complete refurbishment to their home in London, and also for investment into their business. They were able to exit through a refinance of this property.

This is where brokers come in.

HNW customers investing abroad o en need to raise capital against their UK assets, and bridging loans are particularly well-suited to this need. They offer speed, flexibility, and tailored structuring, allowing investors to act quickly on overseas opportunities, fund renovations, or meet tight deadlines.

DAN NARWAL is regional account manager at Together

Know the options To truly capitalise on this trend, brokers must build their understanding of international investment strategies and the financing options available. This includes knowing the types of loans these individuals can access – from equity release and portfolio-backed lending to bespoke solutions offered by private banks and specialist lenders.

Lenders like Together are wellequipped to support this market.

We assess each case individually and move at pace, which is essential when working on this type of client.

Our ability to lend against complex portfolios and deliver tailored solutions makes us a valuable partner for brokers serving this segment.

In a constantly changing financial landscape, staying informed is key. Brokers who understand the motivations behind international investment, how cross-border finance works, and the needs of HNW investors, will be best placed to serve this growing customer base. ●

Foreign appeal: Investors are finding they can secure properties abroad at a relative discount

August 2025 | The Intermediary

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S P E C I A L I S T F I NA NC E Opinion

Unlocking capital for complex ownership

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ridging finance is o en associated with speed and simplicity.

But for many brokers, especially those working with entrepreneurial clients, the true value of bridging lies in its ability to navigate complexity. That’s particularly relevant when dealing with layered ownership structures, such as when property and trading activity are split between different entities.

One common example is the PropCo/OpCo arrangement, where one company owns the property (the PropCo) and another uses it to run a business (the OpCo). While this setup can be efficient from a commercial perspective, it o en creates hesitation among traditional lenders.

The sticking point The main issue is alignment. A lender might be asked to secure lending against a property owned by one entity, while the income that supports repayments comes from another.

That can raise questions about cashflow, control and risk, particularly if the operating company’s success is closely tied to the value of the asset, as in care homes or leisure businesses.

Where these structures involve shareholder agreements, group guarantees, or unclear financial relationships, it becomes harder for a mainstream lender to assess how a loan will be repaid. That lack of clarity can stall even the strongest of applications.

Experienced bridging lenders are o en more comfortable assessing these dynamics. They will still want to see how the income supports the loan, how the structure works in practice, and what happens if one part of the setup fails, but they are typically far be er suited to engage with the specifics and work with brokers to shape a viable solution.

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Bridging can also be useful when a client needs to raise capital across a portfolio, rather than for a single asset. That might include clearing existing debt, refurbishing units, or releasing equity for wider business plans.

In a recent example, StreamBank was approached to help a Londonbased client raise capital against a commercial warehouse valued at £945,000. The property was owned by a PropCo, while a related OpCo paid rent to it. There was a small mortgage of £70,000 on the asset, but the client’s goal was to repay that and use the surplus to fund refurbishment works on four residential flats elsewhere in their portfolio.

The structure was relatively complex, but we were able to proceed based on the strength of the underlying business. By this I mean that management information showed consistent income and a clear flow of funds between entities.

The asset had strong value, and the borrower had a solid track record.

That gave us confidence to offer funding at 65% of the market value, subject to existing tenancies, with the client planning to exit the facility through a commercial term refinance.

Offering up the details Cases like this aren’t just about having the right asset or the right rate. What allowed the deal to move forward was the quality of the information provided: up-to-date accounts, a full picture of the property portfolio, clarity on company ownership and structure, and a realistic exit plan.

When lenders have this level of visibility, they’re more likely to offer higher leverage or fund more ambitious projects.

It also means that credit decisions can be made with greater confidence, even when the application doesn’t follow a typical format. This is particularly important for brokers

ROZ CAWOOD is MD, property finance at StreamBank

handling clients with mixed-use holdings, company groups, or plans that involve multiple assets. The more in-depth the information provided, the more likely the lender is to support those goals.

It’s easy to think of bridging as a solution for time-sensitive transactions, which it o en is. But in cases like this, its real value lies in making deals work when mainstream lenders won’t. That might involve repurposing equity from one site to invest in another, or helping a business unlock capital without needing to restructure its operations or assets.

Legal complexity can delay progress in deals involving company groups, especially where land registry updates, past transfers, or historical guarantees are involved. In these cases, title insurance can play a useful role. By covering specific legal risks, it can give both lender and borrower the comfort to proceed while legal ma ers are finalised, rather than waiting for them to resolve. Cases involving PropCos and OpCos are becoming increasingly common, particularly among experienced investors and business owners. For brokers, the challenge comes in finding a lender that can engage with the structure rather than retreating from it.

Bridging isn’t always about moving quickly. Sometimes it’s about unlocking liquidity from a structure that makes sense commercially, even if it doesn’t tick every box on a high street lender’s checklist. In the current market, that kind of flexibility can be the difference between standing still and moving forward. ●

S P E C I A L I S T F I NA NC E Opinion

Small Business Strategy

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here are many estimations of how much small to medium enterprises (SMEs) are owed in unpaid invoices – all of them eyewatering. Most recently, the Centre for Economics and Business Research (CEBR) predicted there is £112bn tied up in unpaid invoices, an average of £42,000 for an SME. Over the years, the Government has tried – some would argue not hard enough – to address this issue. The Prompt Payment Code gave businesses a code of practice to voluntarily sign up to, and in 2023 the Prompt Payment & Cashflow Review stipulated public contracts would only be awarded to businesses that could demonstrate fair payment to suppliers.

Unfortunately, it seems neither went far enough. Nothing is working to truly shift the ubiquitous nature of invoice late payment, and not only does this impact cashflow for SMEs, but it also puts a strain on business relationships.

An SME having to chase an unpaid invoice is, in many cases, risking a valuable trading relationship, because the reality of chasing invoices is that it can – and sometimes does – become confrontational. SMEs shouldn’t be put in that position. What’s more, a business owner chasing money owed is focused on keeping operations moving on a day-to-day basis, rather than looking ahead.

Business Secretary Jonathan Reynolds is due to publish the Small Business Strategy in August, part of which is expected to include a directive that all large UK companies will be required to report on how long they take to pay suppliers.

It is hoped this will unlock working capital for SMEs experiencing poor payment practices. The Federation of Small Businesses estimates this is half of SMEs in the country – roughly 2.8 million businesses. Being required to disclose payment practices in annual reports is undoubtedly a step in the right direction, but will this be enough of a deterrent?

PHIL CHESHAM is managing director of invoice finance at Time Finance

Bridging the gap Invoice finance is an under-utilised solution, and while we see the challenge of poor payment practices rumble on, it remains a valuable funding tool for thousands of SMEs. Many viable businesses have been reliant on invoice finance to be able to access money tied up in unpaid invoices, and it has saved many the headache and uncomfortable conversations associated with having to chase payment.

At Time Finance, we will always advocate for any measures which serve to support SMEs experiencing poor payment practices, and we fully understand the issues they face. It’s been promising to see Government evaluating new ways to unlock access to finance. We welcome these steps forward and await to see if they will make a meaningful difference. ●

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February 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

Lending into retirement needs a rethink

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ccording to the Office of National Statistics (ONS), in 1972, over65s made up around 13% of the population, approximately 7.5 million people. By 2022, this had risen to 19%, or 12.7 million. Projections suggest that by 2072, the over-65 population could reach 22.1 million.

That surely is music to the ears of any mortgage broker whose business is largely focused on later life lending, or who intends to pivot in that direction in the future.

Rewriting the rules The adage ‘age isn’t a number, it’s an a itude’ rings true in the mortgage market. While some will undoubtedly be borrowing for longer than they’d planned, today’s older generations are rewriting the rules of ageing.

For many, access to a mortgage means making dreams a reality: a second home, remodelling their existing property, or the holiday of a lifetime. Of course, there are those who will borrow to plan ahead with a move nearer to family, a ‘retirement’ relocation, or to support children with their financial needs.

Recent stats from UK Finance corroborate this, with an upward trend in the number of later life loans taken out in Q1 this year.

With this opportunity comes responsibility. As an industry, there are issues around later life lending we should all be thinking about. Is the later life borrower receiving holistic, joined-up advice? Or is this the exception, not the rule?

Can we all – lenders, brokers, distributors and providers – say, hand on heart, that we’re doing enough?

Lenders and brokers will always look to find the best possible products

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The Intermediary | August 2025

for their older customers, but by virtue of their business proposition, products, and experience, they o en end up in one of two camps – either advising on traditional mortgages or equity release.

Is there more we could all be doing to ensure customers are presented with both options?

Specialist advisers are leading the way in holistic and considered advice for customers, by either presenting both options or by having formal referral arrangements in place.

Good customer outcomes The onus o en lies with the customer approaching the right type of professional in the first place.

Depending on who they choose, this determines whether the options considered are holistic or not.

We, as brokers and lenders, are the experts, but we need to think about how we can help customers access advice regardless of their entrypoint to the market.

For many older borrowers, traditional mortgages and equity release are both valid options – and even if they’re not, both need to be considered to come to that conclusion – but how many consider both options is difficult to say.

It may be that be er transparency and education are the answer – that we are all clearer with customers on what we can and can’t offer.

Apples and oranges Traditional mortgages focus on income and affordability to assess repayment ability, while equity release products put more weight on the customer’s age and the value and condition of the property.

Therefore, even when a customer explores both options, it can be like

CHARLOTTE GRIMSHAW is head of intermediaries at Suffolk Building Society

For many, access to a mortgage means making dreams a reality: a second home, remodelling their existing property, or the holiday of a lifetime” comparing apples and oranges. At the risk of oversimplifying a complex issue, should borrowers instead be presented with the benefits of both: the typically lower interest rates of traditional borrowing on one hand, and the flexibility of rolling up interest – or paying it without commitment – on the other?

The regulator has indeed raised similar concerns about the later life lending market, and these are questions we are asking ourselves as a lender in this sector.

Good business sense Supporting those who are pre- and post-retirement makes good business sense in other ways, too. With innovations in product design and by working with the right lender, customers are still offered a mortgage at 75, 85, and beyond.

Making changes to later life lending will help to meet the needs of an ageing, active population. To help achieve this, we can all work together to create a joined-up market that delivers be er outcomes for all. ●

L AT E R L I F E L E N D I NG Opinion

Retirement is changing, so is equity release

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ecord numbers of over-65s are working past retirement, but at the same time, rising numbers of over-50s are leaving the workforce through ill-health and are unable to work at all. This illustrates how retirement is changing, and how retirement planning must change, adding up to a major opportunity for advisers.

Older customers remain an important part of the market – typically they are in their seventies or eighties, have repaid all or most of their mortgage debt, and are looking to increase income in retirement and improve their lifestyle by using their property wealth.

But it is the statistics around the changing workforce that illustrate the bigger opportunity, and it is telling how lenders are evolving their products to meet growing demand for more flexible options.

The changing workforce Later life lending must be more flexible as the needs and wants of the changing workforce are more complex than headline statistics show.

Take the record number of over-65s in the workforce – it is at an all-time high of 1.4 million and has more than tripled since the start of this century.

But only around 36% of over-65s are in full-time work, and around a third of them are self-employed.

Many will be working because they enjoy it and want to carry on while others will be working simply because they need the money to supplement retirement savings.

The employment rate for people aged 50 to 64 is around 70.9%, but is still below its pre-pandemic record high of 72.5%. Nearly half (44.9%) of

the 50 to 64-year-olds who are not in the workforce are unable to work due to disability, illness or injury.

Many will need alternative sources of income or to draw on other assets to meet financial commitments, such as mortgages or other debt, before they can access their pensions.

Both groups have the potential to get substantial benefit from the flexibility of being able to access property wealth, and be able to meet financial commitments or live a more fulfilling lifestyle. However, unfortunately, many will not be aware of the flexibility that modern lifetime mortgages can offer

The equity evolution Later life lending products have evolved, with the development of more retirement interest-only (RIO) mortgages, term interest-only mortgages and long-term fixed rates.

Lifetime mortgage lenders are offering higher loan-to-values (LTVs), shorter and fixed early redemption charges, and increased flexibility around regular payment options.

These lifetime mortgages which allow some or all the interest to be served are designed to help mitigate the impact of compound interest and evolve with borrowers as they move into retirement.

These products offer the option to eventually transition into a full roll-up product with a fixed interest rate for life, a no negative equity guarantee and certainty of tenure once any mandatory payment terms have been met. There are products available which incentivise customers to manage their cost of borrowing by reducing the interest rate while making regular repayments.

With the modern lifetime mortgage products now available, customers

WILL HALE is CEO of Air

can choose their monthly payment amount and payment term subject to minimum and maximum terms and there is no set percentage of interest payments. Rate discounts can be available depending on the product and are based on the customer’s circumstances, how much they choose to pay and for how long, and if they wish they can make voluntary overpayments. These products are suitable for a growing number of customers, whether they are working or not, and should be seen as part of holistic retirement planning.

The FCA agrees The recent Financial Conduct Authority (FCA) Mortgage Discussion Paper included a major focus on later life lending, warning that “older people may not know about the full range of options available to them as they approach retirement” and saying it “could be that older borrowers need more effective, holistic advice to overcome this lack of awareness.”

It cited data that 38% of people of working age are under-saving for retirement, and 22% of working people feel unprepared because they do not understand their options. That fits with the changes in the workforce that have already happened.

Changes in the lives of over-50s are being met with changes in the later life lending market. Engaging with the equity release evolution will help advisers not only deliver great customer outcomes, but also grow their businesses by addressing the new generation while still helping the traditional customers. ● August 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

T

he Financial Conduct Authority’s (FCA) recent Discussion Paper (DP25/2) on the future of the mortgage market in the UK has landed with what seems like a clear message: we’re on the cusp of a fundamental shi in how advice is delivered in later life lending.

The regulator isn’t just nudging the market towards change, it appears to be se ing out a future which lays the foundations for a new standard of advice, where silos are broken down and every older homeowner can expect to be assessed against the full range of product solutions, both mainstream and those specific to the later life sector.

It’s a direction of travel more2life welcomes. In fact, we’ve been calling for exactly this kind of shi for years; where equity release, retirement interest-only (RIO) and standard mortgages are no longer treated as distinct advice routes, but instead form part of a unified, holistic mortgage advice journey.

So yes, we support the idea of an enhanced and mandatory qualification that enables advisers to operate confidently and compliantly across the full suite of all lending options for older homeowners.

But let’s not underestimate what that means in practice. For advisers, particularly those new to the sector, this represents a step-change. It’s not just about passing an exam, it’s about understanding the needs and expectations of the older clients they are working with, whether they are existing customers or new ones.

It’s about navigating unfamiliar product sets, building relationships

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with new providers, potentially operating through new distributor partners, and developing a new rhythm for advice and processing.

It’s also about time, process and profitability, because if we’re going to ask advisers to upskill and expand their service, we can’t risk turning them into what I o en call ‘busy fools’.

Time for tech That’s where technology must step up, and where we believe more2life’s new ProView system changes the game.

We didn’t just want to create another tech tool that shaved a bit of time off admin. We wanted to reengineer the adviser experience from the ground up by utilising industry expertise and tech, solving the very real pain points that come with entering, or scaling within, the later life lending market.

Whether you’re just beginning to explore this space or already advising in it, two things are true: the process can be complex, and the margin for error is still too narrow.

ProView combines years of underwriting experience with market-leading technology that gives advisers early-stage clarity through rapid, expert-led upfront property evaluations, typically within 24 to 48 hours – not just from a lending perspective, but also based on broader suitability, risks and client needs.

This is underwriting with intent, not just processing.

It’s powered by smart technology, yes, but the real magic lies in how it blends data with human judgement.

Our underwriters are engaged right from the start, giving advisers the confidence to progress cases that are likely to succeed, while flagging

NAME is job at Company

DAVE HARRIS is CEO at more2life

issues that might otherwise lead to delays or declines later on. In short: it helps advisers get the right product solution, first time. It also helps them manage client expectations from the outset.

We know from our pilot feedback that this combination of speed, clarity and consistency is making a real difference. Advisers feel more in control. Clients feel more informed.

And because ProView sits at the heart of the whole journey – from sourcing to submission to completion – it is designed to reduce friction and significantly increase conversion.

Easy and scalable If the FCA is asking advisers to play a bigger role in this market, we can’t bog them down with convoluted systems, duplicative processes or uncertainty.

We must make it easy. We must make it scalable. And most importantly, we must make it worthwhile.

From our perspective – and clearly that of the FCA – it is worth it. The Discussion Paper makes it clear that demand for later life lending is

L AT E R L I F E L E N D I NG Opinion

The regulator isn't just nudging the market towards change, it appears to be setting out a future which lays the foundation for a new standard of advice”

going to grow – not marginally, but significantly. With mortgage terms stretching well into retirement, with pension shortfalls increasing, with the cost of living still rising, and with housing equity still the single biggest asset class for millions of people, later life borrowing will be one of the most important advice markets in the years ahead.

But here’s the thing, you don’t need to wait for the regulator to make it a holistic mortgage advice journey.

The opportunity is already here. If you’re not qualified yet, start that journey now.

If you’re not familiar with lifetime mortgages or RIOs, partner with

someone who is. While the market is moving, you don’t want to be playing catch-up.

At more2life, we’re doing everything we can to support this evolution, through smarter technology, be er education, stronger partnerships with distributors like Air, and a laser focus on adviser experience. We want advisers to feel 100% confident in this space. We want them to grow. And we want clients to get the positive outcomes they deserve from the fullest range of product solutions available to them. It would appear from the Discussion Paper that the FCA feels the same way, so let’s all grasp that opportunity right now. ●

P RO T E C T I O N Opinion

Healthy, but not invincible

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n recent years we’ve seen a shift to health and wellbeing being firmly in the mainstream – people increasingly recognise the importance of making positive lifestyle choices. According to Innova Market Insights, 64% of UK consumers are actively taking steps to live healthily.

From wearables and wellness apps, to health information or support and tools to live healthier, wellness is everywhere. But despite this growing awareness, there’s a disconnect. Many people still believe that serious illness or injury won’t happen to them.

This has long been the case. People are naturally optimistic, and with the cost-of-living crisis continuing to shape consumer behaviour, it’s no surprise that people are leaning into that optimism. When life feels uncertain, it’s easier to believe ‘I’ll be fine’ or ‘Things will work out’ than to plan for what might go wrong.

This growing awareness of health can create a sense of control, and with

it, a false sense of security. People feel that because they’re doing the right things, they’re protected. Healthy habits are essential, but they don’t replace the need for protection.

At Vitality, we’ve seen this play out in real numbers. In 2024, we paid out a total of £142m in protection claims, showing that unexpected setbacks can happen to anyone, regardless of how well they’re living.

Time to reframe The industry has a role to play. We can shift the narrative around protection, from something that’s seen as a safety net, to part of a proactive, everyday approach to wellbeing.

The truth is, protection isn’t just about what happens when things go wrong. It’s about helping people live longer healthier lives – members who engage with the Vitality Programme are more active, more likely to engage with their Protection Plan, and can live up to five years longer, according to our 2024 study. What’s more, day-to-day, they see value – from

ANDY PHILO is director of strategic partnerships at Vitality

cinema tickets to cashback on healthy food – last year saving an average of 31% of their premium.

The role of advisers is important here. When we understand what matters to people – what they’re building, what they’re worried about – protection starts to feel different.

It’s not about worst-case scenarios. It’s about helping people feel confident that they’ve got something in place that supports them now, but also if they need it in the future.

When protection connects with someone’s life – their goals, family or health and lifestyle – people are more likely to act. When protection is paired with support to live healthier, it becomes a holistic strategy. When things don’t go to plan, it helps to know there’s support in place, and that confidence is well placed. ●

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P RO T E C T I O N Opinion

Is panelling causing more claims?

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ome insurance is an essential safety net for homeowners, protecting against the financial fallout of events like fires, floods, the , and accidental damage.

As trends in home decor shi and evolve, certain materials and design choices may influence not only the value of a home, but also the likelihood of claims. One growing area of interest? Wall panelling.

Wall panelling has seen a strong resurgence in interior design over the past decade. Championed by influencers, home renovation shows, and DIY culture, panelling adds texture, character, and perceived value to homes. However, while aesthetically pleasing, could panelling lead to more home insurance claims?

What is wall panelling?

Wall panelling involves a aching materials – typically wood, MDF, PVC, or composite boards – to walls to create a finished, decorative look.

Traditional styles offer classic appeal, while more modern styles use large sheets of timber or painted MDF to create a bold interior statement.

Panelling is most commonly used in living rooms, hallways, and bedrooms, but has also become increasingly popular in bathrooms and kitchens – areas prone to moisture.

The risks Several factors could contribute to increased risk of insurance claims:

Hidden Damage One of the biggest concerns with panelling is that it can mask early signs of structural issues. Water damage from leaking pipes, rising damp, or roof ingress might go unnoticed behind sealed panels. By the time the problem becomes visible – warping, discolouration, or mould

STEPHANIE DUNKLEY is development director at Safe & Secure

Be sure to balance aesthetics with practicality

– the damage is o en extensive, and more expensive to repair.

Insurance providers o en report that claims related to water damage are among the most common and costly. If panelling conceals leaks or delays early detection, this can exacerbate the issue and drive-up claim amounts.

Installation errors Poorly installed panelling can also cause problems. For example, DIY installations might involve improper sealing in moisture-prone areas like kitchens or bathrooms. This can lead to trapped moisture, contributing to rot, swelling, and possible structural damage.

Fire risk Some types of panelling, especially older wood panelling or certain composites, may be more flammable than standard painted drywall. If improperly treated or placed near heat sources like fireplaces or radiators, the risk of fire damage can increase.

Although fire-retardant materials are available, many homeowners overlook this when choosing cheaper or more aesthetic options.

Mould growth In areas with high humidity, panelling could potentially trap moisture against

walls, particularly if there’s poor ventilation. Over time, this could result in mould growth.

Are claims increasing?

While there is no widespread data explicitly linking panelling to a rise in home insurance claims, it could cause a growing trend.

Claims involving hidden water damage or poorly executed renovations are on the rise.

To reduce risk and avoid denied claims, homeowners can take the following steps: Use professionals for installation, especially in particularly moisture-prone areas.

Ensure proper sealing behind panels to prevent water ingress.

Choose materials wisely, opting for moisture-resistant and fireretardant options.

Monitor for signs of damage, such as musty smells, discolouration, or warping.

Final thoughts Panelling can certainly enhance a home’s interior, but it’s important to balance aesthetics with practicality.

Homeowners should be proactive – understand their insurance coverage, choose materials wisely, and never underestimate the value of early detection when it comes to household issues. With the right precautions, your clients can enjoy a beautifully panelled home without compromising on peace of mind. ● August 2025 | The Intermediary

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P RO T E C T I O N Opinion

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rotection has gained significant attention following the proposed Inheritance Tax (IHT) regulation changes in last year’s Budget.

Clients are placing greater emphasis on safeguarding their financial legacy and, as a result, IHT planning has seen a shift from a specialist area to a core element of protection advice.

Frozen thresholds, tightening reliefs and a more assertive HMRC

mean more estates than ever risk an IHT bill. At the same time, clients’ ability to absorb a sudden tax hit is questionable.

Royal London’s financial resilience report found that 28% of mid-lifers – aged 30 to 49 – could cope financially for just one month if they were unable to work due to illness, and 37% have less than £1,000 in savings. This fragility exists even among higher earners, those most likely to face an IHT bill.

With pensions set to be included within IHT calculations, it’s likely that the protection landscape will look very different in 12 months’ time”

P RO T E C T I O N Opinion

Net gets wider From April 2026, Agricultural Property Relief (APR) and Business Property Relief (BPR) will be subject to a new cap, allowing only the first £1m of combined qualifying agricultural and business property to benefit from 100% IHT relief.

Any value above this threshold will receive only 50% relief, resulting in an effective Inheritance Tax rate of 20% on the excess, as half of the standard 40% rate will apply.

While this change is expected to affect up to 70,000 farms, its implications extend well beyond the countryside. With nil rate bands frozen and property values continuing to rise, many families may now find themselves breaching IHT thresholds and facing unexpected tax liabilities.

While tax planning is an essential part of the conversation, it’s only one side of the coin. The other is ensuring that when liabilities arise, there’s actually cash available to meet them.

That’s where liquidity planning becomes key.

Liquidity generator Against this backdrop, protection products are invaluable, not only to cover known liabilities but to provide flexibility if valuations change or reliefs are reduced: o Whole-of-life can provide a sum assured to meet fixed or anticipated IHT bill. o Joint life second death can be particularly useful for customers with substantial assets, but who may not have ready access to cash and need to cover a potential IHT bill. o Gift inter vivos can help cover the tapering liability if a donor dies within seven years of making a gift. o Trusts ensure customers' loved ones can access funds quickly, without delays from probate or IHT. With pensions set to be included within IHT calculations, it’s likely that the protection landscape will look very

different in 12 months’ time. Royal London’s interim results for H1 2025 already highlight a change in adviser behaviour.

Protection new business is up 14% to £455m, with strong demand for whole-of-life and joint life second death products.

Advisers may soon find the IHT conversation unavoidable. After all, without it, families may face forced sales of property, land, or business assets.

Professional connections Complex IHT cases are rarely solved by one professional working in isolation. Advisers who cultivate strong connections can deliver far greater value: o Solicitors can support planning business ownership structures, partnership agreements, and property titles to maximise relief eligibility. o Will writers help ensure the estate is properly structured while maximising family financial planning opportunities. o Tax specialists and accountants are key in ensuring accurate valuations and to secure available reliefs.

Formal referral arrangements or joint-client meetings can transform the quality of outcomes. And under Consumer Duty, holistic collaboration is a genuine route to better results.

Financial fragility The Royal London resilience data underlines a growing paradox that many households are asset-rich but cash-poor.

Higher earners are more likely to hold protection products (42% of midlifers have some form of cover), but they also face liquidity challenges if hit with a sudden IHT bill on an asset they don’t wish to or can’t sell.

This makes the case for whole-oflife and second-death policies even stronger, by converting a regular premium into a payout when it’s

GREGOR SKED is senior protection development and technical manager at Royal London

needed most. When set up in trust, they bypass probate delays and IHT.

Supporting clients Discussing IHT in protection advice isn’t about fear, it’s about showing how changing rules, lost reliefs, and shifting liabilities can impact families.

The earlier the conversation, the more options remain.

Protection reviews are a good entrypoint. Clients may find that existing cover has been based on outdated valuations, and their estates may now far exceed certain thresholds. A gifted deposit, a business transfer, or even a surge in local property prices can all tip a family into the IHT net.

Let’s think differently about protection advice.

The tightening IHT environment and HMRC’s growing scrutiny are reshaping how advisers should approach protection. Whole-of-life, joint life second death, gift inter vivos, and trusts are no longer niche tools, they are central to preserving family wealth.

The advisers who will stand out over the next few years will be those who combine technical product expertise with strong professional networks, ensuring that every protection recommendation is part of a coordinated, future-proof estate plan. ● August 2025 | The Intermediary

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P RO T E C T I O N Opinion

Mortgage protection in uncertain times

T

he UK housing market is facing a perfect storm of economic pressures.

With growing concerns around job security and household savings dwindling, it’s a crucial time to consider how mortgage protection can offer peace of mind and financial stability.

According to the Chartered Institute of Personnel and Development (CIPD), employer redundancy intentions have soared to their highest level in 10 years. This alarming trend comes at a time when British households are particularly ill-equipped to weather financial storms.

Additionally, recent analysis by market research firm Finder reveals a stark picture of financial fragility: almost two-fifths of UK adults (39%) have £1,000 or less in savings, with one quarter (23%) surviving on £200 or less, and a troubling one in six (16%) having no savings whatsoever.

Meanwhile, inflation unexpectedly ticked upward by 0.2% to 3.6% in mid-July, complicating the Bank of England’s plans to cut interest rates throughout the year, amd borrowing costs are likely to remain elevated for longer than many homeowners anticipated.

Adding another layer of complexity, the Chancellor’s recent decision to

cut red tape for mortgages has opened the door for more first-time buyers to enter the market. Those earning just £30,000 annually can now apply for certain mortgages, which is estimated to support an additional 10,000 firsttime buyers each year.

While getting more younger people on the housing ladder is important, it means a greater number of homeowners are entering the market with substantial mortgages at rates that could prove unfavourable if economic headwinds continue to last.

To contextualise this, as of July 2025, Finder estimates that the average monthly mortgage repayment on a UK house stands at £1,428. For households with minimal savings, this means financial strain could arrive within just a few weeks of losing income.

Filling the protection gap Regulatory caution in recent years has led to few providers actively offering comprehensive unemployment protection to consumers. But with household pressures mounting, the industry is beginning to respond.

For our part, Paymentshield announced in June a product offering that directly addresses the growing vulnerability of UK homeowners.

We reintroduced unemployment cover to our mortgage protection policy, which now sits alongside

Asked and answered: Brokers want products that fill the gaps for clients in uncertain times

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LOUISE PENGELLY is distribution director at Paymentshield

traditional accident and sickness coverage. The product allows customers to cover mortgage payments and associated insurance premiums for up to 24 months if they’re unable to work due to accident, sickness, unemployment, or if they need to become a carer.

It has also been specifically designed to ensure that customers can increase their monthly benefit by up to an additional 33%, so they can cover other commitments like utility bills or credit card payments. The maximum benefit reaches £3,000 or 75% of gross income per month, providing meaningful protection where it’s needed most.

The 2025 Paymentshield Adviser Survey revealed significant market demand for this line of product development. When 485 advisers were asked what new product they’d most like to see offered, 53% responded: accident, sickness and unemployment cover for new customers.

To make it even simpler to offer this in-demand product, we’ve updated and optimised the quote journey so advisers can generate an accurate quote in under one minute, meaning peace of mind is never far away.

Given current market conditions, comprehensive protection is more important than ever, and ensuring the financial security of your home, and the people within it, is paramount.

For an industry defined by risk management, the current economic environment presents both challenge and opportunity.

Advisers able to offer genuine advice and support when it matters the most will forge lifelong client relationships built on trust. No matter which direction the economy heads, we’re here to support. ●

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S E C O N D C H A RG E Opinion

Niche to norm: Service strategy will shape

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he second charge mortgage market is in the middle of an exciting chapter. In the 12 months to June 2025, Finance & Leasing Association (FLA) data showing a 25% increase in new business value on the previous year has understandably caught everyone’s attention. It’s evidence that more borrowers – and their advisers – are recognising the value and positive outcomes of second charge mortgage products in today’s economic climate.

But alongside this momentum there is a growing reality: competition is

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intensifying and margins are under pressure. In this environment, market growth alone is not enough.

Sustainable success will depend on how we, as lenders, deliver value – not just in products, but in the quality of service, the ease of doing business, and the level of support we provide to the intermediary community.

Strategic choice One of the most encouraging shifts we’ve seen is the repositioning of second charge from niche to mainstream. Historically, the product was viewed by some as being outside the mainstream. Today, it is increasingly viewed as a strategic financial tool – a way to avoid the cost and inconvenience of refinancing an existing first charge mortgage while accessing capital for life’s bigger needs.

Second charge has always been known for debt consolidation, but there is a much wider need, from home improvements, major life events and even private school fees. These are not distressed scenarios; they are deliberate, planned financial decisions made with the support of a qualified

SIMON MARTIN is chief commercial officer at Interbridge Mortgages

adviser. Second charge customers come from a range of backgrounds and there are high quality, low risk opportunities for brokers and lenders alike.

25% growth It’s easy to get carried away with headline growth figures, but we should look beneath the surface. This increase is a result of both higher demand and greater accessibility.

S E C O N D C H A RG E Opinion

and seconds We know that investing in people is just as important as the investment in the platform that delivers the application. A frictionless process needs both.

Looking ahead

the market’s standards and create more options, not make it riskier.

Service still wins

Advisers are more aware of second charge and technology has made the application process faster and more transparent. But we must be careful: growth in volume does not automatically mean growth in profitability or customer value.

Lenders are looking for innovative ways to win business, and while that benefits the end borrower in the short term, it creates pressure to find efficiency gains and non-price related wins elsewhere in the process.

The answer lies not in racing to the bottom on price, but in building sustainable advantages – service and product quality, operational speed, clear communication, and tools that make it easier for brokers to package and submit cases right first time. A competitive market should help raise

In 2025, speed of service alone is no longer a key differentiator – it’s a given. Brokers and customers expect decisions in hours, not days.

The true measure of service now is combining speed with accuracy, overlaid with transparency at every stage, delivering the right customer outcomes.

From my perspective, the lenders that will thrive are those that invest in broker relationships, support efficient packaging and maintain proactive communication.

When a lender gets these basics consistently right, it builds trust – and that trust translates into confidence and repeat business, even in a crowded marketplace.

The adoption of application programming interfaces (APIs), automated decisioning, and document recognition tools has transformed the industry’s ability to process applications at speed. But technology alone won’t protect margins or win loyalty.

It’s the combination of smart systems and knowledgeable people that creates a compelling broker experience.

The remainder of 2025 will likely bring more of the same macroeconomic uncertainty we’ve become accustomed to in recent years.

For the second charge sector, I see three priorities emerging: 1. Creating greater awareness and consideration of the product category – yes, the age old battle will continue, with brokers and lenders both playing a pivotal role in making this happen.

2. Managing risk intelligently — balancing accessibility with robust affordability checks, even as pressure to safely grow volumes increases.

3. Driving operational excellence — so lenders maintain service standards even in peak demand periods, without sacrificing standards for customers and brokers.

If we succeed in these areas, we will not only sustain growth but improve the quality and stability of that growth.

Second charge lending has evolved from a specialist niche into an integral part of the mortgage mix. The market’s 25% growth is proof of that, and we estimate the market to be over £200m in July – the highest it’s been for many years. But the next phase of development will be about more than just bigger numbers.

It will be about raising the bar on service, strengthening broker relationships, delivering great customer outcomes and positioning second charge as a product of choice for well-informed, long-term financial planning. ● August 2025 | The Intermediary

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Q&A

Lenderhive

Marvin Onumonu speaks with James Armitage, founder and CEO at Lenderhive, about how brokering can embrace the modern age Tell us a bit about yourself and your experience – what motivated you to launch Lenderhive?

the default – not the exception. Lenderhive bridges those gaps with live lender scanning, realtime Energy Performance Certificate (EPC) data, and seamless integrations that make life easier for both advisers and homeowners.

I started my career in wealth management, where I helped clients make long-term financial decisions that aligned with their values and goals.

Over time, I saw how fragmented and outdated the mortgage process had become – particularly when compared to the digital leaps we’d seen in adjacent sectors like investing or banking.

Lenderhive was born from a desire to simplify the mortgage journey, bring transparency to the process, and empower both clients and advisers with tools that are fast, intuitive, and built for the modern age.

You emphasise both technology and human support. How do you strike the right balance?

How has your experience in wealth management influenced the way you approach mortgage broking?

Wealth management is all about understanding a client’s bigger picture – it’s never just about the product. That mindset heavily influences how we operate at Lenderhive. We view mortgages not just as transactions, but as pivotal financial decisions that should be part of a broader plan.

Our platform helps advisers provide tailored advice in real time, with contextual data that enhances conversations – not replaces them.

What gaps in the traditional mortgage process were you most eager to address?

The biggest gaps we saw were inefficiency, lack of transparency, and disjointed data. Customers were being passed from one system or person to another, often with little clarity or control.

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Technology should enhance the human experience, not replace it. At Lenderhive, automation takes care of the heavy lifting – scanning the market, checking criteria, flagging opportunities – so brokers can focus on what they do best: giving tailored, expert advice. The goal is a smart, responsive platform that supports meaningful conversations, rather than generic workflows.

What makes green mortgages such a compelling opportunity for homeowners and brokers?

Green mortgages represent one of the few opportunities where doing the right thing for the planet can also make financial sense for homeowners. Lenders are increasingly offering better rates or incentives for energy-efficient properties, and as awareness grows, we’re seeing a shift in what clients value. For brokers, it’s a chance to lead on sustainability while differentiating their service and unlocking longterm value for clients.

How do you see the green mortgage market evolving?

We expect significant growth. Regulation and lender appetite are converging to make green mortgages a mainstream consideration. We’re already seeing lenders refine their green offerings, and innovations like property-linked finance and retrofit loans will likely follow.

Q&A

Over time, EPCs and energy efficiency will become as fundamental to mortgage decisions as income and credit score.

lender relationships, which are key to delivering choice and flexibility for our clients.

It also ensures we remain fully aligned with evolving regulatory standards, which is critical as the mortgage and green finance landscape continues to shift.

Our membership of the Open Property Data Association (OPDA) enhances this further by connecting us to initiatives driving smarter use of property data.

It keeps us at the forefront of interoperability, open standards, and data innovation – so we can build tools that are not just compliant, but future-ready.

What are the biggest misconceptions, among clients or advisers, about green or energy efficiency-linked home finance?

A common misconception is that green mortgages are only for new-builds or high-end eco homes.

In reality, many lenders offer incentives for even modest energy improvements or EPC-rated properties. Another myth is that the criteria are complex or hard to access, which is why we built EPC integration and intelligent filters directly into Lenderhive – to make it simple, visible, and actionable from day one.

What differentiates Lenderhive from the competition?

Lenderhive isn’t just a mortgage platform – it’s a values-led ecosystem. Our tech is built to be fast, transparent, and green by design.

What sets us apart is the seamless blend of realtime data, sustainability-led features, and adviserfirst tools.

How important is open data and digital connectivity for the future of mortgage broking?

How does your accreditation from The Good Shopping Guide influence brand perception and client engagement?

Open data is essential. It unlocks smarter, faster, and more personalised advice. By connecting to datasets like EPC registers, lender criteria APIs, and property databases, we reduce friction and increase accuracy. The future of mortgage broking isn’t just digital – it’s intelligent. That means building platforms that talk to each other.

How do you educate borrowers about the benefits and eligibility criteria for green mortgages?

We believe in making green finance accessible, not abstract. Our platform flags green opportunities automatically based on the property’s EPC and the lender’s criteria. We also provide clear, jargon-free guidance so brokers can explain the benefits confidently. Education doesn’t need to be overwhelming – if it’s embedded in the journey, it becomes part of the decision-making process.

How do partnerships amplify your market access, regulatory alignment, and data capabilities?

Being an appointed representative (AR) of Rosemount gives us broad market access and deep

JAMES ARMITAGE

Accreditation from The Good Shopping Guide reinforces our commitment to ethical business practices and sustainability. It’s not just a badge – it’s a signal to clients that we’re serious about doing the right thing.

As consumer awareness grows around both financial wellbeing and environmental impact, this kind of third-party validation helps build trust and meaningful engagement.

What’s next for Lenderhive?

We’re continuing to push the boundaries of what a mortgage platform can do.

In the coming months, we’re launching deeper retrofit finance tools, expanding our green mortgage database, and piloting AI-driven prompts to help brokers spot new opportunities in their pipeline.

We’re also forming strategic partnerships across the retrofit and energy space, to create a truly end-to-end green home finance experience.

The mission stays the same: simplify, connect, and lead with insight. ● August 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Independence doesn’t have to mean isolation

T

he appeal of being directly authorised (DA) is rooted in the freedom to structure your business your way, choose your lender panel and build a brand that reflects your values. With regulatory expectations rising, though, many DA brokers are considering whether independence needs a rethink.

In July, the Financial Conduct Authority (FCA) published its Policy Statement on the Mortgage Rule Review, making it clear that the context for compliance has fundamentally shi ed. It said: “Recently, the introduction of the Consumer Duty has set higher standards for consumer protection across retail financial services [...]

We now want to give lenders and borrowers more flexibility, whilst still ensuring firms act to deliver good consumer outcomes.”

This policy statement, the first in an expected series, changes some rules with immediate effect. For brokers, among the big ones are: Interactions between a firm and customers will not immediately trigger advice. This will allow easier interactions between firms and their customers, while helping to ensure advice is provided when needed.

Firms will be required to consider what procedures are appropriate to identify execution-only customers for whom advice or other support may be necessary to avoid causing foreseeable harm.

Removing the requirement for a full affordability assessment when reducing the term of a mortgage.

The implications for advisers are not straightforward. Over the past two years, lenders have upped the ante

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on customer retention strategies, investing in slick platforms that support quick product transfers while enticing existing clients with preferential rates. Some lenders have made every effort to incorporate intermediaries into this; others have not made independent advice an explicit part of the customer journey.

Removing the trigger for advice is likely to result in an even greater focus on lenders’ direct customer retention, with the knock-on effect of making client acquisition and retention for advisers more competitive, and likely more expensive.

For this reason, enshrining the requirement to “consider what procedures are appropriate to identify execution-only customers for whom advice, or other customer support, may be necessary” is another change that advisers should give careful consideration to. While lenders are ultimately responsible in the execution-only channel, the hand-off of customers identified as needing a greater measure of support may necessitate advisers taking on a share of that duty. It makes sense to do this via largescale commercial partnerships – networks offer consistency, trackable compliance and the reassurance of another entity taking regulatory responsibility.

Access to lender panels is key to any adviser, and the direction of travel could make it more challenging for smaller DAs to maintain that access on competitive terms. Quality convertible leads are already hard to come by, and those pressures will likely continue to build.

Compliance and the technology systems needed to evidence it are increasingly sophisticated and expensive. Bespoke platforms might work well for an independent

ROB MCCOY is senior product and business manager at TMA

brokerage, but may present a technical headache for lenders that becomes a bridge too far.

Most DA advisers begin within a network – structured oversight, centralised compliance, access to technology platforms, all within an established and robust operational framework. While this comes at the cost of some autonomy and revenue share, it offers the reassurance of shared responsibility and simplified regulatory compliance.

Ask those appointed representatives (ARs) who have gone DA and they’re unlikely to want to go back. Yet, in the current environment the benefits of being part of a larger commercial outfit are increasingly clear. There is a middle ground: a mortgage club which can offer targeted compliance support, tech partnerships, business development tools and access to training, all without compromising on autonomy.

For many DA firms, this offers the freedom to run their business on their terms, while benefiting from expert guidance and infrastructure.

In today’s tech-driven environment, that infrastructure is critical.

Advisers need systems that do more than process cases, they need tools that generate MI for Consumer Duty reporting, streamline compliance checks, and support omnichannel client engagement.

The job of a club isn’t to push a particular platform or way of working, but to help brokers identify what works best. As the market evolves, the smartest DAs may not be the ones going it alone, but the ones who know when to ask for help. ●

B RO K E R B U S I N E S S Opinion

Leadership error?

Don’t just blame Coldplay

A

s a psychologist, you’d expect me to be concerned with human wellbeing – and I certainly am – but as a leadership psychologist I also care about talent management, business success and the bo om line. Crudely put – you waste a lot of time and money if you don’t create a psychologically safe work environment.

So, what is psychological safety?

It’s a shared belief that it is safe to take interpersonal risks at work – expressing yourself, asking questions, sharing ideas and admi ing mistakes without fear of repercussions. You are not overlooked in favour of a chosen few, you collaborate and value each other’s contributions, and you believe you can be your authentic self and contribute fully to the organisation and your team’s goals.

Take a moment and check your own career history. Do you feel you have psychological safety right now? In how many of your roles have you felt this clarity and confidence? When has it been lacking? Do the people in your team or your direct reports have the same confidence in their treatment? If not, then what is interfering?

Just this week I have heard stories about people being overlooked in meetings, their contribution ignored or ridiculed as ‘not how we do it round here’, or even just discounted out of hand. If treated like this numerous times, employees just stop trying and disengage. Psychologists call it ‘learned helplessness’. Brilliant ideas or opportunities are lost to the business, and the costs are incalculable.

A lot of companies consider engagement, running surveys and everything. Many then shake their heads at how awful the stats look, but

do nothing. Imagine ge ing even a few percentage points more engagement across the board. How would performance and outputs be affected?

How much be er and more fulfilled would people be?

Where culture comes in Although there is o en a lot of talk about the importance of culture, I rarely see people working hard to transform it for the be er.

The benefits of a culture that focuses on psychological safety for all include: far higher employee engagement; more innovation, adaptability and agility; unlocked talent; an inclusive and diverse workforce; dynamic teams; long-term growth; and loyalty and reduced turnover.

For the individual it eases productive two-way feedback, makes them part of a team, promotes higher performance, reduces conflict and presents opportunities for development.

Good psychological safety is not about everyone playing nice, avoiding conflict at all costs. In fact, it o en means more dissent, discomfort and issues while trying to work out people’s differences. But when people are robust, resilient and well supported, it leads to a be er eventual outcome, rather than everyone playing nice and acceding to more pedestrian, predictable outcomes What it requires: Lead difference. Stop recruiting in your likeness. Embrace difference to achieve more diverse outcomes.

Address what employees need to get the job done well. Ask them, listen carefully, withhold judgment and enlist them to help make the changes, as well.

Open communication. No unnecessary secrets, no politics, playing games, or having favourites.

AVERIL LEIMON is co-founder of White Water Group

Build trust as a sacred concept.

Work out what encourages it and what breaks it. If you make mistakes, talk about it, and ask for help in overcoming issues.

Train leaders in a coaching style so they shi from telling to asking, consulting and empowering others.

Develop a growth mindset rather than labelling people. Be honest if they are underperforming or demotivated, ask yourself what you might have contributed to cause this and put it right where possible Make inclusivity a constant focus.

Those people who never speak out in meetings? Discover why and go out of your way to give them their place.

Give crystal clear expectations, not just about targets, but the manner in which they should be achieved.

Create a real team effort. No grandstanding, find the positive in everyone’s contribution, and find ways of ge ing them to correct their errors.

Encourage the capacity to reflect on mistakes and grow. Do some self-disclosure, admi ing when you messed up, explain how you mean to put it right and ask for contributions.

Don’t just blame Coldplay!

So, an enormous responsibility falls on the shoulders of leaders at every level. But then, that is the real job, isn’t it? The problem is that few leaders have actually had the best development in how to lead, so it becomes secondary to just making sure things get done.

Don’t be an amateur. Professional leadership takes time, reflection, and comes from the inside out. I’d suggest you get a coach to help with that! ● August 2025 | The Intermediary

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Meet The Broker Trinity Financial

Marvin Onumonu speaks with Jed Newton, mortgage broker and director of Trinity Financial Tell us about yourself – why did you become a broker?

What advice would you give to someone starting out today?

After finishing university, it was my intention to join the army and attend the Royal Military Academy Sandhurst. However, a motorbike accident a few weeks before starting put an end to that.

I got a job offering investment and pensions advice and found myself gravitating toward mortgage advice. I found the relationships I made with my clients in mortgage related transactions to be much more rewarding than when providing advice about investments.

While I never planned to become a mortgage broker, I quickly discovered that being part of a house buying process is a privilege and results in an enjoyable and fruitful career.

One of the most rewarding parts of our business has been introducing school leavers to the industry via apprenticeships, and watching them develop into excellent brokers and administrators. This is a long pathway, but does result in excellent staff members who have grown up and developed within our culture.

We find that transitioning people through an admin role into being a trainee broker helps them to gain a much better understanding of the process and the industry, and much more confidently advise clients when they get to that point. As mortgages are technical and complex, we find that this greatly improves the success rate of trainee brokers.

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While the mortgage industry does provide rewarding careers and potential for high earnings, it does take many years to build up the required client base and knowledge to get to this point.

Where people can demonstrate sufficient patience, it is possible for them to get to this point. Where people want quick wins and an easy ride, they tend to become despondent and seek easier pathways. The investment and the effort are very much rewarded for people who have the staying power.

What sets Trinity Financial apart from other broker firms?

We focus on offering the best possible experience to our clients and aim to tailor our service to fit

M E E T T H E B RO K E R

their needs and requirements. Our clients are individuals, and they get treated as such. We are slightly unusual in our peer group as all three of the founding directors still provide advice to our clients. This means we are still very much at the coalface, keeping us up to date with lenders.We experience the same challenges as our brokers do. We all enjoy the role that we fulfil and don’t want to step away from interacting with clients.

As the mortgage world is ever changing in terms of client need, products and regulation, it provides constant challenge and the requirement for learning. It is difficult to get bored in an ever-evolving industry. It will be interesting to see how the introduction of artificial intelligence (AI) and Open Banking will impact the broker sector. As with all technology, I am expecting this will cause positive and negative impacts. As the role of a good broker goes far beyond picking the cheapest mortgage rate, I expect that there will be a requirement for an expert to help guide clients through the mortgage and house buying journey.

What are the main opportunities in the market for brokers?

We have seen a significant increase in first-time buyer activity in addition to a rise in the number of clients moving. In conjunction with the increased level of clients needing to remortgage, we are expecting to have a strong year in 2025.

We provide advice across all types of property finance transactions, but as time has passed, we are now mostly involved in residential transactions as the demand for buyto-let advice has decreased.

We have always tended to provide advice to clients with challenging or unusual circumstances that require some advice. It seems like the number of clients with complex needs is increasing, and they are unlikely to transact directly with

banks in the future. While the improved technology may make it easier for some clients to acquire finance from banks without a broker, it feels like there will still be a large percentage who will still require, or want, an expert to advise them and guide them through their house buying or remortgage process.

What are the main issues affecting your sector?

The past few years have been turbulent, and this has led to a lot more post-application changes. In a declining rate environment it is difficult to stay on top of this, and not all lenders make it easy to switch when better rates come available.

We find that lenders still struggle to accept income that is earned in any way that they consider to be non-standard. For example, the leading global companies, such as Apple, Meta and Google often remunerate their staff using restricted stock units. It seems like too few lenders have ever tried to really find a solution for these clients. This is despite these clients typically being high earning and in stable employment. This is just one of many examples of lenders failing to move with the times and try and understand something which is becoming increasingly common.

The issues with fire safety and EWS1 forms seems to be another thing with lenders have really struggled to come up with a coherent and consistent approach for. The criteria and lending decisions for these properties have been opaque and erratic. A massive group of property owners have been negatively impacted by something that is totally beyond their control, and many have been left unable to sell or refinance.

These are very different examples of the kind of ‘group think’ that exists where lenders fail to try and find solutions to a change in client needs. Unfortunately, this tends to leave some clients unable to find a satisfactory solution, or in some

cases having to pay a premium for their mortgage.

In what ways could lenders better support brokerages, if any?

We are very grateful for the support that lenders have offered to the broker market. Lenders could look to support next-time buyers in the way that they are supporting first-time buyers. It seems a little crazy that first-time buyers are getting sixtimes income whereas some nexttime buyers might struggle to get over five-times.

It is great to see more innovation from lenders and new lenders joining the market. Some of the new lenders have offered truly unique propositions and have catered to parts of the market that were traditionally underserved. It seems to be incredibly hard for lenders to launch and gain traction in the market, and part of the reason for this seems to be based around distribution and access being granted to provide applications.

We would love lenders and mortgage networks to try to offer a more coherent approach to technology. It feels like the industry has failed to keep up, and it seems laughable that many lenders still ask for wet signed declarations, and certified proof of ID and address in 2025. The whole industry needs to get together and devise a way that consumers can interact with lenders in a way that is befitting of this era.

The mortgage broking role has changed significantly since I started over 20 years ago. It will continue to change in the future, and it is imperative that people who want to continue to be in the industry change with it and adapt to help our clients fulfil their plans. Being part of a good company and having strong relationships with your network and lending partners will stand you in good stead to move with the times and benefit from whatever impact tech has over the coming decade.

●

August 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Stop the talent pool drying out

W

hen I look at the mortgage advice industry today, one thing stands out: we’re facing an urgent and growing skills shortage. The average age of a UK mortgage adviser is now in the mid-fi ies, yet across the sector, there’s a noticeable lack of meaningful initiatives to a ract, train, and retain new talent.

At present, most mortgages are still arranged through advisers. While evidence indicates that this model will remain in demand, we must take a proactive approach to achieving this.

This is especially true with the growing influence of digital and artificial intelligence (AI)-driven advice platforms, demonstrating the need as an industry to invest in people. That means actively building a pipeline of new talent and creating clear pathways into the profession.

Bridging the gap One of the key challenges the industry faces is supporting those who are just beginning their journey into mortgage advice, particularly individuals who haven’t yet obtained their CeMAP 1 qualification. While there are several academy propositions available in the market, including our own, they o en cater for those who already hold the necessary certifications.

What the industry truly needs, if it is to thrive, is a programme that acts as a genuine entrypoint – one that also welcomes graduates uncertain about their next steps, career changers looking for a fresh start, or individuals who’ve never even considered a career in mortgage advice before.

An ideal scheme would not only provide foundational knowledge and training, but also offer a clear, supported pathway to qualification and employment. For example, at Just Mortgages, we recently launched Just

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What the industry really needs, if it is to thrive, is a programme that acts as a genuine entrypoint” Learning to provide full support to those looking to achieve their CeMAP 1 qualification.

Through a blended learning model combining our learning management system (LMS) and in-person training, the course includes a structured revision programme, all the learning materials needed, and a week-long, face-to-face intensive course ahead of the exam. The aim is to equip a endees with the tools, guidance, and confidence they need to take their first steps into the industry.

Of course, securing the qualification is only the first hurdle. In the case of Just Learning, every person who completes the course is guaranteed an interview with one of our expert sales managers. If successful, they will secure a place in our academy – the very same programme that helps more than 50 advisers launch their career each year.

The next step Our academy has long been a cornerstone of success at Just Mortgages. It’s where some of our most successful brokers began their journey, individuals who have the talent, the a itude, and the drive, and just needed someone to open the door to success.

With Just Learning, we’re widening that open door. We’re meeting people earlier in their journey and providing the tools, support, and confidence they need to step through it. It doesn’t ma er if you have never worked in

RODNEY SLOAN is head of learning and development at Just Mortgages

finance before, if you possess the drive, we’ll help you develop the skills.

We’ve already commi ed to running six academies in 2025. And now, with this additional entrypoint, we’re giving more people than ever the chance to build a rewarding career in advice and with Just Mortgages – whether in our employed division in estate agency branches, or as part of our thriving self-employed division.

Top up the pool At Just Mortgages, we are proud to support more than 650 brokers nationwide. But we know that experience alone can’t carry the industry forward.

The property market is changing.

Client expectations are evolving.

If we don’t actively invest in the next generation of advisers, we risk leaving a glaring and gaping hole in a profession that plays such a vital role – not just in the housing sector or the wider economy, but in people’s lives.

With fewer advisers entering the profession, and an ever-ageing workforce leaving it, we’re running the risk of completely draining the talent pool.

According to industry reports, the number of mortgage advisers in the UK is declining year-on-year.

Unless we act now, we are going to feel the impact in every corner of the housing market.

That is why initiatives like Just Learning aren’t just helpful, they’re imperative to the vital longevity of our industry. I truly hope that other firms take up the mantle, too.

We need more programmes like this across the board if we want to keep our profession thriving. ●

B RO K E R B U S I N E S S Opinion

Better outcomes for people who leave a review

W

hen it comes to our finances, we all want to make the right choices.

Whether you’re choosing a new savings account, switching credit cards or comparing pension providers, our recent research proves that reviews are an essential part of the decisionmaking process.

Increasingly, people are turning to the experiences of others to support their wider research into financial products and services.

But it’s not just those researching reviews that benefit from feedback.

Our study found that more than half of Brits (52%) who’ve le a review for a financial services provider have ended up with a be er outcome.

Whether it’s a resolution to an issue, a clearer explanation, or simply the reassurance of being listened to, speaking up really does make a difference.

Reviews can lead to change It’s o en assumed that reviews are only le when something goes wrong, but that’s not the case. We found that 62% of reviewers shared a positive experience and went on to recommend financial products and services to others. Reviews can be a way to highlight issues, but they’re also a brilliant way to shout about great service.

In contrast, only 20% of people leave a review a er a bad experience – even though 16% of those who do see their issue resolved. Of those, 15% receive an apology, and 7% are paid compensation. This shows that despite the potential for a positive outcome, many people remain silent rather than speak up about poor experiences.

Unfortunately, feeling frustrated with financial services isn’t uncommon. Our research found that 42% of people have had a stressful experience with a financial services provider in the past year. When that happens: 32% pick up the phone to vent to a friend or family member; 15% head out for a walk or run to clear their head; and 10% even admit to screaming into a pillow.

These responses demonstrate just how emotional financial ma ers can be, especially when someone has a bad experience. Sharing feedback through a review can help turn that frustration into something constructive. Not just for the reviewer, but also for others researching products and services, and for the providers themselves to see where they can improve.

Influence buying decisions Our research revealed that many of us are turning to reviews to help with decision making: 84% of people say it’s important that others have had a good experience before they buy a product or service; 74% read reviews before considering a switch to a new financial provider.

The results also show that nearly a third (31%) will only consider switching financial services providers if the new company has an overall customer rating of at least four out of five stars.

On average, Brits expect a provider to have at least a 4.25 out of five overall rating before they’ll switch to a new financial services provider. In fact, one in seven (14%) will only switch if the new product or provider has a five star review rating.

JAKE SANDFORD is head of data and analytics at Smart Money People

Some products are held to higher standards than others when it comes to reviews. For savings accounts, people typically look for products with a 4.5 star average rating, while for pensions and investment products, the threshold is 4.25 stars.

Who’s doing well?

Our Smart Money People review data reveals that services like debt management receive the highest overall satisfaction scores, averaging 4.93 out of five stars. These products have received high ratings due to ease of use, customer service, and process efficiency – with specialist providers standing out in these areas.

While customers highlight some frustrations with communication, process and security, these concerns don’t significantly impact overall satisfaction scores. This suggests that, while these issues are important to resolve, they’re not deal-breakers for most customers.

Positive impact Behind every review is a real story.

Whether a client has had a brilliant experience or had some challenges with financial products, services and providers, their feedback can have a positive impact. It helps others make more informed decisions, and makes a real difference to how financial services companies listen, respond and improve. ● August 2025 | The Intermediary

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Case Clinic Want to gain insight into one of your own cases in the next issue?

Get in touch with details at editorial@theintermediary.co.uk

CASE ONE Joint application with one applicant on a visa

A

couple are purchasing a £420,000 home with a 10% deposit. One applicant is a British citizen earning £50,000, the second is on a Skilled Worker Visa earning £38,000. Although their combined income supports the loan, some lenders cap borrowing based on the visa-holder’s temporary status.

Others require the visa to have a certain amount of time remaining and at least one year’s residency.

UNITED TRUST BANK

In this scenario, UTB would require the second applicant to have permanent rights to reside, Indefinite Leave to Remain (ILR) or equivalent residency status in order to be considered on the application. Unfortunately, applicant one’s income alone would not be sufficient for affordability.

HARPENDEN BS

We cannot assist with this one. Our maximum loan-to-value (LTV) is 85% and we also do not accept borrowers on a Skilled Workers Visa. They would require an ILR.

TOGETHER

Together could support this application, but up to a maximum of 75% LTV assuming the property was of standard build.

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As with most lenders, we would require applicants to have ILR in order to be on the application. So, while we could support the British citizen, this would have to be on a single personal application.

If the second client has no visa end date, this could possibly be supported on a dual application.

BUCKINGHAMSHIRE BS

The society has recently entered into this space to support those on Skilled Worker Visas, and we can consider this up to 90% LTV. We don’t have a minimum time that is required to be left on the visa for the applicant.

WEST ONE LOANS

We are able to lend to joint applicants and Skilled Worker Visa holders, and both applicants earn enough to comfortably afford the loan.

We also do not apply any loan caps to visaholder applicants.

However, we require at least 12 months residency in order to consider applications from visa holders.

If they had more funds available, we would consider the loan on the British citizen’s salary alone on a 20% deposit.

STAFFORD BS

We can consider applications where the visa holder has at least 12 months remaining on their visa and has lived in the UK for a minimum of two years.

Each visa case is assessed on its own merits.

For this loan size, we would refer to our mortgage indemnity guarantee provider, but it is something we could work with.

B RO K E R B U S I N E S S Case clinic

BUCKINGHAMSHIRE BS

CASE TWO Applicant using Universal Credit to supplement income

A

single parent is applying for a mortgage on a £210,000 home with a 15% deposit. They work part-time, earning £22,000 annually, and receive around £700 per month in Universal Credit and child benefit.

The buyer has faced some difficulty as some lenders refuse to include benefit income in affordability, while others cap it or exclude specific elements like housing support.

Even where accepted, extra documentation is required, and calculations vary.

UNITED TRUST BANK

Typically, in this scenario UTB would require the applicant to have a minimum of £25,000 annual earned income before considering the additional benefit income to support affordability.

However, we would welcome a referral in this instance to further assess the applicant’s credit history, as there could be scope to approve the use of benefits with their earned income of £22,000.

If approved, 100% child benefit can be considered as well as the standard allowance and child elements of the Universal Credit.

Furthermore, if the loan term is longer than the receipt of child benefit and Universal Credit, we would need a plausible explanation of how the benefit income would be replaced.

For example, the applicant’s earned income may be increased by returning to full-time employment.

This explanation would then be sense-checked for approval.

TOGETHER

Together could help this applicant as we accept all forms of benefit income, but it will need to be shown to continue during the term of the loan.

If their housing benefit was to stop because they are moving from rented to owned, then this would not be included.

Likewise, if child benefit or tax credits were due to stop during the term of the loan we would ask for how the difference would be made up, for example through picking up more hours at work.

We could support up to 75% LTV, assuming the property was of standard build.

The society can consider benefit income; however, the amount of benefit income is restricted to 25% and it would need to be evidenced that it is payable for the term of the loan. A Joint Borrower Sole Proprietor (JBSP) could be considered if parents are able to support.

WEST ONE LOANS

This is a case that would have to be referred to the mandate holder to approve the Universal Credit income. West One is able to take child benefit and Universal Credit into account when calculating affordability. We may be able to lend to the single parent on our Extra range, which allows loan-toincome (LTI) up to 6.5-times income. We’ll just need to have clear proof of consistency of their non-salaried income.

CASE THREE First-time landlord with personal income shortfall

A

first-time landlord earning £28,000 per year is applying for a 75% LTV buy-to-let (BTL) mortgage on a £240,000 flat.

The expected rent is £950 a month, which meets rental stress requirements with some lenders, not all. Some lenders require a minimum personal income of £30,000 to £40,000 for first-time landlords, regardless of rent.

UNITED TRUST BANK

First, it is essential that a first-time landlord with UTB owns their residential property as we do not consider applications for first-time landlords who are also first-time buyers.

There is no minimum income requirement for BTL applications with UTB, other than for an applicant wishing to purchase a holiday let for the first time, in which case the applicant would need to have a £50,000 personal income.

UTB would expect the rental income to satisfy our affordability requirements as we do not top-slice from the applicant’s personal income to meet a shortfall on rental calculation.

TOGETHER

Together could help this client as we accept both first-time buyers and first-time landlords on our → August 2025 | The Intermediary

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BTL products. We would not require any minimum personal income, as we would look at the Interest Coverage Ratio (ICR) calculation for affordability on its own merits. If they were an experienced landlord, we could look to utilise top slicing for additional affordability if the ICR was to be failing.

BUCKINGHAMSHIRE BS

A minimum income of £25,000 would be required and the applicant would need to be a homeowner themselves. As the income is £28,000 then it would fit the minimum income rule of the society.

WEST ONE LOANS

West One does not require a minimum income in assessing affordability of a BTL property, even for first-time landlords. Assuming the applicant is a basic rate taxpayer, they should qualify for a product in our standard BTL range.

CASE FOUR Accidental landlord with no AST

A

homeowner has moved in with a partner and wants to let their original property informally to a friend, charging £1,000 per month. They are applying for a BTL remortgage to raise capital but have no tenancy agreement in place. Several lenders declined the application due to lack of a formal Assured Shorthold Tenancy (AST). Even though rent has been paid consistently and bank statements are available, underwriters require a proper tenancy agreement and proof of compliance with landlord responsibilities – gas safety, deposit protection – before proceeding.

BUCKINGHAMSHIRE BS

The society would not be able to consider this without an AST in place.

UNITED TRUST BANK

As the intended security is being let to a friend and would therefore fall under Consumer BTL guidelines, this isn’t a case we would currently consider.

TOGETHER

Together could consider this application on referral. Generally, if no AST is in place we will use 80

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90% of the projected market rent as confirmed by a valuer or local sales agent.

This could then be used to towards the ICR affordability and there would be a maximum of 70% LTV, if the property is of standard build.

WEST ONE LOANS

Similarly to other lenders, we will require an AST to be in place. We also require proof of one month’s rent.

The client should formalise the agreement, carry out all other due diligence, and obtain the necessary certificates before we can proceed with the remortgage.

CASE FIVE Self-employed with rising income

A

self-employed marketing consultant has applied for a mortgage on a £390,000 home with a 10% deposit. Their latest year’s income is £61,000, up from £37,000 the year before.

Although the most recent figures show strong growth, some lenders have averaged income across two years and applied caution due to the sharp rise.

The client has excellent bank statements and a solid pipeline of work, but not all underwriters have been willing to base lending on one strong year alone.

UNITED TRUST BANK

UTB always looks to use the latest year’s accounts and income without averaging across the last two years. Any significant increase in income, which this example details, would require a plausible explanation for the increase with further details providing clarity on the sustainability of the increase and expected income going forward. If the self-employed applicant is a sole trader, this would be supplied by the applicant themselves.

If the applicant is a limited company director, an explanation from the accountant would add more weight and provide us with more comfort.

HARPENDEN BS

We could consider this case using the latest year’s income towards affordability. We will require

B RO K E R B U S I N E S S Case clinic

evidence/confirmation of how this level of income will be sustained throughout the mortgage term.

Please note though our maximum LTV is 85%.

TOGETHER

Together could consider the £61,000 received in income from the previous year and would not average this with the year before.

If the applicants were six months or more into their next tax year, we could also look to use accountant’s projections using our form if this was to increase further.

Although we could not push to 90% LTV, if the applicant could finder a larger deposit we could explore 75% LTV, assuming the property is of standard build and subject to valuations.

BUCKINGHAMSHIRE BS

The society would be able to review this on a caseby-case basis. If the evidence is strong to support that the increase income is sustainable and will continue, then they could review to take the latest years income.

More information would be required for the sales team to refer to underwriting before the decision in principle (DIP) is considered.

WEST ONE LOANS

We are willing to lend to self-employed applicants and will ask for the latest two years’ SA302’s/Tax Year overviews. However, we will only use the latest year’s income of £61,000 for affordability calculations, which means they will qualify for our Extra range.

CASE SIX Gifted deposit from a non-UK relative

A

first-time buyer is purchasing a £430,000 flat with a 15% deposit gifted by an aunt who lives and works in the UAE. The aunt is not a UK citizen or resident, and the buyer is employed in the UK earning £41,000 a year.

While the buyer meets affordability requirements, the source of deposit raises concerns with some lenders. Verification of funds held in a foreign account could create delays, and anti-money laundering (AML) checks vary in strictness. Some lenders have been uncomfortable with a non-UK donor with no UK banking footprint.

UNITED TRUST BANK

Even with a 15% deposit, this first-time buyer application would not pass UTB’s affordability requirements.

In this example, the source of the deposit would pose a significant problem, too. UTB prefers sources of deposits to derive from the UK. However, on occasions we have accepted oversees deposits on referral.

That said, the UAE is in a high-risk jurisdiction and would most likely be declined.

HARPENDEN BS

We can only accept funds from EU countries.

However, it may be possible to have this case approved by our credit committee as lending outside of policy. The applicant would have to be in a strong position, and we would require full details on the aunt.

TOGETHER

Together could proceed with this application as the applicant is UK-based and receives a UK GBP income. As with the other lenders, the relevant source of deposit checks would need to be undertaken in line with policies.

However, if this could be verified then the applicant could proceed with their mortgage at a maximum 75% LTV, subject to valuations and affordability.

BUCKINGHAMSHIRE BS

The society can take a family gifted deposit from the aunt, but the source of the deposit will need to be clear, with evidence of the build-up of funds, which can sometimes be difficult with it being overseas.

As long as the applicant can provided the evidence required to satisfy this then it can be considered, it is worth noting that sometimes the documentation may need to be translated. The society would provide what would be required as evidence.

WEST ONE LOANS

We would accept a gifted deposit from abroad provided it is in a UK bank account for the completion of the transaction.

However, even if the gifted deposit is satisfactory, the client would not qualify for a residential mortgage with West One as the loan would require an LTI multiple of 8.9, and the applicant does not qualify for our uncapped LTI range where we have a minimum household income requirement of £50,000. ● August 2025 | The Intermediary

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T E C H NO L O GY Opinion

Look under the bonnet before you implement AI

A

rtificial intelligence (AI) is no longer just a buzzword.

Tools that once seemed futuristic – automating suitability reports, summarising meetings, or tailoring client communications – are now widely available and surprisingly easy to deploy.

Used well, these tools free advisers to focus on the human side of advice.

But that doesn’t mean firms should rush headlong into implementation without first understanding what they’re deploying and the risks that come with it.

It’s tempting to assess AI tools solely based on their outputs. Can they dra a decent report? Do they pull out the key points from my meetings? Do they help me communicate more clearly with clients?

If the answer is yes, job done, right?

Not quite. In a regulated profession like ours, it’s not enough for a tool just to generate usable outputs.

Advisers need to understand how the technology functions under the bonnet.

That means asking where the data comes from, how it’s protected and how the model is trained. You should also understand how hallucinations and inaccuracies are handled, what oversight is built in, how bias is managed and how changes to the model are communicated to you.

Without clear answers, you’re effectively placing blind trust in a black box – one that’s making decisions on your behalf. That leaves you personally liable if something goes wrong.

While the Financial Conduct Authority (FCA) hasn’t yet published detailed guidance on AI, it will in

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time. In the meantime, the Consumer Duty already applies. That means you’re expected to demonstrate high standards of care, diligence and transparency – whether you’re using AI or not.

Of course, tech providers are responsible for ensuring their products function safely and ethically.

But advisers aren’t off the hook. You’re still the one giving the advice. It’s still your name on the file.

That’s why you should document how you’re using AI in the advice process. Keep a clear record of what systems you’re using, what data is being shared and what checks and balances are in place to ensure good client outcomes.

Data protection is a critical part of this. Client data is sacred and the risks of mishandling it are enormous.

Advisers must think very carefully before uploading personal or financial information into tools like ChatGPT or Microso Copilot.

Even if a breach occurs at the so ware provider’s end, your firm could still be held responsible under General Data Protection Regulation (GDPR) and other data protection rules if you’re inpu ing sensitive client details into an AI model.

Before rolling out any AI-powered tool across your business, test it in a controlled environment. Understand exactly what’s happening to the data, where it goes, how it’s stored, who can access it and ensure you’re meeting regulatory obligations at every stage.

Just as importantly, take the time to work out what problem you’re trying to solve. What inefficiencies are you addressing? What value will the tool bring to your clients? AI is not a solution in search of a problem. It should support your advice process, not define it.

CLAIRE CHERRINGTON is director PMS and Bankhall at Sesame Bankhall Group

Client data is sacred and the risks of mishandling it are enormous” The most effective AI solutions are the ones that integrate seamlessly with your existing systems and workflows.

That’s where you’ll see meaningful gains in efficiency, consistency and scale.

But secure, accurate, compliant tools come at a cost. And rightly so. In this area, the old adage holds true: you get what you pay for.

Free or cheap AI might be useful for internal brainstorming or admin tasks. But when it comes to anything client-facing or advice-related, cu ing corners is a risk you simply can’t afford.

AI has the potential to transform the advice profession. But it’s not magic.

It’s so ware. And like all so ware, it must be properly understood, tested, governed and integrated.

Used responsibly, AI can drive productivity, enhance personalisation and improve your firm’s profitability.

But used blindly, it introduces regulatory, reputational and client risks.

So, before you implement AI, sit down with your chosen provider. Ask the right questions. Understand the model. Think through how it fits into your business.

Because ultimately, the only safe way to adopt AI is to take a good look under the bonnet and get to grips with how it works. ●

T E C H NO L O GY Opinion

Infrastructure is needed to support future lending

T

he challenges presented by an overreliance on legacy technology are o en a talking point in our industry – especially when there is an outage. Usually, these conversations relate to origination and servicing platforms, savings platforms and other retail banking technology.

Yet legacy technology has a bearing on more parts of the mortgage world than just banks.

There are multiple parties involved in the home sale and purchase chain – as disillusioned buyers and sellers know only too well. Where delays come into the transaction – most o en in conveyancing but increasingly in valuations – it can be partly down to inadequate technology.

It’s not always obvious – just as banks usually have apps with userfriendly interfaces, so do many parts of the business-to-business (B2B) journey. Mortgage networks and clubs interface with mortgage sourcing systems, customer relationship management (CRM) platforms and others, in a bid to make life easier for intermediaries and more competent from a compliance perspective.

This can mask a multitude of challenges, particularly with valuations. Legacy technology accounts for the majority of the ‘pipework’ that sits behind the delivery of the instruction, reporting back and management of mortgage valuations.

Feeling the pinch There are a number of frustrations felt keenly by brokers as a result of this. For example, what seems like the straightforward task of booking in a mortgage valuation with a seller can turn into weeks of delays for no apparent reason.

The process also has necessary back and forth a er the valuation has been done. Yet older systems have inbuilt limitations. Managing multiple post-valuation queries through a platform that can only handle one or two each time results in incomplete information and inevitable hold-ups.

20 years ago, consumer expectations were built on paper-based exchanges taking time, but today information can be obtained in seconds. It is brokers who bear the brunt of clients’ irritation when they come up against weeks of angst over something which should be, in their minds, easy to get right.

Managing momentum The market has kept pace with digital innovation in some areas, but largely this has been where lenders have full control over a process. Now, the argument for leaving third-party management systems as they have been for years is not good enough.

There is a general acceptance in the market that the status quo isn’t up to scratch with consumer and regulatory expectations where they are.

The Government has pushed for several changes in regulation in order to speed up the homebuying process.

The Bank of England has relaxed capital ratio requirements on lenders in order to free them up to make more higher loan-to-value (LTV) mortgages.

The Financial Conduct Authority (FCA) has loosened affordability tests for remortgages on the same terms.

Consumer Duty requires lenders to detect vulnerability early and monitor customers’ financial resilience on an ongoing basis.

Valuations must be part of this picture – not only are they critical to assessing lenders’ exposure, they are critical for each homeowner.

AHMED MICHLA is head of business development at Cotality

Where the integration is available to support valuation assessments based on dynamic data sources, there must be a time restraint on how much longer lenders can justify updating valuations – at most every two years, and more likely anywhere between five and 15 years. At the moment, too li le is happening to effect change.

UK valuation infrastructure must be able to cope with greater integration of real-time, multi-dimensional data sources. Data exchange must sit on modernised platforms that support dynamic, explainable risk modelling.

Reporting capabilities must be more dynamic and comprehensive.

Supporting more complex data exchange during the post-valuation query stages needs be er technology integrations, APIs and systems that allow lenders and valuers to rely more on automated decisioning.

Changing times How lenders manage mortgage valuations is shi ing – another reason that the systems they use need to be more modern, more flexible and more capable.

The underlying infrastructure needs to support this future, but currently it can constrain which data sources can be incorporated into decision-making, running the risk of bias in valuations simply due to insufficient or skewed data inputs.

They hamper reporting and give lenders an incomplete picture.

The solutions to improve this situation exists today – the question for lenders is: how long before the regulator starts asking them why they aren’t taking advantage of it? ● August 2025 | The Intermediary

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T E C H NO L O GY Opinion

Culture and code determine which firms move forward

T

he hardest part of switching to new technology platforms or so ware usually isn’t the switch itself, but the process of bringing people with you on that journey.

Overcoming this o en necessitates a multi-pronged approach.

Off-the-shelf systems – that plug into legacy tech within lenders operating on multiple platforms across their service offerings – are increasing in popularity. They can offer a cheaper and seemingly lower risk alternative to working with outside IT consultants to build a brand new platform. The reality is that both approaches can work – it depends on what lenders actually need.

It’s very tempting to define the problems you’re trying to solve based on the challenges you face today.

In fact, systems need to be able to cope with the challenges you’ll face tomorrow – not least because by the time the change takes place and staff are trained to use new systems, it’s likely to be several weeks or months down the line.

Defining the problem is essential.

In the mortgage and financial services world, the need to modernise technology systems is becoming ever more urgent. But while many firms understand the importance of digital transformation, few are fully prepared for the practical challenge.

Large-scale system overhauls o en bring reputational and operational risk. Ambitious projects can stall or under-deliver when they’re not aligned with how people actually work. In a fast-moving market shaped by regulatory shi s, rising customer expectations and pricing pressures, firms need technology that doesn’t just function but evolves.

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Success increasingly depends on choosing platforms and solutions that are agile, scalable and responsive to market and customer behaviour.

Modern, cloud-based systems allow firms to flex as conditions change. The good news is, these exist.

Personal buy-in The tech may be ready, but the people side is o en harder to deal with. Cultural resistance, ingrained processes and legacy skill sets can create friction.

According to McKinsey, over 70% of digital transformation efforts fail, and the number one reason is poor cultural integration. A 2024 survey by Gartner backs this up, with 46% of financial services executives citing “change resistance among staff ” as the biggest barrier to digital success.

Years of embedded processes, outdated workflows and a “we’ve always done it this way” mindset begets scepticism, especially if communication and training are not carefully thought through.

Add to this the idea of bringing into the workplace artificial intelligence (AI), automation, machine learning and even AI-powered agents able to make basic decisions based on data input – you can come up against real fear. Some employees can mistakenly believe increased automation signals the end of their usefulness and actively put barriers to adoption in the way.

Automation and AI can’t fully replace people – especially in such a highly regulated market like mortgages, where conceptual principles now govern over rigidly prescriptive rules. At Ohpen, we believe it’s be er to start at the end – defining your objective rather than focusing on problems to be fixed in systems today. Technology has moved

JERRY MULLE is managing director at Ohpen

on so far that a wholly different mindset is needed.

This is why we work with Cognizant, a firm which helps companies to understand how to reimagine processes and transform experiences to modernise tech effectively, so they stay ahead in a fastchanging world.

Broadly, we recommend bringing people in early. By involving frontline users early and framing change as an opportunity rather than a threat, the buy-in is there. This has the added advantage that users o en identify challenges that top-down executives don’t.

Be clear about the vision and what the end result looks like – clarity is absolutely key from the start. Projects involving multiple decision-makers can quickly become unwieldy, with individuals pulling in different directions as things progress. Working through eventualities and coming up with strategies that allow for adaptation along the way – without compromising on the end objective – means collaboration and agreement from the beginning.

True transformation isn’t a oneand-done thing – it’s a continuous journey, and key individuals in the firm need to be kept involved. This necessitates flexibility when it comes to understanding integration on both technical and personal levels.

In today’s market, adaptability is no longer a nice-to-have, it’s an essential. But it’s culture, and code, that will ultimately determine which firms move forward and which are le behind. ●

T E C H NO L O GY Opinion

Easing the compliance burden

T

he regulatory landscape has grown increasingly intricate recently.

That poses significant challenges for mutuals.

Compliance with an ever-expanding web of rules, from the Financial Conduct Authority (FCA) and other regulatory bodies, demands substantial resources and expertise.

Finding people with the right skills is not easy and the costs associated with meeting these obligations continue to climb, straining operational budgets.

Key regulations such as Consumer Duty, the Mortgage Charter, and BIFD are designed to protect consumers, but their complexity – and the occasional trade-off that this can present – create hurdles for building societies striving to deliver exceptional customer service while adhering to requirements.

Consumer Duty, in particular, has emerged as a focal point of frustration. Introduced to ensure firms prioritise customer outcomes, it requires building societies to demonstrate consistently fair treatment of consumers. However, overlapping rules from various regulatory frameworks can make this challenging. For example, compliance with Consumer Duty might necessitate tailored solutions for individual borrowers, but other regulations, such as stringent capital requirements, can limit flexibility.

This creates a paradox where well-intentioned rules inadvertently complicate customer servicing, potentially slowing down processes and increasing the risk of suboptimal outcomes. For smaller building societies, these challenges are amplified as they approach critical regulatory thresholds, where capital requirements become more stringent, o en perceived as a barrier to growth.

Despite these complexities, regulation does not have to stifle progress. Technology, particularly artificial intelligence (AI), offers

transformative solutions to streamline compliance, reduce costs, and enhance customer experiences. By leveraging data-driven tools, building societies can navigate the regulatory maze more efficiently while maintaining their commitment to memberfocused service.

A prime example of this is the adoption of AI-powered platforms like NICE CXone, which we have integrated into our telephony operations. This has unlocked a range of features that deliver significant value to our operations teams, while addressing regulatory demands.

One standout capability is live auto summary. At the conclusion of every customer call, NICE CXone generates a complete, wri en transcript. In the past, agents would dedicate substantial time, o en 30 minutes or more, to manually document call details during wrap-up. This process was time-consuming and prone to human error or subjective interpretation.

Agents can now focus on ensuring customers receive the right outcomes rather than being bogged down by administrative tasks. The AI also summarises key points and seamlessly integrates them into the customer’s journey within our system. This creates a comprehensive, auditable record of every interaction.

For building societies, this could be a game-changer. A guaranteed transcript of every customer call provides a robust audit trail, ensuring compliance with regulatory requirements. The factual, documented record removes ambiguity, offering assurance that information shared during interactions is accurately captured and easily accessible for audits.

Beyond imagination The potential of AI extends far beyond transcription. Emerging capabilities could revolutionise the management of compliance and customer care. One

MEL SPENCER is growth director at Target Group

exciting development on the horizon is sentiment analysis and the identification of vulnerable customers. Soon, AI systems will be sophisticated enough to detect specific phrases that indicate a customer may be in a vulnerable position. The AI can alert the agent in real time, prompting them to adjust their approach. For instance, the system might suggest discussing forbearance options, flexible payment schedules, or other tailored support mechanisms.

This proactive identification of vulnerability aligns directly with the principles of Consumer Duty and ‘treating customers fairly’.

By documenting that appropriate actions were taken to support vulnerable customers, building societies can demonstrate due diligence during regulatory audits.

While this advanced functionality is not yet widely available, proof-ofconcept testing is already underway.

Building societies that adopt these tools early will be well-positioned to stay ahead of regulatory demands.

The broader implications of AI adoption are profound. By automating time-intensive tasks like call documentation and enabling realtime insights into customer needs, AI reduces operational costs and frees up resources for strategic priorities.

Rather than viewing regulation as a barrier, societies can use technology to turn compliance into a competitive advantage. As AI continues to evolve, its ability to address complex challenges will only grow.

Building societies can reduce the compliance burden, enhance customer outcomes, and position themselves for sustainable growth in an increasingly regulated world. ● August 2025 | The Intermediary

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Nottingham

focus on ...

NOTTINGHAM Each month, The Intermediary takes a close-up look at the housing market in a specific region and speaks to the experts supporting the area to find out what makes their territory unique

N

ottingham’s housing market has long balanced heritage with modern momentum.

It is a city where Victorian terraces sit alongside sleek new developments and a thriving rental sector. With two universities driving steady demand, a vibrant professional population, and strong transport links at the heart of the Midlands, the city remains a focal point for potential property investors.

Yet, like much of the UK, Nottingham is navigating the headwinds of affordability pressures, shifting mortgage rates, and evolving buyer priorities. This month, The Intermediary takes a closer look at how the property landscape in Nottingham is adapting to these challenges – and the opportunities it presents for both brokers and their clients.

Property values Nottingham’s property market has shown steady resilience over the past year, with average prices across the postcode area now standing at £251,000 – a modest £3,900 (2%) rise compared to 12 months ago.

The median price sits lower at £215,000, reflecting the breadth of affordability across the city and its surrounding areas.

Established properties currently average £248,000, while new-build homes command a significant premium at £312,000.

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Transaction levels, however, tell a more cautious story: 14,100 sales were recorded, a decline of 10.6%, or 1,800 fewer transactions year-on-year. Most activity took place in the £150,000 to £200,000 range, which accounted for nearly a quarter (24.4%) of all sales, followed by the £200,000 to £250,000 band at 18.7%.

Affordability contrasts sharply across the region, with the NG1 4 postcode averaging just £98,200, while NG11 0 tops the scale at £546,000.

By property type, detached homes lead the market at £361,000, while semi-detached (£222,000), terraced (£173,000), and flats (£144,000) continue to provide more accessible entrypoints for a wide range of buyers.

A buyer’s market The Nottingham property market is currently defined by both resilience and renewed buyer leverage, as local brokers describe a city where demand remains strong, but the balance of power is shifting.

Imran Hussain, director at Harmony Financial Services, notes that “the Nottingham property market has demonstrated remarkable resilience through 2024 and into 2025,” with a steady increase in mortgage appetite as interest rates begin to stabilise.

Demand is coming from multiple directions, with both renters seizing opportunities to step onto the ladder, and landlords actively acquiring

properties from others exiting the market. This breadth of demand has helped to keep activity buoyant despite wider economic pressures.

At the same time, Nottingham is experiencing a surge in supply. As Lewis Atkinson, senior mortgage and protection adviser at Just Mortgages, explains: “There are more houses on the market right now than there has been in the last decade, [with] more than 5,000 properties currently listed across the city.” This influx has tipped conditions into “a buyers’ market,” where house hunters enjoy far greater freedom of choice and stronger negotiating power.

With sellers competing harder to stand out, properties are increasingly subject to price reductions, giving buyers more scope to save money.

Atkinson stresses that understanding one’s position and value in

Continuing resilience IMRAN HUSSAIN director at Harmony Financial Services

JESSICA O’CONNOR is deputy editor at The Intermediary

negotiations is crucial, and that brokers play a vital role in helping clients secure the right deal.

He also observes that while there is “great demand for residential mortgages in Nottingham,” the challenge lies in matching that demand with the “right property for the right price” amid the sheer number of options.

Enduring appeal Overlaying these market dynamics is Nottingham’s enduring appeal as a place to live. Matt Kingston, sales director at Nottingham Building Society, is quick to highlight the city’s “excellent transport links, a thriving food and nightlife scene, and deep cultural heritage.”

Popular suburbs such as West Bridgford, Beeston and Mapperley are seeing vibrant activity, their bustling high streets standing out against broader retail decline.

Crucially, Kingston notes that “housing remains more affordable than many comparable UK cities,” a fact which continues to draw both first-time buyers and movers seeking more space. He adds that demand has “rebounded following the post–Stamp Duty holiday slowdown,” with fresh momentum carrying into 2025.

T

he Nottingham property market has demonstrated remarkable resilience through 2024 and into 2025. However, different data sources show varying average prices, with some suggesting an average price of £251,000, making Nottingham the 29th cheapest postcode area out of 105 England and Wales’ postcode areas.

The appetite for residential mortgages has gradually increased locally, with rates starting to stabilise. Those looking to go from renting to owning have seen a surge, and landlords looking to pick up properties from other landlords exiting the market have seen an uptick.

Nottingham is undergoing a wave of transformative developments that are set to reshape the city’s economic and housing landscape. The Island Quarter is emerging as a vibrant new district with high-spec apartments, student accommodation, offices, leisure spaces, and hospitality venues, creating a premium rental hotspot close to the city centre and Nottingham Station. The Broadmarsh regeneration, reimagined as a mixed-use gateway with green space, leisure, and housing, will link seamlessly with the Nottingham College City Hub. The Nottingham Science Park is expanding alongside the University of Nottingham’s Jubilee Campus, strengthening the city’s position in life sciences and clean tech, and drawing in high-skilled professionals.

Complementing these projects are the eco-focused Waterside and Trent Basin developments, the University’s Castle Meadow Campus, and the growing Creative Quarter, which is attracting startups, creatives, and food entrepreneurs. The grassroots business scene is adding cultural vibrancy and entrepreneurial energy, further fuelling demand for rental and owner-occupier homes in emerging hotspots across the city.

Prominent demographics In addition to its enduring cultural appeal, Nottingham’s housing market is being driven by a diverse and evolving buyer base. With a population of around 1.2 million and an average age of just over 40, the area has seen steady growth of 13.5% since 2002, alongside a gradual ageing of its residents.

Nevertheless, despite these shifts, local experts say younger buyers

remain firmly at the heart of the market.

Kingston notes: “First-time buyers are our dominant group, with 82% growth in activity year-on-year.” He adds that many of these buyers are leaning on family support or turning to schemes such as Shared Ownership and Help to Buy to make their first step onto the ladder.

Kingston also highlights how the buyer profile is broadening beyond traditional patterns. → August 2025 | The Intermediary

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L O C A L FO C U S Nottingham

Broker value LEWIS ATKINSON senior mortgage and protection adviser at Just Mortgages

N

ottingham has been a highly sought after area for homeowners and investors for some time. However, there are more houses on the market now than there has been in the last decade. As a result, it has turned into a buyers’ market! Due to the volume of properties on the market, properties are struggling to stand out from each other, and there is less competition for the buyer. With sellers competing in the market to sell, this is leading to reductions in the market and driving the prices down. Knowing your worth and position is imperative when negotiating. Offering low at the right time, for the right property, can be where a great mortgage broker is extremely helpful.

With online agreements in principle being more accessible than ever, we are seeing non-proceedable offers more and more. This is due to self-disclosed information and a lack of understanding of the lender’s policies – although this may not be seen as dangerous in the current climate, it can be a huge waste of time and money to all parties involved.

In these confusing times, seeking advice from an adviser can be more important than ever.

With interest rates still being perceived as high, buyers can be torn as to whether now is the right time to buy. If rates drop further and borrowing limits increase, this could lead to more competition for properties. Some may have heard of the problems that buying a flat can cause, with leasehold terms, ground rents and cladding. With houses, we also have the types of builds, the area, spray foam, solar panels. With banks and building societies having such flexible policies, buyers are always looking to maximise their budget. Being savvy and exploring different lenders’ policies could be the difference.

He explains: “There’s also notable growth in applications from those with non-traditional incomes, […] with 31% of brokers reporting more cases involving irregular earnings and 23% citing a rise in self-employed applicants.” This growing variety speaks to Nottingham’s economic diversity and demographic depth.

“Nottingham’s buyer base is diverse,” Kingston says, pointing out that more than 42% of residents come from ethnic minority backgrounds, with particularly high representation in the private rented sector (PRS).

At the same time, Hussain observes a shift in demand that underscores the city’s investment appeal. He notes: “The biggest change we have seen is the demand for good quality advice in the buy-to-let space, which has surprised me, as we have always done a lot of work with first-time buyers.”

While first-time buyers remain a core focus, he says the split of clients

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in his business now sits at around 6040 between residential and investment borrowers, with landlords playing an increasingly prominent role in shaping the market.

Lender trends Lender choice is proving to be just as varied as the city’s buyer base, with borrowers increasingly willing to shop around to secure the best fit for their circumstances.

Atkinson says: “With banks and building societies having such flexible policies, buyers are always looking to maximise their budget to buy their dream home. Being savvy and exploring different lenders’ policies could be the difference between having an offer accepted on your dream home.”

It is this willingness to compare that is shaping a market where both high street giants and specialist names are playing pivotal roles. Hussain

highlights Halifax as the standout player for residential lending. At the same time, he notes that the buy-tolet sector has a broader spread, with “the likes of The Mortgage Works to Aldermore and Landbay for HMOs” all featuring prominently when it comes to the buy-to-let market.

Local options also carry real weight.

Nottingham Building Society, for example, has been sharpening its offer with targeted incentives.

Kingston explains: “We have introduced rate cuts of up to 0.17%, £1,000 cashback offers at 90% and 95% [loan-to-value (LTV)], higher income multiples of up to 5.5-times for earners above £85,000, and reduced stress rates on 2-year fixes.” These measures aim to help groups that often fall through the cracks, from first-time buyers and older borrowers to foreign nationals and the self-employed. More broadly, Kingston notes, it is encouraging that lenders across the market are increasingly prioritising speed and clarity to support today’s increasingly complex borrower profiles.

Rental demand Nottingham’s rental and buy-to-let sector has become a defining feature of the city’s housing market, with private rentals accounting for 23.9% of local housing stock — just above the England and Wales average of 23.6%.

Demand, locals say, is showing little sign of waning.

Pointing to both rising rents and impressive returns, Kingston says: “Demand for rental properties is robust. As of June 2025, average monthly rent in Nottingham is £982, up 7.4% from £914 a year earlier – still below the UK average of £1,344.”

He adds: “Prime central postcodes such as NG1 see average rents of £1,190.

Average yields are reported at 8.7%, making Nottingham attractive to investors.”

For investors, certain neighbourhoods stand out as particular hotspots. Atkinson highlights Sneinton, Forest Fields, and St Ann’s as “areas that are definitely showing growth and popularity within the market,” thanks in part to regeneration and funding programmes that are reshaping their appeal. These districts, he notes, present “great yields for buy-to-let investors and opportunities for firsttime buyers.”

L O C A L FO C U S Nottingham

The area’s property market is also being shaped by a wave of new developments and regeneration projects. Newly built homes in the Nottingham postcode area now average £312,000, marking a £12,400 (4%) increase year-on-year.

Sales volumes reflect steady demand, with 623 new-build transactions over the past 12 months.

Most of these fell into the £300,000 to £400,000 bracket, which accounted for 33.5% of sales, followed by 21.2% in the £250,000 to £300,000 range. NG17 3 emerged as the busiest postcode, with 48 new homes sold between July 2024 and June 2025.

Against this backdrop, largescale regeneration schemes are reshaping both the property market and Nottingham’s wider economic identity.

“Nottingham is undergoing a wave of transformative developments that are set to reshape the city’s economic and housing landscape,” says Hussain, highlighting projects such as The Island Quarter – a 36-acre redevelopment of the former Boots Island site that blends high-spec apartments, student housing, offices, and hospitality into a vibrant new district. He adds that the Broadmarsh regeneration, with its mix of housing, green space, and leisure, will link seamlessly to Nottingham College’s £58m City Hub campus, already driving student and staff demand for local housing.

Hussain also points to the Nottingham Science Park expansion and the University of Nottingham’s Jubilee Campus as innovation hubs that are attracting high-skilled

Rebounding demand MATT KINGSTON sales director at Nottingham Building Society

W

e are seeing signs of a buyer’s market. Increased competition among high street estate agents is becoming increasingly evident – which ultimately benefits sellers.

Interestingly, this surge in competition hasn’t led to lower fees across the board. Instead, we’re seeing a shift in seller preferences toward independent estate agents.

First-time buyers are extremely eager, but there’s a shortage of suitable stock. Nottingham always seems to have a new-build development underway, which is an encouraging sign of steady growth.

Given the city’s wide geographic spread, there’s always scope for further expansion. One of the most consistently active areas is SA1, close to the waterfront. For those seeking a quieter lifestyle outside the city centre, there are also numerous developments on the outskirts of Nottingham, ideally located just off the M4 motorway.

Nottingham benefits from excellent transport links, a thriving food and nightlife scene, and deep cultural heritage – from literary figures like Byron and D.H. Lawrence to historic architecture and folklore. Its two universities bring a cosmopolitan edge, while suburbs such as West Bridgford, Beeston, and Mapperley are thriving with destination high streets that buck wider retail trends.

Demand has rebounded following the post–Stamp Duty holiday slowdown. Nottingham and its suburbs are experiencing healthy interest from buyers, with renewed momentum in both first-time purchases and home mover activity.

Optimism is on the rise: eight in 10 local brokers reported a positive market outlook at the beginning of 2025, driven by stabilising mortgage rates, greater product flexibility, and steady first-time buyer demand.

First-time buyers are our dominant group, with 82% growth in activity year-on-year. Many are younger buyers pooling resources with family or using schemes like Shared Ownership or Help to Buy. Affordability remains a challenge, but product innovation is helping to bridge the gap.

Nottingham Residents

1.2m Average age

40.7

Residents per household

2.36

Nottingham postcode area.

Source: www.plumplot.co.uk

professionals to suburbs like Wollaton, Beeston, and Lenton.

Kingston echoes this: “Nottingham has several major regeneration projects under way,” also citing the Broadmarsh redevelopment – and The Island Quarter masterplan.

He also notes there continues to be suburban growth in areas such as Edwalton and Hucknall, including 760 new homes at Top Wighay.

Alongside eco-focused projects like Trent Basin and the cultural energy of Sneinton Market’s Creative Quarter, these schemes are collectively reinforcing Nottingham’s reputation as a city on the rise – boosting both its housing market and its appeal as a place to live, work, and invest.

On the rise Nottingham’s property market feels like it is standing at an inflection point. The cranes on the skyline, the buzz of regeneration, and the steady hum of buyer activity all point to a city in transition – one that is steadily redefining itself.

Brokers describe a market rich in choice, where buyers can negotiate confidently, landlords are recalibrating strategies, and developers are reshaping entire districts. As Atkinson sums up: “There has been a great demand for residential mortgages in Nottingham and we are seeing buyers crying out for properties – the challenge is, with so much selection, finding the right property for the right price.” ● August 2025 | The Intermediary

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On the move...

F

Finova appoints customer success director

inova has appointed Ray Barry as customer success director, as part of a broader strategic investment in customer experience. Barry brings over a decade of senior leadership experience, including at Microso , Salesforce, and IBM. RAY BARRY In his new role at Finova, he will be responsible for building the customer success team – recruiting talent, introducing data-led strategies, and ensuring that customer interactions

are consistently aligned with clients’ business objectives.

Barry said: “Joining Finova at this pivotal moment in the company’s journey is a really exciting opportunity.

“We are creating a customer success practice that will set a new benchmark in the mortgage technology space, designed to anticipate customer needs, deliver strategic outcomes, and forge long-term partnerships.

“I’m looking forward to leading this transformation and building a team commi ed to empowering our customers at every stage of their journey.”

The Exeter appoints Karen Senior as company secretary

Millbrook appoints Stuart Benge to lead commercial property finance division

T

he Exeter has appointed Karen Senior as company secretary, succeeding Zoe Kubiak, who has retired a er six years in the role.

Senor joins The Exeter with more than two decades of experience in company secretarial and legal roles across a range of sectors, including the music industry, financial services and utilities.

Senior most recently served as company secretary at Virgin Money Investments KAREN SENIOR (VMI), where she played a key role in supporting corporate actions and governance reviews.

Senior will focus on upholding the mutual’s commitment to high standards of governance, and supporting the board and executive leadership team.

She said: “I am delighted to be joining The Exeter as company secretary, an exciting role that will help to bring continued success to the organisation in the coming years.

“The Exeter’s status as a mutual insurer and its collaborative culture were key reasons for me joining."

M

illbrook Business Finance has appointed Stuart Benge as head of commercial property finance.

Benge will initially oversee the launch of the commercial property finance business and proposition, before leading the team and driving growth in this area. Benge has held roles at Hodge Bank, Assetz Capital and Norwich & Peterborough Building Society/YBS Commercial.

He said: “I am very excited to be joining Millbrook at a pivotal stage of their growth journey and to be leading their entry into commercial property finance.

“Commercial property finance is a natural extension to build upon the excellent foundations that have been built by Justin and his team to position Millbrook as a leading business finance broker with SMEs.” STUART BENGE

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Together appoints regional account managers

T

ogether has appointed James Roche and Richard Pugh to its intermediaries team as regional account managers.

Roche has held roles at Santander, Yorkshire Building Society, Cambridge & Counties Bank and Reliance Bank.

He said: “I am thrilled to be joining the team at Together.

The company has an exceptional feeling of closeness for such a large organisation, and its entrepreneurial outlook really appealed to me.

“My aim is to continue to a ract the right customers that fit the Together way, building and nurturing long term partnerships with our valued brokers.”

JAMES ROCHE (LEFT) AND RICHARD PUGH

Pugh previously worked as a business development manager at Pepper Money, Nationwide and The Mortgage Works. He said: “I knew Together had a great culture; the company works at an impressive pace, with amazing people all looking to provide the best financial solution for clients.

“I am excited to broaden my own experience with new product sets and work with our broker partners, showing them how Together can help their client base.

“Building relationships and identifying new opportunities has always been a passion of mine, which fits perfectly with Together’s culture.”

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