The Intermediary – December 2025

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OPINION Insights from Barclays, Investec, Together, IMLA, OPDA and more

INTERVIEW Adam Butler on SME lending and Avamore’s ongoing evolution

RAPID REACTION The experts weigh in as the dust settles post-Budget

Intermediary.

The

www.theintermediary.co.uk | Issue 35 | December 2025 | £6

“I already know what you’re giving us, the OBR leaked it hours ago”

SEASON’S BRIEFINGS Reflecting on a year of reform and recalibration

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From the editor...

B

etween the latest Budget, shi ing lender appetites, surprise data drops and the ongoing national debate over whether anyone will ever understand EPCs, this year has felt less like an economic cycle and more like a long-running drama series – with the mortgage industry playing all the lead roles and doing all its own stunts.

Sadly, it’s not a very well wri en show. Even as someone who enjoys my fair share of schlock, I’m ge ing a bit sick of the melodramatic highs – like the thrill of hunting down a leaked document – being followed by damp squib plot twists and open-ended stories with frustrating conclusions. “Tune in next time to find out if our plucky heroes make it to their final housebuilding targets in the nick of time!” The suspense doesn’t exactly have me hooked.

Case in point, buyers, landlords, lenders and brokers waited with bated breath for a season finale Budget belter that ultimately le everyone wanting more.

There are reasons to keep tuning in, though.

A cast of side and supporting characters that keep us hooked with their grit, creativity and innovation, even when the central storylines have truly jumped the shark.

The themes will likely be familiar next season: resilience, reinvention, creativity. Buy-to-let will be pressured by tax policy, regulation and rental realities, yet landlords will find ways to adapt. Residential borrowers will keep cautiously

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emerging from rate shock, even if the dream of a sub-3% fix still feels like folklore. And specialist finance? It will remain the market’s pressure valve, quietly absorbing everything the mainstream can’t or won’t do, while inventing the occasional product category just to keep life interesting and the viewers hooked.

What has genuinely stood out this year, as I find myself saying quite o en these days, is the intermediary community’s ability to pivot without losing their sense of humour, or their trademark grit.

Competition is picking up, pricing is edging in the right direction (most days), and innovation is filtering through every corner of the market.

The pace is uneven, but the direction is unmistakable.

At Astor Media, this year saw us go from a small cast arthouse drama to a blockbuster with multiple spin-offs – and we couldn’t be more excited for our next stage of development.

So, as we head into the ‘Christmas Special’ part of the 2025 season, I don’t think it’s too off-script to gather round the proverbial hearth – chestnuts roasting, and all that – for a toast to a year well survived. Now that I’ve well and truly laboured the metaphor, I’ll leave you with this message: from our team to yours, well done, merry Christmas, a happy new year, and we’ll see you on the other side. ●

Jessica Bird @jess_jbird

@IntermediaryUK

Contributors

The Team

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OPINION Insights from Barclays, Investec, Together, IMLA, OPDA and more

INTERVIEW Adam Butler on SME lending and Avamore’s ongoing evolution

RAPID REACTION The experts weigh in as the dust settles post-Budget

Intermediary.

The

www.theintermediary.co.uk | Issue 35 | December 2025 | £6

Jessica Bird ............................. Managing Editor Jessica O’Connor .......................... Deputy Editor Marvin Onumonu ............................... Reporter Brian West ................................. Sales Director brian.west@astormedia.co.uk Millie Sweetman .. Commercial Development Executive Laura Strelconoka................... Campaign Manager Ryan Fowler .......................................Publisher Felix Blakeston .................... Associate Publisher Helen Thorne .................................... Accounts finance@astormedia.co.uk Orson McAleer .................................... Designer Bryan Hay ................................ Associate Editor Subscriptions subscriptions@theintermediary.co.uk

Adam Butler | Adrian Watts | Alistair Nimmo Andrew Gething | Averil Leimon | Anna Lewis Ben Beadle | Charlie Warner | Chris Wilson Conor McDermott | Dave Harris | Derek Ryan Gary Thompson | Guy Gittins | Hamza Behzad Hiten Ganatra Jerry Mulle | John Phillips John Wickenden Jon Di-Stefano | Jonathan Fowler Jonathan Rubins Jonny Jones | Kasia Makarewicz Kate Davies Louisa Ritchie | Maria Harris Martin Sims Melanie Spencer | Nina Kainth Omar Al-Hasso | Paul Carter | Paul Silver Pete Dockar | Peter Izard | Richard Sexton Rikesh Saujani | Rob Houghton | Rob McCoy Sam Mitchell | Simon Bateman Simon Thompson | Simon Vernon-Harcourt Steph Dunkley | Steve Goodall | Steve Nobbs Stuart Davidson | Tanya Elmaz | Tippie Malgwi

“I already know what you’re giving us, the OBR leaked it hours ago”

SEASON’S BRIEFINGS Reflecting on a year of reform and recalibration

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INTERVIEWS & PROFILES

Contents Feature 26 20 2 5: A Y E A R I N R E VI E W

Jessica O’Connor and a host of industry names reflect on the events of the past 12 months

Rapid Reaction 58 Experts unpack the measures introduced in the November Budget

Broker business 74

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

Local focus 80

The Intermediary braves the blizzards of the North Pole property market to uncover why it’s finally beginning to thaw

On the Move 82

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

SECTORS AT-A-GLANCE

Residential 6 Buy-to-let 22 Specialist Finance 32 Second Charge 52 Later Life Lending 54 Technology 62 Protection 69

The Interview 42 AVAMORE CAPITAL

Adam Butler on the lender’s evolution and helping developers take their next steps

In Profile 12 TA B

Rikesh Saujani talks growth strategy and a transformative 2025

Q&A 50 RECOGNISE BANK

Simon Bateman discusses the 2026 market and his plans for the bank

Meet the Broker 72 S T E P BY S T E P F I N A N C I A L S O L U T I O N S LT D .

Kasia Makarewicz on her journey as a broker and the opportunities in the market

Meet the BDM 46

M E RC A N T I L E T R U S T

Nina Kainth discusses the challenges and opportunities for BDMs

The Intermediary | February 2023

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RESIDENTIAL Opinion

Financial wellbeing: What our members really think

A

s a mutual building society owned by its savers and borrowers, it is vitally important that we know and understand how our members feel, not only about their and their families’ financial wellbeing, but also about the wider economic outlook and how it affects their important financial decisions.

At the Family Building Society, we’ve been running ‘Financial Wellbeing’ surveys twice-yearly since late 2023. They are a crucial part of the feedback we gather from our members and an important window into members’ real-world views and sentiments.

Our latest survey, conducted in the run up the most recent Autumn Budget, received 4,276 responses, representing an impressive 15.7% response rate.

Questions posed to Family Building Society members ranged from the fairly broad, ‘what does financial wellbeing mean to you?’ and ‘how do you feel about your financial wellbeing?’ to more specific questions on the economy and the direction of interest rates, the housing market and the abolition of Stamp Duty.

This latest survey highlighted that the outlook among our members has remained fairly stable, with most continuing to report positive sentiment about their financial wellbeing.

Core definitions of ‘wellbeing’ remained unchanged from previous surveys, centring on financial security, sufficient income, and resilience against unexpected expenses. Emotional dimensions such as the absence of worry also continue to shape perceptions of financial stability.

6

The Intermediary | December 2025

Members’ expectations for the economy have shi ed towards a more neutral position, with fewer anticipating a slowdown and more predicting stability.

Taxation has emerged as the leading perceived threat to financial wellbeing, most probably due to the long and drawn out period of speculation about what would actually be in the Budget, narrowly surpassing the cost-of-living crisis, which was the biggest threat in the ‘Spring 2025 Financial Wellbeing’ survey.

Housing supply reforms drew fanatical support for measures such as abolishing Stamp Duty for downsizers (62%), prioritising brownfield development (53%), and converting unused office space into homes (47%).

Procedural changes, such as simplifying planning or increasing levies, a racted less support.

Borrowing cost expectations have moderated significantly since 2023, with fewer predicting sharp rises and more anticipating stability or decreases.

The responses to retirement planning remain consistent, with most members already retired and few expecting to make changes to their retirement plans.

The pension triple lock received strong backing, with nearly half calling it ‘essential’ and a further quarter supporting retention with review.

Net zero initiatives a racted steady support for energy reduction and green incentives, though scepticism has grown with nearly one in five now saying lenders should take no action.

In summary, the key themes that emerge from our Autumn 2025 survey were: Stable personal wellbeing: Most members continue to feel

ALISTAIR NIMMO is director of marketing at the Family Building Society

financially secure and resilient, with li le change over time.

Taxation overtakes cost of living: This is the top perceived threat to financial wellbeing, signalling a shi in financial concerns.

Practical housing solutions preferred: Strong support for abolishing Stamp Duty for downsizers, brownfield development, and office-tohome conversions.

Borrowing cost expectations moderating: Fewer predict sharp rises, more expect stability or decreases, reflecting optimism.

Retirement stability: Majority already retired with minimal shortterm changes planned.

Triple lock support: Nearly half see it as essential, with others backing retention but open to review.

Net zero scepticism rising: While energy reduction and green incentives remain popular, more members now question lender involvement, and whether we should do anything at all.

Like many others, our members were forecasting a largely negative Autumn Budget, with 59% expressing concern and only 1% feeling positive. Their expectations of tax increases, with many anticipating measures affecting ISAs limits, which were flagged, have proved accurate, with many fearing a Budget focused on raising revenue, with limited relief for those already facing financial pressure.

The effects of Rachel Reeves’ announcements on 26th November will certainly make for interesting reading when our next survey is published in the spring of 2026. ●

RESIDENTIAL Opinion

Time to move and improve

T

he festive period is fast approaching. Families gathering, dining tables being extended, drinks slung outside to keep them cold as there isn’t enough room in the fridge. Makeshi beds made up, dining chairs in the lounge and a strong realisation by many that perhaps the house has been outgrown.

New year, new start. The cliché that many agree to when heading into January. But in 2026, I think it really will be. With the greater accessibility of lenders out there, along with some regular positive news in 2025 with regards to the Bank of England’s base rate being reduced four times leading to further market confidence, the start of the New Year will prompt people to take the plunge.

What that looks like exactly, I’m not yet sure. With some recent fixed rate reductions, I’m sure many will consider a home move, dependent on the a ermath of Rachel Reeves’ Budget, or others might consider significant home improvements to

make their space work be er for them now that borrowing is, on the whole, a li le cheaper.

I’ve recently connected with an architect whose practice is based locally to our head office in Colchester, and they’ve mentioned how many homeowners are not just considering remodelling their spaces, but also factoring in sustainability.

So, when homeowners consider a move or a remodel, I do feel that, due to planning laws being relaxed on the whole – especially with Permi ed Development Rights (PDR) expanding being a real key here – a substantial remodel, extension or increased energy efficiency in the existing home is likely to be a key contender.

We see it with mortgage products, too. Energy efficiency-linked mortgage products are in their abundance, with be er rates or cashback being offered to properties with energy performance ratings of A, B and sometimes C. This might prompt homeowners to finally borrow the money to insulate their home be er, change their

The festive period leads many to realise their home has been outgrown

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

windows, or introduce an air source heat pump.

With an architect’s assistance, the space in a home could truly be unlocked. Free-flowing spaces, a seamless combination of interior and exterior, and more meaningful living spaces created to suit the family.

If people opt for a move, again there are benefits. As of the end of November, some SONIA swaps are significantly lower than a year previous. For example, as of 20th November 2025, a 5-year SONIA swap rate is at 3.650%, compared to 3.954% a year prior. This gets factored into lender fixed rates, so overall the borrowing becomes cheaper.

Although we hear about inflation easing, energy prices are still tumultuous – so again, homemovers might aim to capitalise on ‘green’ mortgage products by buying energy efficient homes.

So, the start of 2026 I feel is going to be a busy one. Yes, credit cards might be a li le more utilised than usual that soon a er the festive period, but I feel it’ll be a very busy one for us advisers in the mortgage industry.

Clients have had to hold off for long enough until rates eased a li le.

Now they’ve started to, I think clients are growing tired of waiting, and now advisers are able to access a real multitude of products with higher income multiple offerings and higher loan-to-values, it’ll prompt them to either move or improve.

I’m sure lenders will be prepared for the influx. We definitely are! ● December 2025 | The Intermediary

7

RESIDENTIAL Opinion

RENEWED CONFI BROKERS AND BO

A

s we reach the end of 2025, the mood across the mortgage market feels markedly different from the anxiety that characterised the middle of the year.

The run-up to the November Budget froze the housing market, with rumours of radical property tax reforms prompting more than 10,000 movers to pause plans.

But the Chancellor ultimately stepped back from the most disruptive options, and the relief across the industry has been palpable.

There is now greater space for confidence to return – brokers are entering 2026 with a clearer sense of stability than they have enjoyed for some time.

This greater economic and political certainty is no small thing. For over two years, advisers and their clients have had to navigate volatile swap rates, unpredictable pricing, on-off house price forecasts and shifting expectations around interest rates.

In contrast, the backdrop as we move into 2026 is calmer, more comprehensible and, crucially for brokers, far more conducive to longterm planning. Inflation continues to fall, the Bank of England is forecasting Bank Base Rate at around 3.5% by the end of 2026 and lenders remain fiercely competitive, with more than 7,000 products on the shelves.

After a long period of firefighting, advisers can once again spend more of their time on proactive client engagement rather than crisis management.

In borrowers’ favour The regulatory environment is also beginning to work more

8

The Intermediary | December 2025

constructively for borrowers. The Financial Conduct Authority’s (FCA) relaxation of certain affordability rules and the loosening of loan-toincome (LTI) flow limits haven’t yet fed through fully into completed sales, but the market should grow in 2026 as more customers qualify for higher loans following the changes.

For brokers, this means more first-time buyers whose plans might finally be within reach, more options for single-income applicants, and a broader conversation with clients about how much borrowing is realistically achievable.

After several years in which affordability was the dominant constraint, this shift provides welcome breathing space.

Remortgaging will remain a dominant theme next year, with another wave of pandemic-era fixes due to mature. Many borrowers rolling off 2- and 5-year deals will need the kind of nuanced advice only intermediaries can provide: balancing payments, term lengths, product types and wider financial goals.

In 2025, we saw a strong return to advised remortgaging after a period in which high rates had pushed many towards product transfers simply to avoid affordability hurdles.

With rates continuing to fall, 2026 will strengthen this trend further.

Brokers will have more opportunities not just to save clients money, but to carry out the full financial review that so many households have deferred amid the cost-of-living squeeze.

Rental pressures The buy-to-let (BTL) sector remains more complex. The Renters’ Rights Act will be fully felt in 2026, and the Chancellor’s 2% increase in Income

KATE DAVIES is executive director at the Intermediary Mortgage Lenders’ Association

Tax on rental income will tighten margins further for the 81% of landlords who hold property in their own names.

Smaller landlords are likely to feel the pressure most acutely. Some will choose to exit, others will raise rents, and increasing numbers are likely to follow the long-running shift into limited company structures.

Brokers will play a central role in guiding investors through these decisions and referring them to tax advisers where appropriate. The demand for professional advice here is only going to grow.

Modernising the market Beyond the immediate economics, one of the most transformative forces for brokers in 2026 may come from the long overdue modernisation of the homebuying process.

The Government’s consultation on digitising the property transaction system, including digital property packs, standardised data, interoperable systems and mandatory qualifications for estate agents, could result in material

RESIDENTIAL Opinion

I DENCE FOR O RROWERS? improvements in speed, certainty and consumer experience.

While reforms will take time to implement, the direction of travel is clear: more digital identity verification, better-quality upfront information, real-time data sharing across the chain, and far

less duplication. For brokers, the significance is twofold.

First, a more reliable transaction process means fewer collapsed sales.

Brokers know better than anyone how frustrating it is when a fully underwritten mortgage case falls apart because of delays or breakdowns

elsewhere in the chain. Every failed sale represents wasted work for advisers and missed opportunities for borrowers. Digitisation, if implemented well, should dramatically reduce this friction.

Second, a more streamlined system frees advisers to spend more time advising and less time chasing paperwork, reissuing documents, or managing client anxiety during long periods of silence.

Housebuilders may also find 2026 more productive. The Planning and Infrastructure Bill is expected to receive Royal Assent early in the year, which should help speed up approvals and reduce legal bottlenecks.

It will not transform supply overnight – nothing can – but a more responsive planning system will be welcomed by brokers in high-demand areas where buyer frustration has been building for years.

Moving forward Overall, the shape of 2026 looks markedly more positive than anything the market has seen since before the mini-Budget shock of October 2022.

With lower rates, improving affordability, clearer regulation, a stable tax environment and the first steps towards genuine modernisation of the homebuying process, we are entering the new year on stronger ground.

There will still be challenges – including property undersupply and landlord attrition – but the industry finally has the one thing it has been missing most: predictability. ●

December 2025 | The Intermediary

9

RESIDENTIAL Opinion

High-net-worth borrowers are back PETER IZARD is head of business development intermediary mortgages at Investec

F

The mansion tax will apply only from 2028 and payment can be deferred until the property is sold

or high-net-worth (HNW) borrowers, the Chancellor’s Budget delivered something that has been missing in recent months: clarity.

Although many of the major tax measures announced will not take effect for some time yet, the near-term landscape is now more predictable.

This ma ers for clients considering large mortgages or complex property transactions, who now have a clear view of the horizon before they take the plunge and commit to a significant move.

A key source of hesitation had been speculation about possible changes to Stamp Duty. Clients with significant borrowing requirements are highly sensitive to shi s in property taxation, given the scale of the transactions they undertake.

The confirmation that Stamp Duty will remain unchanged removes a concern that had held many highvalue purchases in a holding pa ern.

The effect is especially relevant in London and the South East, where prime properties are usually at their most pricey.

Because most of the new tax measures will not take effect until 2028, the Budget does not create immediate fiscal tightening.

10

The Intermediary | December 2025

For high-net-worth borrowers, this ma ers because it feeds directly into expectations around interest rates.

The near-term environment still points towards a Bank of England rate cut in December, and Investec expects the Bank Rate to fall to 3% by the end of next year. This would offer greater comfort to buyers taking out larger mortgages, where even small reductions in borrowing costs have a sizable impact.

The market reaction to the Budget was also modest. Gilt markets remained stable and strengthened a er the updated Debt Management Office financing plans were released.

Stable gilt yields feed directly into mortgage pricing, especially at the upper end of the market where loan sizes magnify the effect of small shi s in funding costs. Clients who have been monitoring rate movements will take comfort from the calmer backdrop.

The ‘mansion tax’, described by some as effectively a Council Tax surcharge on larger properties, has also been an important area of focus.

While this is in train, it will apply only from 2028, and payment can be deferred until the property is sold.

Although future liabilities will rise for affected households, the long implementation window provides

time for planning. This structure avoids sudden disruption and is unlikely to produce immediate pressure on prime market activity. It gives clients the opportunity to adjust their financial planning and lending strategies in a measured way.

This clarity will now allow prospective clients to re-enter the market, and I believe we will see those waiting in the wings move centre stage. The combination of reduced uncertainty, a more stable path for inflation and an expectation that borrowing costs will ease over time is likely to release considerable pentup demand. We expect much of this to come through in the first quarter of 2026, especially among clients who have been waiting for a more predictable environment.

Intermediaries play a vital role in helping clients re-engage with the market, and we are deeply invested in supporting their growth and working alongside them at every stage.

The fundamentals that drive highnet-worth borrowing remain intact.

Demand has been deferred rather than diminished, and the environment is increasingly supportive of renewed activity.

The Budget has provided the stability high-net-worth clients needed. With clearer policy signals, a calmer gilt market and an outlook that still points towards lower interest rates in the months ahead, the foundations are in place for a stronger 2026. ● The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Investec or its affiliates. This content is provided for general information only and should not be regarded as financial, legal, or professional advice.

RESIDENTIAL Opinion

In-house teams are unprepared for the next arrears wave

A

stark warning emerged from the UK mortgage sector last month: six out of 10 senior lending executives do not believe their in-house servicing teams are ready for a more volatile economic environment.

At the inaugural Future of Mortgage Servicing Conference at The Belfry in Birmingham in November, 100 C-suite delegates were asked a single, blunt question: “In the face of an economic environment that is set to become more volatile, are your in-house servicing teams ready to support borrowers?”

The live poll delivered a sobering result. Almost half (47%) answered ‘no’, while a further 12% said they were ‘not sure’. That leaves only two in every five of the lenders (41%) confident their in-house teams will be able to cope when the going gets tough.

For an industry that has enjoyed more than a decade of historically low arrears, the findings highlight a growing unease at boardroom level.

Anyone who has worked in mortgage servicing for more than a few years knows what economic volatility really means.

In the early 1990s, the ERM crisis saw the Bank of England raise the base rate to 15%. 1.8 million households slipped into negative equity and mortgage possessions hit 75,610 a year – the equivalent of 300 possessions every working day.

The Global Financial Crisis saw unemployment rise to 8%, house prices drop 16%, and serious arrears climb to 2.3% of outstanding balances.

More recently, the cost-of-living squeeze – turbo-charged by the shortlived Truss-Kwarteng mini-Budget and the resulting spike in swap rates –

pushed total arrears cases to 85,000 by mid-2023, with possessions rising 40% year-on-year.

Each of these episodes shared one common outcome: a rapid increase in customers needing intensive support.

And each time, in-house servicing teams that had been rightsized for calm waters were suddenly swamped.

Today’s challenges are different, but no less daunting, and last month’s Budget sharpened the risk. Rachel Reeves is upping rates to 22p, 42p and 47p on income from interest, rents and dividends. The Chancellor is taking tax from 34.7% of GDP last year to a record high of 38.3% by 203031, with total Government receipts hi ing 42.4%.

Squeeze ahead The share of taxpayers paying the 40p or 45p rate will have jumped from 15% in 2021-22 to 24% in 2030-31, normalising what once seemed like pre y extortionate marginal taxation (hardly anybody paid the 40p tax rate in the 1980s).

Rachel Reeves has now raised tax by about £68bn a year over two Budgets.

The ‘mansion tax’ – £2,500 a year for homes worth £2m, £7,500 a year for those over £5m – will compound the pain. The incomes of borrowers are clearly going to be squeezed.

Lenders now face both persistent economic uncertainty and fastevolving regulation.

The Financial Conduct Authority’s (FCA) Consumer Duty means lenders must not only demonstrate a higher, proactive standard of care, but also must also evidence ‘good outcomes’ for customers.

The combination of volatile economic conditions and complex regulation means servicing teams that worked perfectly when arrears are

MELANIE SPENCER is growth director at Target Group

0.8% of the book can quickly become a regulatory – and reputational – liability when that figure doubles or triples.

These teams, designed for a more benign environment, lack the scalability to pivot quickly. As one speaker at the conference noted, even a modest 20% increase in serious arrears could overwhelm some lenders within weeks.

The solution lies in a combination of process re-engineering, workforce planning, and critically, technology.

Forward-thinking lenders are already deploying AI-driven earlywarning systems that flag at-risk accounts months before a payment is missed. Automated triage tools can route cases to the right team at the right time, while pre-configured forbearance pathways ensure vulnerable customers receive swi , compliant arrangements rather than generic le ers.

Specialist third-party servicers such as Target Group are seeing increased interest from lenders that recognise that building this capability in-house from scratch is neither quick nor cost-effective.

A er more than 45 years servicing loan books through every economic cycle imaginable, we know that the firms most likely to thrive are those that treat the readiness of in-house servicing teams as a strategic priority now, rather than a tactical clean-up operation later. The lenders that invest today in scalable, technology-enabled servicing will be the ones best placed to protect both their customers and their own balance sheets when the next storm hits. Those that don’t may find that ‘business as usual’ is no longer an option. You fix the roof when the sun is shining. ● December 2025 | The Intermediary

11

In Profile.

TAB

Jessica O’Connor speaks with Rikesh Saujani, CCO at TAB, about growth strategy and a transformative 2025

A

s TAB continues its evolution in the specialist and mortgage markets, CCO Rikesh Saujani is working closely with the senior leadership team to shape TAB’s commercial strategy, strengthen funding partnerships and support the development of new opportunities across the group.

Speaking with The Intermediary, Saujani reflects on the year, and outlines the careful balance TAB is striking between growth and responsible lending.

A milestone year

2025 may have been marked by uncertainty for the industry, but for TAB, it has been quietly transformative. Saujani says: “We’ve had a tremendous year. We’ve secured a £500m funding line. That has taken a lot of work, and it sets out the stall for what we’re trying to do as a business.”

This goes beyond the immediate boost to lending capacity. For TAB, it represents validation from institutional partners and a clear signal that its underwriting and operational foundations can support a much larger platform.

For Saujani, the real challenge of 2025 has been ensuring that the internal engine of the business – its people and systems – can evolve at the same pace as its ambitions.

“Origination volumes have been consistent for us,” he notes. “We’ve been trying to match our processes to scale with that funding without compromising our standards. It’s not just about the numbers and what you’re doing, it’s about doing it well and providing quality.”

Human-first approach

While much of the industry has raced toward automation, often under cost and efficiency pressures, Saujani believes that specialist lending remains fundamentally a people business, especially when borrower circumstances are increasingly complex and market conditions can shift rapidly.

For Saujani, technology should not be a substitute for expertise and the ability to understand the nuances within each deal. Instead, it should act as an enabler that removes friction, reduces administrative burden, and frees skilled professionals to focus on underwriting and 12

The Intermediary | December 2025

RIKESH SAUJANI

relationship-building. However, this does not mean shunning innovation. TAB is actively bringing in new systems, but only where they support the experience of its team.

TAB has concentrated efforts on enhancing its internal processes. This internal evolution is not about uprooting what already works, but about building additional structure and clarity around the journey borrowers take when they engage with TAB. This includes “bringing in automation where it works.” Routine administration and data processing are chief among the tasks being streamlined, allowing underwriters to remain focused on the all-important decision-making.

But Saujani is the first to acknowledge that internal efficiencies can only get the business so far. A faster, smoother process requires borrowers to be equipped with the right expectations – and the right information – from the outset.

He explains: “We’re ultimately trying to simplify our borrower journey and make it clearer, ensuring they’ve got the information they need ahead of time. That way, when the applications come in, they know exactly what information to provide us. That starts the process really well, because we have those internal support tools which take us through the process a lot cleaner and faster.

It means we’re not wasting time asking for more information or looking for missing documents; we’re actually working on the case itself.”

This focus on clarity and smarter processes naturally extends into TAB’s wider technology strategy. While the business is incorporating more automation into its operations, Saujani approaches artificial intelligence (AI) with a measured scepticism. For him, the most transformative technologies are those that integrate quietly and effectively, not that make the loudest claims.

In an era when “AI-powered” has become a marketing term as much as a technical descriptor, Saujani is wary of innovation for innovation’s sake.

He believes that much of what is touted as AI is merely data handling or automated organisation.

“We’re using it as part of our overall business engine that helps us to do things better, faster and more reliably,” he says.

I N P RO F I L E

Market trends and headwinds

No part of the housing and finance market has been entirely insulated from the pressures of the past year. The result has been a property landscape characterised by hesitation.

“Externally, we’ve seen an affordability squeeze, inflationary problems and financial problems,” Saujani says. “And in the run-up to the Budget, people were facing the unknown. It caused a lot of uncertainty.”

These conditions have affected everything from conveyancing to borrower timelines. Even where appetite has remained strong, the rhythm of the market is slower and more fragmented.

Saujani says: “We’ve also seen a lot of legal friction – the biggest drag we’ve seen is that people are still finding things difficult, and the time to process deals is taking longer.”

Rather than stepping back from the market, customers have become more cautious and more dependent on extended timelines, particularly when planning refinances.

Saujani says: “For example, people come in and they take out a bridging loan for a year with the view to refinance within eight or nine months, and they’re now taking that full amount of time because things are just happening slower; that’s due to uncertainty in the marketplace.”

Another significant challenge is the inefficient approach to property data, which “causes the same bottlenecks across the whole industry.”

Saujani is clear that structural intervention is needed, which might be in the form of a private partnership or national reform, adding: “I’m not saying that it’s the technology that needs to improve, it’s the ability to access that data.”

With refinancing challenges emerging across the wider market and transaction speeds slowing in certain regions, TAB has been refining its approach to underwriting. The goal is to remain aligned with how different pockets of the market are behaving.

“We’re becoming more data-led,” Saujani explains. “I’m not saying that we are robotic – we’re not relying just purely on data – but we’re reviewing our loan book to identify the things that aren’t working well or are, all within the loans that we’ve already originated. That way, we can understand how we can better position ourselves and help in the future.”

One of the clearest trends TAB has identified this year is in the prime Central London market, where activity has softened and values have adjusted more noticeably than elsewhere. Rather than shrinking its ambition, TAB is using its insight to sharpen the way it structures loans and supports borrowers. Saujani says: “When we’re at the underwriting phase, we’re looking more at expenditure of businesses and we’re doing a lot

more due diligence around where there might be payment shocks in the future and asking borrowrs to set up direct debits for mortgages.”

This helps frame loans in a way that supports borrowers through slower-moving markets, ensuring that deals remain resilient.

Responsible growth

TAB’s strategy remains firmly growth oriented.

Saujani is clear that any calibration of approach is about scaling intelligently and staying aligned with the realities of the market.

“We’re not supercharging our growth just for the sake of it,” he says. “Simply put, we’re trying to grow and build things up at a rate which works.

We’re not trying to take greater risks. It’s about quality-led decisions and aligning those to our risk metrics to ensure that we’re taking deal-by-deal, making the right decisions, and giving us a better opportunity to grow supported by our lending.”

The specialist sector is attracting a level of institutional attention that would have been unthinkable a decade ago. “Generally, we’re seeing more appetite and more liquidity,” Saujani notes.

This has opened new opportunities for lenders like TAB, not just in terms of funding, but in the quality of partnerships available. With more liquidity in the system, the sector is increasingly competitive, and lenders must compete to differentiate themselves. Nevertheless, Saujani is clear that while institutional backing provides room to accelerate, growth must be purposeful.

He adds: “We’re not going to just open the tap and start lending loads as quickly as possible, we’re still taking into account the right quality of those deals. Across the marketplace, pricing is becoming more competitive and actually now what’s becoming more important is the way in which, as a business, we can make ourselves stand out against the crowd.”

For TAB, this means strengthening the cornerstones of its lending, while expanding in areas that deliver meaningful value. As the business looks ahead to 2026, the strategy is focused and ambitious, Saujani explains: “Part of my role as a CCO is to ensure that the strategy of what we’re doing is clear. We’re ambitious about what we’re trying to do. It’s about becoming a genuine market leader, providing the longer-term lending, and we really want to continue to grow.

“We want to provide customers with the best quality and the best support that we can.”

Saujani believes the coming year presents an opportunity for lenders to re-engage.

He concludes: “Uncertainty has definitely now calmed down.

“I think it’s time for everyone to step up and to support the marketplace where they can.” ● December 2025 | The Intermediary

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RESIDENTIAL Opinion

True transformation: Staying relevant in a changing market

B

uilding societies are operating in a market that looks very different from the one they were created for.

Member expectations are rising, digital-first competitors are growing (fast), regulatory demands are increasing and the cost of running legacy systems continues to climb.

Staying relevant requires more than upgrading technology. It requires building an organisation that can adapt, learn and deliver change.

This raises an important question: what is transformation, really?

For most, it is o en equated with adopting the latest technology or launching a new digital platform.

While these initiatives ma er, they frequently fall short of delivering the value expected. True transformation is about building an environment to enable and sustain change in every part of the organisation.

The building societies that succeed recognise transformation is not a oneoff event, but a tool woven into the fabric of the organisation. Enabling change starts with challenging established ways of working.

Many building societies are shaped by a culture of caution and consensus.

While this mindset supports risk management, it can slow progress.

Too o en, it results in a pa ern of ‘the answer is no, what is the question?’, making it harder to try new approaches or consider alternatives.

To move forward, building societies must dismantle structural, cultural, and procedural barriers. This means creating an environment where experimentation is encouraged, learning is shared, and fast failures are seen as a step towards improvement.

At deploy12, we see societies with the ambition to change, but

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The Intermediary | December 2025

without the organisational mindset.

Closing that gap is where true transformation happens.

Learning must be at the heart of this. Societies that thrive are those that become learning organisations, places where feedback is actively sought, lessons from successes and failures are understood and acted upon.

A racting the right talent in a competitive market can be challenging. Real investment in development, mentoring, and crossfunctional collaboration helps build the skills and mindsets needed to drive change from within. O en, the future transformation leaders are already inside the organisation.

Leadership matters Successful change requires more than sponsorship from the top; it requires leaders who muck in, empower teams, and create psychological safety so people feel able to contribute ideas, challenge assumptions and take ownership. When staff are engaged and invested, resistance gives way to momentum.

Yet, culture and leadership alone are not enough. Process discipline is equally vital. Building societies need clear frameworks for prioritising, sequencing, and delivering change initiatives. Transparent governance and the courage to stop or adapt projects that are not delivering value are essential. This ensures resources are directed where they have the greatest impact and change is delivered at a sustainable pace.

Technology does play a role, but it must be adopted with realism. Many societies rely on legacy systems that are deeply embedded and critical to day-to-day operations. Taking a pragmatic approach to stabilise what exists, decouple where feasible and

CHRIS WILSON is CTO at deploy12

phase in new capabilities allows societies to modernise without compromising service or trust.

Another lever o en overlooked is collaboration. In a sector where scale can be a constraint, collaboration can be a powerful enabler. By working together, building societies can share resources to accelerate their transformation journey.

The benefits are clear: reduced costs, access to broader expertise, and the ability to deliver change at scale. Of course, collaboration brings challenges – contractual complexity, differing commercial priorities, logistical coordination – but these can be overcome with the right approach.

The societies that will lead the sector into the future understand that transformation is not about tools, but about building organisational resilience and muscle to enable and deliver change repeatedly.

This requires a shi in mindset: from seeing transformation as a technology upgrade to viewing it as a fundamental change in how the organisation learns, adapts, and grows. It means investing as much energy in creating the right environment for change as in selecting the next system or solution.

If one thing is clear from deploy12’s work in the sector, it is that for building societies to secure their future, they must move beyond the question of which tools to adopt and focus relentlessly on enabling change at every level. By doing so, they can remain relevant, resilient, and ready to meet the evolving needs of their members for years to come. ●

RESIDENTIAL Opinion

Self-employed need help

A

fter a few years of decline in the wake of the Covid-19 pandemic, the number of selfemployed people in the UK is on the rise. However, what constitutes self-employment and assessing a worker’s income has become more complex, leaving many borrowers with a headache.

Research by Afin Bank found that just over a quarter of self-employed people believe they have been turned down for a mortgage because of their employment status, with threequarters of the 500 people we surveyed admitting they would consider switching to a salary-based role if it made getting a mortgage easier.

But the self-employed are hugely important to the UK economy, contributing £366bn in 2024 according to IPSE, The SelfEmployed Association. What they need right now are intermediaries who are switched on to their needs, supported by lenders that take time to understand their circumstances to offer the best mortgage solutions.

It used to be straightforward to define self-employment when it came to mortgage borrowing. You were a tradesperson or a small business owner with several years’ worth of accounts. Today, it’s much more complex due to changing work practices like the growth of so-called ‘side-hustles’, and the number of contractors and freelancers in the workforce.

Changing demographics At the end of 2019 there were more than 3.5 million self-employed people in the UK, according to Government figures. A year later, during the pandemic, that had fallen to fewer than three million, dropping to just above 2.8 million by the end of 2022.

There has been a slight recovery to more than 2.9 million self-employed workers by the end of September this year, but what’s interesting is how the

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The Intermediary | December 2025

make-up of employment in general has changed, and how this impacts income patterns.

For example, people with a second job, and therefore a second income, increased by almost 150,000 – from 1.182 million in January 2020 to 1.329 million in September this year – and now accounts for 3.9% of all people in employment, according to the Office for National Statistics (ONS).

As of February 2024, there were also 460,000 ‘side-hustles’, according to IPSE’s Self-Employed Landscape 2024 report, 20% higher than 2023 and accounting for 11% of all solo selfemployment, again making income more complex.

IPSE’s analysis of Government data also reveals a re-drawing of the solo self-employment map with a shift away from ‘traditional roles’. In 2024 there was a 29% increase in people working in caring, leisure and other service occupations compared with 2023. Over the same period, there was a 4% growth in administrative and secretarial workers, 2% growth in managerial freelancers and a 2% growth in associate professional and technical occupations.

By comparison, the number of solo self-employed in skilled trades fell by 4% between 2023 and 2024, while sales and customer service occupations dropped by 10% over the same period, along with an 8% fall for lower-skilled elementary occupations.

Mortgage concerns While the growth in self-employment is good news for an economy that thrives on entrepreneurship, it can make things harder for self-employed workers and borrowers with nonstandard income streams when

applying for a mortgage. For example, in addition to the 26% of people who believed they had been turned down for a mortgage because they were self-employed, Afin found that 23% believed their unpredictable earnings or fluctuating income had been an issue; 9% believed they had been turned down because the lender would not accept multiple income streams; and 13% believed that insufficient proof of earnings or not enough years of accounts had been a barrier.

As a bank created to support underserved borrowers, we want to help the self-employed and customers with a more complex income structure. Instead of using automated process we assess a customer’s situation and have designed a proposition to overcome the barriers self-employed borrowers often experience.

For example, we will consider applicants with a minimum of two years of trading, dropping to just 18 months with an accountant’s reference. We will also consider forecasted income when supported by an accountant, which could help borrowers in the early years of self-employment who are able demonstrate a good income trajectory.

For the growing number of contractors, including those on a

RESIDENTIAL Opinion

to find the right mortgage

day-rate, Afin will consider applications from borrowers at the start of their contract if they have two years of relevant industry experience, including international experience reflecting the global nature of certain professions such as IT contractors. This is great for professionals who have recently switched to contracting for lifestyle or financial reasons, or because they feel they can no longer rely on a permanent role.

Unfortunately, life is getting more complicated for some self-employed workers, particularly around IR35 rules.

It is going to be more important than ever for clients to get good guidance and support from brokers and lenders to help them find the right mortgage, so they don’t want to throw it all in and return to the day job. ●

TIPPIE MALGWI is business development director at Afin Bank

December 2025 | The Intermediary

17

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RESIDENTIAL Opinion

When the devil is in the detail, advice is its own reward

R

achel Reeves’ November Budget will be remembered as one of the more chaotic of the past decade. Not only was the Chancellor accused of multiple leaks over several months leading up to the statement, but in an unprecedented botch, the Office for Budget Responsibility (OBR) accidentally released its analysis before she stood up in the Commons.

The actual contents of the Budget were more organised, if no less complicated. There was a long list of changes to personal taxes, many of which will affect borrowers in the years to come.

Big news for brokers Income Tax and National Insurance thresholds were frozen for another year, with Reeves announcing this will extend for three further years, from April 2028 to 2031. According to OBR calculations, this will result in almost one in four taxpayers having to pay some of their tax at the higher rate by 2031.

The implications for affordability are clear, even as people’s pay packets increase (should that happen – but that’s another question) their money will go less far when this and inflation is factored in.

Another significant announcement relates to salary sacrifice. From April 2029 only the first £2,000 of pension contributions made by each employee through a salary sacrifice scheme will be exempt from National Insurance contributions (NICs).

Currently no cap exists, making it a tax-efficient way for employees to save for their retirement and for employers to minimise their NI contributions. When that goes, the

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The Intermediary | December 2025

cost of employment will yet again rise for businesses.

A survey of more than 2,000 businesses conducted by the Chartered Institute of Personnel and Development (CIPD) earlier this year found that a quarter of employers were planning redundancies following the hike to employer national insurance contributions in April.

While not an immediate change, the salary sacrifice cap is likely to impact more jobs over the next few years – something brokers will need to address with clients ahead of refinancing decisions.

For the self-employed, the big one was the announcement of a 2% rise to income tax payable on dividends, taking rates to 10.75% at the ordinary rate and 35.75% at the upper rate from April next year.

This is likely to have a big impact for the self-employed, the vast majority of whom pay themselves £12,750 in salary to benefit from the personal allowance, with the rest paid out in dividends. Again, the opportunity for brokers to offer forward planning advice is clear.

Landlords have also been given yet another bit of bad news, with a 2% increase in income tax rates on property income set to come in from April 2027, with new bands of 22%, 42% and 47%. This will hit those whose properties are held in their own names rather than those whose portfolios are held in a limited company and could trigger another wave of incorporation. While the costs involved in selling buy-to-let properties and repurchasing them within a corporate are significant in some sales, it may well be more taxefficient in the long term.

We expect landlords to look very carefully at portfolios, particularly

ROB MCCOY is senior product and business manager at TMA

as upcoming energy performance certificate minimum band regulations also present further costs to bring existing properties up to standard.

Given that so much of the UK’s housing stock is effectively unfit for energy efficiency improvements, it’s possible landlords will be further incentivised to sell older stock and replace it with newer build homes that meet the Energy Performance Certificate (EPC) Band C minimum requirements. All this activity will need careful planning and advice.

Another change likely to affect landlords is the removal of the twochild limit on Universal Credit from April 2026. For registered social landlords, this could have a positive impact on tenants’ affordability. Given the Renters’ Rights Act legislation banning discrimination against tenants who receive benefits or have children, this change will at least mitigate some of landlords’ woes.

The introduction of a ‘mansion tax’ on homes worth over £2m was widely expected, and Reeves confirmed the new High Value Council Tax Surcharge (HVCTS) will see owners of residential property in England worth £2m or more in 2026, pay more every year from April 2028.

The consensus from markets was that this was a broadly positive Budget for the UK economy, with the FTSE 100 rising by around 100 points following Reeves’ statement. How it pans out over the coming years is one to watch. Nevertheless, there will be considerable need for advice in its wake. ●

RESIDENTIAL Opinion

Help clients prepare as the cost of moving rises

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very year we analyse data from thousands of quotes provided to home movers on our site to determine the cost of moving home in England. Our newly published 2025 report shows that these costs have climbed sharply to reach a record £17,831, while frist-time buyers (FTBs) now spend an average of £2,315 in upfront moving costs.

Many people are still surprised by how much they need to budget beyond their deposit and mortgage payments.

With affordability under intense pressure, these additional costs can become a significant barrier.

For mortgage brokers, this creates an important opportunity to help clients understand the full financial commitment involved in purchasing a home and to plan more effectively from the outset. As the scale and complexity of upfront costs continue to rise, the broker’s role in preparing clients has never been more valuable.

Why buyers underestimate Most buyers focus on two numbers at the start of their journey: their deposit and expected mortgage repayments.

Everything else – conveyancing, surveys, removals, Stamp Duty, insurance – is o en an a erthought.

Yet our research also shows that many professional fees are climbing year on year, including conveyancing fees (up 8.7%) and the cost of a Level 2 survey (up 6.5%). For someone buying and selling, the total cost of a move is now 27% higher than in 2024 and FTBs in England now pay an average of 6.5% more than a year ago.

In London, the only region where the median FTB purchase price now triggers Stamp Duty liability since the thresholds were lowered

in March, initial outlays have risen by over 200%.These pressures o en undermine financial confidence, delay purchases and even cause them to fall through.

The full picture Brokers already provide essential advice on mortgage products and affordability. By expanding this conversation to include the full cost of moving, brokers can help clients make be er-informed decisions and avoid unnecessary stress later on.

A useful starting point is building a Total Cost of Purchase budget, incorporating items such as conveyancing fees and disbursements, survey costs – which vary by property type and region – removals, Stamp Duty, insurance and a buffer for any unforeseen costs that may arise.

Reallymoving’s online Moving Cost Calculator can help with this. Starting early helps clients plan cash flow more effectively and reduces the risk of lastminute financial strain.

But knowing what the costs are is only part of the challenge. Many buyers do not understand the point at which these costs typically arise.

Brokers can also add real value by explaining the typical sequence of payments. A simple timeline can reduce anxiety and prevent avoidable delays, especially for FTBs who are unfamiliar with the process.

Quality versus cost When budgets are stretched, clients o en look for savings in areas where quality genuinely ma ers – and this can prove a false economy. Time is the biggest threat to a successful transaction, so choosing the cheapest conveyancer without checking reviews thoroughly can end up being a serious error. ‘Cheap now’ o en means

ROB HOUGHTON is founder and CEO at reallymoving

‘expensive later’. Brokers o en report seeing the same misunderstandings crop up repeatedly, including the assumption that conveyancing fees include all disbursements, forge ing that some lenders charge valuation fees, failing to budget adequately for buildings insurance at exchange, or overlooking the cost of follow up investigations post-survey.

By flagging potential pitfalls early, brokers can help prevent unnecessary surprises and ensure clients have a sufficient buffer in place.

Data and comparison Brokers don’t need to manage every element of the moving process, but they can point clients toward reliable resources. Comparison services such as reallymoving allow buyers to obtain accurate quotes for conveyancing, surveys and house removals at an early stage, and check extensive customer reviews at the same time.

Clients can gain a clearer sense of the expected costs in their region, lock prices in ahead of time and reduce the risk of overpaying.

Why this matters With affordability stretched and moving costs rising, many FTBs are delaying their plans or stepping back from the market. Helping clients understand the total financial picture is now central to responsible advice.

Buyers who are fully prepared, financially and logistically, are more confident, be er organised and more likely to complete successfully. Clear, early guidance is no longer optional, it is essential to navigating today’s housing market. ● December 2025 | The Intermediary

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B U Y - TO - L E T Opinion

Inside the trends shaping buy-to-let in 2026

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he buy-to-let (BTL) market has weathered its share of storms over recent years. From tax changes to mortgage rate volatility and regulatory shi s, at times it has felt like landlords have had to stay nimble to keep their heads above water.

But the future looks brighter, with 2026 set to see a predicted 11% rise in lending. There is more appetite, and two areas to keep an eye on are international investors coveting UK property and a surge in remortgage activity. Here is what the next 12 months could look like in the market.

International investors Since 2016, the share of newly incorporated buy-to-let companies with at least one non-UK shareholder has grown from 13% to 20%. What has changed recently is the momentum, with exchange rates se ling and the UK’s reputation for stable property laws and transparent markets pulling in capital.

The North East is proving to be particularly appealing, with average yields of 9.3% compared to London’s 5.7%. Regional cities like Manchester and Birmingham are also drawing a ention, as many areas offer stronger yields and more accessible entry points than the capital.

Some lenders are evolving their lending criteria, too. Rather than blanket refusals based on overseas addresses, there is more nuance now, with lenders looking at the strength of an applicant’s UK ties and the quality of the asset, alongside deposit size.

International buyers aren’t just looking for flexible lending. Many are structuring their purchases through limited companies, which now account for an estimated 70% to 75%

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The Intermediary | December 2025

of buy-to-let acquisitions, according to estate agent Hamptons.

It is a shi already feeding through to cases we see at Molo, where international buyers are using higher loan-to-value (LTV) products and flexible affordability to move more quickly on opportunities.

The remortgage wave If international investment is one story for 2026, remortgaging looks like it might be the other. There looks to be a continuation of maturing fixedrate deals that will drive continued growth in remortgaging throughout 2026. Many landlords who locked into low rates back in 2021 will come off those deals within the next 12 months.

The timing could work in their favour, as mortgage rates are expected to keep falling through to the end of 2026. HSBC underlines this by predicting the base rate could drop to 3% by the end of 2026.

While rates are still higher than the sub-2% deals landlords enjoyed a few years back, they are a far cry from the 6% to 7% peaks we saw in 2023.

Most importantly, lenders are being competitive.

What stands out for landlords right now is the opening it creates. With gross rental yields now averaging 7.1% across England and Wales, many will use remortgaging to raise capital for portfolio expansion, something we are seeing at Molo as landlords look to reposition ahead of lower rates.

Tax changes Making Tax Digital for Income Tax comes into effect in April 2026, adding a new dynamic for investors.

Landlords with property income over £50,000 will need to keep digital records and file quarterly updates with HMRC, rather than the current

MARTIN SIMS is distribution director at Molo

annual return. Those earning between £30,000 and £50,000 follow in April 2027. It’s not a seismic shi , but it does mean more admin and tighter deadlines.

The 2026 playbook The buy-to-let market in 2026 won’t be a one-size-fits-all approach.

International investors need lenders that understand cross-border applications. Remortgaging landlords increasingly want products that work across a range of properties.

First-time landlords entering the market require different underwriting than seasoned portfolio holders. The complexity is not going away, and if anything, it is intensifying.

Lenders geared towards these specialist cases are well equipped to serve increased activity. Products covering non-UK residents, houses in multiple occupation (HMOs), multi-unit blocks (MUBs) and newbuilds align with where investment is flowing.

With gross yields averaging 7.1%, landlords can afford slightly higher rates if it means accessing the right property type or structure.

Molo has built an offering around the complexity that defines today’s buy-to-let market. From firsttime landlords to international investors, HMOs to limited company applications, our products are designed to meet the varied needs brokers are seeing.

With rates starting from 2.54%, we are positioned to support the opportunities 2026 is set to bring. ●

B U Y - TO - L E T Opinion

Landlord sentiment has taken a knock, but it’s not terminal

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ou don’t have to look far to find gloomy headlines about landlords exiting and regulation piling up.

And yes, the bar has been raised. But ‘harder’ is not the same as ‘hopeless’.

What’s unsettling clients In a recent National Residential Landlords Association (NRLA) survey, landlords highlighted: Policy uncertainty: The Renters’ Rights Bill was the single biggest hit to confidence, with 24% of respondents said they are preparing to exit, and a further 24% waiting to see the final shape before acting.

Admin load: Making Tax Digital arrives for landlords with rental income above £50,000 from April 2026 (extending to £20,000 in 2028), introducing quarterly reporting and new so ware costs, a real planning issue for smaller investors.

Tax and running costs: Section 24 continues to bite, with more than half (54%) of landlords likely to sell more properties over the next five years if relief restrictions remain.

Energy efficiency is another driver, as about 49% hold at least some stock at Energy Performance Certificate (EPC) D or below, forcing capex decisions.

The introduction of a National Insurance charge on rental profits adds to the fog of planning.

But the participation and profit picture is more resilient than the headlines might suggest: Profitability remains the norm: Paragon Bank research shows 87% of landlords reported a profit in Q2, up from 84% in Q1, underpinned by resilient demand and yields.

Investors are still buying, just differently: Hamptons found that investors purchased 11.3% of homes in Q3 2025, essentially flat year-onyear despite the second home SDLT surcharge rising to 5% in April. The mix has tilted North to lower entry costs and stronger gross yields.

A new cohort is entering: Hamptons found that Millennials now make up around half of new shareholders in BTL companies in England and Wales. That’s fertile ground for first-time portfolio advice and SPV education.

Rents look supported near term: September’s Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey reports landlord instructions falling (net balance 38%, the weakest since mid 2020), while a net balance of +23% of surveyors expect rents to rise over the next three months and around 3% growth is anticipated over 12 months at a UK wide level. Tight supply plus steady demand is still supporting revenues.

Headwinds to conversations 1. Build a business case for every purchase and refinance: Stresstest at realistic reversionary rates, not best case initial rates. Budget for maintenance, compliance and a ring-fenced EPC pot. Margin for error is a strategy, not a luxury.

2. Lean into geography, not habit: If a client’s ‘home patch’ doesn’t stack up under today’s ICR hurdles, model alternatives where it does. This is where your sourcing plus local agent intel can change a client’s outcome.

3. Choose the right ownership structure: Many growth-minded landlords now use SPV limited companies to manage tax and lending flexibility. It isn’t one-

HITEN GANATRA is managing director at Visionary Finance

size-fits-all, so always signpost independent tax advice, but for scaling portfolios it can simplify borrowing and management.

4. Optimise the finance, don’t just secure it: With lenders active across 5-year fixes, trackers and hybrid options, model the total cost of debt. Where the numbers justify, refinancing or using bridging to release capital can beat funding capex from cashflow, shortening the upgrade timetable and protecting rental competitiveness. Also, the competition between lenders is fierce, so use that to your advantage.

5. Take a ‘steady, not spiky’ approach to rents: RICS’ nearterm rent outlook supports measured increases at renewal, balancing yield with occupancy and minimising voids. Help clients forecast the rent roll realistically rather than overstretching.

6.Prepare clients for process changes early: Encourage clients to organise digital records now, pick compliant so ware, and diarise quarterly tasks.

Strip away the noise and you’re le with a sector that rewards competence. The ‘accidental’ approach is over. In its place: evidence-led acquisitions, disciplined cashflow management and a clear plan for compliance and upgrades.

That’s how, even in a tighter regime, nearly nine in 10 landlords are still in profit and why brokers who lean into modelling, structure and strategy will continue to unlock viable transactions for clients.

Buy-to-let in 2025 is more regulated, more process heavy and less forgiving of sloppy maths, but it is not dead. ● December 2025 | The Intermediary

23

B U Y - TO - L E T Opinion

What the Budget

T

he pre-Budget noise we all heard was perhaps louder in the lead up to this announcement than any in recent memory.

Certainly, the sheer range of options and potential policies that were being ‘tested’ out in the marketplace made it feel like we would see some sizeable changes, not least for landlords.

The rumours for our sector centred on the Chancellor planning to introduce payment of National Insurance (NI) contributions on individual landlords’ rental income,

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The Intermediary | December 2025

but instead she opted to raise property Income Tax rates on rental income from April 2027.

From then, basic, higher and additional rates will rise to 22%, 42% and 47%. This is expected to bring in around £0.5bn a year once fully in place.

For landlords, it means another cost to plan for at a time when many are already dealing with higher outgoings.

This announcement, of course sits alongside the work landlords will be carrying out to get ready for the Renters’ Rights Act, and as we know, this work is not small in scale and will

add further costs for them. Our Guide has now been updated to reflect the recent timing announcements, with a significant number of implementation required from the 1st May 2026, not least the move of ASTs to Assured Periodic Tenancies, the abolition of S21 evictions, rent increases only be allowed once a year, for example.

Other requirements – such as the launch of a new private rented sector (PRS) Landlord Database, and the establishment of a Private Landlord Ombudsman – won’t happen until late next year, while the introduction of the Decent Homes Standard

B U Y - TO - L E T Opinion

means for landlords for the PRS may not happen for another decade.

looking again at their numbers for next year and beyond. And if they’re not, then they probably should be.

The Budget change, plus the need to meet the increased responsibilities that come with the Act, should probably prompt closer rent reviews than might otherwise have taken place.

In that sense, advisers should expect more questions from clients who want to understand what is permitted, what is practical, and how to plan ahead.

favouring limited company structures.

Our most recent Rental Barometer showed 81% of buy-to-let (BTL) applications to us coming from limited companies rather than individuals, and this Budget tax change is likely to support – and grow – that pattern.

Advisers cannot offer tax advice, but they can help clients think through what this means for their portfolios, how finance differs between personal and company structures, and what is possible if a client does wish to explore this route.

Some may even ask more seriously whether it is worth moving existing properties into a company. This is not a simple step, as there are Stamp Duty and legal costs to consider. But if a landlord intends to hold a property for many years, the long-term comparison between higher ongoing taxes and a one-off cost now may lead to a different conclusion than before.

Advisers can help clients understand the practicalities, including how existing portfolio equity could be used to meet the costs and how this might affect future funding.

The Act will bring a shift in how landlords manage their properties.

The move away from fixed terms will change how they approach renewals and voids.

The new rules on setting and adjusting rents will mean a more structured approach to rent reviews.

And the new duties linked to landlord registration and the Ombudsman will require a more organised approach overall.

Future direction

Keep up communication

Another area to watch is how landlords choose to hold their properties in future.

The direction of travel has been clear for some time, with many

Advisers who understand these points will be better placed to support clients, not just with finance, but with clear guidance on what they need to prepare for.

Time is of the essence Most landlords will need time to work through each part, but the clock is certainly ticking, and when you add in the Budget announcement, it adds another layer to a period already marked by planning and adjustment.

It is fair to say the tax rise will influence how landlords assess their costs. As mentioned, from next year, rent can only be increased once a year through the S13 process, but landlords must show the figure reflects the market and give two months’ notice.

As I write, and as you read this, it’s obvious that many landlords will be

There is a clear role for advisers to provide straightforward information”

LOUISA RITCHIE is national account manager at Fleet Mortgages

Our guide was created to help with this, offering checklists for each part of the Act and breaking down the changes step by step.

You might wish to use this in order to structure conversations with landlord borrower clients and to help those unsure about what the rules truly mean for them.

Awareness among landlords is still mixed, so there is a clear role for advisers to provide straightforward information and help clients take early action where needed.

There’s no doubting that next year, and beyond, is going to have a different feel to it in this space, and it will pay to communicate regularly and effectively with those clients impacted.

Which leads me to finally say that, as this is my final article of the year, I’d like to wish all readers of The Intermediary a very merry Christmas and a happy new year.

The sector will continue to change in 2026, but with early planning and good support, advisers and lenders can help landlords meet the new requirements with confidence and make the most of the opportunities that exist. ● December 2025 | The Intermediary

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A YEAR IN REVIEW Feature

2025

A year in review REGULATION, REFORM AND RECALIBRATING A MARKET IN FLUX Jessica O’Connor

As 2025 draws to a close, the housing

and mortgage market stands at the intersection of stabilisation and structural change. If 2024 was defined by volatility, political upheaval, and the lingering hangover of high inflation, then 2025 became a year of cautious recalibration. This was a period in which borrowers, lenders, and brokers alike all sought to find their footing amid a gradually improving economic landscape.

Across the year, the trend was one of resilience: not buoyant growth, but steady, determined activity. The sector continued to lend steadily – often in spite of ongoing pressures – and the most significant shifts originated not only from interest rates and swaps, but from legislative intervention, taxation adjustments, and the evolving expectations of consumers and regulators alike.

In the final feature of 2025, we revisit the most pivotal moments that shaped the market, drawing on insights from experts across the industry to understand how these developments were experienced by those with boots on the ground.

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2025 opened quietly, particularly when compared with the dramatic lender price war that characterised early 2024. This year, lenders took a more measured approach. Swap rates, which had experienced turbulence late in the previous year, settled into a more predictable pattern, enabling modest reductions in product pricing without sparking a race to the bottom.

Borrower demand, however, proved surprisingly robust.

Mel Spencer, growth director at Target Group, says: “Over the years, I have seen plenty of boom and bust – and I’d classify 2025 as a year of tentative recovery. Falling mortgage rates were certainly positive.”

This return to form was especially prevalent among landlords. Hiten Ganatra, managing director at Visionary Finance, explains: “I’ve been pleasantly surprised by the borrowing activity of our landlord customers […] very few seem to be selling up, and many have used lending to take advantage of opportunities to expand and or diversify portfolios with semi-commercial and commercial assets proving to be popular.”

A YEAR IN REVIEW Feature

Indeed, in a year where economic and regulatory uncertainty lingered – particularly in the private rental sector (PRS) – this appetite stood out.

Hugo Davies, chief capital officer and managing director for mortgages at LendInvest, adds: “Buy-to-let (BTL) operated through limited companies as portfolios remained one of the strongest parts of the market, alongside [houses in multiple occupation (HMOs)], conversions and retrofitled projects, and mid-market residential.”

For brokers, however, early 2025 required the careful navigation of affordability constraints. As Louis Mason of Oportfolio observes, the year began with a notable shift in tone: “We saw a clear increase in more flexible fixed term options from lenders and more solutions to affordability issues.

“For lenders, tighter margins and a slower property market pushed them to change their criteria, streamline processing times, and introduce targeted incentives to attract more borrowers.

“For brokers, the shift meant more complex conversations. Clients wanted reassurance, strategy and clarity, not just a ‘good’ rate.”

Spring changes Despite much speculation, Labour’s Spring Statement did not land with a bang but a whimper – offering very little in the way of substantive housing measures, at a time when the market was searching for clearer direction. For many, the muted announcement compounded the sense of quiet optimism and hesitation that had characterised the opening months of the year.

With the disappointment of the Spring Statement still lingering, attention quickly shifted to April’s long-scheduled Stamp Duty threshold adjustments. Under the new rules, the zero-rate threshold for main residences fell from £250,000 to £125,000, while the first-time buyer threshold reduced from £425,000 to £300,000.

First-Time Buyers Relief also narrowed, dropping from £625,000 to £500,000.

According to Nick Jones, mortgage sales and marketing director at Access FS, the effect was immediate. He says: “Falling rates spurred an initial surge in residential sales, easing affordability for borrowers. But the Stamp Duty threshold reduction pushed more first-time buyers into higher tax bands, delaying deals and squeezing budgets. Lenders responded positively though, launching some exceptional low-deposit mortgage products.”

These tax adjustments were felt acutely in a market already dealing with affordability pressures and the early stages of softening inflation. Borrowers who had spent 2023 and 2024 waiting for pricing to stabilise found themselves facing a new cost layer, even as rates were beginning to ease.

Mason notes that “borrowers who had delayed decisions in 2023/24 began returning to the market confidence increased and as affordability improved marginally,” yet many now had to recalibrate calculations to absorb these tax changes.

The shift also reinforced regional disparities.

Spencer notes that “2025 quickly became a buyers’ market in the South of England with lots of stock but fewer transactions” – a dynamic that was reinforced by the Stamp Duty transition.

The combined effect was a marked rush of completions in March followed by a noticeably quieter April, as brokers and buyers reworked affordability models under the new tax structure and adjusted expectations for the year ahead.

Easing rates While inflation remained stubbornly above the Bank of England’s 2% target, it nevertheless continued to soften throughout late spring and into early summer. Swap rates, which had been volatile through much of 2024, finally began to settle into a more predictable pattern.

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December 2025 | The Intermediary The Interme

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OPINION Expert insight across residential, buy-to-let, specialist finance, and more

INTERVIEW Paragon’s James Smart on the human touch in bold transformation

MEET THE BROKER Meta Mortgages on the realities of running a modern brokerage

A YEAR IN REVIEW Feature

Intermediary.

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www.theintermediary.co.uk | Issue 29 | June 2025 | £6

This combination created a more favourable backdrop for lenders, offering increased confidence to reprice products and support borrower activity after several years of volatility.

At the heart of this shift was monetary policy. weigh instream on theof rate The Bank ofExperts England’s steady changing regulatory landscape reductions throughout the year had a decisive influence on sentiment and affordability. The Base Rate fell from 4.75% in January to its current level of 4%, following reductions in February, May, and August.

Richard Sexton commercial director of Houzecheck, says: “Fortunately, 2025 did see some movement in the base rate which helped the property finance market.

“Those of you with long memories will remember that the Bank of England began raising interest rates at the end of 2021 to help control inflation. Since then, inflation has fallen a lot, and the pressures that caused the initial price rises have eased.”

Looking ahead, Sexton also captures the cautious optimism felt across the industry: “If it falls in 2026, the Bank of England should be able to gradually reduce the interest rate further.

“That would be great news for surveyors and brokers alike.”

This easing of funding conditions fed directly into product innovation. One of the most notable trends of 2025 was the resurgence of high loanto-value (LTV) lending, something many had considered improbable just a year earlier.

Jones explains: “Lenders responded positively launching some exceptional low-deposit mortgage products. High LTV mortgages, including 97%, 99% and even 100% LTV options, saw a resurgence in 2025.”

Indeed, lenders such as April Mortgages, Vida Homeloans, Halifax, Accord Mortgages and more began offering innovative solutions, tailored to those hoping to step onto the property ladder for the first-time.

COMPLIANCE

ANXIETY

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This surge in new products was particularly significant for those tenants trapped in the rent cycle. Jones highlights that the latest wave of products has been “designed for tenants who demonstrate financial responsibility, but who struggle to save a substantial deposit amid rising rents and living costs.”

Alongside this mainstream recovery, the specialist lending and short-term finance markets also grew at pace.

Chris Daly, managing director, structured real estate at Glenhawk, says: “Short-term finance continued its upward trajectory, a trend supported by BDLA data.

“This growth was driven by a variety of factors, including below-market-value purchases, acquisitions through receivership or auction, and a desire for greater flexibility in managing development exits and stabilisation phases.”

This environment reshaped broker roles and borrower behaviour alike.

Daly continues: “For brokers, this shift required a more creative approach to structuring solutions, while borrowers benefited from increased flexibility and a wider range of strategic options for both individual properties and portfolios.”

However, he notes that uncertainty remained a defining backdrop: “With ongoing uncertainty around tax, politics, and the wider economy, many borrowers favoured adaptable short-term products rather than committing to long-term fixed solutions.”

Renters’ Rights Act One of this year’s most transformative events arrived on the 27th of October, when the longdebated Renters’ Rights Act finally passed into law. At its core was the abolition of Section 21 ‘no fault’ evictions, ending a longstanding mechanism that allowed landlords to reclaim possession without establishing grounds.

In its place came a strengthened Section 8 framework, with new and expanded permissible grounds for possession.

Beyond eviction reform, the Act delivered a significant package of tenant protections. These included enhanced notice requirements, greater rights to challenge poor housing conditions, and the introduction of new measures limiting retaliatory evictions. The Act also mandated that all rented homes must meet an updated Decent Homes Standard, extending a benchmark previously applicable primarily to social housing.

Unsurprisingly, the impact rippled almost immediately through the property investment sector. Spencer says: “Regulatory changes such as the Renters Rights Act spurred BTL sales

A YEAR IN REVIEW Feature

and delayed major moves until a bit of clarity emerged post-Budget.”

The new Act also intensified existing divides within the landlord community. Davies notes: “[It] didn’t create new trends, but it did deepen some of the multi-year shifts already underway.”

He adds: “Smaller, single-unit or personally owned landlords felt the ongoing squeeze on landlords the most, while incorporated landlords and portfolio operators remained better positioned to absorb it.”

Budget impact

She continues: “Additionally, the extra landlord tax announced will affect landlords of all sizes, and will have a knock-on effect on consumers’ ability to spend, as cost burdens are invariably passed on by rent rises, and these can only be pushed so far before we start seeing the cracks in consumer affordability.”

This sentiment was echoed widely, particularly among brokers and investors still adjusting to the cost implications of the Renters’ Rights Act earlier in the month.

Davies captures this compounding effect, noting: “Incremental tax rises on investment income and no meaningful action on planning or regulatory bottlenecks meant the environment became more complex without becoming any more supportive.”

Jones shares a similar sentiment, adding: “The buy-to-let sector, however, did unfortunately face challenges [and] the announcements in the latest Budget are only going to add to the pressures I fear.”

The November Autumn Budget brought with it a series of headline changes for the property market, though not the ones many had hoped for. In the midst of heightened chaos in the Commons due to the unprecedented Office for Budget Responsibility (OBR) forecast leak, the Chancellor confirmed new taxation on residential investment income, tightened reliefs affecting landlords, and set out further details on ‘Mansion Tax’ thresholds.

Regional divergence There was also additional funding earmarked for local authority planning departments, Regional divides in the housing market remained though no wider planning reform. firmly in place throughout 2025, reflecting Crucially, anticipated changes to Stamp Duty longstanding structural differences. failed to materialise, and no significant new In the South of England – where prices are measures were introduced to highest and affordability support housing supply or pressures most acute – SECOND CHARGE FOCUS ISSUE ease development bottlenecks. transactional activity was more Barely weeks after the constrained. Even as stock The Renters’ Rights Act had levels rose steadily, buyers reshaped the regulatory grew increasingly pricelandscape, these sensitive, as experts already announcements delivered a report a slowing momentum second wave of upheaval for approaching the end of the property investors. As Davies year. Post-Budget uncertainty puts it: “The Autumn Budget and tighter landlord margins added friction rather than added further strain. momentum.”

Spencer explains: “2025 That friction has already quickly became a buyers’ reverberated across the market. market in the South of The Budget’s measures England with lots of stock but The growth, evolution and success landed at a time when fewer transactions.” of second charge solutions supply remained stubbornly In contrast, Northern constrained and investor regions – benefiting from confidence fragile. comparatively lower price points Caroline Luxmore, chief commercial officer and stronger affordability – delivered far more of Recognise Bank, says: “Supply in residential resilient performance. Spencer continues: “I’d stayed roughly the same in 2025 as seen in 2024 say the most resilient part of the market was the and from our perspective, it is hoped that this residential market in the North where property will change and increase with falling rates in sales volumes outperformed those in London 2026. However, I think the market still needs and the South East.” to understand what changes things like the In fact, across the North, and particularly the mansion tax at the top of the market may have North East, experts report sustained demand well on the rest of the market – there is an intrinsic into the autumn, driven by both first-time buyers link here.” and investors seeking more favourable yield INTERVIEWS Interbridge and Equifinance look ahead at a changing seconds market

FEATURE The evolving use of tech in a sector focused on speedy problem-solving

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THE RIGHT TOOL FOR THE JOB

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A YEAR IN REVIEW Feature

OPPORTUNITIES AND RISKS: LATER LIFE IN 2025 Mark Gregory is founder and CEO at Equity Release Group

Despite a challenging market and ongoing

rate volatility, the later life lending sector has continued to grow in 2025. Much of this momentum is driven by homeowners needing greater flexibility and broader financial options at retirement.

For many, their pension and savings income alone is no longer enough to meet the minimum, or desired standard of living. As a result, retirees are increasingly turning to wealth tied up in their homes, with equity release playing a more significant role in retirement planning, and steadily evolving into a mainstream financial tool.

We’ve seen borrower motivations shifting notably towards debt consolidation and income supplementation, reflecting the widening gap between retirement expectations and financial reality.

Advisers are reporting a rise in ‘needs based’ cases, fuelled by sustained cost-of-living pressures and uncertainty over whether pensions and savings will be sufficient.

There is also growing evidence that more people will enter retirement with outstanding mortgage debt, due to the rise of longer mortgage terms.

At the same time, lenders have enhanced product flexibility, with voluntary repayment features and a significant move towards interest servicing options providing advisers with more opportunities to tailor solutions to clients’ evolving needs.

Economic impacts During the second half of the year, interest rate stability restored confidence, leading to more enquiries and a gradual return of previously deferred cases.

Rising inflation continued to erode the spending power of retirees this year, particularly those reliant on fixed incomes from pensions and savings.

Everyday essentials such as energy bills, food, insurance, and other services continued to rise, or cost more than retirees’ income sources could cover. As a result, a growing number of older homeowners turned to equity in their home to help bridge the gap.

Additionally, inflationary pressures increased the cost of unsecured credit, making housing wealth – often people’s largest and most stable asset – a more attractive and reliable source of funds.

In short, inflation squeezed fixed incomes, widened the gap between income and essential spending, and accelerated the shift towards using property wealth as a

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The Intermediary | December 2025

potential component of retirement planning.

An evolving regulatory focus on Consumer Duty has also strengthened suitability conversations, placing greater emphasis on advice quality, vulnerability support, and evidencing good outcomes.

Opportunities and risks Opportunity: With high rates and volatility at the start of 2025, we’ve seen that homeowners have been holding off until rate conditions improve.

As interest rates begin to soften, 2026 could unlock a significant wave of pent-up demand from those waiting for more favourable conditions to make the most of their opportunities.

Opportunity: Demographic trends are expected to broaden the market in 2026, with more homeowners reaching retirement while still carrying mortgage commitments and debt, increasing the need for equity release where appropriate.

With more people entering later life with outstanding mortgage balances, fixed or reduced retirement incomes are making it harder for them to manage ongoing monetary demands, subsequently creating a need to explore all suitable and affordable options.

At the same time, longer life expectancy and the shift away from defined benefit pensions mean that many retirees will need their financial resources to support them for longer.

As a result, more customers may consider using their property wealth alongside pensions and savings.

These drivers highlight a growing need for quality advice, transparency, robust financial assessments, and personalised support to ensure customers understand their choices and can achieve good outcomes.

Risk: Economic uncertainty could potentially lead to borrowers being cautious, and prolonged rate volatility or stagnant house prices could inhibit activity.

When consumers are unsure about the wider economic outlook, they may delay decisions involving long-term borrowing or the use of their housing wealth.

If rates remain volatile, products may feel less affordable or harder for advisers to recommend as suitable.

Similarly, if house price growth slows or stalls, customers may have reduced equity available to them, which will therefore in some cases limit the amount they can borrow.

A YEAR IN REVIEW Feature

profiles and manageable entry costs. Across the terms of policy for landlords in 2026.” wider UK market, however, activity has slowed as The hope is that monetary policy may finally the year draws to a close. In particular, Sexton begin to align with that need. A more supportive notes that “the gumming-up of the property rate environment could unlock long-suppressed market at the end of the year was not an ideal demand, particularly among buyers who spent trend to observe.” much of 2025 on the sidelines.

He adds: “We want a thriving transaction Reflecting this expectation, Luxmore predicts market as much as our partners in broking, that “we should see at least two base rate drops conveyancing and estate agency.” before the end of 2026, and with Yet even amid this cooling, this in mind we might see BUY-TO-LET FOCUS ISSUE several segments have some of the market unlock continued to demonstrate a little and start to see more The notable resilience. According refinance activity.” to Mason: “Residential lending Her point underscores the showed the strongest resilience, dynamic ahead: lower funding supported by pent-up demand costs may provide momentum, and a backlog of buyers who but a crowded lending had been waiting for rates to landscape will continue to settle down.” place pressure on margins and He also notes that service levels. remortgage activity was a For many lenders and key driver of business, as brokers, opportunity in 2026 thousands of fixed deals from will hinge not simply on previous years matured. macroeconomic tailwinds, but AT A CROSSROADS Meanwhile, certain on execution.

Navigating the future of green buy-to-let specialist sectors continued With pricing to outperform, as property competitiveness tightening investors attempt to actively shape returns and regulatory expectations rising, disciplined through operational improvements or value-add structuring and risk management will remain strategies. essential. Daly says: “Identifying the right deal Davies notes that LendInvest has seen and appropriately de-risking it is key to success. “increased demand for retrofit, conversion The coming year is expected to bring further and HMO-driven supply,” as “the biggest political uncertainty, another budget cycle, and opportunities lie in a broader refinance wave as increasing pressure on the Government, all of rates continue to normalise.” which are likely to fuel continued hesitation across the market.”

2026 predictions He continues: “While interest rates appear broadly on a downward path, external shocks, Looking ahead, the outlook for 2026 carries such as a correction in inflated AI-driven share a now familiar sense of measured optimism. prices or renewed global instability, could easily After a year defined by recalibration rather shift sentiment. than acceleration, many in the industry believe “Nevertheless, the core opportunity lies in the groundwork has finally been laid for a maintaining activity and identifying deals that more active market, albeit provided the right deliver strong risk-adjusted returns.” conditions emerge.

In all, this is a fitting conclusion to a year Expectations of further rate reductions and the that was neither one of runaway recovery nor possibility of easing inflation point toward the sharp decline. Instead, 2025 became a period of potential for a healthier pipeline next year. But stabilisation and selective growth. that optimism is conditional, and much depends Lenders remained competitive, borrowers on the return of economic and policy stability. resilient, and brokers more central than ever to This desire for a steadier operating consumer strategy. environment is a recurring theme across the Heading into 2026, the sector is on a firmer sector. Ganatra says: “I think we would all like to footing than it was a year ago, even if the balance see some certainty and consistency, especially remains delicate. for landlords. Property is a long-term investment, In the words of Mason: “2026 has the potential and even more so now, as short-term gains have to be the first genuinely growth-oriented year become less likely with the various measures we’ve seen in some time, provided the economy put in place by both Conservative and Labour is relatively stable moving forward.”  Governments. I hope we see greater certainty in INTERVIEW ⬛ The Mortgage Works on giving landlords a voice in a changing market

OPINION ⬛ Metro Bank, Together, Landbay, Redwood, Molo, Paragon and more

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

From challenge to change STUART DAVIDSON is CCO at Redwood Bank

2

Amid challenges, property investors showed resilience

025 wasn’t defined by a single shock, but by persistent pressure.

There was a steady mix of higher-for-longer borrowing costs, tougher regulation and a cautious mood among landlords and small to medium enterprises (SMEs).

This was a year of change, regulatory reform, evolving tenant rights and sustainability demands that added complexity to an already cautious market.

Yet amid these challenges, the sector showed resilience. Professional landlords scaled up, brokers worked harder to structure viable deals, and lenders adapted to keep good-quality cases moving.

From Redwood Bank’s perspective, 2025 was a year defined by listening, adapting our lending proposition and doing what we could to help our customers and brokers land their mortgage deals in a challenging environment.

Affordability shaped most conversations this year. Landlords approached refinancing with sharper pencils, exploring multiple scenarios before commi ing. Higher interest costs when refinancing deals and elevated operating expenses put pressure on landlords’ returns.

Brokers needed more flexibility from

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lenders. Across the cases we saw, one trend was unmistakable: professional landlords and experienced SMEs were resilient. We also saw portfolio clients grow their books as they acquired properties divested by smaller landlords choosing to leave a market that now increasingly needs scale to counter the complexities, risks and costs of running a professional property business. The result was a market where strong assets, realistic gearing and reliable income streams ma ered more than ever.

Refining affordability This environment was exactly why Redwood introduced affordability enhancements through the year, all shaped by broker feedback. We made changes to our residential investment mortgages; reducing stress rates and refining affordability calculations to support landlords transitioning from the high interest rates of the past few years post-Covid and enable more opportunities to refinance and release equity.

On the commercial side, we increased maximum terms and lowered debt service coverage requirements, giving SMEs and experienced landlords greater leverage. These changes provide brokers with more options for complex cases, and are a response

to the real challenges SMEs and professional landlords are facing.

The year also presented change and challenge for landlords in the form of the Renters Rights Bill. The abolition of Section 21, a landlord register and requirements of the Decent Homes Standards all increase risk and cost for landlords. Whether these changes are deemed to be ‘good’ or ‘bad’ can be debated by others, but the outcome is a reshaping of landlords’ obligations and their operating models.

Simply put, the private rental market is evolving to consist of more professional property firms and individuals with larger portfolios. You need scale and depth of expertise to make it work when margins are tight and regulatory control is increasing.

While the Budget didn’t bring the full-scale overhaul many feared for professional landlords, the message was clear; operating costs will not ease any time soon and long-term planning ma ers.

2025 was a year that tested the market’s resilience. Affordability dominated many conversations, and the combined pressures of higher costs, regulatory change and tighter yields forced landlords, SMEs and brokers to rethink their strategies.

These challenges are reshaping the sector, driving out short-term operators and accelerating the rise of professional landlords and property businesses with scale, expertise and a long-term view.

Brokers who adapted, challenged assumptions and embraced complexity delivered real value, and lenders that listened and innovated made a difference. The result is a market that is stronger and more disciplined, be er prepared for sustainable growth in 2026 and beyond. ●

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

Death by a thousand taxes

T

he Budget has layered fresh pressures onto a housebuilding industry already buckling under tight margins and supply bo lenecks – throwing grit into the delicate mechanics. The 4.1% rise in the National Living Wage follows a 6.7% jump to £12.21 in April this year – and echoes the near-10% surge to £11.44 in April 2024. While these upli s undoubtedly support low earners, they strike at the heart of construction labour costs, which can consume up to 55% of project budgets.

So, this wasn’t a footnote to the Budget for housebuilders. This was a compounding blow that risks stalling the pipeline of new homes the nation craves. The increase in the National Minimum Wage is set to benefit 2.7 million workers.

But it will cost the wider economy billions, and construction will bear a disproportionate share. In a field reliant on semi-skilled trades, these costs ripple directly into viability assessments.

Given that the cost of building a basic three-bedroom house was an already strained £284,000, Rachel Reeves has added thousands of pounds onto the cost of building a home.

This is not a standalone hit. The industry is still reeling from last year’s 6.7% rise. Small to medium enterprises (SMEs) are already navigating National Insurance hikes.

The housebuilding sector is being stifled by relentless incremental pressure. While these are modest in isolation, they are fatal in aggregate.

You only have to look at the hospitality sector to see how it will play out.

No wonder Richard Beresford, the chief executive of the National Federation of Builders (NFB), said: “Death by a thousand taxes has already killed off many businesses, with insolvency rates still high within the construction industry.”

This makes building new homes less a ractive. Profit buffers, honed thin by post-Grenfell regulations and net-zero mandates, offer li le room for manoeuvre, and developers are already being squeezed by planning delays and material price volatility.

It is not as if housebuilding targets were being met. Labour’s flagship 1.5 million homes pledge means building 300,000 a year. There were only 208,600 completions in England for 2024/25, the lowest since 2013 and down 6% year-on-year.

Are there answers?

Modular construction promises a revolution in UK housebuilding, with factories churning out prefabricated home sections much faster than traditional methods, with lower waste, be er quality control, and significant cost savings. But I feel as though we have all been banging that

RICHARD SEXTON is commercial director at Houzecheck

drum for years. According to Mordor Intelligence, MMC still only accounted for 16% of new-builds in 2023 – although up from 9% in 2017 – making it still far from mainstream.

Maybe this will drive demand a li le further? In Sweden, as many as 84% of detached homes have prefabricated elements. I’m not sure I hold out much hope. While the surveying market is embracing proptech, the housing market seems less keen to modernise.

While changes to the minimum wage might signal a war on poverty, the construction sector is caught in Rachel Reeves’ crossfire – and our housing stock could well turn out to be economic collateral damage. ●

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December 2025 | The Intermediary

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

A year of cautious markets and active investors

2

025 hasn’t been a headline-grabbing year for the housing market.

House prices have barely moved, transaction volumes remain subdued, and mainstream activity has been defined by caution rather than confidence.

According to HMRC, the number of UK residential property transactions in September was down 18% on the same month last year. Home buyers and sellers have continued to hold back.

However, from our experience, many property investors haven’t stepped back – they’ve simply changed tack. Faced with tighter yields and fewer obvious opportunities, many have diversified into alternative asset types – houses in multiple occupation (HMOs), multi-unit freehold blocks (MUFBs), holiday lets, semicommercial properties. Others have focused on value creation through refurbishment or repurposing.

A recent ‘Rental Market Report’ by Zoopla said that annual rent growth has slowed to just over 5% – the lowest level in more than three years. While demand remains strong, affordability pressures are rising and tenants are becoming more selective. That’s led many landlords to upgrade stock to a ract and retain quality tenants.

So, it’s perhaps unsurprising that while the wider mortgage market has been relatively subdued, bridging lending has continued its path of momentum. According to the Bridging & Development Lenders Association (BDLA), bridging lender loan books passed through £13bn for the first time in the second quarter of 2025.

There have been two drivers behind this sustained growth in the bridging

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market. The sector is certainly growing in reputation, with more brokers engaging with the market, more confident in identifying where bridging fits, and more proactive in structuring the right solution for their clients. Initiatives like the Certified Practitioner in Specialist Property Finance (CPSP) qualification have certainly helped this.

At the same time, the lender environment has become ever more competitive, driving innovation in product and service as lenders have worked harder to stand out. This has driven higher standards and more customer-focused propositions, which have appealed to the growing number of bridging brokers.

We’ve certainly felt that competitive pressure at Castle Trust Bank – and we’ve welcomed it, as it’s pushed the market forward. Not least our own proposition.

Growing together Over the last year, we’ve invested heavily in our people and infrastructure. That includes growing our underwriting and completions teams, launching a dedicated bridging underwriting function, and investing into innovations like the upgraded PULSE broker portal. We also offer drawdown functionality on both light and heavy refurbishment bridging – and we use tools like title insurance and dual legal representation to compress timelines.

The accumulation of all these improvements, and a continued focus on doing the simple things well, means that 2025 has been our best year yet – and we have more than doubled completions across our lending. Even more pleasing is that several of our broker partners have now completed over £25m with us in a single year

ANNA LEWIS is commercial director at Castle Trust Bank

There are still opportunities to be had.

Whether it’s a conversion project, simple refurb or property overhaul, investors are still active” – not through one-off cases, but by placing a steady stream of business.

Building consistent broker partnerships like this shows that we’re doing something right to stand out in a crowded market. It also reflects the level of demand for funding from some investors, and the benefits for those brokers able to build strong collaborative relationships with investor clients.

As we head into 2026, the market outlook may remain cautious. The much-heralded Budget brought li le to be excited about, with an increased tax burden for landlords and owners of £2m-plus properties, but there are still opportunities to be had.

Whether it’s a conversion project, simple refurb or property overhaul, investors are still active. And the brokers who can structure these deals confidently, and align with lenders who understand the landscape, will be the ones who continue to grow.

That’s where we’re focused – delivering the tools, service and support to help brokers meet that demand and build stronger relationships with their clients. ●

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

Breaking the chain: Fix a property gridlock

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hile the spotlight remains fixed on legislative reforms like the Renter’s Reform Act, a quieter but equally disruptive issue continues to cause chaos: the persistent problem of property chains. Long a source of frustration for buyers and sellers, these are once again threatening to stall progress. Yet brokers can help.

The Housing Secretary recently introduced proposals aimed at simplifying the process. These include measures such as preparing contracts earlier and increasing transparency from sellers and estate agents.

The goal is to reduce the number of transactions that fall through, and to curb practices like ‘gazumping’.

However, with no clear timeline for these changes to take effect, property chains will likely continue to hinder the market in the near future.

Our research highlights the scale of the issue. Nearly 60% of homeowners have found themselves entangled in a property chain, and one in four have experienced delays in the past five years. With Government data showing that more than 618,000 households are moving each year, this translates to tens of thousands of chains, each one a potential source of stress, financial strain, and missed opportunities.

More than half of buyers reported feeling so discouraged by the process they considered abandoning their purchase altogether, and two-thirds said the experience was more stressful than saving for a deposit.

Many are now reluctant to make offers on new homes, fearing a repeat of the ordeal. While affordability is front and centre when discussing barriers to ge ing on the property

ladder, it’s clear that these chains are proving just as much of a hurdle.

However, amid this chaos there is a solution in regulated bridging loans.

These enable buyers to secure a new property before selling their existing one, sidestepping the delays.

Despite their potential, awareness of bridging loans remains low; only a quarter of homeowners we surveyed were familiar with the option. This is where brokers can make a real difference. By educating clients about bridging finance, brokers can offer a lifeline to those stuck in limbo, help them act swi ly in competitive markets, and reduce the risk of transactions falling through.

In fact, nearly 60% of respondents said they would consider using

TANYA ELMAZ is managing director of intermediary sales at Together

bridging finance if it meant escaping a property chain. This insight presents a clear opportunity for brokers.

In today’s market, brokers must be educators, advocates, and problemsolvers. Bridging finance is not just a niche offering; it’s a useful tool that can help clients to move forward with confidence. Whether it’s funding a renovation, securing a property at auction, or simply avoiding the delays of a chain, bridging loans provide the flexibility and speed.

By proactively discussing these options, brokers can ease the burden on buyers and enhance their own value in an increasingly competitive landscape. ●

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December 2025 | The Intermediary

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

SME developers bear the brunt of nutrient neutrality

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utrient neutrality regulations now require UK developers to balance and offset the nitrate and phosphate outputs of new-build homes throughout much of England and Wales. The regulations, introduced in 2019, now apply to as much as 55% of land in England.

The rules aim to protect our waterways, but have inadvertently stalled the planning of as many as 160,000 new homes, according to the Home Builders Federation (HBF).

Large volume housebuilders have the resources to absorb these additional costs, but nutrient neutrality has created a high barrier to entry for smaller players.

The rules are creating a challenge for small to medium (SME) developers – boosting overheads, eroding margins, and in many cases, stalling the delivery of much-needed local homes.

Disproportionate burden Nutrient neutrality is a nobly intended safeguard, protecting England and Wales’ waterways, wetlands, and groundwater drinking supplies. However, the reality of its implementation has created a two-tier system, hi ing smaller developers hardest. Compliance relies on resources that SME developers simply do not have: scale, deep capital reserves, and strategic land banks.

The primary method for achieving neutrality is off-site mitigation and offse ing. This typically involves taking agricultural land out of production or converting it into wetlands to balance the phosphates and nitrates generated by new housing. Many large volume housebuilders own thousands of acres

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of strategic land, or possess established relationships with landowners across the country. They can internally trade land to mitigate their own developments or utilise their balance sheets to buy entire farms to fund mitigation schemes.

Conversely, an SME developer building 10 homes on a brownfield site is far less likely to own, or be able to purchase, 20 acres of spare farmland nearby.

Limited supply Without land, SME developers are forced to bid and compete for limited pools of credits on thirdparty markets. With credits in short supply, prices have surged – in some catchments reaching £5,000 to £50,000 per 1kg unit.

Even when our larger Governmentled programs do finally come online, Natural England has acknowledged that these schemes will still not meet the demand for mitigation, or not anytime soon.

Cashflow versus capital Insufficient nutrient mitigation options don’t just delay homes, they can kill an SME developer’s business.

The HBF recently reported that the planning process for small sites is already disproportionately slow; nutrient neutrality is exacerbating this with indefinite delays.

Large developers can afford to park or land bank a stalled site and move capital to a different region less affected by nutrient neutrality rules, whereas SME developers typically operate on a project-to-project cashflow. If one site is stuck in a twoyear nutrient neutrality limbo, their project and capital can be frozen, o en preventing them from buying their next site.

SIMON THOMPSON is director at NVS

Scale and capital also loom large when engaging technical partners.

Calculating a nutrient budget requires complex inputs such as water usage rates, land run-off coefficients, and buffer zones.

For, say, a 500-home scheme, the cost of hiring specialist hydrologists per unit is negligible. For a five-home scheme, these fixed costs add a massive premium to the build cost.

Key to quality Many market stakeholders may view the struggle of SME developers as natural a rition or healthy market consolidation. They overlook the vital role SMEs play.

SMEs are essential in unlocking the UK’s grey belt; thousands of small, scrap plots that volume housebuilders will not touch because they lack the mass volume to drive margins.

SME developers compete on a higher standard of product, prioritising superior quality, bespoke design, and the adoption of new technologies, o en raising standards and se ing the bar of quality for larger volume house builders.

Those worth their salt in the development market know that SME developers are key alleviating the UK’s housing crisis. It’s SME developers that create homes that respect local character, rather than imposing standardised estates.

If we want to solve the housing crisis without sacrificing quality, we need mitigation solutions that are workable and accessible. ●

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

Keeping deals alive in a down-valued market

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here’s nothing like a down-valuation to take the wind out of a deal.

Everything’s neatly in place, the purchase price has been agreed, and then the valuation comes in below expectations. Cue the stress, lastminute calls, and a very real risk of the transaction falling by the wayside.

Down-valuations are cropping up more frequently across the commercial sector, and it’s having a knock-on effect on funding and the broker’s ability to keep deals on the straight and narrow.

This is where short-term finance, particularly commercial bridging, really comes into its own. For brokers, knowing how and when to introduce this can be of the utmost importance.

We’ve had a front-row seat to plenty of these scenarios. O en, brokers come to us when something’s gone wrong. The numbers don’t add up, the deposit is at risk, and completion’s days away. Our commercial bridging loans are built with this in mind.

Whether it’s a shortfall caused by a down-valuation, or the need for a stopgap while refinancing options are arranged, the goal is the same: don’t let a viable deal die on the table.

Brokers and borrowers are choosing short-term funding in a more informed way, and lenders are supporting that with steady pricing.

These moments are where your value is clearest. Spot the issue early, line up the right lender, and you’ve done far more than ‘source finance’.

You’ve kept your client’s business plans intact.

It’s not always about closing a funding shortfall, either. Bridging can give clients room to breathe.

Whether it’s waiting for a term lender to catch up or juggling assets,

that headroom can make all the difference.

Down-valuations aren’t going away.

We’ll probably see more of them in the months ahead. That’s not great news,

JONATHAN RUBINS is director and chief commercial officer at Alternative Bridging Corporation

but it’s not a disaster either, not if brokers are ready to pivot, act quickly, and make full use of the options already available to them. ●

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December 2025 | The Intermediary

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

As the noise fades, investors make plans

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Demand to invest in commercial buildings rose 11% on the year

was looking over the latest market updates the other day, and it reminded me how o en we get hit with these big headline figures that make everything sound dramatic, but once you look underneath, the real story is a lot calmer.

You read the numbers, and then you find yourself thinking, ‘OK, fine, but what does this actually mean for people placing money into property or into their own businesses right now?’

That is where 2025 feels a bit different to previous years. Things are steady at the fringes, the noise has faded out, and investors are starting to think properly again about where to put capital instead of waiting for the next rate swing to tell them what to do.

No more jolting What is helping is that rates have stopped jumping about. Look, they are still higher than they were two years

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ago, but the constant shock factor has long gone. Investors are no longer making decisions with one eye on a chart that changes by the hour.

Rightmove Commercial’s ‘Q3 2025 Insights Tracker’ shows commercial enquiries up 9% on the quarter, with stronger activity from smaller firms and quicker movement of available stock. It points to capital still being put to work, just with more care than we have seen for a while.

Sharpened up The clearest sign of movement is on the commercial property side.

Rightmove’s Tracker also shows demand to invest in commercial buildings rose 11% on the year.

Retail demand rose 30%, offices rose 31%, and industrial – which has been a reliable performer – rose 53%. Those are not small changes. They show that investors want exposure again, but they are being far more selective about where it sits.

CONOR MCDERMOTT is director of SME lending at LHV Bank

A big part of the story this year is spending on improvements. Investors are pu ing real money into stock that needs updating. Nearly £1.1bn was raised through 6,737 remortgages in the first half of 2025, specifically for property works, compared with £712m and 4,632 loans a year earlier.

That is a 54% rise by value.

It tells you investors are certainly not si ing back, but preparing buildings for new rules, new tenant expectations and future value.

Regional markets are also taking more of the spotlight. Investors who once concentrated on two or three postcodes are looking outwards again.

With a steadier rate backdrop, the map widens, so towns in the Midlands, the North and parts of the South West will be seeing more enquiries, particularly where there is a sensible price point and a path to improving the asset.

Internal investment decisions When you look at investment from the small to medium enterprise (SME) side, the tone shi s slightly but the principle is the same. Owners are reconsidering where they place capital and whether the next 10 years look different to the last 10.

For me, one of the biggest changes is the growing number of SMEs being asked if they want to buy their premises. It is not something many of them planned, but once that question lands, it becomes an investment discussion rather than a simple funding one.

This is where the calmer market helps, and owners can finally compare

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

the long-term impact of ownership versus renting without being thrown off by rate noise.

Ownership becomes a case of stability and balance sheet strength.

Renting becomes a case of short-term flexibility. Neither is automatically right, but 2025 has made it possible for owners to think more clearly about which option suits the future they want to see.

There is also a clearer appetite for strategic investment inside businesses themselves. Plenty of firms are expanding into new units, others are adding manufacturing capacity or acquiring competitors.

Some of the most interesting cases are the ones that look slightly uneven on paper; for instance, the business that has grown faster than expected, or the owner looking at a mixed property and trading deal rolled together.

A few years ago, those cases might not have been considered, but with the pace of the market easing, there is now space to understand them properly and make the investment work.

to understand what the investor actually wants the next few years to look like. Investors are not asking for perfection. They want decisions that make sense in 10 years’ time, not 10

days. If advisers and lenders focus on that, rather than the noise or the hype, then this could easily turn out to be a stronger investment year than anyone expected back in January. ● ADVERTISEMENT

Opportunities forming Across the market, certain themes stand out. Industrial property remains one of the most reliable places for investors to put money, with demand still rising strongly and supply tight.

Retail continues to experience its ups and downs, but local units and mixed-use buildings are a racting genuine interest.

Hospitality is more measured, usually driven by people who know the sector well, and healthcare continues to show strength across both property and business investment.

None of these areas are overheating, but they remain sensible investment environments which, for many people, is a far more comfortable place to commit capital than the extremes we have seen in the past.

A clearer year If there is one message in all of this, it is that advisers are working in a market that has se led into a more even rhythm. With less noise in the background, investors are more open to talking about the long term rather than quick fixes.

For advisers, the most valuable conversations this year are the ones where you slow things down enough December 2025 | The Intermediary

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Reflections, resilience and the road ahead

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s we approach the end of 2025, I find myself reflecting, not just on another year of significant progress for our sector, but also on the personal milestone that this column represents.

A er six rewarding years as chief executive of the BDLA (formerly the ASTL), this will likely be one of my final opportunities to speak directly to the market in this role. It is with pride, gratitude and a touch of nostalgia that I write these words.

When I first took on the role in 2019, the specialist property finance sector was evolving rapidly, and needed a central voice that truly reflected its scale and significance.

I like to think that, today, the BDLA has become that voice. We have grown our membership to almost 100 lender and associate members. Our collective loan book now exceeds £13.7bn, and the influence we hold across policymaking, standards and sector development has never been greater.

This year alone, our sector has seen record performance. In Q3 2025, bridging completions reached £2.5bn – up 42% on the same period last year – and application volumes climbed to £11.4bn. For yet another consecutive quarter, lender loan books increased, hi ing a new high of £13.7bn, despite broader economic uncertainty.

Great responsibility While growth is always welcome, it must be accompanied by a deep sense of responsibility. This has been the guiding principle of the BDLA throughout my tenure, and particularly in 2025.

One of our key focus areas this year has been tackling the growing threat of fraud. We have all seen

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how increasingly sophisticated fraud a empts are targeting lenders across the market, o en with coordinated approaches that exploit the speed and complexity of bridging finance.

To meet this challenge, we developed and launched the industry’s first real-time fraud intelligencesharing platform, in partnership with Synectics Solutions. This GDPRcompliant system enables BDLA members to flag suspicious cases and share alerts securely, creating a vital early warning mechanism that can stop fraud before it takes root.

While growth is always welcome, it must be accompanied by a deep sense of responsibility” We know that this type of collaboration can deliver tangible results. At a recent member meeting, for example, one lender flagged a questionable application, and within minutes, five other lenders confirmed they had seen the same case. That single alert prevented a potentially fraudulent deal from proceeding.

This is the power of collaboration in action, and the very essence of what a trade association should do.

Raising standards Our focus on standards and education has also moved up a gear.

In partnership with the National Association of Commercial Finance Brokers (NACFB), Financial Intermediary and Broker Association (FIBA), Association of Mortgage

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

Intermediaries (AMI) and the London Institute of Banking & Finance (LIBF), and on the back of the hugely successful Certified Practitioner in Specialist Property Finance (CPSP) qualification, we are working together towards the launch of a Specialist Property Finance Education Commi ee.

This is a sector-wide initiative will be targeted at raising professional competency across both regulated and unregulated parts of the market.

This is not just about courses and qualifications; it’s about creating a culture of shared responsibility, and equipping advisers and lenders with the knowledge they need to deliver the best outcomes for borrowers.

Our work with regulators has remained constant and constructive.

We continue to engage directly with all stakeholders, including the Financial Conduct Authority (FCA), to ensure that bridging lenders – many of which operate outside the scope of formal regulation – are fairly represented and understood.

This year saw some important developments, not least the FCA’s CP 24/2 consultation, which proposed the public naming of firms under investigation.

While transparency is important, we joined other trade bodies in challenging this proposal, due to the severe reputational harm it could cause to firms that have not been found guilty of any wrongdoing.

The good news is that this policy has now been paused, but it serves as a reminder of the importance of having a strong trade body advocating for the sector.

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

Other regulatory developments continue to merit close a ention. The Court of Appeal ruling on commission disclosure in the motor finance space, for instance, was not based on FCA rules but on legal principles – meaning its implications could extend to nonregulated bridging transactions too.

These are the kinds of cross-sector risks that we must be alert to. As a trade body, we are monitoring this closely and will continue to provide clarity to our members as the situation develops.

Then, of course, came the Autumn Budget. For landlords and property professionals, the fear was that it could have been far worse.

A 2% increase on rental income and the proposal of a ‘Mansion Tax’ – a Council Tax surcharge for homes worth over £2m – may not have been universally welcomed, but at least they came without the sweeping reforms some had predicted.

With implementation of the Mansion Tax delayed until 2028, and suggestions that payment deferrals will be possible, it feels more like the start of a long policy journey than an immediate threat.

More positively, the Budget confirmed the Government’s ongoing commitment to housing delivery and planning reform – issues that directly impact many of our members and borrowers.

As I prepare to step aside, I do so with complete confidence in the BDLA’s future. Adam Tyler, who will succeed me as CEO in early 2026, brings an impressive depth of knowledge and experience. He is a trusted friend and leader with a clear understanding of both the opportunities and responsibilities facing our sector, and I know that the association will continue to thrive under his stewardship.

It has been truly a great honour to lead the BDLA during this pivotal period in its evolution. I would like to thank our members, industry partners, and peers for their willingness to trust me and provide their unwavering support.

The bridging and development finance industry has never been stronger – and with continued collaboration, integrity and vision, I truly believe its best days lie ahead.

Thank you all for granting me the privilege. ●

The Interview.

Avamore Capital

Jessica Bird speaks with Adam Butler, sales and marketing director at Avamore Capital, about the lender’s evolution, and how it is helping developers take their next steps

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dam Butler started his career as a regulated broker, working in an estate agency, before moving on to tackle the lending side, with early roles at Vida Home Loans and Hampshire Trust Bank.

During this time, he built up his expertise in specialist finance, including across the bridging and complex buy-to-let (BTL) sectors.

When Covid-19 hit and the world – and market – was in turmoil, Butler added to the upheaval with his own move, joining Avamore Capital in April 2020.

At the time, the business comprised about 12 people, and Butler says that while it might have felt like “a bit of a risk” taking this step into a smaller, younger business than he was used to, he could see that “their passion was

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for the future, and growth […] that was what really sold me.

“I thought, ‘these are people I can learn from, I can grow with, and the business itself has huge potential’.”

During his time so far at Avamore Capital, Butler has progressed from relationship manager up through the the ranks, to eventually take a role as a director and board member in January of this year.

He also continued to expand his specialist nous, and found a particular “home” within development finance.

The Intermediary sat down with Butler, now sales and marketing director, to discover how that passion for growth and innovation that kept it going through the pandemic has taken Avamore Capital to new heights, what it is doing to support development clients in a difficult market, and what the next challenges might be for 2026.

Strategic evolution

Despite the challenge of changing jobs at the height of the market’s Covid-mandated shutdown, Butler says “growth has always been a key part of my progression,” and that the pause in mortgage market activity in fact created an opportunity.

Rather than launching straight into the hustle and bustle of business as usual, the calm in the eye of the storm in those first months provided a chance to recoup and assess.

Butler explains: “It gave me the time to build relationships without that pressure of deal flow, and actually that was important for me.

“We kept working, we still lent throughout – leverage, pricing and appetite changed, but we never actually closed our doors.

“We know what we’re good at, we know what we like, and we’ve stuck with that throughout all the different challenges we’ve faced.”

Since then, Butler says that “operational efficiencies” have been a key part of Avamore Capital’s evolution.

To this end, the business is currently finalising the launch of its own platform, to be implemented in early 2026, incorporating AI and automation. While tech and streamlining is important, this, Butler asserts, is not an exercise in removing the human touch.

T H E I N T E RV I E W Avamore Capital

[Brokers] have a key role to play in helping developers lay out their plans, packaging and creating cost breakdowns and contingencies alongside the client and the lender in order to ensure a deal gets going on the right foot” He explains: “It’s not to replace people. It’s to take away the administrative burden and actually give them the opportunity to focus more time on finding solutions. “‘Innovation’ and ‘solutions’ are two words that we often use.”

This fits with the firm’s wider approach to lending, he continues.

Avamore Capital takes seriously its commitment not to fall into the “tick-box exercises” that can be seen among some other lenders, and instead to approach each potential deal with a solution-oriented mindset, leveraging its expertise across the fields of development, bridging, refurbishments and conversions.

Over the years, the firm evolved its proposition, and has been able to stretch its lending to go above 90% loan-to-cost (LTC), with no cap on gross development value (GDV), depending on the scheme.

It also prides itself on catering for the smaller end of the market, providing lower value loans that other institutions might not make time for, but which contribute to the overall health of the development and housing markets.

While the products themselves have improved over the years, Butler says Avamore always aims to keep them simple, preferring to cater for complexity in the form of strategy and problem solving, rather than complex criteria.

He continues: “We don’t come up with a 30-page criteria guide. Once we understand a scheme, we will always aim to provide a solution.”

One area in which Butler is particularly proud of this flexibility is in Avamore Capital’s provision of what he says is “one of, if not the only, true part-complete development funding options.”

This was created not to simply clear up the end of a deal, but to allow Avamore Capital to “genuinely step in at any stage of the build,”

which he says is increasingly important in a market plagued with potential mishaps and delays at all stages of development.

Development difficulties

Anyone with awareness of the construction and development market knows that projects face considerable challenges in the current environment. One of the biggest challenges lies around planning permission, for example.

Butler says that, despite not lending on projects until permission has been acquired, he still sees the ill-effects of a snarled up system, with developers taking out bridging finance elsewhere for six to nine months, facing delays up to 18 months, and being left facing far higher gearing than they expected, or having to cushion the blow from their own funds.

To try and pre-empt and resolve this issue, he suggests brokers and their clients work from the end goal backwards.

He explains: “What does the client want?

They don’t want that plot of land, or that house they’re about to demolish, they want the units they’re going to build in 18 to 24 months’ time.

“So, you have to ask, how do we get them there, not just over the first hurdle?

Sometimes, if they go to just a bridging lender in the first instance, that lender’s concern is its appetite, and its appetite is not for the development itself.”

Working with a lender that does bridging and development can be the key to that long-term view, and to giving developers the breathing room to navigate a difficult system.

This is also where flexibility and adaptability come into play. This, Butler says, shows through products such as part-complete, or the human touch allowing Avamore Capital to approach each application individually, and it does not stop once the deal has been agreed.

From the difficulty of making accurate cost predictions, to the problems – both physical and financial, from unexpected costs to material shortages – that can arise along the way, Butler knows that “each scheme will have quirks, niches, and bumps in the road that we need to overcome.”

He adds: “We are not a tick-box lender, and we never will be. The real work starts on completion – you’ve got 12 to 18 months with a client that you need to support.”

This is also where the relationships with brokers come into play. Avamore is around 95% broker-led, and Butler insists “they are vital” to its operations.

Brokers therefore have a key role to play in helping developers lay out their plans, → December 2025 | The Intermediary

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packaging and creating cost breakdowns and contingencies alongside the client and the lender in order to ensure a deal gets going on the right foot, and remains that way.

For experienced developers, this might mean simple assistance to make sure their vision is realised, while relying on their expertise.

For those taking early steps in the market, and for whom “sometimes a little bit of knowledge is dangerous,” Butler says that “an experienced broker can help them navigate the complexities,” ensuring that they are aware of the pitfalls and have the right plans in place for success.

This might be as simple as making sure that an experienced developer does not simply make a cost estimate based on their market knowledge, but takes the time to show how they have reached that conclusion, as well as working out the different level of contingency and cashflow that might be needed for different schemes.

As a result, Butler says: “It’s a partnership.

Clients should ultimately see both the lender and broker as their team.”

Shifting landscapes

Avamore Capital’s suite of products and broad, flexible approach to lending means that it can follow trends and tastes as they change.

At the moment, Butler says, the refurbishment and conversion market makes up around two-thirds of its lending – covering everything from auction refurbs to large commercial conversions.

Developers are gravitating more to this space due to the more predictable costs involved at a time when the hunt for stability is front of everyone’s minds.

Avamore Capital sees itself as having a key role to play in simplifying what could otherwise be a complex “minefield” of confusing terms and lender criteria to help keep refurbishment – heavy, light, and more – projects moving.

Other factors currently affecting the development market are slower sales at the end of a project, which are making longer facility terms increasingly crucial to give developers the breathing room to exit a project successfully.

Meanwhile, providing higher leverage is important, but this must, Butler says, be balanced with rigorous costings and contingencies in order to ensure that Avamore is lending sustainably and can support projects well into the future.

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The constant backdrop to today’s development market is the contentious subject of Labour’s house building targets, and in a broader sense, the well-known imbalance between demand and supply of housing. Within this landscape, while some larger developers sit on banks of land until it makes more sense to develop them, small to medium (SME) developers are “vital to the market” which still faces a “huge shortfall” subject of Labour’s house building targets, and in a broader sense, the well-known imbalance between demand and supply of housing.

Within this landscape, while some larger developers sit on banks of land until it makes more sense to develop them, small to medium (SME) developers are “vital to the market” which still faces a “huge shortfall.”

Avamore Capital sees itself as a champion for SMEs. While large sprawling housing schemes will tick numbers off Labour’s target in bigger chunks, the housing crisis will not be solved by this alone.

Smaller projects are key to filling the gaps – even just creating one or two additional units on a plot of land, in some cases – creating homes where they are needed and wanted, and keeping the market and the economy on the move without having to rely on large players and vast, lengthy schemes.

This also fits with the literal landscape of the UK, which only has so much space available for sprawling schemes, but where there is plenty of opportunity to be found on the smaller scale for those willing to look.

While some lenders might understandably want to focus entirely on larger loans, Avamore has found an important niche in supporting sub-£1m schemes upwards. This also includes helping new developers into the market, where other lenders might turn away any but the most experienced, leaving deals – and potential homes – on the table.

Butler says: “We found a real space for ourselves with those smaller schemes.

“We also support a number of experienced contractors who come to us and say, ‘I’ve made a lot of clients a lot of money, and now I want to get out there and try and do it myself’. The care and attention they give to these schemes is

T H E I N T E RV I E W Avamore Capital

second to none, because it might be their first, and that’s their reputation.”

Those relationships are often long-term, and in a few years, that inexperienced developer trying their hand might be one of the established, experienced players making an even greater difference to the housing market.

They cannot do that without flexible funding and the brokers that help them get to it.

Future opportunities

While the development, construction and refurbishment market is plagued by many challenges – from fluctuating build, materials and labour costs, to ever-changing regulation and near-impossible to navigate systems – there are bright patches on the horizon.

Importantly, Butler explains, this is a market comprised of resilient players, most of whom are ready to innovate and pivot to take advantage of changing opportunities.

He says that, at the moment, the opportunities Avamore Capital is seeing more of include regional schemes, particularly in the North, even in areas where demand might overall be seen as lower.

He explains: “We’ve always been keen to support schemes nationwide, but in the last 18 months we’ve seen more schemes in the North of England.

“I don’t necessarily mean just the fancy city centres of Manchester and Birmingham, either, but more regional. We’ve done a number of schemes in Hull, South Shields, and outside of Newcastle, for example.

“There are some great opportunities that feed into smaller schemes, where there is that demand for 10 units rather than 100.”

While larger developers might not see opportunity here, SMEs are well-positioned to make the most of smaller projects that can ultimately still provide good yields.

Beyond the regional trends, Butler says that permitted development (PD) schemes will likely remain consistent, while recent conversations around developing the grey belt offers an opportunity that, while still in its nascent stages, Avamore will “continue to monitor and track” – although the impact is yet to be fully understood.

The topic of airspace is one that is seen as providing a “big opportunity” by many in the market; however, Butler warns that this can in fact be fraught with practical risks that developers and brokers should be wary of before they attempt to take advantage following the promise of the 2019 revised National Planning Policy Framework.

Butler says that concerns centre around fire safety, utility connections, leaseholder relations, and more, which can complicate projects, meaning that this is an area Avamore looks at with some caution.

Looking ahead, Butler expects the UK property market to see a similar pattern in 2026 to that of 2025 – there have been bumps on the road, and recovery and progress has perhaps not been as meteoric as some might have hoped, but the year was ultimately defined by resilience and improvement.

Butler says: “We’re not going to jump back to any great heights just yet, but there’s a positivity in our industry now that we know what we’re facing, and we know the challenges that are around the corner.

“That’s the thing I love about our industry, we always overcome things, whether that’s to do with finding solutions to clients’ problems, or brokers and lenders providing solutions to challenges in the market.

“We can’t just wait around for a couple of years until things return, we’ve got to drive through.

“I think we will continue to see innovation, certainly on the lending side, and from clients looking for different opportunities.”

Against this backdrop, Butler says he hopes that both the Government and the regulator will look towards reducing the barriers that are stopping people from being able to build the houses that are so desperately needed.

He also calls on them to work towards “further developments in planning, and something to help drive sales” in order to bookend the development process and get the market moving.

Finally, the outlook for Avamore Capital is also one of steady growth and innovation, continuing the trajectory of the past few years.

Butler concludes: “Our loan book’s grown over the past six to nine months.

“There have been operational improvements and improvements to the products, and the last quarter was a record one for the last three years.

“We’ve seen growth in a still challenging market, and we expect that to continue further in 2026.

“But we will do that with the current offering. We have a very strong funding mix behind us, and good relationships.

“Our aspirations for 2026 are achievable with our current product set and funding mix. We’re able to be adaptable and offer solutions.

“Avamore will continue to do what we do best in 2026.”  December 2025 | The Intermediary

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Meet The BDM

Mercantile Trust Limited

The Intermediary speaks with Nina Kainth, business development manager (BDM) at Mercantile Trust Limited How and why did you become a BDM? I became a business development manager after building a long career in the first and second charge mortgage and bridging sectors. I joined Mercantile Trust Limited in May this year, following 20 years at The Loans Engine, a master broker, where I worked across virtually every area of the business – from sales and underwriting to team management – and played a key role in setting up the business-to-business (B2B) side of the business.

Over time, I realised that my experience gave me a unique 46

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perspective on both the operational and strategic sides of financial services. I enjoy identifying opportunities, building relationships, and helping businesses grow, which naturally led me to business development. Being a BDM allows me to combine my industry knowledge with my passion for driving broker partnerships and delivering results.

What brought you to Mercantile Trust Limited?

I’ve always known that I wanted to work on the lending side of the industry. After 20 years in brokering,

I built a solid understanding of the market, and I realised I could use my sales and management experience in a role like business development.

Mercantile Trust felt like the perfect place to bring all of that together.

What makes Mercantile Trust Limited stand out?

While we may be a smaller lender, we have developed expertise in specific, often overlooked areas where brokers frequently turn to us for solutions.

Our ability to handle unique or complex cases sets us apart from larger, more generalised lenders.

MEET THE BDM

Being smaller allows us to act faster. We have the capacity to process and complete deals more quickly than many of our larger competitors, meaning brokers and clients don’t get caught in long approval chains.

Our size enables us to provide a more tailored experience. Brokers aren’t just another number – they get direct access to the people making decisions, which fosters trust and smoother transactions.

Mercantile Trust Limited has been operating for years, and we are continually evolving to meet broker and client needs in ways that bigger institutions may overlook.

Over time, brokers have come to rely on us for certain niche products or scenarios where others may say ‘no’ or overcomplicate the process. This repeat business demonstrates our reliability and specialist knowledge.

What are the challenges facing BDMs right now?

A key part of the BDM role is to constantly monitor the market, adjust their strategies, and act quickly on emerging opportunities and risks.

What are the opportunities for BDMs? BDMs have four key opportunities when working with brokers: identifying growth opportunities, providing insights and tools to boost revenue and client satisfaction, actively listening to uncover challenges and growth areas, and serving as a reliable, knowledgeable point of contact

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

Having spent 20 years working closely with brokers I understand exactly what they need, how they

think, and how they expect deals to be positioned with lenders.

I make it a priority to speak their language – interpreting client needs quickly, pushing criteria boundaries where possible, and ensuring Mercantile Trust Limited can see the deal in the best light.

My approach is all about partnership: I proactively guide brokers through the process, help structure solutions that meet our requirements, and advocate for their clients to achieve the best possible outcomes. Ultimately, it’s about building trust, removing friction, and delivering results efficiently for both brokers and borrowers.

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

For buy-to-let (BTL) borrowers I would say lock in a fixed-rate deal if possible. A fixed-rate mortgage offers predictability, shielding you from potential interest rate fluctuations. Securing a competitive fixed rate can help manage cash flow and reduce financial stress.

At Mercantile Trust Limited, our 5-year fixed-rate product with no early repayment charges has become our best-selling second charge buy-to-let option. Brokers have recognised the stability this product provides for borrowers.

Lenders typically expect rental income to cover 125% to 145% of your mortgage interest. At Mercantile Trust Limited, we maintain a 125% rental coverage requirement across all products, regardless of tax bracket.

Given potential inflation or local rental market fluctuations, it’s crucial to stress-test your rental income to ensure your investment remains viable under different scenarios For bridging borrowers I would say: a bridging loan is only as safe as your plan to repay it. Ensure you have a rock-solid exit plan – whether it’s selling, refinancing, or another strategy – before committing.

Economic uncertainty can reduce

Brokers have come to rely on us for certain niche products or scenarios where others may say ‘no’ or overcomplicate the process.

This repeat business demonstrates our reliability and specialist knowledge” buyer demand, so timing your exit carefully is essential to avoid complications.

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

Outside of work, I love spending time with my family and catching up with friends over food and drinks.

Friends and family would say they can always count on me, and I enjoy staying connected with the people I care about.

I’m really into garage music, the Bollywood scene, photography, and traveling whenever I get the chance. ●

Mercantile Trust Limited Established in 2016

Products ◆ First and second charge bridging loans and buy-to-let ◆ Equitable charges ◆ Second charge homeowner business loans Contact details nina.kainth@mercantiletrust.co.uk Phone: 01923280297 Mobile: 07562209858 December 2025 | The Intermediary

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

Growth will drive the next phase of SME lending

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iven the current backdrop of political and economic instability, you might expect the nation’s small to medium enterprises (SMEs) to be hi ing the brakes on their future plans. You may even assume that any borrowing motivations will be dominated by access to working capital or short-term liquidity. While that may be true in some cases, it’s not the consensus.

There is a growing proportion of SMEs that view business finance as a lever for growth. Rather than a shortterm bridge, funding is providing a strategic tool to enable SMEs to make that next step forward – investing in new equipment, improving infrastructure or even eyeing up expansion. Speaking with commercial brokers as part of our most recent survey, this is a common theme.

Commercial brokers tell us that they are seeing significant demand among SME clients for business finance, particularly around loans to fund a diverse range of needs and assets, as well as to fund business acquisitions.

It’s a clear statement of intent from SMEs not to stand still, but to push forward with their growth ambitions and to build long-term resilience. We shouldn’t just applaud their efforts, we should be actively encouraging it – especially when you consider that SMEs are the engine room of the UK economy.

Sectors driving demand According to our survey, nearly half (47%) of the commercial brokers surveyed identified construction as the front-running sector actively driving this demand for business finance, closely followed by the hospitality and leisure sectors (45%).

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The reason for this could be found in a feature both sectors share: high upfront capital expenditure and costs.

For construction firms, this can o en be linked to investment in plant, equipment and machinery, as well as compliance upgrades and digital tools – particularly with increasing spotlight on building safety and emission standards. Capex can also be tied to operational capabilities and growth, whether it’s increasing project capacity, productivity or exploring new areas of work.

For hospitality and leisure, capex requirements are perhaps more closely linked to openings, refurbishments and fit-outs, equipment and maintenance. This is an area where we have considerable experience and success providing business finance and we know personally that these costly items are regularly financed – whether that’s through asset finance or a business loan in the right circumstances.

We also cannot overlook the fact that these sectors have seen significant pressures in recent years, whether as a result of the pandemic, persistent inflation, or successive Budgets. These events have driven up costs, squeezed margins and forced some firms into difficulty or even to fold.

When these sectors face pressure, strong firms pursue acquisitions and growth by expansion – driving demand for business acquisition funding and commercial finance.

This will remain a contributing factor into 2026 and beyond, along with the retirement of current business owners facilitating moves.

Flexible funding The data tells us that, in the main, SMEs are not borrowing just to get by, they are increasingly borrowing

GARY THOMPSON is sales director at Asset Advantage

to build and expand. For commercial advisers, this is a call to action to make sure they can respond to the needs of SME clients. Similarly for funders, it’s a reminder that we need to support advisers with flexible funding options that are sector and asset agnostic, and can move at the pace of businesses.

For some funders, though, that is easier said than done. Restrictive lending policies and low risk appetites among many mainstream lenders make it difficult for brokers to provide adequate support and realise this demand. Whether it’s so or nonstandard assets, business acquisitions or sector restrictions and funding levels, we regularly hear from brokers who run into challenges elsewhere.

To answer the call of SMEs in a lending environment that is full of rigid processes and risk-averse funders, it’s critical that brokers have access to strategic funding partners who are open minded, forward thinking, and willing to really understand cases put before them.

At nearly 20 years in business, we believe we are proof that such funders do exist. It’s always been central to our approach and ensures we can identify more of those viable business cases and facilitate more transactions for brokers.

In truth, this approach is essential today to enable small and mediumsized firms to scale and expand, and contribute to a UK economy that is in desperate need of positive growth.

Rather than retreating, more funders should be coming to the table to give brokers the tools and support they need. ●

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

Access to finance matters more than ever for SMEs

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espite se ing out her ambition to make Britain “the best place in the world to start up, scale up and stay,” Chancellor Rachel Reeves’ Autumn Budget fell short for small and medium-sized enterprises (SMEs), which account for more than 99% of all UK businesses.

Two-fi hs had postponed investment decisions until a er the Budget, as found by our latest ‘SME Confidence Tracker’, with many hoping that the Government would make moves to reduce inflation, improve confidence and stimulate investment. But the Chancellor’s near silence on measures to support SMEs will leave them wanting.

In fact, far from the desired confidence boost for UK PLC, the Office for Budget Responsibility’s (OBR) post-Budget forecast suggests growth in profits will remain weak in the short-term. Compounded by poor sentiment and a higher cost of capital, the OBR also expects investment intentions to remain subdued.

Against this backdrop, ensuring access to finance for SMEs has never been more important. It’s only by unlocking capital that businesses will be able to manage everyday cashflow and seize growth opportunities.

Cashflow concerns While this Budget did scrap under-25 apprenticeship costs for SMEs, in the context of the everyday pressures this is only a small respite.

Inflation and rising operating costs remain the most pressing challenge for two-thirds of SMEs. Employers’ National Insurance contributions (NICs) have increased from 13.8% to 15% since the Spring Statement, pushing the average cost of employing

a full-time minimum-wage worker from £1,872 to £2,879 a month.

It’s not surprising that 42% say rising NICs and minimum wage costs have hit their finances hardest, while almost 18% highlight a direct impact on cashflow. With many SMEs feeling financially exposed by high costs, external financing ensures stable cashflow is imperative to staying afloat.

Unlock investment now The Chancellor previously wished to end the UK’s “chronic stop-go cycle” of investment that she says is to blame for its economic underperformance.

But this Budget failed to give the green light businesses were hoping for.

When asked what support they wanted to see from the Autumn Budget, 37% identified low-interest loans or grants, indicating that many growth-ready firms are hungry for an affordable cash injection that will enable them to move ahead with expansion and hiring plans.

Business owners need decisive action and reassurance that support is available, alongside finance partners that help them make the right investments, despite ongoing uncertainty. This underscores the importance of intermediaries and business advisers in guiding clients to solutions that can stabilise cashflow and enable investment – even when costs are rising.

Broadening awareness The Government launched its call for evidence on small business access to finance earlier this year, recognising that many SMEs still struggle to secure the funding they need from existing initiatives. The Bank Referral Scheme is one such initiative, which according to our most recent data 33% of SMEs

DEREK RYAN is UK managing director at Bibby Financial Services

had not heard of. Awareness needs to be improved. In the meantime, SMEs are anxiously waiting to see meaningful reform or targeted support, while the gap between their demand for finance and the support available to them continues to widen.

Be er signposting, faster decisionmaking and a clearer landscape of alternative finance must be prioritised by the Government. This determines whether SMEs can invest, hire and grow; for intermediaries, it reinforces their critical role in helping clients navigate a fragmented funding environment.

Economic strategy As the beating heart of the UK economy, SMEs needed a signal of confidence that the Government understands their challenges and is commi ed to supporting them.

While this Budget didn’t significantly harm SMEs, it also didn’t help them. That is a missed opportunity for a Government that pledged to champion small business growth in its Plan for Change.

The Budget may not have shown clear support for SMEs ready to invest and grow, but there is still time to act. By working closely with lenders, brokers and regional partners, policymakers can help unlock SME growth in 2026 and beyond.

For intermediaries, the message is clear: given the growing demand from SMEs, there’s a real need and a powerful opportunity to help by signposting how and where to access the most appropriate sources of finance to fund both day-to-day operations, and growth. ● December 2025 | The Intermediary

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Q&A

Recognise Bank

The Intermediary speaks with Simon Bateman, CEO at Recognise Bank, about the 2026 market and plans for the bank in its next phase

During times of economic uncertainty, how does support from banks like Recognise differ from the traditional high street?

At times like this, the main thing small to medium enterprises (SMEs) want is a lender that listens, and many business owners tell us they feel stuck between slow processes, rigid rules and a sense that no one is looking at their plans with fresh eyes. I like to think this is where banks like Recognise really show their value. Flexibility is central to our approach, and we do not rely on a rigid system that puts out a simple yes or no.

Instead, we take time to understand the customer, their plans and the context behind the numbers.

There are moments when a business has a good idea, but needs someone to listen before they can move forward, so that is where our team steps in.

The other part is judgement. Smaller banks can review cases on their own merit. If a good business has a strong future but a less than perfect past, a high street bank may not have the time or space to look beyond the surface. We certainly will, as our structure allows our decision-makers to stay close to the deal and close to the customer. It is not a production line.

The past year has brought plenty of change, and SMEs have had to respond to it all. For us, it means being faster on decisions, being open to a wider range of cases and finding ways to support businesses in a way that feels personal, not remote. In short, we look for solutions rather than reasons to step back.

How do you see bridging finance growing, and what opportunities are available?

The BDLA Q3 figures were definitely encouraging, but the obvious question now is how long that momentum will last. A lot depends on the wider economic climate, and in particular, the Budget.

The freeze on Income Tax thresholds means more people will be pulled into higher tax bands over time, and many small business owners draw pay through PAYE, so it will affect personal bills, and for some, their confidence to push ahead with plans. The cut to capital gains relief on sales to Employee Ownership Trusts may also influence how a few owners think about exits and timing.

Q&A

The bridging market has matured beyond all recognition in recent times, and today’s borrowers have clear expectations around speed, clarity and follow-through. They need a lender that can keep pace without cutting corners, and that suits us, because flexibility is second nature here. If a case needs a more thoughtful review, or if there is a path to a workable deal that others may have missed, we are prepared to look at it.

For lenders, the main opportunity lies in being consistent. There is plenty of noise in the market, with new entrants arriving and others stepping back, but the lenders that will grow are the ones that stay steady and keep their service levels tight.

For brokers, the coming year is likely to be busy.

More businesses are considering short-term funding for refurbishments, acquisitions and growth plans. They want clarity on terms and clear guidance on what is possible, and if the wider conditions settle, we may see even more of that.

For borrowers, bridging still plays a key role when timing matters. It gives them the space to act without delay and then move on to a longer term plan. As long as lenders stay sensible in their approach, I expect continued demand in 2026.

As we head towards 2026, what are your aims for the bank in the year ahead?

Much of the work we have done in 2025 has been about setting the groundwork for scale. When I joined, the focus was to steady the ship, rebuild core parts of the business, and put the right systems, teams and habits in place. We have done that, and so the next phase starts now.

Bridging will remain central to our plans in 2026. We see strong demand, and our focus on judgement-led decisions means we can serve that market in a meaningful way. We want to grow, but we want to grow with control and care, not by chasing volume for the sake of it.

The other part of our plan is the property lifecycle. There are gaps in the market where SMEs and property professionals need products that reflect real-world activity rather than ideal scenarios. Some lenders create products that look good, but do not reflect what brokers are seeing day-to-day. We are taking the opposite approach by speaking to the market first, then building what is needed. If a product does not serve a clear need, then it is a drain on time, budget and resources, so everything we launch in 2026 will be tested against actual customer demand, not internal assumptions. That is how we avoid waste and keep the bank focused on what matters.

You have spoken before about turning the business around.

What progress has Recognise made so far?

It has been a period of significant change. We are past the stage of firefighting and into genuine delivery. We have rebuilt the core parts of the bank and relaunched with a sharper, more focused outlook, and the team has worked hard to get us to this point. You can feel the difference across the business. Looking back, the big thing for me is the consistency behind the scenes. Where we were at the start of 2025 and where we are today feels like a huge shift. We have rebuilt key systems and reduced the friction that was slowing us down. It is not headline-grabbing work, but it is the kind that marks the difference between short-term gains and long-term strength. We have also been working on building a culture of straight-talking. Everyone here has a voice. When we make decisions, they come from people who have spent years in the lending space, and it shows. That has helped us build trust with brokers, many of whom tell us they can feel the progression in how we operate.

What should brokers and SMEs expect to see from Recognise in 2026?

They should expect more of the same focus and a stronger version of the bank they have seen this year. That means faster processes, clearer communication and product development that reflects what the market actually needs.

We will continue to build our presence in bridging, but also look at areas across the property cycle where our flexible approach can support brokers and borrowers with sensible options.

We want to be the partner they come to when the case needs thought, speed or both. We will grow where it makes sense to do so and ensure our service levels remain consistent throughout.

Any final words for our readers?

Watch this space as we scale. We have already turned the business around, relaunched with focus and put ourselves in a strong position for 2026.

There is a lot to be pleased with and even more to come. The next year will be about taking the solid work of 2025 and turning it into something bigger, better and built to last. It is an exciting time for us and, I hope, for the brokers and SMEs we work with. ● December 2025 | The Intermediary

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S E C O N D C H A RG E Opinion

Growth, competition and elevated expectations

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here has never been a be er time to be a second charge customer, or as a broker, to have the option in your portfolio.

Momentum built in the la er part of 2024 has translated into clear growth this year. Rising demand from consumers and intense competition among lenders have driven increased capacity and a shi in expectations around service and innovation.

In the year to October 2025, the market rose by nearly 25% on the previous 12 months. Cost-of-living pressures and an appetite for home improvement have encouraged borrowers to look at reducing borrowing costs, with a second charge o en being the most efficient option.

For many, the proposition has been straightforward: access additional cash and replace expensive unsecured credit without disturbing a first charge mortgage or incurring early redemption charges.

As a result, broker awareness and confidence in second charge mortgages has continued to grow, supported by be er education, more streamlined processes and wider product availability. What may once have been a niche alternative has stepped into the mainstream, and the market will comfortably exceed £2bn of new lending this year.

Borrowers have benefi ed as new lenders increased competition.

Interest rates have fallen by around 2% since summer 2024; product features have become more flexible, more tailored and more imaginative; criteria adjustments have expanded availability; and completion times have tumbled.

While these developments are positive for customers, strong

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pricing must still be backed by robust underwriting, high-quality operations, good technology, effective fraud systems and dependable funding.

This leads to perhaps the most crucial insight of 2025: service is no longer a differentiator, it is a baseline.

Brokers rightly expect fast packaging responses, accurate credit assessments, consistent communication and dependable completion timelines as standard practice. These are no longer added extras, they are expected.

When lenders deliver these outcomes, they are simply perceived as doing the job properly. Conversely, when service falters – whether through delayed processes, unclear communication or missed service level agreements (SLAs) – the impact is immediate and significant.

With more lenders crowding into the space and more customer choice than ever, the consequences of ge ing it wrong are amplified, not only in lost volumes but in lost trust.

For Interbridge Mortgages, 2025 has reflected many of these wider trends. Having surpassed £500m in lending in just 18 months, our growth underscores both the strength of demand within the second charge sector and the appetite among brokers for lenders that focus relentlessly on simplicity and service excellence.

Despite the growth, some things never change. I have been active in the second charge market for decades, and the core customer demographic has always been consistent. We lend primarily to professional, dual income, owner-occupied households with above average salaries and access to a wide range of credit facilities.

Our customers o en have expensive unsecured debts, and we are typically

JONNY JONES is CEO at Interbridge Mortgages

able to reduce their monthly outgoings by about £400. That cashflow improvement can be transformative to a family, meaning they no longer feel anxious when an unexpected bill arrives, or can enjoy a family holiday.

That’s why second charge is such a valuable product for brokers when customers are feeling the pinch.

Looking to 2026 First, we expect to see new lenders entering the sector, a racted by its growth potential. Increased choice is healthy, provided entrants are commi ed to sustainable pricing models, have a long-term commitment to the market, and invest in service infrastructure.

Second, technology-led innovation will accelerate. Automation, artificial intelligence (AI) assisted processes and greater broker integration will drive further efficiency, reducing friction while enhancing risk oversight.

The winners will be those that deploy tech not simply to move faster, but to communicate be er, assess more accurately and deliver certainty.

2026 is likely to build on the themes of this year: rising demand, tighter competition and further service improvements. ‘Good’ service will be assumed, and only those lenders that consistently deliver will maintain broker loyalty and sustainable growth.

2025 has shown the sector at its best – ambitious, competitive and customer-focused. The challenge next year will be to deliver further improvements in both product and service quality, and good outcomes for brokers and their customers. ●

S E C O N D C H A RG E Opinion

Demand rises amid economic pressures

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econd charge mortgages are becoming an increasingly crucial part of the mortgage market, with their role expanding throughout 2025.

Over the course of this year, we’ve seen consistent growth in this sector, driven by rising awareness and demand for these flexible financial products.

At the same time, new lenders entering the market have created a more competitive environment, which has only served to strengthen the sector as a whole. So, let’s take a moment to reflect on 2025.

Market growth The data from the Finance & Leasing Association (FLA) speaks volumes, as both the value and volume of second charge mortgages have seen growth in most months throughout 2025.

This upward trajectory highlights the increasing importance of second charge mortgages for homeowners in today’s market.

So, what’s driving this growth?

Debt consolidation and home improvements have long been the primary reasons for taking out

second charge mortgages, and these motivations continue to drive demand.

However, the current economic climate is further fuelling this demand, as more people struggle to manage their debt and finances due to high living costs. As a result, the need for flexible borrowing options has become even more pressing.

Second charge mortgages have emerged as a key solution, as they don’t disrupt the client’s existing mortgage arrangements, and they offer a lifeline if their further advance has been declined.

Education is key One of the key factors behind this growth, I believe, is the industry’s heightened focus on education.

Over the past year, there has been a concerted effort to raise awareness about second charge mortgages, both among consumers and brokers.

The more brokers understand the advantages and applications of second charge products, the more confident they become in talking about them to clients.

At The Loans Engine, we’ve worked closely with brokers to provide

STEVE NOBBS director at The Loans Engine

training, case studies, and other resources to help them spot opportunities for second charges.

This education has been critical in driving more awareness, and we’ve seen demand rise as brokers feel more equipped to have these conversations with their clients.

This shi in broker confidence is vital for the market’s continued success. Brokers are in the best position to guide clients through the complexities of mortgage solutions, but they can only do so effectively if they have a good understanding of the available products.

Continued investment in education will be essential to ensure that second charge mortgages are considered, especially when clients are unable to secure a further advance or do not want to remortgage due to losing a preferential rate or incurring significant early repayment charges.

What’s next?

Improved and varied product choice is making second charge an increasingly appealing solution

As we turn our a ention to 2026, the second charge mortgage market is poised for continued growth. Innovation and heightened competition will continue to drive product enhancements, while further education efforts will help build even more awareness and confidence within the broker community.

The demand for second charge mortgages shows no signs of slowing.

With economic pressures continuing, more consumers will likely turn to these flexible solutions. However, there’s still room for growth. To ensure the market’s continued progress, ongoing investment in education will be essential. ● December 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

Unlocking a more com f

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hose of us in the later life lending market have long made the case that lifetime mortgages can change lives for the better. That argument has been strengthened by a new study from the Equity Release Council and Fairer Finance, which concluded that accessing property wealth can add years of comfort for pensioner homeowners.

The research broke down average pension incomes across the country, and how it compares with the income level required for a moderate level of comfort in retirement, according to Pensions UK. What’s clear is that, irrespective of where the homeowner is based, unlocking existing housing wealth can be transformative to the quality of life enjoyed by homeowners as they age.

Regional variances One particularly eye-opening aspect of the research is the regional differences involved, with areas where retirement incomes are lowest well-placed to benefit from lifetime mortgages.

For example, in the North East, average pension incomes for a single person, after housing costs are deducted, come to around £16,380 per year. That’s the lowest of any region in the study, and so is the furthest away from the £31,700 annual income needed for a moderate level of comfort in retirement, according to Pensions UK. Compare that with the South East, where pension incomes are typically around £19,240 per year.

Yet unlocking property wealth can have an enormous impact on those pension incomes, providing homeowners with a far higher standard of living in retirement.

In the North East, a 40% equity stake is typically worth around £65,600, enough to top up current pension incomes to the moderate level for more than four years.

It’s a similar story in regions like

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Scotland, Yorkshire & Humberside and the North West, with the research demonstrating that tapping into property wealth could boost pension incomes for up to six years.

The impact in areas with higher house prices is even more significant.

In the South East, unlocking 40% equity from the typical property would top-up pensions to reach the moderate threshold for more than 12 years, while in London it would deliver more than 15 years.

That’s a lot of pensioners in a more comfortable financial position, while also boosting the economy generally given their enhanced spending power.

Normalising housing wealth The report suggests a series of measures which could make it easier for homeowners to fully utilise housing wealth in their later years and supplement their pension saving, all of which are eminently sensible.

For example, while it’s easy to talk about the potential financial benefits of downsizing – as well as the positive impact this would have for families looking to move up the housing ladder themselves – all too often such a move is impractical.

A report back in 2023 from the Centre for Ageing Better, for example, suggested around one in five older people feel trapped in their current home because of a lack of suitable alternatives.

There is a clear requirement for more housing aimed specifically at – and which caters directly towards – the needs of older people. Similarly, incentives like a lower rate of Stamp

DAVE HARRIS is CEO at more2life

Duty for downsizers would provide the sort of helping hand that can make all the difference for those on the fence about such a move.

However, downsizing can only ever be one potential solution to the situation. There are plenty of people who won’t want to move, as they are in a home they love, filled with memories of loved ones, and which they have worked hard to pay down the mortgage on.

They want and need to make use of a solution that allows them to tap into the proceeds of that sacrifice to support their later years. That means normalising options like lifetime mortgages or other forms of later life

L AT E R L I F E L E N D I NG Opinion

m fortable retirement lending, breaking down any stigma and misconceptions so they are considered on their own terms.

Similarly, regulatory reform is needed so advice silos are removed, and customers benefit from a more comprehensive assessment of the full range of options open to them.

No longer an afterthought That particular drum is one I’ve been beating for a long time, and I remain as convinced as ever that we are still just scratching the surface with lifetime mortgages.

There are too many advisers for whom these products are an afterthought when working with clients over the age of 50, if they are even considered at all. Yet, ignoring lifetime mortgages, or only paying

them lip service, is a big mistake.

Many clients would benefit from them being part of the discussion, while recent regulator speeches indicate that it now expects advisers to consider all options for later life clients, not just mainstream mortgages.

This isn’t an area of the market that can be ignored, nor should it be, given the incredible opportunities it offers customers and advisers alike.

Let’s be realistic, the pressures on retirement incomes aren’t going

anywhere. Homeowners across all regions will increasingly want to make the most of both retirement savings and housing equity in their later years, and product solutions that make that possible will have to be fully considered.

For advisers, the question cannot be if they add later life lending to their proposition, but when. ●

February 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

How lending trends reflect societal patterns

A

As an industry we must ensure we effectively use data to identify changing needs

s we look back over 2025 and forward to 2026, it’s important to reflect on the changing nature of the later life customer, and how that reflects on the picture for the current over-55 in Britain today.

It’s no secret that for many the last few years have become increasingly tough, with ongoing cost-of-living increases and above-average inflation reducing people’s spending power, and rendering existing pension provisions unable to solely sustain both individuals and couples throughout retirement.

That’s assuming that those provisions are even le untouched.

The Financial Conduct Authority (FCA) released data earlier this year reporting record levels of pensions withdrawals.

Q3 demographic shifts We’ve noted a significant increase in the proportion of new lifetime mortgages being taken out on a ‘joint lives’ basis, which surged to account for 62% of new business in Q3 2025, representing an annual upli of 10%.

Plan preference has also shi ed, with

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The Intermediary | December 2025

64% of new lifetime mortgages taken out on a lump sum basis in Q3 2025, increasing from 49% in Q3 2024 and 55% in Q2 2025 – an increase of 15% annually and 9% quarterly.

Among single life applicants, while men continue to, at 42%, represent a minority compared to women, they’ve nonetheless seen a 12% annual increase, and a 6% increase quarterly upli compared to Q2 2025.

These figures go deeper than simply a lifetime mortgage trend, and point towards wider societal shi s and how people from across the demographic spectrum are facing challenges in meeting their retirement goals.

Men and women The changes in gender pa erns among single applicants were particularly noteworthy, and led us to explore this data set more closely.

We found men were more likely to use released funds to repay debts and mortgages than women, with 38% of new business in Q3 from men listing this is as the primary reason for taking out a lifetime mortgage, compared to 30% of women.

Home improvements were also a more popular reason among men, accounting for 21% of new

PAUL CARTER is CEO at Pure Retirement

business, compared to 18% of women.

Conversely, women were more than twice as likely to release funds for gi ing to family and friends, with this use of funds being listed as the primary reason among 13% of women, and 6% of men.

We also found that men were more likely to release funds to purchase a car (10% in Q3 – a reason which didn’t factor in the top five among women), while women were more like to take out a lifetime mortgage for a holiday (5%, while it didn’t factor in the top five reason for men). We also noted that around 10% of both men and women released funds for the purpose of starting a contingency or emergency fund.

While the proportion of business among low to mid-value homes remained very similar among men and women, the gulf increased as house values went up. At the more affluent end of the scale, 13% of new business from single men in Q3 came from owners of homes worth at least £700,000 – compared to 3% among single women. Men are also far more likely to take out a lifetime mortgage on a lump sum basis, accounting for 72% of single male activity, compared to 58% of new plans for single women.

Constant evolution Later life lending undoubtedly continues to play an important part in financial planning among those approaching – or experiencing – retirement in the modern landscape.

However, with customer profiles constantly evolving, it’s important that we, as an industry, collectively ensure we effectively use data to identify changing needs, and in turn evolve our offering to continue to meet them. ●

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AU T U M N B U D G E T Rapid reaction

Budget Reflections The Intermediary asks the experts their thoughts following the Budget, and what this means for the UK housing and mortgage market

John Wickenden

research manager at Housemark

“The Budget offers some welcome help for households, but it does little to address the deeper pressures shaping the housing sector.

Housemark’s latest data shows that landlords are working hard to improve services despite financial constraints. Tenant satisfaction has held above 75% for several months and repairs performance is also strengthening, with close to 90% of jobs completed on time. These improvements are hard won, and they rely on organisations being able to plan and invest with confidence.

“At the same time, voids performance is improving and arrears are falling, which suggests that providers are stabilising services and supporting residents effectively. Yet this progress sits against a backdrop of rising expectations on safety, damp and mould, customer experience, energy performance and data requirements. These expectations have grown year-on-year without the corresponding increase in long-term funding needed to deliver them. The sector has absorbed a decade of stretch and the Budget does not alter that reality.

“The confirmation of the 10-year rent settlement at CPI plus 1% gives landlords a clearer planning horizon and that is welcome.

But a rent framework alone does not resolve the mismatch between what providers are required to deliver and the resources available to deliver it. The decision on convergence rules in January

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will be critical, and landlords will need clarity that supports both investment and affordability.

“With digital contact now making up more than a third of all customer interactions, and continuing to rise, providers are contending with sustained operational pressure across teams and systems. Any future cost increases – through environmental charges, wage uplifts or changes to tax policy – will land on an already stretched system.

“What is needed is a long-term approach that aligns rent policy, regulatory expectations and the investment required to maintain and improve homes. Clear and stable frameworks will help organisations use data and benchmarking to drive efficiency, value for money and better outcomes for residents.

“Short-term measures may ease pressure at the margins, but they do not address the structural challenges facing the housing sector.”

Guy Gittins CEO at Foxtons

“The Budget has delivered much-needed clarity for the housing market following a period of heightened uncertainty, as buyers and sellers waited to understand the scale of potential tax changes.

“With that uncertainty now lifted, we expect to see confidence return as households re-engage with their plans to move. While many were hoping for a targeted Stamp Duty incentive to support affordability, the absence of change

AU T U M N B U D G E T Rapid reaction

provides a stable foundation on which to move forward, and this stability will be welcomed by a market that has already shown significant resilience throughout 2025.

“The new surcharge on homes above £2m will importantly not take effect until 2028, so we have ample time to adjust and plan with our clients. London’s prime market, in particular, remains robust, and buyers at this level typically plan purchases over a longer horizon, meaning the announcement can be accounted for in these plans.

“The rental sector continues to evolve, and despite the unwelcome incoming tax adjustments, we expect rental inflation to remain strong over the coming years.

“With demand still far exceeding supply, rental values are set to rise at a pace that is likely to outstrip the relatively small increase in taxation, supporting stronger short and medium-term returns for London’s landlords. In this environment, informed guidance from an expert agent will be essential to help investors capitalise on these conditions and maximise yields. Overall, the Budget provides a stable backdrop as we move into 2026, setting the stage for momentum to build after a period of uncertainty.”

Sam Mitchell CCO at Lomond

“The Chancellor’s Autumn Budget introduces significant changes that will reshape the property sector, but it also delivers the clarity the industry really needs after months of uncertainty and speculation.

“Landlords tell us they want certainty, practical guidance, and the confidence to make the right decisions. While recent uncertainty has slowed the market’s natural momentum, now is the time to act decisively to protect investments.

Working with professional lettings and sales agents will help ensure landlords, tenants, homeowners and buyers stay up to date with any changes that affect them, and protect property interests. With the right support and preparation from informed agents, landlords can continue to manage their assets confidently and maintain strong, stable tenancies, even in a shifting policy environment.

“The Treasury’s decision to increase income tax rates on property income with new separate property tax bands of 22%, 42% and 47% mean that it is more important than ever for landlords to plan ahead for tighter margins and reassess investment strategies. This is

where a professional letting agent can make a real difference.

“The private rental sector [PRS] recently saw the biggest shift in a generation with the passing of the Renters’ Rights Act. While this regulation presents significant change, it also raises the bar for professionalism and creates opportunities for the sector, which is what the industry really needs to continue growth and momentum.

“For landlords, the combination of the Budget and the Renters’ Rights Act introduces new responsibilities and financial considerations.

However, the clarity we now have means property is still an excellent place to invest for the long term, with yields increasing in many areas of the country, interest rates on the way down, and decreased landlord competition. I also believe the [Act] could lead to longer tenancies which will ultimately minimise voids again boosting the sector’s attractiveness.”

Ben Beadle

CEO at the NRLA

“The Budget presents significant challenges for the PRS and the effects will be felt most acutely by low-income renters. The decision to increase Income Tax on property income from April 2027 comes on top of a decade of piecemeal tax changes, all of which have steadily eroded returns for individual landlords.

“The Office for Budget Responsibility has been explicit that these measures will push rents upwards, and the Institute for Fiscal Studies is clear that taxing property income will increase costs for tenants.

“For brokers, the implications are already visible: buy-to-let [BTL] lenders are likely to require higher rents at renewal to maintain affordability ratios. As taxation rises and financing costs remain elevated, these stress tests will inevitably feed through into further rent increases.

“These tax decisions are compounded by confirmation that Local Housing Allowance rates will remain frozen for a second year in 2026/27. With fewer than three in every 100 private rented properties affordable to people receiving housing benefit, the freeze will make it even harder for those on the lowest incomes to access or sustain a tenancy.

“At the same time, overall support for green home upgrades has been reduced by a quarter, from £20bn to £15bn over this Parliamentary term, despite the Government’s ongoing consideration of ambitious energy efficiency targets for the sector.

December 2025 | The Intermediary

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AU T U M N B U D G E T Rapid reaction

“The Committee on Fuel Poverty has rightly argued that “more thought is needed” on how to support landlords who will struggle to make the investments required.

“The assumption underpinning much of this Budget appears to be that landlords form a homogenous, wealthy group with the ‘broadest shoulders’.

“In reality, HMRC data shows that the average unincorporated landlord declares £19,400 a year in rental income, while Government statistics estimate median non-rental income is £25,000. Many do not have the financial resilience to absorb higher costs without increasing rents.

“The sector needs a stable, long-term tax framework that encourages investment, boosts supply and enables landlords to meet rising standards. Without this, the pressure on tenants will continue to grow, and the housing market risks becoming even more constrained.”

Jon Di-Stefano

CEO at Greencore Homes

“The Autumn Budget comes at a crucial moment for the housing sector, and it is encouraging to see the Government place such clear emphasis on long-term stability and fiscal responsibility.

With borrowing costs falling and the OBR’s updated growth forecasts rising from 1% to 1.5%, this signals some economic confidence, welcome news after months of uncertainty.

“The Chancellor has faced difficult choices on taxation, the cost of living and Government spending, but what the industry needed most was clarity, stability and an end to the prebudget speculation.

“However, it was disappointing not to see any reduction in the Stamp Duty burden, and no indication of any additional stimulus for the housing market.

“After several months of more positive Government policy in terms of housing, the priority must now be for the Government to stand by its commitment to building new homes and to continue supporting the momentum that is beginning to emerge.

“With very few announcements on housing [in the Budget], we hope this does not signal a loss of focus at such a crucial time for housebuilders.

“Housing plays a vital role in the UK’s economic recovery. Anything that helps people buy and sell homes stimulates growth, not only within our sector, but across the entire economy.”

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Simon VernonHarcourt Design and planning director at City & Country “The Government needs to get the economy moving again – and the quickest way to do that is by unlocking the housing market. Right now, confidence has stalled amid talk of higher taxes, and people are hesitant to move. We need a clear plan and decisive policy action to help buyers take that next step.

“We’ve seen what’s possible before. In the 1950s and ‘60s, the UK was building around 200,000 homes a year, driven by ambitious councils and smaller builders, yet we’re still falling short of that today.

“We also need a planning system that works.

Labour’s plans to rethink the green belt and introduce the concept of a ‘grey belt’ are bold but necessary steps to build where people actually want to live. Allowing well-designed schemes to move through planning more efficiently will help smaller, design-led developers like us deliver the kind of sustainable communities the country needs.

“But building homes also means investing in people. The construction sector can be a real engine of growth if we put the right focus on training and encourage more people into the trades. We can’t build homes without skilled hands – and funding to make training apprentices aged under 25 and under free for SMEs is a step in the right direction.

“The goal shouldn’t just be to build more houses, but to create places people are proud to call home.”

Paul Silver

CEO at Dorchester Living

“My hope is that housing remains a genuine priority for the Government following the Budget – not just in words, but in action. Housing and infrastructure are fundamental to the strength and stability of our economy. We need clear, consistent incentives that genuinely support delivery across the sector.

“As for the wider economic landscape, we desperately needed a balanced but deflationary Budget to bring down interest rates and stimulate investment and growth. Time will tell whether the measures announced will be enough, though stronger income restraint would likely have been a more effective route.

AU T U M N B U D G E T Rapid reaction

“It is also glaringly obvious that the current tax burden, now at record levels, is unsustainable in a highly mobile world.

Successive Governments must know this, yet for years have avoided addressing the underlying structural problems.

“We can remain a responsible society by targeting support where it is most needed, but unless we reduce the size of the state over successive Budgets, the UK risks continuing on a structural downward path, driving away talent and wealth and ultimately causing greater hardship for everyone.”

Charlie Warner

partner at Heaton & Partners

“If it had truly been about balancing the books, the Chancellor might have retained a fluid property market rather than creating bunching points at various stages between £2m and £5m.

She would also have avoided yet another signal to the ambitious that they will be taxed for enjoying the fruits of their success.

“The policy, according to the Office for Budget Responsibility’s additional data, is cumulatively almost cost neutral over the next four years, with an increase in tax take thereafter to £0.4bn annually. I suspect this is wrong, as there was a nod to the right to deferral.

“Generally, there comes a point when older occupants of sizeable houses want to reduce energy and maintenance costs and make the difficult decision to sell up and move to somewhere of a more appropriate size. With the Chancellor’s changes, deferral of payment until sale or death would simply lead many downsizers faced with a stressful sale process for marginal gain to sit tight.

“This will reduce Stamp Duty Land Tax take and reduce availability of good housing for families at the top end of the market once the policy has kicked in.

“When it comes to the second thing to remember; this is in the context of a group of society who have had a thorough financial kicking over the last year, and I think even this Government realises that the flight of wealth from this country can’t continue at the same rate if its bills are to be paid.

“Rental income will lead to increases in rent, so ultimately, this will be an own goal against renters. As private landlords come to the decision that the yield is not worth the hassle, I can see more investment property becoming available for the likes of first-time buyers.”

Omar Al-Hasso CEO of SimplyPhi “The Autumn Budget was a golden opportunity for the Chancellor to continue to progress Labour’s housing ambitions beyond simply building new homes.

“Earlier in the month, the MHCLG released guidance on the Social and Affordable Homes Programme which included a major focus on building new affordable homes – 60% of which will be targeted for social rent. While new-build delivery is undoubtedly an important part of the picture, this approach fails to address the diversity of housing required to meet existing needs, especially the critical demand for temporary accommodation.

“Prioritising new-build housing delivery offers a medium to long-term fix to a clear and present immediate housing crisis, as it takes years to obtain planning permission and then build out developments and is comparatively more costly than making use of existing housing stock.

“The Chancellor has missed an opportunity to use the Budget to reform Local Housing Allowance rates, indexing them to inflation or preferably re-basing them relative to live market rent as originally structured. This would not only open up more affordable private rented housing stock, but would reduce risk for local authorities raising institutional investment from the private sector, to bring forward more immediate housing supply.”

Adrian Watts

CEO at Croudace Homes

“Recently there has been a decline in buyer confidence within the residential property market. This is resulting in buyers cautiously navigating a challenging market, where affordability remains one of the biggest obstacles, particularly due to the lack of support, especially for first-time buyers, which are the lifeblood of the property market.

“First-time buyers are essential for a thriving housing market, so we must invest in schemes that will reduce barriers to getting people onto the property ladder, and drive demand to maintain the confidence and security of prospective buyers in the market.

“The housing market is in dire need of stability, certainty and a long-term strategy, so it is disappointing that the long-awaited Autumn Budget has failed to address the any of the challenges we are facing as an industry.”  December 2025 | The Intermediary

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T E C H NO L O GY Opinion

Data quality is central to effective property risk

W

hen we speak about new technologies, there is a tendency to use catch-all terms. Artificial intelligence (AI) is a good example of this Within the world of AI there is a whole range of models and learning methods – supervised, unsupervised, reinforcement learning, deep learning, generative models and natural language processing (NLP).

The same is true when we talk about automated valuation models (AVMs) – not all are equal. All AVMs rely on data inputs and use an algorithm to calculate the value of a property. But depending on the provider, not all will use the same data sources or number of data points. Not all providers triage AVM valuations either, yet understanding and si ing outliers out into a more appropriate valuation journey is critical.

Data used by most AVMs include sources registering property transactions, Land Registry, and comparables. Some feed in additional information relating to flood exposure or other environmental factors affecting a property’s value.

Understanding the various models is important for lenders, particularly because margins are thin on individual loans that are relatively straightforward on the credit risk side.

Bringing the cost of writing a loan down therefore has a tangible impact on profitability. The easiest way to achieve this is to use cheaper valuation models that keep underwriting costs down. However, too heavy a reliance on an AVM that doesn’t consider all the property risk factors properly is likely to prove a false economy should things go wrong for the borrower.

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The Intermediary | December 2025

The key to managing risk factors is to understand fully how AVMs differ across the marketplace, and to ensure that checks and balances are in place.

Breaking AVM risk down into its component parts is helpful when considering how best to use them.

Data is absolutely critical. There are several factors affecting the quality of data put into AVM models, as identified by the Royal Institution of Chartered Surveyors (RICS). At a high level, these include recency, availability, security, privacy, ownership and ethics, provenance and lineage, assurance, consistency, collection methodology and scale and range.

Transaction volumes are also critical, along with meaningful comparables. As RICS notes, in many jurisdictions this data is unavailable, of poor quality or substituted with asking price data as a proxy.

As planning and regulations evolve, there is also an increasing variety of data being used as part of the valuation process. Data points around Energy Performance Certificates (EPCs) and the Building Research Establishment Environmental Assessment Method (BREEAM) are also increasingly incorporated. Then, there are more traditional data sources that have long been used by surveyors to gauge value, such as using crime rates to assess the a ractiveness or otherwise of the location and region, online consumer ratings, air quality and broadband availability, among others.

It is also worth considering the volume of data being fed into models – and how reflective it is of the whole market with all its nuances.

The most effective way to manage these data risks is to put in place triage measures that protect against skewed information.

STEVE GOODALL is managing director at e.surv

There are two ways to do this effectively. The first is to use realtime data gathered on the ground by experienced valuers to feed into AVM models on a daily basis, ensuring that the most accurate assessment of value is achieved. The second is to review automated valuations based on other risk factors – again, identified by surveyors on the ground.

By constantly upgrading the data inputs with real, verified information, lenders can have true reassurance that property risks that sit underneath the bonnet of open data sources are identified and caught before they become an issue.

Where properties are flagged as potentially higher risk or anomalous, desktop and physical valuations can be used to provide additional cover.

It’s generally accepted that AVMs are more appropriate to housing that can be considered reasonably homogenous – in style, construction type, location and age.

Where a blended loan-to-value (LTV) assessment is needed for the valuation of a whole loan book, using AVMs can be a good way to keep costs down for lenders.

RICS has previously flagged concerns around the fact that many models are designed to work at the portfolio level, and by not considering comparable evidence at an individual asset level, produce a different statistical distribution. There is a place for this in the market, but what lenders must be mindful of is the appropriateness of the valuation method and model to the type of work being carried out. ●

T E C H NO L O GY Opinion

Meaningful change in the property market

W

hen I took on the task four years ago of bringing the property market into the 21st Century by digitising upfront property information, it was immediately apparent that the challenge wasn’t a lack of technology or creativity, but a fundamental gap in infrastructure and collaboration.

There’s always positive innovation happening throughout the UK property sector – from digital portals and app-based mortgage tools to automated ID checks and case tracking systems. But much of this happens in isolation due to the highly fragmented nature of our industry.

That’s why, despite some brilliant progress, the homebuying and selling process in the UK is still so inefficient and frustrating for everyone, especially consumers. What’s needed is stronger collaboration across the industry to create a truly connected digital infrastructure underpinned by common data formats and trust standards.

That’s why I’m excited to be a part of the Centre for Finance, Innovation and Technology’s (CFIT) latest coalition group, a crosssector collaboration dedicated to applying smart data principles in the property market.

On a mission CFIT’s mission is to accelerate UK fintech and financial innovation and to unlock barriers to growth for consumers and businesses; it’s a key part of the Government’s Industrial Strategy. Previous coalitions have focused on Open Finance and digital verification and delivered gamechanging solutions.

Coalition 4, as it’s called, aligns with the Open Property Data Association’s (OPDA) mission to change the way people buy and sell houses by implementing open standards and solving some of the biggest adoption challenges to data sharing across the mortgage and wider property industry.

It brings together the most influential stakeholders in financial services for a time-limited, strategically focused period to catalyse the development and implementation of an Open Property ecosystem.

Alongside lessons from the Open Finance and digital verification coalitions, a key input is the OPDA’s Property Data Trust Framework, a set of data standards that make it easier for organisations and users to

There’s always positive innovation happening [...] but much of this happens in isolation due to the highly fragmented nature of our industry” complete property transactions or share information with other trust framework participants.

At its first meeting, we shared with more than 60 a endees the progress we’ve made so far, including our work on Smart Property Data, creating and implementing data standards, the impact of Digital Property Packs on transactions, and outlining the

MARIA HARRIS is chair of the Open Property Data Association

urgent need for cross-sector data and policy integration to improve the homebuying and selling process.

Phase one will focus on identifying where Smart Property Data intersects with Open Finance and Digital Identity and where we need strategic alignment to enable practical implementation.

What makes the coalition so important is that it is focused on unifying stakeholders and delivering tangible outcomes by developing prototypes, proofs of concept, and policy recommendations. It means that we are finally starting to walk the walk and not just talk the talk on our ambition to digitise and streamline the entire end-to-end homebuying experience, and all the processes that sit within it.

With the recent announcement that we have secured almost £750,000 in Government funding to deliver the technical governance trust framework we need across the whole property ecosystem, we’re really making this happen!

We are on the cusp of the biggest transformation the homebuying process has ever seen, with a shared vision to revolutionise transactions, reduce fall-throughs and deliver a be er experience for consumers.

The future of homebuying is here, and it’s smart, with digitisation based on the OPDA data standards and interoperability of trust frameworks.

The work of CFIT Coalition 4 will be vital in achieving the unity we need. ● December 2025 | The Intermediary

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T E C H NO L O GY Opinion

Lending tech doesn’t need to be flashy W orkhorse tech rarely makes headlines, but it makes all the difference for brokers.

Before I joined Gen H, the scrappy start-up-turned-scale-up mortgage lender, I spent years working with large high street banks. With HSBC and Virgin Money, I worked on high impact projects with talented people and gained privileged insights into how the world of mortgages really works. Not just the high-level balance sheet bit, but the nuts and bolts, like how loans were created and serviced by operators on the front lines of the business.

What always surprised me was how much variation exists between – and even within – each lender’s systems.

One of my favourite anecdotes from this time was gaining a glimpse into a competitor’s system – it was built on what appeared to be the carcass of an old airline ticket booking system.

As you can probably imagine, it was slow, prone to break, and took engineers a long time to fix. The underwriters were praised less for their sound lending judgement and more for how quickly they could leap, gazelle-like, between the 17 – only a mild exaggeration – different applications and green screens required to actually make a decision.

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This is far from uncommon. Unfit tech is a problem that pervades the mortgage industry – from clunky phone trees to conveyancers who still require wet ink signatures and lenders who only accept faxes.

On the right track?

Now, over the past year in particular, lenders have made progress. But lately, I’ve started to worry we’re veering off the track. It feels we are caught up in the excitement of shiny new technology, especially artificial intelligence (AI), and losing sight of what really ma ers: making life easier for brokers and customers.

One of the reasons I joined Gen H was how the team uses technology. It was a break with the traditions of the industry. Instead of licensing so ware built in the ‘90s, the team was building it all from scratch. We had complete control over both how we worked and how customers and brokers would engage with us.

On the downside, it meant that if something broke, we’d have to fix it ourselves, fast. But on the upside, we’ve been able to build lean, efficient systems that future-proof our business and are easy and intuitive to use.

This kind of thinking has to begin at the beginning.

This approach has led to a series of recent improvements that may not sound glamorous, but make a

PETE DOCKAR is chief commercial officer at Gen H

huge difference. For example, we’ve introduced automated ID checks and created a new self-serve re-offer function for brokers to swap to a lower rate pre-completion if one becomes available. We show applicant credit commitments within the application if they limit affordability so brokers can tell us if we should ignore them.

We allow Direct Debits for more than one person on the mortgage. And we were the first lender to implement Experian Boost, which takes into account recurring payments like rent and Council Tax, to increase an applicant’s credit score.

None of these functions are especially flashy by today’s standards.

They’re not AI phone agents or AI application assistants, because

T E C H NO L O GY Opinion

frankly, no AI is be er at supporting brokers than our human business development managers (BDMs), or be er at understanding complex cases than our broker partners. At least not yet.

Instead, these updates are designed to make those points of friction in the process as smooth as possible.

New tech, old problems To be clear, I am delighted to see more focus from other lenders in this area.

Even the high street is beginning to catch up, or at least they’re thinking about it – well, they’re definitely talking about it, anyway.

But I worry that for all this investment in new tech, we’ll wind up with the same problem.

The old airline-carcass application systems cost brokers time and frustration. It created stress for customers. And as a second order, it cost the lender money every time it broke, or every time a broker went elsewhere because they couldn’t stand the clunky experience.

My view is simple: unless a lender has already eliminated all of the friction from their application and

We are caught up in the excitement of shiny new technology, especially artificial intelligence (AI), and losing sight of what really matters: making life easier for brokers and customers” servicing flows, that flashy new AI pilot will, equally, just cost time, money and frustration.

I understand that it can be tempting to chase a er the next big thing – especially given that AI does seem set to revolutionise how we work. It is still important to stay abreast of these developments as they happen, and to know how to implement an AI strategy if and when the right opportunity arises. But in order to make good use of that flashy tech, you

have to be building on top of already strong foundations.

Based on my time on the high street, and from what I still hear from industry experts today, many lenders are a long way from perfecting the systems they have.

For the record, Gen H isn’t perfect. We have chased the flashier tech before.

For a moment, we had an artificial intelligence packaging agent that enthusiastically filed documents into the wrong buckets. And quickly, the cost, measured in time, money and frustration, added up. We learned from that.

As a fintech lender, you might think it’s in our nature to prioritise our tech above all – but it’s not so simple.

Our tech enables us to help people and set new standards for how this industry can operate, but our customer and broker experience is still our North Star.

I hope other lenders keep this as their guiding principle as they implement their own increasingly ambitious plans over the next few years. Let’s build, but let’s do it right. ●

T E C H NO L O GY Opinion

AI: Broker friend or foe?

A

rtificial Intelligence (AI) is no longer a futuristic concept; it’s reshaping every corner of the financial services landscape. From underwriting to fraud detection and client engagement, its impact on the mortgage industry is undeniable. But using it responsibly while preserving human judgement remains the real challenge.

Underpinned by data-driven insights and personalised recommendations, expectations for the modern advice process are higher than ever. When implemented with care and due diligence, AI can help bridge this gap in terms of enhancing systems, streamlining processes, and improving the overall client experience.

Yet, while automation can support information gathering and decisionmaking, context, empathy and professional judgement will always require a human hand. AI might flag anomalies, but only an experienced adviser can interpret them correctly and ensure the right customer outcome. Machine learning still struggles with emotional nuance, and that’s where human instinct remains the greatest advantage.

From a regulatory perspective, the Financial Conduct Authority (FCA) remains technology-agnostic, focusing instead on accountability to ensure firms can evidence how AI supports compliance and consumer protection.

Any tool or process should be tested, documented, and explainable, with due diligence carried out on AI suppliers to confirm that customer data is managed securely and ethically, helping to maintain trust and confidence throughout.

Data security and privacy remain paramount. Firms must handle information transparently and

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responsibly, ensuring AI systems are compliant and safeguarded against the misuse or unauthorised sharing of sensitive data.

Inevitably, the next few years will see deeper integration of AI throughout the mortgage journey.

Digital natives, who are more comfortable with online interactions, will drive demand for faster, smarter and more digital-first experiences.

As AI continues to evolve, so will its ability to support marketing, risk management and customer retention, but maintaining a balance between technological innovation and regulatory rigour will be key.

Firms that adapt thoughtfully will not only improve efficiency, but also strengthen their ability to deliver fair, transparent, and high-quality outcomes under Consumer Duty.

Practical wins for brokers Transitioning to new technologies takes time and investment, but the long-term benefits far outweigh the risks of standing still. For many advisers, experimenting with AI in small, low-risk ways is an ideal starting point.

Simple tools that help structure meeting notes, summarise client interactions or manage routine communications can reveal efficiencies that build confidence and familiarity. Over time, these skills can be safely applied in professional se ings to enhance productivity and service delivery.

In practice, AI can already support brokers by: Analysing call transcripts to produce quick, compliant summaries or notes a er client conversations.

It can also automatically generate follow-up questions based on client intent.

Gathering key client details beyond ‘standard’ office hours to streamline case preparation.

Analysing internal business data

VICTORIA THOMPSON is head of strategic partnerships at Barclays

to identify trends and optimise marketing performance.

These small but meaningful wins can deliver significant results, freeing brokers to focus on what ma ers most – building relationships, interpreting nuance, and delivering truly personalised advice.

A er hosting a recent Barclays webinar on this very topic, I believe that AI can support by processing data and generating insights. However, it still can’t read the room, build rapport or understand unspoken dynamics.

It has significant benefits, but with its current limitations it still requires a human touch. As AI continues to develop, it is pivotal we influence how it shapes the future role of the advisor.

AI is here to stay. Those who embrace it safely and strategically will not only help future proof their businesses but also raise the benchmark for advice and client experience across the mortgage market. Ultimately, success will belong to those who blend technology with empathy by using AI as a partner.

It is our collective responsibility to shape how AI impacts us and our industry. Rather than waiting for technology to dictate the future, we must take an active role in guiding its development and application.

By engaging early through education, ethical decision-making, and strategic adoption, we can ensure AI enhances our work, supports our values, and drives positive outcomes.

If we remain passive, these tools will evolve without our influence, leaving us to adapt to systems we didn’t help design. Proactive involvement today is the key to creating an AI-enabled future that benefits everyone. ●

T E C H NO L O GY Opinion

Change is outpacing legacy systems

W

hen so many regulatory initiatives require system changes, is the pace of change now too quick for lenders running legacy platforms?

Lenders have a huge amount of regulation and compliance to deal with today, and there continues to be more and more. Some of it is flagged early enough to allow for lenders with older systems to adapt them – more of it is not.

Currently, lenders are contending with the Consumer Duty rules, trying to understand what vulnerability looks like without over or undersimplifying it, and dealing with how to make the most of relaxed loan-to-income (LTI) rules from the Prudential Regulation Authority (PRA). The Mortgage Rule Review is down the line, new Energy Performance Certificate (EPC) standards are coming, and all the rest.

To maintain competitiveness, lenders must be able to manage these challenges quickly and efficiently. The consequences of failing to do that can be devastating for business volumes.

The Intermediary Mortgage Lenders Association (IMLA) estimates that the share of mortgage business conducted through intermediaries will continue its upward trajectory, rising from 87% in 2024 to 89% in 2025 and 91% in 2026.

When brokers want ease more than speed, what does ease look like? Appropriate products, priced competitively and coming to market at the time they’re needed – not nine months later.

Case submission is also something that is still proving too hard for a lot of lenders, and brokers hate it.

Ultimately, they vote with their feet.

Increasingly, this is now happening, driven by the fact that a rising number of lenders have recognised just how

important and time-sensitive it has become to be able to deliver a slick and flexible service interaction for brokers. Enhancing digital channels, offering be er client relationship management systems, cu ing processing times, improving the broker experience and adding agility to provide for changing needs – these are the challenges at the forefront of most mortgage lenders’ minds.

This should be the biggest driver for the investment case to move to new tech systems. The more lenders do, the worse it will get for those that don’t. Investing in a wholesale change from legacy platforms to a brand new system is a big decision for lenders.

There is a business case to be made to justify the cost, and the decision will always involve weighing up alternative options. Patching existing systems might seem easier, less risky or even cheaper. But I’d argue the opposite. A fully thought-through business case to invest in cloud-based tech should come down to more than cost. It should be about how cost effective that investment is long-term.

Repricing and managing product refreshes, or launching new ones, is an obvious space where lenders can improve efficiency and therefore the ease for brokers interacting with them.

Another is how easy it is for lenders themselves to use the data they have si ing in their systems doing nothing. Especially when it comes to compliance with vulnerability rules under the Consumer Duty. Identifying key flags, monitoring them, risk assessing borrowers – these tasks need flexible platforms that can access the right data in enough granularity to allow for a meaningful response.

According to UK Finance, research shows that 89% of customers find the mortgage application as stressful as buying the home itself. Disparate legacy systems create an inconsistent journey that begins with digital

JERRY MULLE is UK managing director at Ohpen

Lenders must be able to manage [challenges] quickly and efficiently.

The consequences of failing to do that can be devastating for business” promise, but o en reverts to manual procedures, with 40% of the mortgage journey requiring human intervention.

The delays and frustrations that result are damaging for lenders – not only on profitability but also reputationally. Customers are baffled that it still takes up to six months to get a purchase to completion.

Remortgaging is not up to scratch for a lot of lenders, either, with average processing times now around 45 days, based on UK Finance figures.

With so much regulatory scrutiny, lenders must be rigorous about document verification, underwriting affordability and checking customers’ risk profiles. Doing that in a consistent manner, reducing the margin for error and the cost, requires major change. Lenders need agile, robust cloud-based SaaS Solutions that allow scaleability in cost effective way. It’s increasingly the only route to growth. ● December 2025 | The Intermediary

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T E C H NO L O GY Opinion

Supply side drives the technology agenda

E

arlier this year, the Financial Conduct Authority (FCA) published its Mortgage Rule Review discussion paper, with the stated aim of simplifying its mortgage rules to support sustainable homeownership.

In July, three months a er releasing this first statement, the regulator removed guidance no longer required and amended its rules to provide greater opportunity for innovation and to make it easier to remortgage with a new lender, reduce the overall cost of borrowing through term reductions and discuss options with a firm, while still having the option to seek advice if needed.

The requirement for a full affordability check when shortening a mortgage term was removed, although the FCA still expects lenders to assess affordability in line with responsible lending standards and the Consumer Duty. Additionally, the modified affordability rules allow new mortgage contracts with alternative lenders if the new deal is more affordable than the borrower’s current mortgage or any product offered by their existing lender.

As we near the end of the year, it’s uncertain whether these rules have driven significant change in the market. There is no data to date showing to what extent lenders have embraced customers wishing to switch lenders at remortgage; however, there has been a general feeling that there is limited appetite to rely on another lender’s affordability checks and mortgage valuations.

Whether a full underwrite is required or not, this year has seen a noticeable increase in borrowers remortgaging away from their

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existing lender. Partly this has been driven by improved pricing, with large banks competing fiercely to lure market share.

In this evolving market, service quality will become a critical differentiator. For lenders unable to match high street banks on price, offering added value will be essential to persuade borrowers to accept slightly higher rates. Retention processes will play a pivotal role – not only for direct-to-consumer remortgaging but also for broker-led applications. Streamlining remortgage procedures and minimising complexity is set to become the key competitive advantage.

Retaining customers at the point of refinance has been at the forefront of lenders’ minds for some time now. The cost of managing a product transfer is significantly lower than a racting and fully underwriting new customers.

The question then becomes how to achieve this in an efficient way.

Upgrading origination and servicing platforms comes with huge advantages when it comes to delivery of change but implementing what you need when you need it ma ers just as much. The trick here is for lenders to benefit from scale while retaining their identity and proposition.

Although this is widely understood, pu ing it into practice can be difficult.

Building societies have a long-standing tradition of providing personal service, both face-to-face and over the phone, avoiding the frustrations o en associated with larger organisations that rely on call centres.

Now, the industry faces decisions about how these services should evolve. Most professionals in the mortgage and savings sectors agree that digitalising processes is inevitable. Despite clear benefits,

HAMZA BEHZAD is business development director at Finova

there remains a cautious approach to overhauling origination and servicing platforms in parts of the market.

Big banks may need changes to accommodate straight through remortgage, but for building societies, this may not be appropriate for borrowers needing manual underwriting. Following the Budget, there is likely to be a significant rise in those requiring such services. For selfemployed individuals, a major change is the 2% increase in income tax on dividends, raising rates to 10.75% at the ordinary level and 35.75% at the upper level from April next year.

This adjustment will significantly affect those who typically draw a £12,750 salary to make the most of the personal allowance, with the remainder taken as dividends.

Individuals who find themselves facing more complex tax arrangements are likely to opt for lenders that have the time to understand their finances. Making that process as straightforward as possible will be a key competitive edge for lenders.

For building societies considering how to achieve this, a more flexible approach may be the be er option.

This is playing out in the market – we are seeing many mid-level building societies embrace cloudbased solutions, either upgrading comprehensively or adopting plugand-play options as needed.

Regulatory impetus has been the driver of change in the industry since the 2000s. Supply side change continues to dominate the technology landscape. ●

P RO T E C T I O N Opinion

The November Budget ripple effect

A

s the ‘ripple effect’ of the November Budget is being absorbed, what will be the effect on decisions by homeowners in relation to household costs such as home insurance?

The Autumn Budget always sends shockwaves through households, but this year’s announcement has created a particularly complex landscape for homeowners. Rising taxes, adjustments to welfare thresholds, new electric vehicle (EV) mileage tax, all mean that individuals are reassessing everything from energy use to discretionary spending.

One area that rarely gets immediate a ention, yet is deeply affected by fiscal policy, is home insurance.

While the Budget did not directly reference for home insurance premiums, its influence will be felt indirectly. That’s because home insurance pricing depends on several economic variables, such as inflation, the price of building materials, labour costs, household income, extreme weather risk, and the financial health of insurers themselves.

Rising costs Tax and spending changes influence the construction sector. If building or repair costs rise – whether due to supply-chain pressures, higher employer costs, or general inflation – insurers face larger potential payouts for claims. A simple example: if repairing a damaged roof now costs 20% more than it did last year, the insurer’s exposure increases.

The Budget’s broader inflationary effects, particularly if driven by tax changes or higher energy prices, could therefore nudge home-insurance premiums upward. For homeowners this adds another layer of financial pressure. Changes affecting property taxation, such as disincentives for high-value properties, can also

influence home-insurance behaviour.

When homeowners feel squeezed, they o en review all regular expenses to identify savings.

Insurance, though essential, is one of the areas people are tempted to cut back on, either by switching to cheaper policies or by reducing addons such as accidental-damage cover.

But a false economy lurks here: underinsuring or stripping away essential protections can leave households exposed to substantial financial risk at exactly the time when personal buffers are already stretched thin.

The Budget’s tax changes – particularly those affecting income thresholds – mean disposable income may fall for many households. When people experience financial stress, insurers tend to see increased claims activity, whether due to delayed repairs leading to bigger problems later or higher burglary risk. This can lead insurers to adjust risk models, potentially resulting in higher premiums for areas or demographics seen as more vulnerable.

Government incentives If Government investment in flood defences or climate resilience infrastructure increases, insurers may feel more confident underwriting homes in higher-risk areas.

Conversely, if public spending tightens and local resilience projects are delayed, insurers may factor greater risk into their pricing models.

The frequency of climate-related damage storms, flooding, subsidence is already a major driver of UK home insurance costs. Budget decisions that touch on infrastructure, energy policy, or local authority funding can amplify or ease these costs.

What homeowners could do now For individuals, here are actions that can be taken now:

STEPH DUNKLEY is development director at Safe & Secure

Looking to their brokers to get the right advice and competitive cover Understanding excesses and how they can help to reduce the monthly premium Having clarity on optional addons to optimise spend on home insurance Managing property maintenance to minimise risk of claiming Investing in security or energyefficiency upgrades

What mortgage brokers should do now To support clients through the postBudget landscape, brokers can take proactive steps: Educating clients early on the benefits of using specialist home insurance brokers Encouraging insurance to be part of affordability planning Warning against underinsurance Partnering with trusted insurance providers to improve client outcomes While the November Budget didn’t explicitly target home insurance, its ripple effects will influence homeowner behaviour, insurance costs, and affordability for the foreseeable future. For mortgage brokers, being able to anticipate these shi s adds real value helping clients protect their homes, while maintaining financial resilience in a more demanding economic environment. ● December 2025 | The Intermediary

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P RO T E C T I O N Opinion

New guidance puts vuln e under the spotlight

T

he new vulnerability guidance from the Chartered Insurance Institute (CII) is a significant step forward for both the insurance and personal finance sectors – and offers much across all of financial services. It provides firms with clear and comprehensive guidance of what ‘good’ looks like when it comes to supporting vulnerable customers.

Just as important is the access to a clear action plan to help firms not only embrace, but embed the principlesbased guidance of Consumer Duty – something that has been a real stumbling block for many.

Crucially, the guidance explains what this all means for the IT systems that underpin these processes to deliver the efficiencies that make Consumer Duty far easier and cheaper to achieve. Firms require clear structure and data that is both robust and consistent, to more readily enable detailed reporting backed by evidence.

There’s no question that this requires technology – and the CII’s guidance serves to emphasise this.

Without such systems in place, firms are le data-poor – limited by inconsistent and subjective identification of vulnerable customers, delayed support pathways and insufficiently robust audit trails.

Above all, customers face outcomes that fall far short of Consumer Duty.

It’s about much more than achieving compliance, though.

Without the right technology, firms cannot understand customers well enough to unlock both the competitive advantages and commercial benefits of responding to their needs and delivering a greater service.

Leveraging the right tech The CII has long documented firms’

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struggles to fully rise to the occasion, particularly while they transition away from more prescriptive regulation. It is well known that managing customer vulnerability is the hardest part of Consumer Duty.

The Financial Conduct Authority (FCA) itself has long advocated for technology adoption – to not just shore up, but to streamline vulnerability management.

A er all, customer vulnerability is complex, dynamic and changes over time. And, given the increased scope of Consumer Duty, the tick-boxes and comment boxes of the customer relationship management systems (CRMs) of old are simply not up to the task. That’s why the CII’s new guidance puts significant emphasis on systems that can identify, record, monitor and report on customer vulnerability – and consumer outcomes – in an objective, consistent and structured manner.

While some have tried to ‘Frankenstein’ current systems, or build their own, the most efficient and cost-effective solution for firms is to adopt or integrate one of the purposebuilt systems currently available.

Practical systems checklist For firms looking at how they should invest in technology, our guidance provides a practical checklist to ensure that systems meet the required standards. The list is comprehensive, but is split into five key areas.

First is identification and classification. The priority here is that any system goes beyond subjective opinions – and their o en binary approach, using ‘yes/no’ flagging.

Firms must adopt a comprehensive framework for classification built around circumstances, severity and coping mechanisms. This should also include support needs – and the

ANDREW GETHING is managing director at MorganAsh

relevant tracking, to identify any support offered and what success it achieved.

Firms should also ask if any system is capable of recognising a person’s multiple, overlapping vulnerabilities – or managing customer vulnerability across groups such as households – two key developments added this year to the MorganAsh Resilience System (MARS).

Next is data protection – which remains a hot topic. Can a system store data securely, with appropriate encryption and suitable compliance with GDPR? While concerns are fair, this has long been many firms’ scapegoat – and get out of jail card. However, dedicated systems not only provide a high-level measurement of vulnerability – such as the MARS Resilience Rating – which can be shared across the distribution chain, they also keep data secure, accurate, readily available for access requests and filtered based on role or need.

Third is lifecycle management – which gives firms the ability to record data, and changes in data, over the lifetime of products and services. Not only is this critical in understanding how circumstances have changed,

P RO T E C T I O N Opinion

n erability systems Customer vulnerability is complex, dynamic, and changes over time” it ensures that firms remain alert – particularly if systems can prompt for scheduled reviews based on risk and product type.

Fourth is meaningful reporting – aggregating data across vulnerability cohorts and trends over time to recognise gaps in identification, outcomes and the effectiveness of intervention. Combine this with the final point – a clear audit trail – and these key components can put that vital intelligence in the hands of firms to ensure that reporting and compliance isn’t a mad scramble or a shot in the dark.

Seizing the opportunity This checklist is not made of up ‘niceto-haves’, but essential components for any customer vulnerability management system that is genuinely up to the task. While it may all sound onerous, leveraging the right technology enables firms to streamline processes, drive efficiencies and unlock significant intelligence – transforming customer vulnerability from being just a compliance commitment into a strategic opportunity.

For too long, the conversation has been all about the stick, rather than the carrot. Through our own platform MARS, we have seen first-hand that businesses have embedded the Duty’s principles, embraced the technology and are reaping the commercial benefits. With this checklist, there is no reason why more firms shouldn’t join them on this journey. ● December 2025 | The Intermediary

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Meet The Broker Step By Step Financial Solutions Ltd.

Marvin Onumonu speaks with Kasia Makarewicz, mortgage and protection adviser at Step By Step Financial Solutions Ltd. What made you become a broker?

I came to the UK after being awarded a full scholarship at a London university to complete my Master’s.

At the same time, I was helping my terminally ill mother with her treatment. Balancing education, family responsibility, and the challenges of starting a new life abroad shaped who I am today. It taught me resilience, adaptability, and empathy – qualities that aligned perfectly with financial services.

I’ve always been drawn to problem-solving, relationshipbuilding, and helping people navigate complex situations.

Early in my career, I worked in roles that required analytical thinking and the ability to translate technical information into practical, humanfocused solutions.

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When the opportunity arose to move into the mortgage and financial services sector, I realised how much I enjoyed combining these skills with a truly client-first approach.

Becoming a broker allowed me to make a tangible impact in people’s lives. A mortgage is often the biggest financial decision an individual or family will ever make. Being able to guide them through that journey – whether first-time buyers, experienced investors, or homeowners restructuring their finances – felt incredibly meaningful.

What might people like to know about you?

Outside of work, I’m extremely community-driven. I currently serve as the Chair of the Parents & Friends Association at my daughter’s school,

and right now we are deep into preparations for what I’m confident will be our best Winter Fayre yet.

It’s a huge project involving parents, teachers, local businesses, and students, and being part of it brings me a lot of joy.

These initiatives keep me grounded and remind me why financial stability matters – they connect me back to the families and communities we ultimately serve as brokers.

What sets SBS apart?

Step By Step stands out for three core reasons: expertise, service, and integrity. First, our team is highly experienced and deeply specialised. We’ve built a structure where advisers focus on specific areas – high-net-worth, complex income, buy-to-let (BTL), limited companies/special purpose vehicles

M E E T T H E B RO K E R

(SPVs), new-build, private banking – so clients receive advice that is not only accurate, but genuinely tailored. They are not passed through a generic process; they work with someone who understands their circumstances in detail.

Second, our culture is centred around exceptional service. We pride ourselves on being proactive, responsive and thorough. From affordability assessments to managing solicitor and agent communications, advisers stay with clients for every step.

Many clients come to us after feeling unsupported elsewhere, and we take that responsibility seriously.

Third, integrity is at the heart of everything we do. Our advice is always based on what is genuinely right for the client. We are not interested in quick wins, but long-term relationships. Many of our clients return repeatedly for remortgages, portfolio expansion, or refinancing years down the line.

SBS supports its clients by investing heavily in internal development: continuous adviser training, robust compliance, strong admin support, and efficient internal systems.

What are the main opportunities in the market for brokers?

Despite economic volatility, there are several strong opportunities.

Education is a major one. Clients want to understand the market, but the volume of information – rates, criteria changes, lender policy updates – can be overwhelming.

Brokers who can translate complexity into clarity will stand out.

Complex cases are another growth area. As incomes, property structures, and asset profiles evolve, fewer clients fit the ‘standard’ model.

Brokers confident in comples areas can provide an irreplaceable service.

BTL remains strong for advisers who understand portfolio planning, stress testing, tax changes, and long-term yield strategy. Investors

increasingly value strategic advice over simply chasing the lowest rate.

Finally, brokers who embrace digital tools, strong CRM systems and automation can deliver better service and maintain closer relationships with their client base.

What are the main issues or challenges?

The past few years have brought several challenges: fluctuating interest rates, affordability restrictions, rising living costs, and tighter regulation. This environment is confusing for many consumers, which means advisers must work harder to manage expectations and secure suitable outcomes.

Affordability remains a major obstacle. Stress rates and cautious underwriting make it difficult for clients with complex income – bonuses, commissions, selfemployed profits, or foreign currency – to borrow what they need, even when financially secure.

BTL landlords continue to face pressure from stricter stress-testing and tax changes, prompting many to restructure portfolios or reassess long-term plans.

Policy and rate changes happen at unprecedented speed. Lenders are adjusting criteria much more frequently in response to market conditions, making constant monitoring essential.

Service levels also vary widely.

Some have adapted well, but others struggle with underwriting delays or capacity issues, creating stress for both clients and brokers.

How could lenders better support brokerages?

The partnership between lenders and brokers is essential, but there is room for improvement.

Service consistency would have a major positive impact.

Reliable turnaround times, clearer communication, and strong casetracking tools help brokers manage

expectations and progress cases.

Streamlining documentation – especially for clients with complex incomes – would also speed up processing. Digital verification tools are now widely available and should be adopted more consistently across the market.

More open communication between lenders and brokerages would be incredibly valuable. Early insight into policy changes, product shifts, or operational constraints helps brokers prepare clients and avoid delays.

Finally, giving experienced brokers greater access to dedicated underwriters or more flexibility on case-by-case decisions could significantly improve outcomes and reduce unnecessary declines.

Do you have a final message for readers?

We are expanding our admin support team, strengthening our adviser training and mentoring programmes, and investing in technology to enhance both efficiency and client communication. Our focus for the upcoming year is service excellence, adviser development, and staying ahead of changing market conditions.

My final message is one of optimism. Despite challenges, the market is evolving in healthy ways.

Clients value expert guidance more than ever, and advisers who combine knowledge, integrity, and genuine care will continue to thrive.

Stay curious, adaptive, and wholeheartedly client-focused.

Our industry is moving fast, and it’s easy to get caught up in short-term changes. But remember – people come to us not just for rates, but for clarity, reassurance, and confidence in their decisions.

Share knowledge, support fellow advisers, maintain strong standards, and lead with integrity. When we elevate one another, the entire industry becomes stronger – and clients receive the service they truly deserve. December 2025 | The Intermediary

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B RO K E R B U S I N E S S Case clinic

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 First-time landlord with limited personal income

A

n applicant earning £27,000 annually is purchasing a £220,000 flat as their first buy-to-let (BTL) with a 25% deposit.

Expected rental income is £850 per month (pm).

They currently rent their own home and have no property ownership history. The applicant has a clean credit record but no additional savings beyond the deposit.

MOLO FINANCE

It is encouraging to see an applicant looking to start their investment journey. At Molo, we don’t set a minimum income requirement, so their £27,000 salary would not be an obstacle. On the face of it, this case could fit comfortably at 75% loan-to-value (LTV), subject to our usual checks around the deposit and broader affordability.

While they are a first-time buyer as well as a first-time landlord, we are happy to support applicants in this position, and we wouldn’t apply any additional rate loading. Provided all other criteria is met, this applicant would have a clear path to purchase.

FLEET MORTGAGES

As the applicant is a first-time buyer, this falls outside Fleet’s lending policy. However, if the 74

The Intermediary | December 2025

client already owned a property for at least 12 months, such as their residential home, we could consider them as a first-time landlord.

We could also accept the application if there was a joint borrower who was already a property owner and a party to the mortgage.

It’s important to note Fleet does not require applicants to be owner-occupiers, we simply require that at least one applicant has a minimum of 12 months’ property ownership.

FOUNDATION HOME LOANS

As this would be the customer’s first property, we would class as a first-time buyer, first-time landlord, but would unfortunately not be able to accept this case. There is a potential risk of the customer moving into the property, but also as they have no background savings to draw upon, we would see the potential inability to cover any rental voids as an issue.

CASE TWO Multiple income sources with irregular patterns

A

n applicant plans on moving home to a new house worth £365,000. They earn £28,000 from salaried employment, receive £10,000 per year in freelance design work, and an additional £6,000 annually from Airbnb hosting in their own home.

B RO K E R B U S I N E S S Case clinic

While total income supports the mortgage, lenders have thus far varied in their treatment of secondary income streams. Some required two years’ history for freelance or side income, while others discounted the Airbnb earnings altogether.

The applicant is hoping to secure a deal which takes all of their earnings into account.

UNITED TRUST BANK

This scenario is a prime example of where a specialist lender comes into its own, including United Trust Bank (UTB), which will accept multiple sources of income to support affordability.

The freelance design work appears to be self-employed income, therefore we would require two years’ evidence of this by way of SA302s, which will also hopefully show the required two years’ evidence of the Airbnb income as profit from UK land and property.

However, it is unclear from the scenario description what deposit the applicant has, and this would determine whether this would meet our loan-to-income lending requirements.

HARPENDEN BS

Here at Harpenden Building Society, we pride ourselves on being experts in complex income situations. Therefore, we would accept all incomes in this example, as long as the second working income was received for a minimum of six months.

We would ideally look for evidence of the Airbnb income showing on tax calculations, but can potentially work in the absence of this if we can understand why.

BUCKINGHAMSHIRE BS

The society may consider using secondary income, subject to its consistency. The proportion of this income that can be included will depend on how stable and regular it is. Income generated from hosting via Airbnb within the applicant’s own home may present challenges; however, it could be considered on a case-by-case basis.

TOGETHER

Together could support this applicant with all their income sources subject to affordability and valuation. The salaried employment can be used as long as they have been in continuous employment for 12 months, even if they are in a probationary period. We could take into account additional income to assess affordability, including the Airbnb earnings, as long as two years’ income can be evidenced.

CASE THREE HMO purchase with licensing requirements

A

landlord is purchasing a five-bedroom property valued at £425,000 with a 30% deposit, intending to let it as a house in multiple occupation (HMO). They have previous landlord experience but no HMOs in their portfolio.

The local authority requires a licence for this type of property, and planning permission for change of use has only recently been approved in the past two weeks.

The landlord expects a strong rental yield of £3,000 per month, but has yet to put formal management arrangements in place.

MOLO FINANCE

The applicant’s experience as a landlord would meet our requirement of having held a buy-to-let property for at least 12 months, even though they have not previously managed an HMO. The recent planning approval would not prevent us from progressing, provided that the licence application is in place.

Our HMO criteria allow lending on properties of up to 12 rooms, with one set of products and rates across the range. Subject to the usual underwriting and confirmation of satisfactory management arrangements, this case could be supported.

FLEET MORTGAGES

Fleet offers a dedicated HMO product range and can accept properties with up to six bedrooms.

Our maximum LTV is 75%, so a 30% deposit is more than sufficient.

For HMO cases, we require a minimum of 12 months’ landlord experience.

During the legal process, all necessary planning permissions and licences will be checked to ensure compliance.

FOUNDATION HOME LOANS

This would be acceptable to Foundation. We’d rely on solicitors to check that planning has been agreed and would also require an HMO licence application to be submitted, with solicitors to sign off that the licence will be attainable. → December 2025 | The Intermediary

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B RO K E R B U S I N E S S Case clinic

CASE FOUR New-build flat with high service charges

A

first-time buyer hopes to purchase a newbuild flat for £300,000 with a 10% deposit.

The annual service charge on the flat is £3,600, and there is also a ground rent of £350 per year. Although the buyer earns £45,000 and passes initial affordability checks, some lenders reduced maximum borrowing due to the high ongoing charges. Others raised concerns about resale value and potential cladding risks, even though the building is EWS1-compliant.

UNITED TRUST BANK

UTB requires the ground rent to not exceed 0.1% of the market value, but will consider up to 0.2% on referral prior to submission. This particular example would require a referral. If approved, the monthly value of the combined ground rent and service charge at application will need to be factored back into the monthly affordability assessment. If in the view of the surveyor an EWS1 form is required, the cladding must be of A1, A2 or B1 standard for us to consider lending. Further questions may arise if the resale value is more than 10% different to the market value.

HARPENDEN BS

We do not have a maximum service charge or ground rent amount. Instead, we are led by our valuers on whether the property is deemed to be suitable security. This also applies for re-saleability and EWS1 concerns. Please note, our maximum LTV is 85%.

BUCKINGHAMSHIRE BS

The society would not seek to reduce the loan amount if the affordability assessment supports the requested level of borrowing. However, the annual service charge may be considered excessive, and this could impact the society’s willingness to lend. In such cases, we would refer the matter to the valuation company for their opinion prior to issuing decision in principle (DIP).

The valuer would confirm whether the property is deemed suitable for lending.

If the valuer indicates that an EWS1 form is required, this must be provided. Additionally, the society is unable to lend on properties located 76

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in blocks of flats with more than six storeys, regardless of which floor the proposed security is situated on.

TOGETHER

Together could support this applicant with a maximum 75% LTV mortgage, assuming it is of standard build and not more than six floors. If this was the case, it would be considered ‘nonstandard’ and capped at 65% LTV. If the building has a valid EWS1 we could look to lend on it, but would require comments from a valuer to evidence this and would use these comments as our basis for the LTV. We would work the service charge and ground rent into affordability, and if this passes the affordability check we could proceed.

CASE FIVE Buy-to-let flat above commercial premises

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potential client is purchasing a £185,000 flat above a takeaway, using a 25% deposit. They own two other standard buy-to-lets, both in suburban locations. The flat is in reasonable condition with a 78-year lease remaining. Expected rent is £750pm, and the property is close to a university, attracting student tenants. The applicant has had some issues in securing a loan as some lenders had worries regarding the resale value, given the commercial premises below the property.

FLEET MORTGAGES

Our minimum lease requirement is 75 years at completion, with at least 50 years remaining at the end of the mortgage term. For this property, that would mean a maximum term of 27 years. Where a property is over or adjacent to commercial premises, we require a minimum property value of £100,000. We could consider this application subject to a valuer’s confirmation that the commercial element does not negatively impact the proposal. Student tenants are also acceptable to Fleet.

FOUNDATION HOME LOANS

We could consider this case within our Property Plus range, which is designed to provide finance on more complex and specialist property types.

B RO K E R B U S I N E S S Case clinic

75% LTV is available but would be subject to a satisfactory valuation and underwrite on the case.

The commercial and short lease element will be taken into account on the valuation when carried out. As long as the property has marketability to be re-sold, this would be a case that can fit at Foundation.

application. Any anomalies or concerns will be raised accordingly.

HARPENDEN BS

We can accept a gifted deposit from immediate family, even where these funds have been raised through further finance. Please note, our maximum LTV is 85%.

BUCKINGHAMSHIRE BS

CASE SIX Parental gift via equity release

The society may be able to consider this application, subject to our standard underwriting criteria.

As part of the assessment, we would ensure that our vulnerability checks are completed to confirm that the parents fully understand the potential implications of increasing their own debt.

Alternatively, the society’s ‘Deposit Lite’ offering could be explored. This option does not involve raising funds from the parents’ property, but instead places a charge on their property to support the application.

We would just require consent for our change to be placed second from the equity release company, and would be subject to lending criteria and LTV on the parents’ property.

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first-time buyer is purchasing a £280,000 property with a 10% deposit gifted by their parents. The parents raised the deposit by releasing equity from their own mortgaged home.

While the funds are legitimate and traceable, some lenders have been hesitant due to concerns about financial vulnerability of the parents, particularly where equity release is involved.

UNITED TRUST BANK

TOGETHER

The source of funds is legitimate and traceable from UTB’s perspective, and we would expect that the applicant’s parents have taken the necessary advice before making a decision to gift the funds from an equity release loan. Our solicitors will complete anti-money laundering and source of funds checks during their conveyancing of the

Together could support this applicant, although at a maximum 75% loan-to-value, assuming the property is of standard build.

The gifted deposit from the parents will not be an issue as long as a gifted deposit form is provided, though potentially independent legal advice may be required. ● ADVERTISEMENT

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B RO K E R B U S I N E S S Opinion

Unemployment rise highlights a bigger opportunity

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he latest figures released by the Office for National Statistics (ONS) mark the highest unemployment level in four years. Behind those numbers are thousands of people whose careers have been unexpectedly interrupted.

It is a challenging moment for many, but it also raises a broader question for sectors that rely heavily on skilled people.

Talent pool At a time when we are experiencing an adviser shortage that has been building for years, the UK has an untapped pool of talent now looking for stable and meaningful work.

Our profession has long talked about the need to widen entry routes.

The average age of advisers continues to rise, and there is currently no sustainable pipeline.

Many firms understandably prefer to recruit advisers who already hold CeMAP, have experience, or can step into the role with li le development.

That approach has limitations. It concentrates talent within a small circle of existing professionals, and fails to recognise that the core skills needed to provide excellent advice are not exclusive to financial services.

They can be found across retail, hospitality, education, logistics, public services and countless others.

If the market is going to meet the long-term needs of borrowers, especially as customer expectations evolve, advice becomes more complex and artificial intelligence (AI) presents an ever greater threat, we need a much broader entry point.

Rising unemployment has created a moment where people with strong communication skills, discipline,

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The Intermediary | December 2025

JOHN PHILLIPS is CEO at Just Mortgages and Spicerhaart

empathy and resilience are actively looking for a new direction. The industry must not close the door.

Time to learn This was the thinking behind Just Learning. We introduced the programme to cater for those outside our usual academy intakes, who have the aptitude for a career in advice, but not necessarily the qualifications.

The aim is to provide talented recruits with the structure and support needed to achieve the CeMAP qualification and prepare them for the realities of the adviser role.

Crucially, it gives them a clear line of sight to employment by guaranteeing an interview with us once they have secured their qualification. This is not about fasttracking people into roles they are not ready for. It is about building a responsible, credible and sustainable route into the profession for those who would otherwise never have the chance. The quality of advice ma ers more than ever and any new entrant pathway must reflect that.

What we have found, though, is that people who have never considered a career in mortgages o en bring exactly the type of strengths that customers respond well to.

Many have spent years in roles where listening, case management, handling sensitive situations and building trust were essential. Those qualities are all transferrable, and invaluable in an adviser.

Structured solutions There is also a wider point to consider here. If the industry does not invest in new talent now, we risk finding ourselves with an even more acute shortage in the next decade. Mortgage products are becoming more complex,

regulation continues to evolve and consumers increasingly value guidance that is personal rather than transactional. This will require a healthy and diverse workforce.

The current economic conditions, though difficult, create an opportunity to bring new people into the sector at a time when they are actively searching for new opportunities.

By creating structured routes into advice, the mortgage industry can play a meaningful role in helping people back into employment and finding a new and fulfilling career in advice – all while strengthening its own foundations. It is not enough to acknowledge the adviser shortage; we need to take practical steps to address it. If we fail to do so, the effects will be felt across the entire market.

The conversation now should be about how the wider industry can replicate or adapt these pathways.

This is not something one firm can solve in isolation. Training, development and early-stage support require resource commitment, but the long-term benefits far outweigh the cost. For the many people currently searching for work, a rewarding career in mortgage advice is within reach if we make the route clear.

We can’t control the broader economic cycle, but we can choose how we respond to it. By opening the profession, we can support those who have been knocked back by redundancy while also strengthening the future of the advice sector. If the industry gets this right, the rise in unemployment could turn out to be a catalyst for building the workforce we will rely on for years to come. ●

REC RUITM E NT

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Associate Member

Focus on ...

The North Pole

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Jessica O’Connor braves the blizzards of the North Pole property market to uncover why it’s finally beginning to thaw

he North Pole housing market may traditionally be colder than a vacant igloo in midwinter, but 2025 has begun to show the first faint flickers of festive warmth.

With Silver Bell rates edging downward, deposit stockings slowly however, transactions are slightly filling up again, and reindeer less ice-olated than last year, returning to full-time sleigh coming in at 47 sales so far. shifts, there’s a gentle but unmistakable Easing the freeze glow guiding the In what many brokers region through the are calling the first economic blizzard. meaningful sign of a Yet even as optimism market thaw, the Bank twinkles across the of Snowland – still run tundra, the market by penguins who take hasn’t entirely escaped ‘waddling through rate the naughty list. Political

BY JESSICA O’ CONNOR data’ more literally missteps, industry than most – announced scandals, and perennial a 0.25% cut to the Silver Bell Rate, supply shortages continue to nip at reducing it from 5.75% to 5.5%. the heels of would-be buyers and The decision follows months of brokers alike. cooling inflation in key North Pole Still, as 2025 unfolds, it seems the categories, including Christmas North Pole may be stepping into a pudding ingredients, candy-cane slightly toastier chapter of its long, composites, and sleigh fuel. snow-dusted property saga.

At a recent press conference, in a fit Ho-ho-house prices of animated flipper waving, Governor The average home in the region Andrew Burrrrrley, said: “Our now costs around 1,170 silver bells priority remains keeping elves skating (£115,000) – up a gentle 4.5% from last forward, not sliding backwards into year as the market attempts a slow debt snowdrifts.” defrosting.

Burrrrrley also noted that wage Detached log cabins fetch growth among workshop elves approximately 2,350 bells (£230k), has improved following last year’s while semi-detached cabins are priced industrial action – though he warned at 1,100 bells (£108k) — a rise that has that the Bank “won’t hesitate to steady left some elves muttering about the the sleigh” if inflation flares up again. growing cost of yule-timber.

Local brokers say they’ve felt Meanwhile, igloos cost the average an almost immediate shift in elf around 750 bells (£73k), and borrower sentiment. workshop-flats continue to sell for a Mrs Claus, of North Pole Ho-Hogoing rate of 490 bells (£48k).

Homes, told The Intermediary: “It’s the Unfortunately, sales volumes first time in years elves are walking remain low across the region; in asking about mortgages instead of

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The Intermediary | December 2025

mulled wine. There’s a definite jingle in people’s steps.”

However, brokers are keen not to let festive excitement override reality.

Dasher the reindeer, of Mad Dash 4 Homes, adds: “Lower rates are a welcome stocking filler, but better rates don’t magic up deposits.

“I keep telling elves: save like you’re trying to buy Santa a gift he actually wants this year. That’s the discipline we need if the market’s going to keep thawing.”

Political meltdowns 2025 also brought the North Pole’s own political drama – when Angela RaynDeer, the region’s Housing Minceister, resigned after it emerged that she might have mis-declared ownership of a gingerbread cottage and claimed elf council support for a stable she apparently didn’t live in.

What began as a small flurry quickly escalated into a full blizzard of headlines.

Local journalists uncovered that Rayn-Deer had listed the gingerbread cottage as her main home, despite neighbours insisting they had “never once seen her hanging stockings there.”

The scandal – dubbed ‘Stable-Gate’ – dominated the front pages of The Arctic Sun and The Daily Snow for weeks. Despite mounting pressure, Rayn-Deer maintained it was simply a case of festive confusion.

In a statement, she said: “It was frosty paperwork. I mis-remembered

L O C A L FO C U S North Pole

the marshmallow boundaries on my primary residence. It can happen to anyone.”

Following mounting pressure, and an emergency session of the Polar Worker’s Party, Rayn-Deer agreed to step aside before the situation melted down any further.

Prime Mince-iter Rein-Keir Star Myrrh has since appointed Steve Wreath as her replacement – a veteran reindeer MP best known for promising to “cut red ribbon tape and frosty bureaucracy” while restoring public trust in the region’s housing policy.

Local broker, Mr Krampus, senior partner at Snow Place Like Home Mortgages, says the scandal has left both buyers and brokers “feeling more shaken than a snowglobe in a toddler’s hand.”

He adds: “I’ve had elves ringing me at all hours asking whether they now need to photograph themselves hanging stockings as proof of residence.”

Festive foul play Not to be outdone by the tumult of the UK market, the North Pole property world had its own mini scandal this year – one that saw several high street heavyweights skidding straight onto the naughty list.

Three major firms – Bauble & Branch, Evergreen Estates, and Snow & Co Property Solutions – were caught engaging in what regulators have dubbed “conditional sleigh-selling”, a practice that left prospective buyers feeling more stitched-up than a threadbare Christmas stocking.

Instead of recommending buyers speak to their own mortgage broker, the firms allegedly deployed an avalanche of festive conditions.

Reports suggest they refused viewings unless buyers agreed to take out their in-house “Luxury Gift-Wrapping Service,” withheld acceptance until buyers purchased a St Nick–Approved Chimney Insurance Package, and insisted all enquiries be accompanied by a Nice-List Credit Check.

According to witnesses, one negotiator even threatened to “tell Santa personally” if buyers didn’t comply – which the regulator later described as “an unprofessional deployment of festive emotional leverage.”

The North Pole Property Conduct Authority (NP-PCA) issued a frosty

statement, calling the behaviour: “A blatant breach of snow-cial fairness and consumer tinsel-tegrity.”

All three agencies denied wrongdoing, insisting it was simply: “Christmas enthusiasm misunderstood.”

Reacting to the news, Frosty the Snowman, broker at Fa-La-La Finance, explains: “If there’s one thing the market needs right now, it’s trust – not trickery wrapped in tinsel.

“Buyers deserve straight answers, not sleigh-of-hand tactics.”

Flurry of rental regulation When it comes to the North Pole’s icy rental landscape, Jack Frost has long been the undisputed overlord, with Frost Rental Limited controlling more properties than Santa has cookies on Christmas Eve. But 2025 has proven to be a turning point, not because Frost softened, but because the North Pole Treasury introduced a flurry of new regulations. Chief among these changes is the newly introduced Festive Rental Income Levy, immediately christened by critics as the ‘Elf Assessment Tax’.

Under these new rules, landlords must pay an additional surcharge on rental income every time they increase rent during the festive season. The surcharge is calculated based on something officials are calling a ‘Yuletide Yield Index’, which one broker describes as: “A formula no one understands, involving sleigh depreciation, gingerbread inflation, and the going rate of candycane futures.”

In addition, landlords now face mandatory contributions to the North Pole Decorative Standards Fund, ensuring all rental properties display “appropriate seasonal spirit” yearround. Early guidance suggests this means a minimum of three twinkling light displays per façade and ecofriendly tinsel in every common area.

Frost calls the new taxes: “A direct attack on entrepreneurial snowmanship, designed to melt the profits of hardworking arctic landlords.”

Despite Frost’s protests, tenant groups have applauded the changes.

Many igloo dwellers, long frustrated by escalating rents and chronically cold interiors, say the reforms will help thaw Frost’s icy monopoly over time.

Plans on thin ice If there’s one area where the Polar Worker’s Party continues to skate on thin ice, it’s housing supply.

Rein-Keir Star Myrrh remained staunch in his leadership pledge to build 1.5 billion homes, even though the current figure sits at a rather frosty 4,200.

Expectations were briefly lifted after Chancellor Sleigh-chill Eves delivered her Snow-vember Budget, promising a major upgrade to the planning system through a new Candy Cane Compulsory Purchase Power – but optimism vanished faster than melting snow when a leaked Office for Blizzard Responsibility (OBR) report revealed the Hearth for Every Elf programme was “running significantly behind sled-ule.”

Meanwhile, the first-time buyer project Tinsel Terrace has been delayed once again, officially due to “national snow shortages,” though insiders whisper the real issue was a procurement mix-up involving an invoice for ‘baubles’ instead of ‘boulders’.

Hope on the horizon As 2025 draws to a close, the North Pole housing market remains a swirling snowglobe of contradictions.

Prices are rising, but slowly; rates are falling, but cautiously; scandals have piled up like the snowbanks outside Santa’s Workshop. And yet, beneath the blizzard of bureaucracy, Budget leaks and bauble-related mishaps, there’s a genuine sense that the region may be inching toward stability.

With political leadership reshuffled and rental reforms unwrapped, demand has quietly rekindled among elves and reindeer alike.

Indeed, the coming year could see the market finally begin to thaw in earnest. But as with all things North Pole, nothing is certain until Santa signs it off.

Dasher offers a cautiously festive final word: “We’ve had our fair share of storms this year – some real, some caused by ministers misplacing their marshmallow boundaries – but the market’s still standing.

“If buyers keep saving, lenders keep lending, and the Government stops tripping over its own tinsel, 2026 might just turn out to be the year we finally stop skating on thin ice.” ● December 2025 | The Intermediary

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On the move...

Mortgage Brain expands customer success team

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ortgage Brain has strengthened its customer success team with two customer success administrators. Richard BethuneWright and Ashley Cope will support the ongoing migration of users from legacy systems to the newest versions of the product suite, as well as to assist with onboarding.

Neil Wya , sales and marketing RICHARD BETHUNE-WRIGHT director, said:

“We’re delighted to welcome Richard and Ashley to the Mortgage Brain team.

“Their appointments strengthen our commitment to delivering an exceptional experience for our customers as we continue to roll out our latest generation of technology.

“Both will play a vital role in supporting brokers through migration and onboarding, ensuring every user benefits fully from the [...]

Mortgage Brain ASHLEY COPE Hub.”

Alternative Bridging appoints case manager to bolster broker support

L&C Mortgages appoints Dan Payne as chief operating officer

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lternative Bridging Corporation has strengthened its capacity with the appointment of Thomas Gough as case manager.

Reporting to Mihaela Janko, manager of the case management team, he will focus on progressing applications from offer to completion and maintaining clear and consistent communication THOMAS GOUGH with brokers.

Janko said: “Case management is where much of the behind-the-scenes work happens, and having experienced professionals like Thomas in the team makes all the difference. His a ention to detail, proactive approach, and understanding of the lending process will help ensure we maintain the smooth, responsive service that brokers expect from us.

“We have exciting plans ahead, with plans to broaden our offering in the new year and we’re building an excellent team to support us."

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&C Mortgages has appointed Dan Payne as COO, reporting to MD Sidney Wager. Payne brings more than 20 years of financial services leadership experience, covering sales planning, distribution and customer experience.

He joins from Together Money, where he was group sales director.

Payne said: “I’m honoured to join L&C Mortgages, which has a longstanding reputation for excellence and innovation in the mortgage market.

“I’m excited to help shape the next chapter of its growth and look forward to working alongside such a talented leadership team.

“My focus will be on process optimisation to further enhance the experience for our customers and deliver forwardthinking solutions STEVE SMITH to keep L&C at the forefront of the industry.”

DAN PAYNE

SPONSORED BY

Catalyst strengthens broker support with four senior hires

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atalyst Property Finance has expanded its intermediary support with four senior appointments to its external new business team, led by sales director Spencer Gale.

Andy Reid joins as head of national accounts, bringing experience from specialist lenders including TAB, Hampshire Trust Bank and InterBay. He is joined by three business development managers: Gemma Roberts, previously at UTB and Together; Tim Horne, formerly of Paragon and Magellan; and Tony Grillo, who has held roles at Masthaven and Together.

Gale said: “This is a hugely exciting time for Catalyst.

Bringing in Gemma, Tim, Tony, and Andy gives us a powerhouse of experience, regional strength, and ambition. Each of them brings something unique to our growth journey, but what unites them is their drive to support brokers and deliver outstanding service.

“Catalyst is in a period of incredible momentum, and these appointments reflect our commitment to continued growth, stronger broker relationships, and even be er national coverage.

“With this team in place, our reach and support for brokers across the UK has never been stronger.”

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KELLY ILES

hello@barrowmount.com Associate Member

RECRUITMENT

020 4591 1377

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