The Intermediary – July 2025

LATER LIFE FOCUS ISSUE

INTERVIEW ⬛ Pure Retirement on the rise of ‘fringe’ cases

OPINION ⬛ The latest on later life from Air, ERC, MAB, Phoebus, Hodge, and more

Intermediary.

The

LATER LIFE FOCUS ISSUE

INTERVIEW ⬛ Pure Retirement on the rise of ‘fringe’ cases

OPINION ⬛ The latest on later life from Air, ERC, MAB, Phoebus, Hodge, and more

Intermediary.

The

www.theintermediary.co.uk | Issue 30 | July 2025 | £6

www.theintermediary.co.uk | Issue 30 | July 2025 | £6

ROOTED IN CHANGE

ROOTED CHANGE As life goes on, soIN does later life lending As life goes on, so does later life lending DIG I TA L E DI T ION

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02-03-03 (4)

From the editor...

A

lot of the conversations we have at The Intermediary are about trust, fairness, ge ing the best outcomes for customers – and we’re all o en on the same page about the importance of these things, albeit not always on the methods to achieve them. This is not just about increased and ongoing regulatory scrutiny – although it would be naïve to say that isn’t a driving force – but genuinely a motivation behind good business for many of the key players in the property market, whatever their particular sub-sector.

It’s a stark wake-up, then, when we are reminded that this is not the prevailing thought process in every part of the market. I am talking, of course, about Panorama’s recent investigation, which uncovered alleged conditional selling at two major estate agents. I hardly think I’m being overly pessimistic when I express my deep doubt that this is an isolated issue.

It is sometimes easy to forget, working as we do in a heavily regulated and scrutinised part of the market, that estate agencies are something of a Wild West in comparison. They don’t need to be licensed or qualified, and while the Estate Agents Act 1979 and Consumer Protection from Unfair Trading Regulations 2008 go some way to providing structure, there is no overarching statutory regulation of private sector le ing or managing agents in England.

Having had my own negative experiences, ranging from incompetent to outright malicious, it shows. Mentioning no company names, of

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course, but my bet is almost everyone has their own to contribute.

While the regulator is casting its all-seeing eye across the property buying process, perhaps the time has come to overhaul a key part of the market that has so far been allowed to run free.

I don’t doubt that some of the people involved in the alleged poor behaviour discovered by Panorama’s Lucy Vallance were unaware that they were doing anything wrong, and were simply doing as they were told by their superiors.

But as we know, ignorance is no defence. For people in a position of such importance for customers making the biggest purchase of their lives, education, awareness and qualifications should be paramount.

This is true, of course, across the property finance market, and is particularly important when discussing the topic of this month’s Special Focus: later life lending. This month, we deep dive into this market – from product innovation to changing client demographics.

The real takeaway, overall, is that later life products are no longer a last resort, and nor are they a niche product that can be ignored.

Retirement planning, the use of assets and managing of debt, and the dynamics of intergenerational wealth, are all factors that should be front of mind for any broker wishing to provide clients – age regardless – with a fair, trustworthy and beneficial service. ●

Jessica Bird @jess_jbird

@IntermediaryUK

Contributors

The Team Jessica Bird ....................... Managing Editor Jessica O’Connor .................... Deputy Editor Marvin Onumonu ......................... Reporter Brian West ............. Sales Director (Interim) brian@theintermediary.co.uk Ryan Fowler ................................ Publisher Felix Blakeston .............. Associate Publisher Helen Thorne .............................. Accounts finance@theintermediary.co.uk Orson McAleer ............................. Designer Bryan Hay ......................... Associate Editor Subscriptions subscriptions@theintermediary.co.uk

Alex Upton | Amanda Wilson | Andrew Blundell Andrew Teeman | Andy Shaw | Averil Leimon Ben Allkins | Brendan Crowshaw Christopher Davies | Craig Hall | Darrell Walker Darren Deacon | Dave Castling | Dave Harris David Binney | David Wylie | Dipinder Surey Emma Graham | Gavin Hancock Hamza Behzad | Harpal Singh | Jake Sandford James Staunton | Jerry Mulle | Jim Boyd Jonathan Fowler | Laura Thomas | Lee Chiswell Lisa Kelly | Louise Pengelly | Mark Blackwell Mark Jones | Martin Dodd | Martin Sims Michael Craig | Mike Says | Paresh Raja Paula Higgins | Richard Pike | Rob Clifford Rob McCoy | Rob Stanton | Shaun Sturgess Sonya Matharu | Stephanie Dunkley Stephen Harrison | Steve Goodall Tanya Elmaz | Wes Regis | Will Hale

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LATER LIFE FOCUS ISSUE

INTERVIEW ⬛ Pure Retirement on the rise of ‘fringe’ cases

OPINION ⬛ The latest on later life from Air, ERC, MAB, Phoebus, Hodge, and more

Intermediary.

The

www.theintermediary.co.uk | Issue 30 | July 2025 | £6

ROOTED IN CHANGE As life goes on, so does later life lending

Copyright © 2025 The Intermediary

Cartoon by Fergus Boylan Cover illustration by Ed Wishewsky Printed by Pensord Press

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July 2025 | The Intermediary

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Contents

INTERVIEWS & PROFILES

LATER LIFE LENDING SPECIAL FOCUS ISSUE

Feature 6 ROOTE D I N G ROWTH

Jessica O’Conner looks at how the later life lending market is changing with the times

Opinion 12 The latest on later life lending from Mortgage Advice Bureau, Hodge, more2life, Phoebus and many more…

REGULARS

Broker business 60

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

Local focus 78

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

On the Move 82

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

The Interview 26 PURE RET IREMENT

Gavin Hancock discusses the rise of fringe later life cases

In Profile 18 EQUITY RELEASE COUNCIL

Jim Boyd talks holistic financial planning in the face of changing lifestyles

Meet the Broker 68 T H E M O R T G AG E AT E L I E R

Sonya Matharu gives her view on running a brokerage in the current market

Q&As 50, 56 TOGETHER

SECTORS AT-A-GLANCE

Residential 30 Buy-to-let 38 Specialist Finance 46 Second Charge 54 Protection 58 Technology 72

Tanya Elmaz outlines the next stage in the lender’s evolution L I F E S E A RC H

Lisa Kelly reflects on one of her most challenging cases

Meet the BDM PA R AG O N 3 8

Stephen Harrison discusses the challenges and opportunities for BDMs The Intermediary | February 2023

3

ROOTED

IN CHANGE HOW LATER LIFE LENDING IS GROWING INTO THE MORTGAGE MAINSTREAM

by Jessica O'Connor

Once considered the final chapter in a homeowner’s financial story, later life lending is quietly redefining its place in the financial lifecycle. No longer a niche solution for the few, it is an essential consideration for a growing proportion of the population – both earlier and later than expected.

Homeowners are increasingly engaging with mortgage products well into their retirement years, while others are entering the later life lending market in their early fifties, decades before the ‘traditional’ retirement age.

In Q1 of this year, more than 38,510 new loans were advanced to older borrowers alone, marking an annual increase of 33.5%, according to UK Finance. This uptick has been driven by a number of factors, including longer life expectancy, rising living costs, complex family structures, and the growing use of property wealth as a planning tool, rather than a last resort.

It clear that this shift is not just an emerging product trend but a generational transition in how wealth is accessed, transferred and managed.

As the market deepens its roots in early financial planning, it provides a broader reach across varied borrower profiles, thus providing a structure that reflects the diverse needs of modern later life.

For intermediaries, navigating this terrain requires both a strategic view and a nuanced

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The Intermediary | July 2025

understanding of how lending needs are evolving with age.

Retirement redefined The traditional image of retirement – an end to work at 65, a gold watch, and a final payslip – has largely faded into obscurity.

In its place is a more fluid, phased transition where individuals in their fifties and sixties remain economically active, often working parttime or scaling back work hours gradually.

According to Mark Gregory, founder and CEO of Equity Release Group: “Retirement is increasingly seen as a gradual transition, with many people working part-time or in consultancy roles beyond state pension age.”

This shift is not just cultural, but financial.

In the UK alone, there are now more than 22 million people aged 50 and over, representing 38% of the population, according to the Centre for Ageing Better. In addition, life expectancy continues to rise, reaching 79.0 years for males and 82.9 years for females in 2022, according to the Office for National Statistics (ONS).

Gregory notes that this increased longevity, along with evolving lifestyle expectations, is prompting more people to seek “flexible, longterm financial planning solutions that can adapt over time,” often with housing wealth playing a key role in supplementing pension income.

This redefinition of retirement began in earnest with the abolition of the default retirement age.

Jim Boyd, CEO of the Equity Release Council, explains: “In 2011, the Government changed legislation to bring an end to the default retirement age which meant that people were no longer forced to retire at a specific age. This has changed how retirement is viewed and gives people the freedom to decide how and when they want to retire.”

Nevertheless, while working longer may offer financial benefits, such as paying down mortgages or growing pension pots, it also comes with challenges, including health, caring responsibilities, and dwindling employment opportunities in later life.

According to Les Pick, sales director at LiveMore, retirement was once viewed as “a distinct line in the sand […] marked by complete withdrawal from the workforce and a reliance on pension savings.”

However, today’s homeowners – many of whom have benefited from house price growth in recent decades – are navigating a more complex environment marked by the end of defined benefit (DB) pensions, inflationary pressures, and social factors like divorce. As a result, Pick says, many are “looking at phased retirement, and often leverage against property wealth to enhance their lifestyle and retire in a timely fashion.”

Paul Carter, CEO at Pure Retirement, sees this shift as part of a broader social evolution.

He says: “Modern retirees are seeking to make the most of their later years, and are probably the most active generation in that regard – the passive ‘slippers and rocking chair’ retirement is definitely a thing of the past.”

As attitudes toward later life evolve, so too has the role of borrowing. Once stigmatised as a failure of planning, Carter says, borrowing in later life is now “a viable and accepted tool, making use of existing assets, to live the retirement that people want or aspire to.”

Younger borrowers Once the ‘twilight end’ of the mortgage market, later life lending now often begins far earlier than expected. Increasingly, borrowers in their early fifties are engaging with products traditionally reserved for retirees – a trend fuelled by rising property prices, longer mortgage terms, and evolving life circumstances.

Boyd explains: “According to the FCA, the average first-time buyer is 34, which means that even if they take out a 30-year mortgage, then they will be 64 years old when they repay it.” That is assuming no further borrowing or remortgaging along the way.

Karina Hutchins, principal of mortgage policy at UK Finance, adds that increasing numbers of people now “access later life lending at younger ages, with some providers reporting a reduction in average customer age from 70 to 67 this year.”

As a result of this shift, and increased need for work in order to pay off mortgage debt later into life, the market has adjusted accordingly.

Boyd notes a steady stream of changes from lenders, which are now introducing new products to “allow for people working longer.”

He says: “For some, their plans to work into what was traditional retirement fall apart, and they need to consider how they repay the capital.”

This reality is particularly acute for those impacted by divorce, redundancy, or historical interest-only mortgages with no repayment vehicle – scenarios that are becoming more common among borrowers in their fifties and early sixties.

Mike Batty, product and proposition director at Legal & General, observes that “the cost of entry to the UK property market has significantly increased, pushing many to consider homeownership later in life.” He points to recent Legal & General data, which shows an 80% rise in mortgage adviser searches for first-time buyers aged 56 to 65 in Q1 2025, with a further 23% increase among those over 65.

Batty continues: “For many who are getting on the property ladder later in life, carrying a mortgage or unsecured debt into retirement will be a reality.”

With many facing stretched budgets, longer financial commitments, and later starts on the property ladder, it is clear that the 50 to 65 age group has become a growing and increasingly diverse presence in the lending pipeline.

Pick says: “Homeowners over the age of 50 have benefitted from house price inflation, but the complexities of modern-day life have often taken their toll financially.”

The new normal A growing number of homeowners are carrying debt – both mortgage and unsecured – well beyond the traditional retirement threshold. This trend is driven by a combination of structural and generational shifts, including rising living costs and a broader cultural comfort with debt among emerging retirees.

Boyd says: “There are a variety of different reasons driving this trend, but arguably affordability is at the heart of it. People are struggling to get on the housing ladder, and when they do may need a longer term in order to afford the repayments.”

Beyond individual circumstances, broader demographic trends are at play. Pick notes that

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July 2025 | The Intermediary

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"I still think equity release would have been easier, Captain" “long gone are the years of ‘save to buy’,” as people want more from life than previous generations.

Many consumers have grown up in an era of easier access to credit, and are more accustomed to managing debt as a means to maintain lifestyle. This shift, compounded by rising inflation and reduced DB pension provision, means that many retirees now bear far more responsibility for managing their own long-term financial wellbeing.

Pick adds: “Many clients experience a shortfall between pension income and day-to-day living costs, especially after inflation or a partner's death.” This leads more people to look to property as a viable source of later life funding.

Around 15% of Pure Retirement’s new lifetime mortgages in Q2 listed paying off a mortgage as the primary reason for releasing funds, and Carter notes that many borrowers are entering retirement still repaying capital – or using lifetime or retirement interest-only (RIO) mortgages to manage legacy interest-only arrangements.

However, he is careful not to reduce this to financial distress alone. He says: “There will doubtless be a cohort able to continue making the payments, but who just want the peace of not having to think about it any more. If they take out a lifetime mortgage to clear the balance, and choose to repurpose their previous monthly

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The Intermediary | July 2025

repayment amount as disposable income, is that not actually lifestyle improvements by proxy?”

Not just necessity This marks a growing trend of older homeowners using borrowing to enhance quality of life – not merely to sustain it. Indeed, later life finance is increasingly being used for comfort, and convenience – primarily for reasons such as home renovations or discretionary expenses.

Hutchins notes:” The motivations behind borrowing are changing. While previously it was often about paying off interest-only mortgages, today’s borrowers are using these products to supplement retirement income, manage financial transitions like divorce, improve their homes, or consolidate debt.

"These shifts highlight the growing flexibility and relevance of later life lending in helping customers navigate complex personal and financial needs.”

Batty reports that “half of [L&G] customers use their mortgage products for home improvements, while a fifth (20%) opt to use their mortgage for living expenses, and a further fifth (19%) use it to finance holidays in later life.”

He adds that these improvements are often intended to enhance the experience of retirement at home – making it more enjoyable or simply more suited to changing needs.

This supports a broader trend identified

by Pick, who sees borrowing split between “necessity-driven and aspiration-driven” motivations. Among the latter, intergenerational gifting is becoming a more visible feature of later life lending, even if it still accounts for a smaller proportion of cases. In many cases, older borrowers choose to release equity to help the next generation climb the property ladder, thus helping them gain a degree of financial freedom earlier in life.

Pick explains: “The ‘Bank of Mum and Dad’ sits comfortably in the top 10 lending sources in the UK”, while Batty notes that 10% of all mortgage applications are for gifting purposes.

Gregory adds that gifting to children or grandchildren for house deposits or debt reduction “has grown significantly in recent years,” and is expected to rise further as wealth is increasingly passed down during people's lifetimes, not after death.

Diversifying demographics As reasons for later life lending continue to evolve, the market is actively adapting to suit the needs of a diverse range of borrower profiles. Despite historical stereotypes, older homeowners are far from a monolith – now boasting varying borrower types experiencing different personal circumstances. Among the most prominent emerging sub-demographics are divorced individuals navigating asset separation, and older single women or widows managing retirement independently.

Gregory notes the growing number of single women borrowers over 60 who are “often looking for long-term aspirational capital, or stability and autonomy,” particularly as many outlive their spouses and face increased financial pressures in later life.

Equity release, he explains, enables them “to unlock housing wealth to fund retirement, cover care costs, or to help family members.”

Pick highlights the disproportionate impact of bereavement on women in later life. “The average life expectancy for women in the UK is four years longer than that of men,” meaning many widows “find themselves living alone post-bereavement,” often relying on reduced or discontinued spouse pensions.

He adds: “This income drop drives demand for releasing capital from their homes to maintain their standard of living. Post-bereavement, many widows wish to remain in their family homes or stay close to social networks, and later life lending can support this need.”

Gregory observes that homeowners who are divorced – or planning for divorce – often turn to equity release “to retain the family

p

UK FINANCE UPDATE

In Numbers ◆ 38,510 new loans were advanced to older borrowers in Q1 2025, up 33.5% year-on-year. ◆ The value of this lending was £6.1bn, which was up 42.6% compared with the same quarter a year previously. ◆ There were 5,620 new lifetime mortgages advanced in Q1, up 11.1% year-on-year. ◆ The value of this lending was £530m, which was up 39.5% compared with the same quarter a year previously. ◆ There were 339 retirement interest only mortgages advanced in Q1, up 19.4% year-on-year. ◆ The value of this lending was £33m, which was up 17.9% compared with the same quarter a year previously. ◆ Residential later life loans in Q1 represented 7.6% of all residential loans. ◆ Buy-to-let later life loans in Q1 represented 21.5% of all buy-tolet loans.

home and help to split the assets,” with funds sometimes used “to fund lifestyle changes or maintain their standard of living post-divorce.”

These life events, particularly when emotionally charged or sudden, can place individuals in vulnerable positions, prompting advisers to ensure extra care and due diligence throughout the advice process.

Regulation and responsibility The importance of tailored, responsible advice has only grown more critical. While Boyd notes that “older borrowers are not necessarily vulnerable,” they are statistically more likely to be in vulnerable circumstances, highlighting that “advisers who operate in this sector are acutely aware of not only the challenges, but also of the practical support needed.”

The Financial Conduct Authority’s (FCA’s) Consumer Duty regulation has helped formalise what many advisers in the sector were already doing: prioritising good outcomes through fairness, transparency, and empathy.

In light of this, firms across the industry are adopting increasingly sophisticated strategies to identify and respond to risk. According to Boyd, the Equity Release Council’s recent 2025 update to its standards – including a new product standard for customers in long-term care and a revised Customer Charter – reinforces an industry-wide model where “tailored, transparent, trusted and thorough support” is not optional, but foundational.

Gregory further highlights the role of bespoke processes throughout the later life sector, noting that Equity Release Group’s “advice model is aimed at the right target market, and constantly monitored to ensure it is tailored, empathetic and bespoke to each customer.” In support of this, he points to internal analysis that shows that “half of [their] customers may potentially be vulnerable,” and that integrated tools, from digital questionnaires to adviser prompts, help flag risks early in the process – prompting a ‘continue with caution’ approach when appropriate.

While many of these practices predate regulation, leaders in the space agree that Consumer Duty has elevated the overall standard and sharpened the industry’s focus since its implementation in 2023. The direction of travel is clear: responsible advice is no longer just about compliance, but about anticipating complexity and ensuring every customer receives the thoughtful guidance, regardless of circumstance.

Carter, who outlines Pure Retirement’s own investment in being “empathic and

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The Intermediary | July 2025

understanding” – including regular consumer testing of literature through to mandatory vulnerability and Dementia Friends training for all customer-facing staff – says the advent of Consumer Duty has undoubtedly “helped keep that focus front and centre of industry thinking.”

Product flexibility The sector has moved decisively away from the rigid, one-size-fits-all roll-up models of the past toward a much more adaptable product landscape. Batty notes: “The later life lending sector has been a highly innovative space in recent years,” with advisers now able to choose from more than 1,200 products and plans – up from just 300 in 2019, according to Q1 2025 data from the Equity Release Council.

This rapid diversification reflects a clear shift toward modular, flexible mortgage solutions that can accommodate increasingly diverse borrower needs. Batty highlights L&G’s Optional Payment Lifetime Mortgage (OPLM), which allows customers to pay some, or all, of their interest, but also to stop payments if needed.

New products are also helping address affordability challenges and complex life situations. Boyd points to the arrival of mandatory payment lifetime mortgages, which allow borrowers to access higher loan-to-values (LTVs) in exchange for committing to monthly repayments that later convert to a standard roll-up. Other innovations, such as discounted interest rates for making ongoing payments – as seen from more2life – give borrowers additional levers to manage their borrowing proactively.

Boyd highlights progress in underwriting practices, with lenders like Suffolk Building Society removing maximum age limits and using manual assessments to better reflect older borrowers’ varied financial realities.

Crucially, this innovation is not just about greater choice, but it is also about smarter, more personalised solutions. Gregory notes that “voluntary payment features, inheritance protection, and downsizing protection are now widely available,” while interest reward products from providers like Standard Life Home Finance (SLHF) and Just allow customers to reduce their interest rates based on how much interest they choose to repay. “The more interest that’s paid, the lower the rate becomes,” he explains, which offers later life borrowers greater control and long-term cost savings.

An integrated approach As the mortgage market adapts to an ageing population and increasingly complex financial

lifecycles, later life lending is no longer a specialist corner of the industry, but a central thread in the broader mortgage narrative.

Borrowing beyond the age of 55 has been treated as a siloed sub-sector, segmented off from traditional advice pathways and engaged only as a reactive solution. But the evolving needs of customers – who are now just as likely to hold mortgage debt into retirement as they are to enter the market in their fifties – demand a more integrated approach.

Boyd observes: “Later life lending is increasingly becoming mainstream, and the recent discussion paper from the FCA on the future of the mortgage market has the potential to make it even more so.”

He points to a growing appetite among residential advisers to support clients throughout their lives, noting that “they are keen to continue the relationship with individual customers” rather than hand them off at a certain age or life stage.

Batty agrees that both lenders and advisers must begin “breaking down barriers between standard residential mortgages and later life lending,” particularly as more clients carry debt past retirement.

With 68% of first-time buyers in 2024 borrowing for terms of 30 years or more, a significant proportion of future retirees will still be making repayments well into their sixties and seventies. The result, as Batty and others make clear, is a new kind of borrower – one who expects holistic, long-term support, not fragmented advice at the margins of retirement.

Carter notes that property wealth will undoubtedly play a larger role in retirement planning in years to come, but stresses the need to build awareness early, well before a borrower reaches their fifties or sixties.

The opportunity lies not just in selling more products, but in shaping a coherent journey for customers that reflects the full arc of their financial lives: from first mortgage to family support, and from midlife planning to late retirement stability.

For advisers and lenders alike, the challenge is to move beyond segmented thinking and embed later life borrowing into the broader financial journey – treating it not as an end-stage solution, but as a strategic tool that evolves with the customer.

The market is reframing the conversation, not around shortfall and necessity, but around planning and informed choice.

As Gregory puts it, this means “repositioning equity release and later life funding as a financial planning product, not just a safety net.” ●

Transforming Later Life DAVE HARRIS, CEO, MORE2LIFE

We’re living longer and carrying more debt into

retirement than ever before. Property wealth has soared, with older homeowners sitting on more substantial levels of equity. It’s turning later life lending from what has historically been a niche product into a more accessible and required financial tool.

There’s a misconception that owning property equals financial security. Rising living costs and interest-only mortgages maturing without a repayment vehicle, for example, have been drivers of this longer-lasting debt. As has the ‘Bank of Mum and Dad’ effect, where parents or grandparents want to help children onto the housing ladder. Inflationary pressures mean pensions sometimes fall short of maintaining the lifestyle people expected. The result is more older borrowers who would benefit from unlocking their property wealth in order to support their retirement.

Housing policy still lags. Many older homeowners feel trapped because there’s not enough suitable housing or incentives to downsize. We must look closely at reforms around Stamp Duty and housing supply to give people real choices.

The industry is very good at understanding motivations for these forms of borrowing. While some want to do things like support family or improve their home, for others it’s about tackling existing debt or covering essential expenses. It’s crucial for advisers to really sharpen their focus and ensure the conversations they have with their clients allow them to truly understand their goals, while lenders must keep innovating to make sure our products line up with those wants and needs.

Brokers should proactively start these conversations, even if clients don’t ask. Education, both for advisers and consumers, is crucial. For lenders, it’s about innovation, but also supporting advisers with training, tools, and clear communication.

The market is moving in the right direction, but we are only scratching the surface of what later life lending could be. Let’s not forget that the regulator also has a major role to play – the FCA Discussion Paper suggests it is willing to look at addressing regulatory barriers in the Handbook that are preventing firms delivering good outcomes, including the current advice qualification split, facilitating the review of all options for all older borrowers. That would be a big step forward.

The big opportunity is to embed later life lending into wider holistic financial planning. Housing wealth can transform retirement outcomes for millions. It is the missing link in many retirement plans, and as more clients understand how it can support them, demand will grow.

It’s imperative we handle this growth responsibly, with robust advice, transparent products, and genuine focus on customer outcomes. The industry has made huge strides in improving standards, but we can’t afford complacency. Done right, later life lending could transform financial security for millions of people.

July 2025 | The Intermediary

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L AT E R L I F E L E N D I NG In focus

The crest for later life lending – or just the beginning?

L

ast month, The Intermediary reported a 33% year-on-year increase in later life lending in the first quarter of 2025. It’s a significant number – and for those of us working in this space, it mirrors what we are seeing in real time.

The once-niche specialist lending market has evolved into a diverse, fastmoving sector. At Hodge, we’re proud to play a part in that evolution. But as anyone in the industry knows, it’s not just about numbers, it’s understanding what’s behind them.

The surge is being fuelled by the needs of a growing, changing demographic. From pension shortfalls to the rising cost of living, from inheritance planning to property wealth being used to support family – the financial pressures and priorities of later life borrowers are changing fast. Lending must change with them.

New kind of borrowing What defines a ‘later life borrower’ today is not age, but the complexity of their situation. Some are still working, others are self-employed into their seventies. Many are looking to help younger generations onto the ladder, diversify their income streams through buy-to-let (BTL), or improve the energy efficiency of their homes.

What they share is a need for lending that adapts to their reality, not the other way round.

This has changed the shape of the market. The days of a one-sizefits-all later life product are long gone. We now see a spectrum of options: flexible lifetime mortgages, retirement interest-only (RIO), and hybrid solutions that allow borrowers to switch repayment options or make ad-hoc repayments.

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The Intermediary | July 2025

Many of these products come with features that allow for partial repayments, flexible terms or inheritance guarantees – giving borrowers more control over how they meet their financial priorities, such as reducing their balance over time to leave more for loved ones.

Downsizing protection is another feature which gives borrowers the confidence to move later in life without facing punitive charges, acknowledging that lifestyle needs o en change as people age.

Responsible lending As an industry, there is a growing recognition of the importance of responsible lending. Vulnerability can impact anyone, and later life lenders must ensure that every decision is made with empathy, clarity, and the right support in place for the future of the borrower.

Technology is also playing a crucial role in transforming the customer journey. From online affordability calculators tailored to later life criteria, to more streamlined digital application processes, technology is helping make these products more accessible and transparent.

At Hodge, we see these innovations as a way to enhance, not replace, the human touch. Especially when dealing with customers making complex, emotional decisions about their homes, face-to-face advice and personalised service remain essential.

We’ve done a li le more than scratch the surface of what later life lending can offer. We expect later life lending products to become even more flexible and responsive to individual borrower needs. We see more modular products, where features like drawdown facilities, repayment options or inheritance protection can

EMMA GRAHAM is business development director at Hodge Bank

be customised based on a borrower’s specific circumstances. This could further reduce the risk of unsuitable borrowing. We anticipate further growth in sustainable and energyefficient lending.

As the UK housing stock continues to face pressure to meet energy performance standards, there’s scope for later life products that incentivise or reward borrowers for making green improvements.

Affordability criteria are also evolving. Historically, income in retirement was one of the biggest hurdles for many borrowers, but lenders now recognise a wider range of income sources, including pensions, investment income, and even rental income from BTL properties. This has made it possible for more people to access borrowing, even if their income looks very different from when they were working.

Ultimately, later life lending is about more than just releasing equity. It’s about helping people make the most of their retirement, stay in control of their finances, and live with dignity and peace of mind. As a lender, we see it as our duty to deliver products that offer flexibility and choice, underpinned by responsible lending practices that put customers first.

We’re not just watching the wave, we’re riding it. But whether we’re nearing the crest or only building momentum, the future of later life lending is bright, and we’re excited to continue playing a role in helping customers use the value of their homes to achieve their retirement goals. ●

L AT E R L I F E L E N D I NG In focus

Why RIO mortgages are on the rise

T

he later life lending market is undergoing a significant transformation, and the data is hard to ignore.

According to recent findings from UK Finance, retirement interest-only (RIO) mortgage lending increased by 19.4% year-on-year across the UK in Q1 2025. At Vernon Building Society, we’ve seen a 158% increase in RIO mortgage applications between January and May 2025 compared to the same period last year.

This is not a seasonal fluctuation or a short-term spike. It’s a clear indication that borrower behaviour is shi ing, and the implications for brokers are substantial.

The drivers behind this growth are well understood: longer life expectancy, rising living costs, and a growing cohort of older homeowners who are asset-rich but income-constrained.

But what’s becoming increasingly evident is that RIO is moving into the mainstream of later life financial planning, and brokers are at the forefront of this evolution.

Shift in client mindset Older borrowers have long recognised the value of using their homes to unlock capital in later life. Equity release products have been a wellestablished part of the market for years, offering a way to access property wealth without monthly repayments.

But today, the conversation is shi ing.

It’s not about a new openness to using housing equity, but rather a growing awareness of alternative options.

This shi in mindset is creating new opportunities for brokers.

Clients are looking for advice that goes beyond traditional mortgage solutions. They want to understand how later life lending fits into their broader financial goals, whether that’s supplementing income, funding home improvements, or helping

children onto the property ladder.

RIO mortgages offer a compelling solution for many of these scenarios.

For clients with sufficient income to cover interest payments, they offer a flexible and cost-effective way to access property wealth without the long-term commitments or costs o en associated with equity release.

Retirement strategy The surge in RIO demand reflects a broader trend: property is becoming central to retirement strategy. This is particularly relevant in the context of intergenerational wealth transfer.

Many clients are looking to gi equity to children or grandchildren during their lifetime, rather than waiting until a er death.

RIO mortgages can facilitate this, allowing clients to provide meaningful support at a time when it’s most needed.

There is also a growing awareness of the potential Inheritance Tax benefits of gi ing equity early. By reducing the value of their estate, clients may be able to mitigate future tax liabilities while also seeing the impact of their support in real time.

These are complex, sensitive conversations, and brokers are uniquely positioned to guide clients through them with care and expertise.

Complexity As demand for later life lending grows, so does the complexity of client circumstances. Many older borrowers have multiple income sources, including defined benefit (DB) pensions, drawdown arrangements, and investment income. Others may have lasting power of a orney in place or require more flexible underwriting due to health or lifestyle factors.

This complexity requires a lender that can take a holistic view of the client’s financial position, working closely with intermediaries to assess each case on its own merits.

BRENDAN CROWSHAW is head of mortgage and savings distribution at Vernon Building Society

Later life lending is not one-size-fitsall, so we should remain commi ed to providing solutions that are both responsible and adaptable.

We also recognise the importance of supporting brokers with clear criteria, responsive service, and access to underwriters who understand the nuances of later life cases.

It’s important to make it easier for brokers to deliver great outcomes for their clients, even in the most complex scenarios.

Growing opportunity The growth in RIO demand is not a passing trend. It’s part of a broader transformation in how people approach later life finance. As the population ages and retirement becomes more fluid, the need for flexible, sustainable lending solutions will only increase.

For brokers, this represents a significant opportunity. Later life lending is no longer a specialist corner of the market – it’s becoming a core part of the advice landscape. Brokers who are prepared to engage with this space, build their knowledge, and partner with lenders that understand the market, will be well placed to deliver real value to their clients.

The surge in RIO interest is a clear signal that the later life lending market is maturing. Clients are more informed, more open to new solutions, and more reliant on expert advice. Brokers have a vital role to play in helping them navigate this evolving landscape.

Later life lending is not just about borrowing. It’s about enabling clients to live the life they want, as well as helping brokers build lasting relationships based on trust, insight, and shared success. ● July 2025 | The Intermediary

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L AT E R L I F E L E N D I NG In focus

Later life considerations

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he later life lending market has been saying for years that it’s important to consider the use of housing equity as part of normal financial planning, but how mortgage debt is managed post the age of 50 is also crucial in ensuring that customers can fulfil their wants and needs as they move towards – and through – retirement.

Basic facts from the mortgage and retirement planning market make the case. The average age of first-time buyers is 36, and one in five of them is over 40. A 36-year-old first-time buyer opting for a 35-year term will be paying a mortgage until age 71 – way past traditional retirement ages.

Borrowing past traditional retirement ages is already a reality.

Around one in four 55 to 64-yearolds are still paying off mortgages.

People are borrowing until later in life, and the numbers doing so will only increase. They need support with managing their debt while maximising retirement income.

Paying off a mortgage while saving for retirement is already challenging, and will become even more difficult for many customers.

The average retirement income is £18,148, according to the Office for

National Statistics (ONS), which is just over £5,000 above the £12,800 threshold to achieve a ‘basic’ retirement, as calculated by the Resolution Foundation.

Against that background – and particularly in light of innovation around lifetime mortgages that allow customers to serve some or all of the interest – it does not make sense for equity release to be seen as a last resort. People need to maximise every asset, including property, if they are to achieve a comfortable and fulfilling retirement, and they need to start thinking about it much earlier, with the support of advisers.

Advisers need support from the later life lending market to help them ensure clients are aware of all the options available to them, and they need support from regulators, too.

There are strong signs that regulators are well aware of the need.

Positive on later life Financial Conduct Authority (FCA) chief executive Nikhil Rathi certainly appears to recognise the potential of the later life lending market.

At the recent JP Morgan Symposium Pensions and Savings, he said: “Those who do own a home in later life also face an evolving picture. For many, their home is their biggest asset, and

WILL HALE is CEO of Air

the options and choices in retirement – on lifestyle, housing, care, and tax, to name a few – are wider and more complex than ever.

“So, learning from the past, and with the right product design and consumer protections in place, could later life lending benefit more people, as part of an individual’s financial plan, rather than a last resort?”

His colleague Emad Aladhal, director of retail banking, told the BSA Annual Conference that later life lending is “increasingly the norm. We all need to face up to the complexities and opportunities of increased consumer need to continue borrowing into later life.”

The mortgage market discussion paper from the FCA published on 25th June included a significant section on later life lending, but while this reiterated the scale of the opportunity and importance from a societal perspective, it also highlighted significant structural issues which need to be addressed. The question is whether the industry is capable of stepping-up?

Outlining the opportunity Products have evolved to meet the needs of older customers, with the development of more retirement interest-only (RIO) mortgages, term interest-only mortgages and longterm fixed rated products. Lifetime mortgage lenders are offering higher

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The Intermediary | July 2025

L AT E R L I F E L E N D I NG In focus

must start earlier Mainstream mortgage brokers [...] should be seizing the opportunity to break down siloes and work collaboratively in order to deliver better outcomes for customers” loan-to-values (LTVs), shorter and fixed early redemption charges, and increased flexibility around regular payment options.

These lifetime mortgages, which allow some or all of the interest to be served, are designed to help mitigate the impact of compound interest and evolve with borrowers as they move into retirement.

These products offer the option to eventually transition into a full rollup product with a fixed interest rate for life, and certainty of tenure, once any mandatory payment terms have been met.

There are products available which incentivise customers to manage their cost of borrowing by reducing the interest rate while making regular repayments.The worry is that awareness of these products among potential customers is poor, and even more worryingly, awareness among many intermediaries is not much be er.

These products are suitable for a significant cohort of over-50s customers, and should be viewed as very much part of the mainstream – and at least considered alongside other options for every customer in this demographic.

Seizing the opportunity Mainstream mortgage brokers, generalist independent financial advisers (IFAs), wealth managers and equity release specialists – and the trade bodies that represent them – should be seizing the opportunity to break down siloes and work collaboratively in order to deliver be er outcomes for customers.

Air is looking to do our bit and engage with stakeholders across the ecosystem to ensure a be er functioning market that works in the interests of older customers.

We believe that a thriving advice sector is crucial to meeting the challenge, and we are focused on equipping advisers with the tools they need to deliver great advice cost effectively.

That means working with mainstream sourcing platforms and customer relationship management (CRM) providers to create efficient and integrated journeys. We are also making changes to our Academy proposition, and with support from our lender partners, we want to make this accessible to all intermediaries, free of charge, to help them upskill and maintain competency in the market.

Our fact-find learning programme – which is London Institute of Banking & Finance (LIBF) accredited learning, and wri en and endorsed by the Equity Release Council – is a great starting point.

Alongside our WriteRoute journey that includes fact-find and suitability report functionality, we can support advisers in ensuring all options are properly represented through the research process so that ultimately the right recommendations can be made.

Later life lending should be firmly established as part of mainstream mortgage advice and broader retirement planning.

As a sector, we must seize this opportunity. Let’s make our voices heard in feeding back on the FCA’s discussion paper – but also, here and now, embrace the support available to allow us to deliver be er outcomes for older customers. ● July 2025 | The Intermediary

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L AT E R L I F E L E N D I NG In focus

Later life lending is evolving to meet modern needs

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K Finance’s Q1 2025 update shows a 33.5% year-on-year increase in activity from Q1 2024. This signals that older borrowers are continuing to take a more proactive approach to managing their finances – whether through traditional mortgages, retirement interest-only (RIO) products, or equity release.

While the cost of living remains high and retirement income is increasingly under pressure, this is not simply a story of necessity. It’s a maturing market where borrowers are exercising more control over their finances in later life. The other great news is that complaints around advice remain very low.

Advisers should be discussing future property wealth very early in people’s financial advice cycle, as it should be considered alongside other provisions for retirement wealth.

Diversification In the past, equity release dominated the conversation. Today, the market has grown to include a broader suite.

RIO mortgages have emerged as a valuable option for those with ongoing income who want to retain ownership and keep monthly payments manageable. Meanwhile, term mortgages with maximum age limits extending well into later life have also helped broaden accessibility.

This shi is supported by greater innovation from lenders, many of which are developing products specifically designed for older borrowers, recognising that this group is far from one-size-fits-all.

The market is taking this sector seriously, with volume originators such as tier one lenders offering products to over-65s, and of course,

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The Intermediary | July 2025

the very important building society sector assisting members with some innovative products.

As the market grows in complexity, advisers play a critical role in helping clients navigate the options, assess the implications for inheritance, tax, and long-term affordability, and ensure the solutions align with their wider financial plans.

But advice alone isn’t enough – the way products are underwri en and serviced is equally important.

Traditional affordability metrics don’t always fit borrowers relying on pensions, investments or rental income. Specialist lenders are responding with more holistic approaches to income and risk.

This is particularly vital for interest-only maturities. Thousands of borrowers are reaching the end of their original terms with no repayment vehicle. When the originating lender can’t offer an alternative, access to a broad and flexible later life lending market, underpinned by agile servicing platforms, becomes crucial.

Strategic technology Technology is now a central enabler of growth and resilience in later life lending. Beyond digital fact-finds and affordability tools that support the advice process, the infrastructure behind the scenes is just as important, especially as lenders scale and prepare for regulatory scrutiny.

Automated servicing and flexible application programming interface (API) ecosystems allow lenders to efficiently integrate with third-party suppliers that give a competitive edge, streamline processes, adapt to regulatory change, and deliver high service standards at scale. This ma ers not just for operational efficiency, but

RICHARD PIKE is chief sales and marketing officer at Phoebus

strategically – enabling more lenders to grow with confidence.

Migrations are a case in point.

As loan books change hands more frequently and funders increase liquidity in the market, being able to migrate accounts quickly and securely is essential. Platforms like Phoebus offer automated migrations which have been delivered in six to nine weeks. This reduces transformation risk and is a key consideration in successful securitisations and investor confidence.

Tech is also enabling lenders to take greater ownership of their operations.

By reducing reliance on manual processes and external support through automation of basic tasks, allowing users to deal with cases by exception, they can control costs and improve resilience.

Sustainable market The continued growth of later life lending depends on ensuring it remains both responsible and sustainable. That means products that truly serve borrower needs, improving adviser training and resources, and continuing to raise awareness.

With so much wealth tied up in property, enabling older homeowners to unlock equity in a safe and structured way could help address intergenerational wealth gaps, support younger generations, and improve quality of life for retirees.

Collaboration across lenders, advisers, regulators and tech providers is essential. This market can become a cornerstone of financial wellbeing for millions in the years to come. ●

‘A mortgage in retirement?

Shut the front door!’

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

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

How can we help?

— We take into account earned income up to the age of 70, or even 75 if the client is in a non-manual role — We’ll consider pension pots, as well as fixed pensions, investment and rental income. Other income can be considered on a case-by-case basis — We lend in retirement with higher maximum ages than most lenders — We have a common sense approach to lending and use human beings, not robots, to underwrite each case.

This means we can tailor our solutions to each of your client’s needs.

WE TAKE GREAT PRIDE IN HOW WE DO THINGS, AND IT WORKS.

intermediaries.familybuildingsociety.co.uk C A LL US ON 01372 744155 OR EM AIL mortgage.desk@familybsoc.co.uk VISIT

FAMILY BUILDING SOCIETY, EBBISHAM HOUSE, 30 CHURCH ST, EPSOM, SURREY KT17 4NL Family Building Society is a trading name of National Counties Building Society which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. National Counties is on the Financial Services Register. Firm Reference Number 206080.

Later Life STFD Ad A4_The Intermediary_2025 Q3.indd 1

08/07/2025 09:40

In Profile.

The Intermediary speaks with Jim Boyd, CEO of the Equity Release Council, about how holistic advice is critical

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ccording to Scottish Widows, 39% of people are currently on course to miss the minimum retirement standards, up from 35% in 2023. Against this backdrop, housing wealth is primed to take centre stage. With an estimated £23bn in housing equity available per year by 2040 if tackled properly, according to Fairer Finance, The Intermediary sat down with Jim Boyd, CEO of the Equity Release Council, to understand the scale of the opportunity, and what must be done to bring equity release further into the conversation.

Growth of the market

At a time of heightened scrutiny for the entire finance and advice market, Boyd says: “[The regulator] has a dedicated focus on later life lending. That demonstrates the importance of this market. We’ve got a rapidly ageing population, and people within that space have inadequate retirement savings.”

This is not only being exacerbated by economic turbulence and the ongoing cost-of-living crisis, but by a fundamental shift in how we fund retirement – namely, the decline of defined benefit (DB) or final salary pensions. Meanwhile, if the Government wants to stimulate growth in the economy, that £23bn figure is significant.

“By 2040, 50% of people are likely to draw on some kind of housing equity,” says Boyd.

“This isn’t just a small, or even a significant market, this is already a mainstream market.”

The Financial Conduct Authority (FCA) is keenly focused on the barriers and opportunities around growth in this market, with chief executive Nikhil Rathi reinforcing that the home is often a person’s biggest asset. Meanwhile, lending to those aged over 55 made up 7.6% of all mortgages in Q1 2025.

The next step is to make sure that the market is prepared for growth and the inevitable increase in demand. Boyd says: “We need flexibility to promote consumer understanding and innovation in the market. This is a dynamic intervention from Government.”

He adds: “There’s a real risk that property wealth might be overlooked if the Government doesn’t develop a vision for it. In the same way that without Pension Wise, pension wealth might have been overlooked following Pensions Freedom.”

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The Intermediary | July 2025

To “make sense of the shortfall” facing so many approaching retirement, even from a great distance, Boyd calls for a “multi-asset approach,” that shifts the narrative away from just pensions, and towards an individual’s whole economic picture.

This, he adds, must be reflected in regulation and policy. For example, downsizing provides individuals the opportunity to move into a home that suits their needs, while freeing up funds that could support care, lifestyle or loved ones, as well as creating movement in the property market.

Boyd says: “Downsizing makes a huge amount of sense, providing you’ve got a coherent strategy based on looking at the last-time buyer.”

He notes that treating pensions, mortgages and savings as separate silos is not going to get consumers the best outcomes in retirement, and confirms that the regulator’s approach is to work towards an interconnected network.

He adds: “It’s not just a consultation on separate points, it’s a significant undertaking welcoming insights from experts on a multi-sector basis.

[This] stands out as one of the more significant engagements by the regulator in recent years.”

While a truly cross-collaborative approach might seem hard to reach, Boyd points to the Council’s own work with major trade bodies across the mortgage market, implementing conversations with representatives from Government, consumer groups and various trade bodies, to find commonality and understand the barriers to and opportunities for growth.

“Everyone agrees that someone approaching retirement should be able to draw down from all their assets in a way that is well guided or advised,” Boyd says. “A mortgage adviser, meanwhile, is sitting on the biggest asset that people in Britain have. A property adviser is going to need to be the first point of call for many people – not just those taking out residential mortgages.”

Vibrant and evolving

To get consumers to see the bigger picture, this conversation should be happening earlier in the process. With changes to pension schemes and the economic environment, people are “more responsible for their individual wealth accumulation and decumulation” than ever before.

A young first-time buyer might seem far off from

I N P RO F I L E

retirement, but it is important to raise their awareness of how their property wealth will come into play later. A ‘mid-life MOT’, such as in Sweden, could also take account of assets across the board.

This means a much broader consideration of financial health, such as factoring in how renting can affect a person’s financial trajectory.

Younger generations are already showing a different attitude to debt, according to the Council’s ‘Home Advantage’ research, and intend to use property wealth to fund their retirement lifestyles. Advisers must be ready with a full toolkit to keep up.

“People are living longer lives, making the transfer of equity to support their children’s financial objectives through traditional inheritance harder,” Boyd says. “So actually, having a vibrant later life market is becoming more important.

“On a macro-level, if you don’t encourage people in later life to release funds to top up their retirement needs – such as funding their needs for care and health, easing the strain on the NHS – and give them more ways to engage in efficient markets or transfer wealth to younger generations, then public spending will become squeezed.”

Nevertheless, it is currently “a total lottery” from one adviser to the next. A wealth manager might not factor in property assets, while a mortgage adviser might not be aware of the full range of later life products available. Part of the problem is a “fractured market” that enforces a different regulatory structure across different areas. This is also where trade bodies and industry representatives must come in.

The Council is at the heart of this question. By continually refreshing and updating its standards, it aims to create a market that is “completely committed to great customer outcomes [and] peace of mind for consumers.”

Boyd highlights the work of Michelle Highman, chair of the Standards Committee, to strip out ambiguities and duplications, and refreshing the Council’s standards overall.

Its Later Life Lending Summit, taking place in November, aims to further this education, including practical case studies and ‘newbie streams’ for those looking to understand more.

In order to address the “lottery” element of choosing an adviser, Boyd points to an increasing focus on qualifications, which shows that the Government understands the need for better awareness and education.

“We support various ad hoc training initiatives, such as webinars, but we also work closely with Government and the regulators,” Boyd explains.

“It’s about driving a change in expectation and

making sure there’s coherence and clarity as this market evolves.”

In the meantime, he says: “We are updating our website, and I’d love for it to increasingly become a destination point for those all those advisers trying to make sense of later life lending products.

The expectation is for consumers to also be able to understand where to go to get advice, from mainstream mortgages to care.”

Building on strong foundations

JIM BOYD

While borrowing in retirement is becoming more widely accepted, there are still misconceptions around equity release as a product of last resort.

The effort to build out education, create more resources, and prime the market for growth must also normalise housing wealth as part of the cultural understanding of financial stability.

This not only requires the ‘next gen’ products signalled as expected by the FCA to fit evolving consumer needs, as well as space for further innovation, but a fundamental behavioural and mindset change.

Boyd suggests that the UK draw on examples from around the world – markets with a more welcoming approach to deploying housing equity, such as Australia, which has Government backed equity release schemes.

Meanwhile, broadening the terms of the Pensions Dashboard, Money and Pensions Service (MAPS) and Department for Work and Pensions (DWP) could help crack open public consciousness.

Furthermore, Boyd suggests that there should be a “commissioner for retirement,” a Government role unaffiliated with any political party, a “core navigator” able to see where issues overlap – such as the integral importance of the care industry to this conversation – and change the narrative.

For now, the Council will continue building on its own work, as well as with other trade bodies, facilitating public discussion and using its summit and other events to share vital information.

Boyd concludes: “Public discussion and close collaboration are both a huge focus – looking at commonalities and sharing best practice.

“The market is still facing incredibly tough headwinds, due to consumer uncertainty and high gilt yields. But we are seeing growth, and this market demonstrates significant resilience and extraordinary opportunities to innovate.

“We will see greater stability returning. This is going to be a vibrant, coherent later life lending market. It’s hugely exciting, provided the basis for growth is underpinned by great standards.” ● July 2025 | The Intermediary

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L AT E R L I F E L E N D I NG In focus

Vulnerable customers are a growing concern

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ore and more of the UK population are classed as vulnerable – which should both worry and motivate financial services intermediaries in equal measure.

In fact, our recent white paper, ‘Vulnerability in 2025’, revealed that more than half of financial services customers in the UK now qualify as being vulnerable.

As a consulting and customer solutions company, we can see the challenge this poses as well as the opportunity.

The rise is largely due to a neardoubling in cases of mental health conditions, from 10.2% to 19.5% in 2024. Additionally, 16.7% said they felt financially stressed in 2024, up from 14.1% in 2023. We identified a jump in the number of customers reporting an addiction and experiencing financial distress because of it – 3.5% today compared to 0.8% in 2023.

Our survey found that a worrying number of individuals are still unaware that they would be classified as vulnerable, at 53%, although this has fallen from 67% in 2023.

Driving the rise Part of the reason for the increase in detected vulnerability is thanks to financial services firms themselves actively asking customers about their needs. However, far too many just rely on individuals self-reporting, which doesn’t show the full picture when so many are unaware they may require extra help.

At Huntswood, we have seen examples of firms not joining up their teams and information holistically, meaning customers must say they are vulnerable multiple times to get

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The Intermediary | July 2025

proper assistance. Treating vulnerable customers fairly is crucial for intermediaries, and not just because it’s the right thing to do.

The Financial Conduct Authority (FCA) takes a dim view of firms that do not properly take vulnerability into account when handling clients.

The regulator has made it clear that all customers are at risk of becoming vulnerable, and that firms should consider vulnerability on a spectrum, related to four key drivers – health, life events, resilience and capability.

The right culture and technology, used properly, can be a major help for firms seeking to improve how they treat their vulnerable customers.

A matter of duty Not spotting customers that need extra help can have serious consequences, even when clients know they need this assistance. We found that just 29% of vulnerable customers said organisations they deal with knew of their vulnerable circumstances, while 42% said their firm was unaware of their need for support. A further 29% said they were unsure if the firm was aware or not of their situation.

The research found that vulnerable customers whose provider was aware of their vulnerability, but whose needs went unacknowledged, resulted in 82% saying they were left feeling unsatisfied. This contrasts with just 18% of dissatisfied customers whose firm knew about their vulnerability and had acknowledged it when dealing with a client.

The lack of empathy felt by customers whose firm did not acknowledge and support their vulnerability resulted in those clients reporting negative emotions such as anger, sadness and disgust towards their provider.

MARTIN DODD is chief executive of Hunstwood

Conversely, those at-risk clients who felt their circumstances were acknowledged and supported were more likely to express positive emotions such as trust, joy, and even surprise.

Helping hand So the big question is – what can intermediaries do to help? We would recommend several strategies to help mitigate the risk of failing to support vulnerable customers.

These include ensuring clear documentation is provided that highlights important information, such as insurance policy exclusions, in accessible formats. We would also suggest protection intermediaries improve identification of vulnerable customers to maximise opportunities to prioritise claims handling activity.

Most intermediaries already do this, but we recommend ensuring that proper provisions are made for more elderly clients, who may feel excluded from online channels and may make unsuitable decisions due to impaired judgement.

Intermediaries would also do well to contact known vulnerable customers in advance of potentially impactful events for home and travel insurance, and take steps to minimise risk and provide additional support.

Intermediaries are the first line of defence in financial services when it comes to identifying and helping the vulnerable.

It is clear that, now more than ever, intermediaries must have excellent resources in place to identify those that may need a little extra help – this is set to be a growing proportion of the population. ●

L AT E R L I F E L E N D I NG In focus

Lending over 60 and beyond

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lthough we have just celebrated our 11th anniversary as Family Building Society, we’ve been around a lot longer – since 1896 in fact! Our mission has always remained the same: we lend to all members of the family, regardless of age or situation.

We had a record year in 2024, and our continued success is very much dependent on the relationships we’ve built with brokers and intermediaries across the country.

There is no longer a taboo on having a mortgage in retirement. Being mortgage-free used to be a champagne moment in one’s life, but with the growing need for intergenerational lending and increased use of property equity for Inheritance Tax and retirement planning, meeting the rising demand for borrowing into retirement requires an innovative approach and increasingly flexible criteria.

Later life is one of our main lending areas at Family Building Society.

Many of the clients that come to us are in their mid-to-late sixties or early seventies, having reached the end of their mortgage term with their high street lender who will not extend it into retirement.

We know this, not just because of the enquires we see, but from our own research into how the high street lenders view the older borrower – in a word, badly!

Often their income has reduced, possibly due to retirement, bereavement or a ‘grey divorce’. There are also older borrowers who are unencumbered but looking to gift money to family members, invest in a second home, or carry out home improvements on their current property. High street lenders see these cases as just too much trouble!

Lending to borrowers in later life with complicated income streams isn’t

always straightforward. However, manual underwriters are able to look at each application on a case-bycase basis.

DARREN DEACON is head of intermediary sales at Family Building Society

Innovative criteria With more flexible criteria and a broader product range available to older borrowers, traditional mortgages can be a more attractive option than equity release. UK Finance data confirms this.

Brokers not familiar with our approach are often very pleasantly surprised when we tell them about our flexible and innovative lending criteria. In fact, one of the most common things we hear is, “Wow! I didn’t know you did that!”

The way we treat investments and pension pots is perhaps the most surprising. We can consider up to 90% of the value in a pension pot divided by the full term of the mortgage, and use that as an affordability measure.

This is the case whether the pension is in drawdown or not. It’s a great way of monetising an asset.

Another timely and innovative product is Joint Borrower Sole Proprietor (JBSP). We’re seeing an increasing trend of older borrowers wanting, or needing, to help family members financially.

As we know, with tougher affordability, high interest rates and increasing property prices, getting onto the property ladder is harder than ever for younger borrowers.

Our own JBSP products allow up to four incomes to be used for affordability – one or two borrowers who will own and occupy the property, supported by up to two other family members.

A great benefit of this is that supporting family members will not be liable for Stamp Duty on a second home. Last year, we broadened the family members eligible to support a JBSP to grandparents, aunt, uncles and siblings.

Meeting the rising demand for borrowing into retirement requires an innovative approach We also offer JBSP in reverse – enabling adult children to help their parents to meet affordability if they no longer have the income to support their repayments in cases of divorce or bereavement – allowing parents to stay in a much-loved family home for longer.

Lending trends Recent UK Finance data showed a resilient and strengthening market for later life lending, with consistent quarterly increases throughout 2024.

Lending to the over-55s in Q1 2025 rose to £6.1bn, up 42.6% compared to the same quarter a year previously.

Demand is there, but education remains key. Brokers and clients alike are often not aware that standard repayment and interest-only mortgages are available to those in or approaching retirement.

These can often be more costeffective than equity release and an alternative to retirement interest-only (RIO) mortgages where death-stress rates prove prohibitive.

We continue to work with other lenders, mortgage clubs, networks and trade bodies to ensure brokers are aware of the options available in the later life sector. ● July 2025 | The Intermediary

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L AT E R L I F E L E N D I NG In focus

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o quote Billie Burke, “Age is something that doesn’t matter... unless you are a cheese!” Or trying to navigate the financial planning and lending journey that seems to get more complicated as we all get older.

The lending market for individuals aged 55 and above, extending to mortality, has evolved into an exceptionally intricate domain, presenting considerable challenges for both mortgage advisers and financial planners. This complexity stems from a confluence of demographic shifts, regulatory demands, and the increasing diversity of financial products, creating an environment where a single adviser can no longer realistically maintain expert proficiency across all relevant areas.

First, the demographic landscape itself is a primary driver of this complexity. People are living longer, often carrying mortgage debt further into retirement, and facing varied financial circumstances that defy simple categorisation.

Unlike previous generations, who might have paid off their mortgages by retirement, a significant proportion of those aged 55 to 64 still have outstanding mortgage balances. This necessitates a broader spectrum of lending solutions beyond traditional residential mortgages, including retirement interest-only (RIO) mortgages and various forms of equity release, such as lifetime mortgages.

Each of these products comes with its

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The Intermediary | July 2025

own unique set of criteria, risks, and implications for income, inheritance, and long-term financial security.

Regulatory scrutiny The regulatory environment adds another layer of intricacy. The Financial Conduct Authority (FCA) places a high onus on advisers to demonstrate that advice is suitable and personalised, especially for vulnerable clients – a category that often includes older individuals. This requires comprehensive due diligence, meticulous record-keeping, and a deep understanding of how different products interact with an individual’s entire financial picture.

Recent FCA reviews have highlighted concerns about poor advice and misleading promotions in the later life mortgage market, underscoring the need for advisers to move beyond a siloed approach and consider all available options, not just those within their immediate specialism.

The Consumer Duty, introduced by the FCA, further reinforces this, requiring firms to act to deliver good outcomes for retail customers, which in later life lending means exploring a wider range of solutions beyond just equity release.

Constant evolution The ‘myriad of options’ is not merely a figure of speech. It’s a stark reality.

For individuals over 55, financing needs can range from remortgaging an existing property to fund home

ANDREW TEEMAN is business principal and later life mortgage specialist at Mortgage Advice Bureau

improvements, consolidating debt, providing financial assistance to family members, or supplementing retirement income.

This diverse set of objectives calls for an equally diverse range of solutions.

Traditional residential mortgages may still be an option for those with sufficient demonstrable income, but often with stricter age caps.

RIO mortgages allow homeowners to pay interest-only, with the capital repaid from the sale of the property upon death or entry into long-term care. Lifetime mortgages offer a way to release equity without monthly payments, with interest rolling up, but can significantly erode the value of the estate.

Beyond these, there are also specialist products from smaller building societies and niche lenders, each with specific criteria regarding income sources – for example, pension, rental income, investments

L AT E R L I F E L E N D I NG In focus

– property types, and even credit history. Navigating this labyrinth of product variations and lender appetites is a full-time endeavour in itself.

Big picture The interconnectedness of later life financial planning makes it impossible to view lending in isolation.

A mortgage adviser focused solely on securing a loan might overlook the broader implications for a client’s retirement income strategy, their potential need for long-term care, or their inheritance tax liabilities. For example, releasing equity from a property can significantly impact the value of an estate, affecting the inheritance left to beneficiaries.

Similarly, the availability of certain state benefits can be means-tested, meaning that a lump sum from equity release could inadvertently disqualify a client from crucial support. Estate planning, including the drafting of wills and consideration of trusts, becomes paramount to ensure a client’s wishes are respected and their assets are managed efficiently upon their passing.

The fundamental issue is that no single professional can realistically be an expert in conventional mortgage borrowing for younger clients, the intricacies of later life lending, comprehensive retirement planning, the complexities of long-term care funding, the nuances of Inheritance Tax planning, the labyrinth of state

benefits, and meticulous estate planning. Each of these fields requires dedicated study, ongoing professional development, and practical experience to truly master.

Expecting a single adviser to possess deep knowledge across all these specialisms places an unrealistic burden upon them, and more critically, risks suboptimal outcomes for clients, who deserve holistic and truly informed guidance.

Therefore, the sector urgently needs to define a clearer strategy for serving clients in these increasingly complicated but profoundly necessary areas.

This could involve several approaches. First, fostering greater collaboration between specialist advisers. Instead of attempting to be a ‘jack of all trades’, mortgage advisers could specialise in later life lending, working in tandem with financial planners who focus on retirement and estate planning, and perhaps even legal professionals specialising in wills and trusts. This collaborative model would ensure clients receive expert advice across all relevant domains.

Second, developing enhanced accreditation and educational pathways specifically for later life financial advice.

While some accreditations exist – for example, from the Society of Later Life Advisers – a more widely recognised and rigorous standard that encompasses the breadth of financial considerations for older clients is essential.

This would provide advisers with the necessary knowledge, and clients with the confidence that they are receiving truly comprehensive advice.

Finally, embracing technological solutions could streamline the initial information gathering and product matching process, freeing up advisers to focus on the nuanced, humancentric aspects of advice.

Intelligent platforms could help identify suitable lending options based on a comprehensive assessment of a client’s financial position and objectives, flag potential conflicts with other areas of their financial plan, and prompt advisers to consider all relevant aspects.

In conclusion, the lending market for those over 55 has become exceptionally complex due to evolving demographics, stringent regulation, and a proliferation of specialised financial products.

The sheer breadth of knowledge required to advise effectively across conventional mortgages, later life lending, retirement planning, longterm care, Inheritance Tax, state benefits, and estate planning is beyond the scope of a single expert.

To truly serve this vital demographic, the financial services sector must embrace greater specialisation, inter-professional collaboration, and robust educational frameworks, ensuring that older clients receive the holistic, expert advice they genuinely need and deserve as they navigate their later years. ● July 2025 | The Intermediary

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L AT E R L I F E L E N D I NG In focus

Later life lending is changing, and so must we all

T

he later life lending market is not what it once was. That’s something advisers already know – not because they’ve read the stats or heard it at conferences, but because they live and breathe that change every day.

Clients in their fi ies, sixties, seventies, and older, are coming through the door with more nuanced needs, more confidence in their decision-making, and more expectations around the experience of ge ing a mortgage in later life.

This evolution brings with it huge opportunity, but also challenges.

Advisers must now navigate a wider set of clients, with a broader set of customer goals, o en within tighter timeframes and under sharper scrutiny. As a sector, we must ensure we’re not just keeping up with that shi , but actively responding to it. That includes lenders, but also distributors, tech partners and the wider adviser ecosystem.

At more2life, we’ve had to ask ourselves some questions around this in recent months. Are we supporting advisers in the way they need us to?

Are we building tools that make it easier, not harder, to say yes to the right customers? Are we doing enough to reflect how this market is evolving – in product design, in service, and in how we show up?

Those questions sit behind the evolution of our brand and our proposition this year. This isn’t about logos or colours. It’s about recommi ing to the principles that ma er most in a market defined by complexity: choice, agility, transparency, and outcomes.

ProView, for example, is revolutionising property suitability

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The Intermediary | July 2025

assessments by combining advanced tech with real human expertise.

Our underwriters can offer a deeper insight into the property much earlier in the process, not just identifying any potential criteria issues, but also informing the adviser around the things that could slow offer or completion if the client is unaware.

It’s a response to what advisers have consistently told us: they want earlier certainty, fewer phone calls, and visibility over what’s going on with their clients’ cases. It puts advisers in control, and it gives them back valuable time to focus on what really ma ers: the client relationship.

The whole picture But tools alone aren’t enough. Giving advisers more product choice – real, meaningful options – is just as important. We all know that few later life borrowers fit neatly into a single category.

Their needs are o en layered: supporting a child while paying off debt; managing affordability while protecting equity; funding care while upgrading a home. The more flexibility an adviser has in structuring a solution, the more confident they can be in the advice they deliver.

That’s why we’ve focused on enhancing our range to cater for these kinds of multifaceted scenarios. With further developments to come, we’re not slowing down.

Whether a client is 55 or 85, single or partnered, affluent or asset-rich but income-tight, advisers should have a toolkit that helps them say ‘yes’.

We’re not just talking about volume, we’re talking about value. If a client is willing to service interest, for example, that same behaviour – when paired with the right product

DAVE HARRIS is CEO at more2life

– can unlock rate discounts and therefore tens of thousands in interest savings. Same customer, same payment, smarter outcome. These are the kinds of insights that can fundamentally reshape the later life advice conversation.

But advisers need help bringing that conversation to life. That’s why, going forward, we’ll be supporting these launches with real-world case studies, showing how different clients, with different goals, have benefited from the ability to tailor a plan to their needs. We believe these stories are one of the most powerful ways to show how this market is evolving and how smart advice, backed by strong product choice, can transform lives.

Of course, we’re also addressing where we need to do be er. We’ve heard the feedback on being faster, being more responsive, and how we must keep raising the bar on service. That’s what our brand refresh represents: a promise to do just that.

It’s about earning the trust of advisers not just through what we offer, but how we deliver it.

The truth is, great advice doesn’t happen in isolation. It happens when advisers feel supported, equipped, and empowered. It happens when they have the confidence to explore more, recommend more, and deliver more, because they know the tools and the products are there.

Later life lending is changing.

Borrowers are changing. Advice is changing. And so, too, must the way we support that journey. It’s not about being first, biggest, or loudest.

It’s about being genuinely useful and relentlessly focused on helping advisers make more happen. ●

L AT E R L I F E L E N D I NG In focus

Lifetime mortgages and the ‘Bank of Mum and Dad’

M

ore than half of first-time buyers received financial assistance getting on the housing ladder last year, with 173,500 first-time buyers receiving £55,572 on average, and the ‘Bank of Mum and Dad’ providing £38.5bn of assistance over the past four years. This research, from property firm Savills, confirms what we have known for a while; an incredible amount of wealth is tied up in property, an illiquid asset.

To access it and help children onto the ladder, parents often sell their home or take some form of mortgage against it. Given the older age profile of first-time buyers, parents also tend to be a bit more advanced in years and may find their options limited, which is where a lifetime mortgage comes in.

In addition, there may be an Inheritance Tax (IHT) benefit if the donor lives more than seven years after making the gift. Gifting means they not only get to see the recipient enjoy their money, it may be a potentially exempt transfer with no IHT to pay after seven years.

The borrower takes out the mortgage against their home, which is repayable on their death or earlier move into care, chooses whether to make interest payments or not, and when the house is sold, the lender gets its money back with the balance going to the borrower or their estate.

As there is no obligation to make monthly payments, lenders don’t look at an affordability model; instead, the age of the borrower(s) and value of the property are considered. Lifetime mortgages are aimed at borrowers aged 55 and above, based on the age of the youngest borrower in the case of joint applicants.

The lender calculates the maximum loan-to-value (LTV) it is prepared to advance; the older the client, the more they can borrow, and there is no maximum age limit. As with mainstream residential mortgages, cheaper rates are available at lower LTVs. The rate is fixed for life, giving certainty of cost and security of tenure. Lifetime mortgages are portable, so in theory can be taken to another property if downsizing at a later date. In this scenario, the lender may require a partial repayment to keep the LTV the same as before, but there are no early repayment charges (ERCs), only legal costs and an administration fee.

One issue that may arise with porting is if the property itself does not meet the lender’s criteria, but downsizing protection can be built in if moving is a possibility to avoid expensive ERCs. The ERCs themselves have significantly changed – historically they were variable and applied for the duration of the loan, linked to the yield on 15-year Government gilts on redemption.

Now, lenders offer straightforward percentage-based tapering ERCs over five to 15 years, so if rates fall, it may be possible to remortgage to a cheaper product in future without paying a penalty.

Other uses I often come across clients who use lifetime mortgages for funding care; they don’t want to take all of the funds upfront and pay interest, so they might take 12 months’ worth of costs, and then every 12 months do a further drawdown. Other clients are using lifetime mortgages to repay an expiring interest-only mortgage

ANDY SHAW is head of later life lending at SPF Private Clients

where there is no repayment vehicle in place because it turns out that they don’t want to downsize yet, as was the original plan. Others use them for lifestyle reasons – they may want to fund holidays or buy a new car.

Lifetime mortgages are also used to bridge the retirement funding gap by downsizers who find that once costs and Stamp Duty have been paid, there’s not much left.

If downsizing leaves you with £300,000 after you have sold your home, for example, it might not be enough for your next property. With a lifetime mortgage, you might be able to buy a £400,000 house.

One word of warning though: if a client has enough cash to buy outright with the thought that they might take out a lifetime mortgage once they are in their new home, it is not guaranteed that the lender will agree to lend on the property.

Taking out a small initial lifetime mortgage to help purchase the property, on the other hand, means they have greater certainty of future funding, with the remaining facility tucked away for drawdown if needed in future.

Discussing alternatives While a lifetime mortgage is a great solution for some, it’s important to discuss the alternatives, including mainstream mortgages.

It’s vital to take a holistic view or the client might miss out on something more suitable.

I don’t believe many people have the bandwidth to be experts on everything, but having someone within your firm who can deal with the other options – or signposting to other firms that can – is important. ● July 2025 | The Intermediary

25

The Interview.

Pure Retirement

the lender’s approach to fringe cases and the changing face of later life lending.

Advice to underwriting

Jessica Bird speaks with Gavin Hancock, head of initial loan originations at Pure Retirement, about nuanced underwriting and the rise of fringe cases in later life lending

S

ince the age of 16, Gavin Hancock’s career has spanned many facets of financial services.

From starting out in mortgages at Halifax Building Society, to intermediary sales, arrears counselling and acting as an adviser – both tied and whole of market – eventually he came to tackle the underwriting side of the business, joining Pure Retirement eight years ago.

He says: “The world of mortgages intrigued me from a sales perspective, but then sending cases on, the underwriting bit was something of a mystery. I wanted to see what happened on the other side of the fence.”

Hancock became head of initial loan originations at Pure Retirement early this year, and The Intermediary sat down with him to discuss how his experience is helping him shape

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The Intermediary | July 2025

Hancock was driven to this side of the market by an interest in understanding “the thought process behind why lending occurs.” He started at Pure Retirement as an underwriter, and progressed through various roles to lead originations. His experience on the other side of transactions has blended into his work on the underwriting side.

He explains: “What’s invaluable to me is that seeing the sales side has given me a real appreciation of the journey that the customer has gone through, and the broker as well.

“There’s a lot of time invested, and it’s a particularly emotive transaction – particularly equity release. This is not just ‘I’ve seen a house and want to purchase it’, it’s often for meaningful reasons.”

For Hancock, it is important that an underwriting team is also able to understand that journey, value the time and effort invested by both broker and client, “get to fully understand the proposition” and ensure that they “see beyond a number” when assessing cases.

This is, of course, particularly important when it comes to the rising number of ‘fringe’ cases that Pure Retirement is seeing in today’s market. For the lender, this definition helps to mark out those cases with an atypical property type or proposition, which might seem outside the lending prospects for many.

For Hancock, it’s about working to find flexible solutions to cases that might otherwise have been turned away.

He says: “Our underwriting promise is to assess each case on an individual basis, review all the information, and look beyond that and ask what we might be able to do to help the client. If this particular plan isn’t suitable, is there something else that would be, or can we build a business case? Are there some aspects that are teetering in terms of criteria, and just need a bit more understanding?”

Risky business

In order to provide support for fringe cases while also maintaining a strong lending

T H E I N T E RV I E W Pure Retirement

Our underwriting promise is to assess each case on an individual basis, review all the information, and look beyond that and ask what we might be able to do to help the client.

If this particular plan isn’t suitable, is there something else that would be, or can we build a business case?” proposition, Hancock points to “great relationships with third-parties and funders, to be able to put the business case together.”

He also says it is all about having underwriters who are empowered to make decisions, and “really understand the risk appetite.” This means a team with constant communication and open discussion to help make tricky decisions, as well as ongoing “calibration exercises” to ensure that everyone is working from the same foundation.

Hancock adds: “It’s not just a carte blanche approach, it’s very closely monitored, including taking a close look at the data we get from referrals and the element of risk there.

“We have constant meetings, including with sales, to consider the trends and data and make sure that we have a consistent message as to what we can support and what we can’t do at all.”

Every case is assigned an underwriter, who looks after it from the initial assessment through to the offer.

Hancock says: “All our underwriters are accessible. I don’t believe in putting them in little boxes, or having a ‘them and us’ mentality. If a broker wants to discuss a case, understand the outstanding requirements, they’ll happily do so.

“There might be something on the application that’s been misunderstood or lost in translation that can be easily sorted out by a quick call. I despise ‘email ping-pong’.”

This means that in those cases where lending is not possible, an adviser should get a reasoned response that will help them manage their client’s relationships, and potentially either fix the problem there and then, build a stronger application in the future, or place the case elsewhere.

“There’s an emphasis on truly taking ownership of an account and looking after it to the best of your ability,” he adds.

From his own experience, Hancock says he knows that brokers want “sound knowledge, experience and support” when dealing with lenders. He says: “This is ever more important in the later life sector, considering not only the nature of the industry but the widening demographics.”

Cautious advancement

With such a focus on fluid and adaptable underwriting, Hancock says there is no falling back on a “computer says no” conclusion. This is indicative of a market that will never be served by an algorithm model of lending.

Hancock says: “Artificial intelligence [AI] and algorithms could at some point play a part in enhancing the service we provide, but it won’t ever replace people and the need for experience and expertise.

“Underwriting can never be fully automated – it needs a person there to have a logical approach, looking at the grey and coming up with a conclusion based on all the facts. An algorithm can only go so far.

“There might be space for that with ‘vanilla’ cases, but is there such a thing in this market?”

Nevertheless, there are ways in which advancements have come in to help brokers and underwriters in the later life market.

Hancock points to Pure Retirement’s ‘preapplication’ service, which helps assess a case’s suitability.

He says: “We find that when clients use that, it helps the journey for their customer, because the background checks that are done as part of the process mean that it’s practically underwritten by the time it arrives with us. It means we’re as sure as we can be without the valuation going out.

“Automation and AI could come in there, automating some of those checks where it’s black and white – flood zones, for example.

Even then, it would still need an underwriter.”

Having a growing amount of increasingly solid data is, Hancock says, helping to open up criteria in this market, allowing cases that would have previously been lumped together to be assessed on an ever more granular basis.

Nevertheless, he warns, there will always be a role for underwriting expertise, where properties have too many concerns to be dealt with via an automated system.

Indeed, as “saleability is subjective,” having an expert eye, local knowledge and a nuanced understanding of the market is always going to be key in later life lending.

Having this experience in-house, alongside a drive to build a detailed data picture of the → July 2025 | The Intermediary

27

T H E I N T E RV I E W Pure Retirement

Case Study One

A working couple aged 60 and 58, with a current house value of £500,000, require £50,000 with a payment plan in order to financially support their son to avoid taking out student loans. They want to explore voluntary repayments, as they’re not planning to retire for several years.

With a Classic lifetime mortgage, they can make a maximum of 12 payments, up to 10% of the initial release per year, ERC-free up to £5,000 per year. They release £50,000 at 5.83% interest and opt to repay £292 per month.

Case Study Two

A client aged 80 has a property value of £3m, and requires £1.4m to buy a second property on the coast. He may decide to move there in the future, with the properties, demographics and client needs forming this market, means Pure Retirement is also able to spot trends and understand where a deeper level of product innovation is needed.

Broker’s role

For brokers tackling this changing and increasingly important product set, Hancock says the quality of information on the front-end is a vital component to creating a successful deal.

He says: “We find that the biggest reasons for delays we have is either incomplete or unclear information.

“If a broker can fully paint the picture within the application form, an underwriter should just be able to put a frame on it.”

Pure Retirement’s pre-application service, he adds, has helped to weed out many of these issues before the process is even started.

Hancock says: “With the full story, an underwriter is going to be able to make an informed decision that really reflects the client’s situation. We know that brokers are 28

The Intermediary | July 2025

option of either repaying the loan or porting the lifetime mortgage to the coastal house. An Emerald lifetime mortgage releases up to 47% (£1.41m) based on his age and property value.

Case Study Three

A couple aged 77 and 81 have a property valued at £1.5m. They face some health concerns and need £640,000 to fund home carers and equipment for a minimum of 15 years. They release three years’ worth of funds for peace of mind and require an initial sum of £128,000. The remaining monies will be held in reserve with the lender for them to access when they need it. The couple opt for an Emerald lifetime mortgage at 43.2% LTV, with a drawdown plan whereby interest will only apply to the funds drawn at the time of withdrawal.

very busy people, but all of this will help speed the process down the line and mean we don’t have to clog up their inbox.

“Using the pre-application service means having an application form vetted. I’d urge brokers to take full advantage of the expertise available to them in order to get a more robust sense of the decision before even sending in the application.”

This is also important for those cases that do not go through, saving the broker time going through the full process only to be turned down on something where there is no wiggle room, such as flood risk, and instead getting to that point earlier and with less pain.

While there are some of these “black and white” factors, Hancock also urges brokers to remember that Pure Retirement’s focus on fringe and “quirky” propositions means there are clients they might assume cannot be helped who have options available to them.

At a time when brokers are trying to shore up their own business models, this should help them avoid turning clients away.

T H E I N T E RV I E W Pure Retirement

For later life, I don’t see the purpose of funds changing significantly. No matter the changes in the market, those ‘big hitters’ of debt and renovation will always be there.

What we really need is stability in the wider economy, but either way, we’ll see steady growth through the rest of the year” “Policy constantly evolves, and risk appetite changes constantly,” Hancock says. “For cases that they think might get turned away based on their previous experience, that pre-application service is vital.”

He adds: “Don’t be afraid to ask. As a broker, I wouldn’t have known how in-depth the preapplication checks are, but we don’t just look at the data provided. There’s so much more that’s done in the background.

“We do as many checks as we possibly can so that we’re not wasting the broker’s time, and to make the answer as reliable as possible.”

Market changes

Equity release in particular has seen a “widening demographic” in recent years, with Hancock pointing to, for example, funds being released on higher value properties.

He says: “It’s an increasingly diverse group of people this market is catering for. Because of that, as a broker, you need access to knowledge and experience, and to know you’re going to be looked after.”

To understand the demographic evolution, the growth of ‘fringe cases’ and “how we can help customers more,” Hancock says that data is key: “We look at these cases on a very granular basis, and try to understand if there is any way we can actually assist, where previously it might have been deemed unfeasible because it didn’t quite fit in the ‘box’.

“This is about asking whether, in fact, the box doesn’t fit the customer, despite it being a decent case based on its individual merits.”

Pure Retirement has a 60% acceptance rate under its fringe processes, showing its ability to cater for cases that otherwise, and in other circumstances, might have been rejected outright.

Hancock says: “Through the hard work, dedication and experience of underwriters,

they’ve been able to build a strong rationale and business case for these deals.”

This approach allows Pure Retirement to “push and challenge the norms” in this market, coming at later life lending with the question “is there anything we can do?” front of mind.

This is particularly important in the wider context of a more challenging market. Despite a strong start to the year – with a 32% increase in lending in Q1 according to the Equity Release Council – Hancock feels Q2 has been more of a challenge, not least because of the ongoing geopolitical turmoil.

He says: “This has slowed the market down a little, but we still want to make sure that we’re there to support our clients if equity release is the right option to meet the range of their financial needs.”

Despite all this change, the drivers behind equity release remain largely static, with the key purposes of managing debt and funding home renovations and improvements making up about 50% of cases, followed by a plethora of other reasons, such as holidays, new cars and gifting.

Hancock says: “We’ve seen a broadening in terms of client demographic and property value and type, but the actual purpose remains the same.

“It’s about improving the customer’s financial situation and home life, including adapting and making it more accessible.”

Innovation for the future

Looking ahead, Hancock concedes that the market is unpredictable.

He says: “With everything that’s going on in the world today, it’s hard to say what’s going to happen. There will be some growth in the market, but likely not at the levels of 2024.

“For later life, I don’t see the purpose of funds changing significantly.

“No matter the changes in the market, those ‘big hitters’ of debt and renovation will always be there.

“What we really need is stability in the wider economy, but either way, we’ll see steady growth through the rest of the year.”

For Pure Retirement, this means working with funders and third-parties, as well as keeping an eye on the trends to understand what “the next innovative product is going to be to support our clients.”

Hancock concludes: “We’re always looking for areas of innovation, whether it’s the valuation process, or looking at multi-skilling within the team in order to get a more fluid working approach.” ● July 2025 | The Intermediary

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RESIDENTIAL Opinion

Property risk detail today, designed for tomorrow

C

haracterising this Government’s approach to the housing market has to come down to new-build. Plans to deliver 1.5 million new homes by the end of this Parliament may or may not get fully over the line, but the Chancellor’s recent Spending Review provided some further clarity on Government’s commitment to upping the number of homes delivered to the British people.

Rachel Reeves announced a £39bn public fund, to be distributed to housing associations via Homes England, and a new National Housing Bank to support public and private housing developments.

That money is earmarked for affordable homes, a contingent of the UK’s housing market that has been sorely neglected for decades. If the money pledged is to make a difference to the provision of all forms of housing tenure, central Government will need to put pressure on local authorities to work closely with developers to get new sites off the ground. Too o en, developments are held up by inflexible planning rules which bog progress down for all the wrong reasons.

For lenders facing the prospect of large numbers of new-build homes coming to market over the next four years, understanding both property risk and resale implications is absolutely paramount.

At e.surv, we’re seeing strong evidence of this already, with our newbuild hub showing significant growth in demand from lenders over the past 12 months.

This truly is a groundbreaking portal, which allows lenders to track their volume and concentration risk across more than 16,000 new-build

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The Intermediary | July 2025

developments in real-time, enabling them to navigate the rapidly changing sector. Data and insight in the newbuild market have become essential in understanding lenders’ site exposure risks, as well as the growing issues around build types, warranties, management charges and incentives.

Labour’s changes to land designations have brough different challenges between brown, grey and greenfield sites, including access, historical use and contaminated land.

Particularly relevant to the Spending Review statement is the impact of affordable housing on values across sites. The mix of properties and build types is changing, too. There is a noticeable increase in the use of Modern Methods of Construction (MMCs), an increased use of timber frames, and the changing climate impact on new sites is in some cases increasing flood risk.

What this illustrates is just how fastmoving the environment is when it comes to achieving accurate property valuations. Resale isn’t just about buyer appetite and funding supply.

Property condition, environmental exposure, use, tenure, fabric, regulatory risk, emerging policy or legislative risks, land use and legal title history, or lack thereof – these are just some of the other increasingly complex variables that lenders need to have a good grasp of if they are to fully fathom the risk that sits on their back books.

For many in lenders’ risk departments, there is an understanding of how wide-ranging the scope of property risk now is.

Yet, there are also those struggling to create a structure that allows them visibility of it.

Data in this world is absolutely vital, and so is its digital accessibility

STEVE GOODALL is managing director at e.surv

and integrity. But it cannot paint a full picture of risk. Anyone can follow paint-by-numbers, but without a view of what it is you’re actually painting, it’s always going to be a snapshot only.

A two-dimensional representation.

This might have satisfied in a slower-moving world, with fewer homes and less consumer protection regulation and prudential oversight.

Today’s market – and importantly, also tomorrow’s – needs a much more comprehensive approach to building this picture.

Data is the groundwork, triage to automated valuations and desktops narrows the scope of potential valuation risk. Physical inspections and long-held experience must keep their place too – understanding and seeing the thing you’re painting allows you the opportunity to assess what the numbers cannot see or foresee.

In this market, lenders need the whole lot, and it’s in nobody’s interest to be trying to patch such complex sources of data together without judgement. In a world that is intent on commoditising everything, there’s a danger of losing the details that ma er. Making sense of all this information is the glue that sticks it all together. Lenders need speed, accuracy and efficiency to manage cost and deliver against customer expectations responsibly and compliantly.

But they also need an independent second line of defence to identify issues before they become a problem later on. This is what our dedicated team offers. Managing property risk in today’s world is a balance – delivering the detail today with an approach designed for tomorrow. ●

RESIDENTIAL Opinion

100% mortgages have a place in today’s market

F

ew financial services products provoke more criticism and debate than the 100% loan-tovalue (LTV) mortgage.

But with two lenders reintroducing no-deposit mortgages to the UK market in recent weeks, it’s worth stepping back and reassessing such product innovation in the context of today’s consumer demands.

While some products may have become a symbol of pre-crisis excess, 100% LTV mortgages didn’t cause the 2007-08 crash. And for me, they can play a valuable role in today’s modern, well-regulated market.

Negative equity An obvious criticism of 100% LTVs is the risk of negative equity. It’s a valid concern – if house prices fall, borrowers with no equity are more exposed, of course.

But clearly this risk isn’t unique to 100% LTV loans – anyone buying with a small deposit faces similar challenges. All mortgages involve risk for both borrower and lender.

What critics o en ignore is that the upside of 100% LTV lending can be significant, especially for first-time buyers locked out of the market by unaffordable deposit requirements.

Ge ing onto the property ladder sooner means benefiting from house price inflation, building equity and avoiding the wealth drain of longterm renting.

Many borrowers are lucky enough to have help, but according to Savills 48% of first-time buyers received no parental assistance last year. These borrowers may well have strong, stable incomes, but what they lack is £30,000 to £50,000 for a decent deposit. For this group, a 100% LTV product could be the difference

ROB CLIFFORD is chief executive at Stonebridge

between renting indefinitely or owning their own home.

Changing times To appreciate the potential role of these mortgage deals in today’s market, it’s important first to understand how the lending landscape has evolved since their heyday.

The reason 100% LTV mortgages have a tarnished reputation is not because they allow borrowers to buy a home with no personal stake. It’s because, prior to the financial crisis, many borrowers were granted one without having to pass an affordability test. Today’s due diligence couldn’t be more different from the pre-crisis era.

Even with the Financial Conduct Authority (FCA) looking to reduce restrictions and fuel growth, lenders are still subject to one of the most robust regulatory frameworks of any sector.

It’s not just regulation that has developed – technology now delivers extensive insight into borrower income and spending, enabling far more granular affordability assessments than were ever possible in the 2000s.

Lenders today know far more about their customers and can lend with greater confidence as a result. That’s why arrears remain at historically low levels despite the rate shocks experienced by borrowers.

Calculated risk In the grand scheme of things, the 100% LTV loan is a niche product.

Even in the mid-2000s, they never accounted for more than a sliver of total mortgage lending.

FCA data shows that, in Q1 2007, loans above 95% LTV account for less than 5% of all lending. Today, I would be surprised if 100% mortgages

accounted for more than a 1% market share. This is not an opening of the floodgates.

One of the more enduring criticisms of 100% LTV mortgages is that borrowers have nothing to lose if they don’t maintain payments. I’ve always found this argument spurious.

While these borrowers may not start with equity, they build it with every repayment. Their financial commitment is real from day one – every month they’re paying down capital, reducing risk for the lender and building wealth.

To me, the reappearance of 100% LTV products signals something positive: a growing appetite among lenders for calculated risk – risk that is thoroughly assessed, wellunderstood and priced appropriately based on robust data and underwriting standards. That is essential for a wellfunctioning market – something, one could argue, that has been to a great extent missing from the market since the financial crisis.

Lenders are exploring ways to satisfy underserved customer segments without compromising credit quality.

Competition encourages responsible innovation. It also gives brokers more tools to match borrowers with appropriate products.

The stigma lingers because of the borrowing landscape of the past.

But markets evolve. In a world of rising rents, buoyant house prices and tightening affordability, a 100% LTV product can once again be a useful – if niche – solution for the right borrower.

Let’s judge innovations not by their past, but by today’s market. ● July 2025 | The Intermediary

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RESIDENTIAL Opinion

Working together to improve affordability

A

ffordability remains one of the biggest challenges for an array of borrowers across the mortgage market. Whether it’s first-time buyers struggling to raise a deposit, or existing homeowners looking for their next move, the cost of ge ing on – or staying on – the ladder is more acute than ever.

When it comes to the la er, the latest ‘Property Insights’ data from Barclays shows that 29% of mortgage holders have either recently remortgaged or plan to do so in 2025. For many, it’s not an easy financial transition. Nearly threequarters (72%) expect their monthly repayments to rise – by an average of £331, or close to £4,000 a year. This is mainly due to the expiry of 5-year fixed-rate deals taken out during a period of historically low interest rates, now reverting to higher tariffs despite recent base rate cuts.

More than a third of those refinancing this year are considering longer-term fixed rates, while others are looking at variable options in the hope of further reductions. But affordability remains a pressing issue – one that demands urgent, systemic response.

The deposit dilemma Renters, especially younger generations, continue to face one significant barrier to homeownership: the deposit. More than four in 10 (44%) cite it as one of the main obstacles. Gen Z and Millennials are pu ing away what they can – £191 and £313 a month respectively, on average – but most expect to save for nearly five years. This long lead time delays buying a home and increases financial pressure during key life stages.

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Many are going beyond costcu ing, turning to extra work (31%) or launching side hustles (40%) to hasten their savings. Still, the majority believe their homeownership ambitions are una ainable without family support, with 58% citing inheritance or parental help as a necessity, highlighting the importance of intergenerational transfers.

Interestingly, some relief may lie in current market dynamics. Our data suggests that those in the process of selling or who have sold a home in the last 12 months (4%) are accepting an average of £6,818 under the listing price.

This suggests that buyers could be negotiating harder, although not all sellers are willing to budge – one in seven (15%) say they would not entertain offers under the asking price. Although this does signal a buyer’s market, it’s still one that demands financial creativity and lending flexibility to make homeownership a reality.

Driving affordability While affordability pressures cannot be solved overnight, lenders have an important role to play. Solutions must be both practical and inclusive.

Barclays, for instance, has recently introduced enhancements to our affordability calculations, reducing stress rates on residential purchase and remortgage applications.

This change alone could boost borrowing potential by up to £30,750, making a significant difference for families and individuals facing affordability cliffs.

To tackle the deposit hurdle, we have innovative solutions such as our Family Springboard offering, which allows friends or family members to support those struggling to save for

LEE CHISWELL is head of mortgages at Barclays UK

Affordability remains a pressing issue – one that demands urgent, systemic response” a deposit with their own savings – earning 1.5% above Bank of England Base Rate while doing so – without having to gi a deposit to the buyer.

For those struggling with income thresholds, solutions like Joint Borrower, Sole Proprietor offer flexibility by allowing a family member’s income to support the loan, without adding them to the property title. It’s a forward-thinking option, particularly for first-time buyers or those undergoing life changes.

Looking ahead As the market continues to evolve, lenders, intermediaries, and policymakers must collaborate to build pathways to homeownership that reflect today’s economic realities.

From offering innovative lending products to accelerating affordable housing supply, solutions must be multi-faceted.

Mortgage affordability may still be a challenge, but it’s one that can be tackled – not just with be er rates, but with be er thinking. By aligning innovation with empathy and flexibility with responsibility, we can help ensure that homeownership remains not just a dream, but an achievable goal for millions. ●

RESIDENTIAL Opinion

Bold collaborations can build a more accessible market

F

or many aspiring homeowners, the dream still feels out of reach.

High house prices, high interest rates and rigid lending criteria make it especially tough for first-time buyers and those with less traditional incomes to get a mortgage.

To change this, we recognise that lenders like us – along with the wider sector – must think differently. That means moving beyond rates and risk to focus on flexibility, inclusion and long-term impact.

New solutions Innovation plays a big role here, but it’s not only about new technology.

It means rethinking product design, affordability assessments and how we work together across the sector.

Our partnership with Gen H, which we recently extended, is a strong example of this approach.

By combining the agile, customerfirst methods with our funding and long-term perspective, we’ve helped provide nearly £1bn in forward-flow lending, supporting more than 5,000 homeowners.

Many of these mortgages wouldn’t have been possible through traditional routes. Features like incomeboosting options that include family contributions, alongside smarter affordability assessments, help reflect how people live and earn today.

Because the truth is, today’s borrowers don’t all fit into traditional boxes. We’ve seen a rise in selfemployment, career switching and the growth of the gig economy.

According to Office for National Statistics (ONS) figures, more than 4.2 million people in the UK are selfemployed as of 2024, making up about 13% of the workforce, and many still

Innovation only matters when it leads to better outcomes for real people. Every decision we make [...] is focused on member impact” struggle to secure a mortgage through standard criteria. The gig economy has expanded over the past five years, increasing the number of borrowers with non-traditional income streams who o en require more flexible mortgage solutions.

Younger generations, meanwhile, o en rely on family support or joint applications to get on the ladder.

The UK homeownership rate stands at roughly 65% as of 2024, with affordability still a major barrier for many. If we’re serious about financial inclusion, we need products and processes that reflect these realities.

Our partnership with Gen H helps us respond quickly to the realities of today’s mortgage market. Together, we’ve created mortgage products that reflect how people live and earn today. It’s a two-way relationship that shows how working together can lead to be er, more accessible solutions for customers.

In a fast-changing market, approaches and solutions like this ma er more than ever. The average mortgage product shelf life is now just 16 days, as lenders adjust to fast-moving swap rates and shi ing affordability dynamics. The Bank of England base rate has increased from 0.1% in 2021 to around 4.25% in 2025,

GREG WENT is interim chief lending officer at Nottingham Building Society

driving up mortgage rates and pu ing additional strain on both new and existing borrowers.

With the average house price-toincome ratio now at about 8.5, the challenge of homeownership is steeper than ever for many families. The UK mortgage market, valued at over £1.6tn in outstanding mortgages as of early 2024, cannot afford to stand still.

Above all, at No ingham Building Society, our core purpose remains helping as many people as possible achieve their dream of homeownership. Especially those who don’t fit the traditional borrower mould.

Innovation only ma ers when it leads to be er outcomes for real people. Every decision we make, whether launching partnerships, refining underwriting or adopting new tech, is focused on member impact.

Market evolution The future of mortgage lending depends on strong partnerships and ambitious innovation. It’s not about being the biggest or fastest, but about being bold enough to try new ideas and wise enough to do so responsibly.

That’s the spirit of our journey with Gen H, and our broader approach to developing our mortgage proposition.

We’re proud to support intermediaries and partners who share our commitment to purposeful business. Together, through smart collaboration and a drive to evolve the market, we can help more people access the homeownership opportunities they deserve. ● July 2025 | The Intermediary

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RESIDENTIAL Opinion

It’s time advisers toss out legal fees

A

s the mortgage advice market continues to evolve under the watchful eye of Consumer Duty, there is read-across to other parts of the market that bear thinking about, particularly for advisers in the conveyancing space.

Transparency, of course, remains one of the core expectations placed on all mortgage market participants, but one has to wonder whether that is the truly the case when it comes to conveyancing advice. If not, advisers are potentially storing up issues for themselves if their client is less than clear, particularly when it comes to what they are likely to be paying for conveyancing.

Let’s take remortgage conveyancing as the prime example given the preponderance of ‘fixed fee’ offers in this space. There could be a number of fee transparency issues to address – perhaps most obviously, the persistent and o en overlooked legal firm ‘onboarding fee’.

Sometimes referred to as a ‘digital journey fee’, ‘client app charge’, or ‘portal access cost’, this is typically associated with a firm’s digital platform. They encourage the client to sign up so it can be used for document uploads, ID checks, and case tracking.

While there’s absolutely nothing wrong with that service, given it will deliver a more efficient process, I would question why legal firms charge for this in the first place – we ask our firms not to – and warn that the way it is presented and charged for is less than upfront and transparent.

In many cases, this onboarding fee is hardly ever disclosed clearly within the initial quote provided to the client.

It may be referenced deep within the small print or, in some instances, omi ed altogether. Clients may only become aware of the charge later down the line, when they have already been told the ‘cost’ of conveyancing, leaving

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them feeling confused and misled.

This is particularly concerning when the firms charge per person, rather than per case, and where fees to onboard can be upwards of £35 per person plus VAT – £84 for a remortgaging couple. That’s before they get wind of any other fees which may not be part of the ‘fixed fee’.

Effectively, the ‘a ention-grabbing’ headline figures, like £245 or £299 per remortgage conveyancing case, offered by these firms are just nonsense from the very start. While the initial fee suggests simplicity and clarity, what’s o en missing are the supplementary costs that can quickly inflate the total bill. These may include additional ID verification charges, Land Registry top-ups for larger loans, and critically, that onboarding fee.

While some firms do disclose these charges up front, others do not. In some instances, the onboarding fee is described as optional, yet clients who decline it are charged a similar fee for ‘manual’ processing. The cost is effectively unavoidable, but not transparently communicated.

The inconsistency in how these fees are presented contributes to client confusion and puts advisers in a difficult position when queries or complaints inevitably arise. Advisers invariably have to give up their own referral income in order to cover these costs and save the relationship, because the client had no idea they were going to be required to pay this, and the fixed fee wasn’t as fixed as they had assumed.This is where Consumer Duty becomes especially relevant.

Advisers are expected to ensure clients fully understand the products and services they are using and paying for.

That includes the legal fees associated with remortgaging. Failing to flag these kinds of additional charges could result in a loss of trust, reputational damage, or worse, a formal complaint.

Don’t get me wrong, we’re not talking about additional and

HARPAL SINGH is CEO at conveybuddy

unexpected legal work that the conveyancing firm is required to do during the case, but those charges that are routinely incurred. Firms know about these from the outset, but they will not include them in the fixed fee or core quote, and therefore are likely to be misleading the client.

Encouragingly, many brokers are recognising this. Some have already moved towards recommending only those firms where the fees are genuinely inclusive and clearly itemised from the outset, or don’t charge an onboarding fee in the first instance.

While this may occasionally mean advisers accepting a slightly lower referral fee, the benefits – reduced complaints, smoother case handling, and a stronger client relationship – are worth it.

Ultimately, onboarding platforms and digital solutions are a valuable part of the modern conveyancing process. But if they come with a cost, that cost must be made clear.

Clients should know exactly what they are paying, and why, from the outset. It’s not just good practice, it’s fundamental to trust. And if you as the adviser are aware of those other costs likely to be incurred but don’t highlight them, then you must accept that the client is going to come back to you looking for answers.

As expectations around transparency and fairness continue to rise, especially in the context of Consumer Duty, it’s essential advisers ensure clients are never surprised by fees they didn’t know existed. A fixed fee should mean just that. If additional charges apply in most cases, they should no longer be treated as extras.

It’s as simple as that. ●

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RESIDENTIAL Opinion

Service is defining the mortgage market

A

s the H1 2025 Mortgage Lender Benchmark Study results show, the mortgage market is increasingly being shaped by the voices and expectations of brokers. With more than 5,200 broker reviews submi ed in the first half of the year, one message is clear: service ma ers just as much as rates, and perhaps even more.

Raising the bar Our new Broker Experience Index shows a remarkably tight race at the top, with building societies leading at 71.5, followed closely by mainstream lenders (71.4) and buy-to-let (BTL) specialists (71.0).

Each group is delivering value in different ways. Building societies excel in consistency and relationships, while mainstream lenders stand out for processing speed and digital innovation. Meanwhile, BTL specialists shine in tech usability, particularly intuitive portals and case tracking.

What unites the highest performers is a commitment to reliability, support, and streamlined processes. In a market where brokers are time-poor and clients are rate-sensitive, this trio defines the winners.

Process is priority Brokers continue to focus most of their feedback on the ‘process’. This accounts for 63.1% of all comments, but also carries the lowest sentiment score (66.7%).

Speed, ease, and underwriting dominate the conversation, making up more than 42% of all feedback.

The message here is simple: if the process doesn’t work, everything else starts to fall apart.

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‘Ease’ of doing business topped the sentiment charts at 82.9%, underlining how much brokers value intuitive and frictionless workflows.

Yet underwriting, valuations, and legal processes remain weak spots, and are frequently cited sources of frustration that diminish trust and net promoter scores (NPS).

Power in the people While the operational nuts and bolts may dominate the volume of feedback, people-focused themes continue to deliver the highest sentiment (76.1%). When brokers praise lenders, it’s o en about the people, business development managers (BDMs) and case handlers.

Not forge ing the support teams who resolve issues, offer guidance, and show up when it ma ers.

BDMs, in particular, remain pivotal. With a sentiment score of 78.3%, their value in a digitally dominated process is undeniable.

Brokers may embrace technology, but they still want to deal with people who know their business.

Broker advocacy Ease of use, speed, and underwriting are the three most influential themes when brokers recommend lenders.

‘Ease’ alone appeared in 16.9% of all positive comments. When a process is smooth, brokers feel confident and in control – and that confidence is what turns service into advocacy.

Speed remains a major performance marker. It was mentioned in 15.1% of positive feedback and linked to an impressive NPS of 75.6.

Interestingly, product rates and ranges, while critical for initial selection, carry less weight in driving recommendations. This reinforces a key truth: brokers expect competitive

JAKE SANDFORD is head of data and analytics at Smart Money People

pricing as a baseline, but what keeps them coming back is operational excellence.

On the flip side, service missteps can be costly. Underwriting drew the largest share of negative feedback (23.3%) and was associated with a significant NPS drop of -41.9.

Even more damaging was poor communication, which slashed NPS by -60.3.

Delays, lack of updates, and rigid decisions frustrate brokers and, by extension, their clients.

Ease of doing business and online systems also featured in negative feedback, underscoring that complexity and poor integration can erode goodwill just as quickly as slow service.

Human-tech hybrid This year’s results highlight the hybrid expectations brokers now hold: a demand for slick systems and fast decisions, paired with knowledgeable, accessible support when things go wrong.

The best-performing lenders are those that understand this balance.

They’ve invested in platforms that remove friction, but haven’t forgo en the power of the personal touch.

As competition intensifies and margins tighten, these humandigital partnerships will be the true differentiator. What earns broker loyalty in 2025 isn’t just price or product. It’s clarity in criteria.

Consistency in communication.

Connection through human support.

Lenders that deliver on these fronts aren’t just chosen, they’re recommended. In a market built on trust, that recommendation is everything. ●

RESIDENTIAL Opinion

Future-proofing near prime clients

T

he mortgage market is in the midst of an incredibly busy 12 months. According to UK Finance, around 1.6 million fixed-rate mortgage deals will mature in 2025, a substantial figure.

This stems from a surge of 5-year fixed-rate deals taken out in 2020, when borrowers sought certainty.

But the borrowers returning to the market today are not always in the same position as when they locked in those rates five years ago, with their circumstances o en reflecting the challenges of recent years.

For brokers, this presents both a challenge and an opportunity. They need to not just support clients whose financial picture has changed now, but also identify the lenders that can ensure they enjoy a strong position in the years ahead.

Working with the right lender can ensure the client is much be er prepared – and in fact be er off – when the time comes to remortgage.

Changing profile It’s no secret that the past five years have been financially testing for UK households. Energy bills have been one of the biggest pinch points.

Council Tax has also become an increasing burden, with most councils opting to apply the maximum permi ed rise this year, while households have also had to adapt to higher costs on everything from food to broadband. It’s no surprise that missed payments have become more visible for brokers. The Money and Pensions Service (MAPS) suggests that one in three adults missed at least one payment in 2023. In many cases, these will have been short-term blips caused by temporary financial strain, but they may still be having an impact on a borrower’s credit profile.

It’s an impact brokers are seeing today, with those clients who went

through those payment problems a year or so ago, but who are now hoping to take out a mortgage.

They will no longer fit neatly into the prime category. That modest credit blemish on their record counts against them, and while they are perfectly capable of managing a mortgage today, finding the right product is not always straightforward.

Front of mind Too o en, borrowers with minor credit blips are pushed towards specialist lenders, where they face higher costs and limited flexibility.

But there are mainstream options that can support those who experienced temporary financial difficulties during an extraordinary period.

Our own Near Prime proposition has been adapted over the last year based on broker feedback, and the sort of cases they are seeing on a daily basis. So there is a much larger cap for unsatisfied defaults of £2,500, which crucially only applies to the current level of debt, not the debt at its outset.

If these would-be borrowers are making progress in reducing the size of their defaults, then that needs to be recognised by lenders.

It also became clear that borrowers with smaller deposits were locked out of Near Prime lending, so we increased our maximum loan-to-value (LTV) to 90%. We want to open up property ownership to more people, and that means catering for those with a more modest deposit as well as those with an imperfect credit history.

The best brokers enjoy a long-term relationship with their clients, and that’s because their advice is guided not just by the client’s needs in the here and now, but the future too. It’s all about delivering a balance of the long- and short-term considerations.

When it comes to Near Prime, a big factor therefore is how to help the client return to Prime status. Being classified as Near Prime today does not

DAVE CASTLING is head of intermediaries at Atom bank

mean a borrower should remain so indefinitely. With proactive financial management and the right lender support, many can move back into the Prime category over time, and benefit from more competitive rates.

It’s something we have seen firsthand at Atom bank. If Near Prime borrowers sufficiently improve their financial circumstances over the term of their fixed rate, then when it’s time to remortgage, they will be offered a Prime rate. Over the past 12 months, around 70% of Near Prime borrowers coming to maturity have been offered a Prime rate. That simply isn’t an option with a specialist lender, which cannot provide that positive step forward should the borrower’s status improve.

For brokers, this is where longterm client value comes into play. By working with lenders that offer a path back to Prime, they can help clients secure a deal today, while also se ing them up for be er financial outcomes in the future.

Short and long-term The remortgage wave of 2025 presents a huge opportunity for brokers, not just in terms of transaction volume, but in demonstrating the value of expert advice.

The best brokers will be those who take a holistic view of their clients’ needs: identifying where a Near Prime solution is appropriate, but also ensuring that clients are supported in improving their profile and securing the best possible outcomes when they next refinance.

Keeping the future in mind will be crucial not just when delivering the advice, but also when selecting the best lender for the case. ● July 2025 | The Intermediary

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Meet The BDM

Paragon Bank

The Intermediary speaks with Stephen Harrison, business development manager (BDM) at Paragon Bank How and why did you become a BDM?

What brought you to Paragon?

What makes Paragon stand out?

I’ve been working in the mortgage industry since 2012, after graduating from university.

It’s something I originally ‘fell’ into while looking for a job, but I’ve never looked back and have made it into a career.

I wanted to become a BDM to progress to the next stage of my career. After years of advising, managing a team of 14 and heading up of a training department, it’s a natural step.

Throughout my career, I’ve always found the buy-to-let (BTL) market interesting, and this is an area that Paragon specialises in.

These types of deals get you thinking outside the box a little more, and you can have a positive impact on someone’s life, playing a part in helping them to generate an additional income stream or leave a legacy to their family.

When I found out my predecessor was retiring, I had to get in there.

One of the main things that makes Paragon stand out from the crowd is its heritage. It was one of the pioneers of buy-to-let lending, it’s in the company’s DNA. This unrivalled experience combines with expertise; we have an in-house surveying team and the most complex applications are manually assessed by our underwriters. This means that we can really get under the skin of cases and often lend where others can’t.

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MEET THE BDM

This can be the complex stuff we’re known for – limited companies and houses in multiple occupation (HMOs) – but we’re also supporting landlords who are new to the market or have smaller portfolios that they want to grow.

What are the challenges facing BDMs right now?

I’d say the main challenge is the changeability of the market that we’ve seen over the past couple of years. We’ve seen how the economic instability has caused rates to go up and down, sometimes quite suddenly, leading to lenders having to pull products at short notice, which we know can be frustrating for brokers.

The volatility of the market has affected criteria and product availability too, so there are more moving parts with some cases. This means that the financial advice that brokers provide is as valuable as ever to their landlord clients.

There’s never been a greater need for us to have a strong working relationship with brokers to ensure we’re supporting them.

What are the opportunities for BDMs? Following from what I was saying about the challenges we’ve seen in the market, it does seem like things are looking up. Moneyfacts recently highlighted how product choice has really bounced back, with an all-time high in the number of buy-to-let mortgages on the market. Rates are coming down too – average 2-year fixed rates are below 5% for the first time in almost two years.

We’ve already seen business levels increase this year, and this improved investing environment will likely provide more opportunities to secure business.

Speaking about Paragon BDMs specifically, our recently overhauled mortgage application system offers us lots of opportunity. Applications are quicker and easier, and we’ve also

changed our processes and criteria to make placing simple cases much more straightforward. Qualifying cases are digitally underwritten at the point of application, often with no need for further documents to be provided. This is really exciting because it means we can process applications quicker than ever, write a broader spectrum of business and work with more brokers.

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

The system updates I mentioned also help us to keep brokers in the loop with cases, and this is obviously good for their clients too. While it’s something simple, we know good communication is important.

I think building genuine relationships with our advisers across the region is key to all.

The best relationships are built on trust, and brokers need to be confident that their BDM is on hand and will do what they can to support them to get a deal over the line.

When they submit a case, they need to know if it is or isn’t going to work with the bank early on in the process.

Either way, it’s important for BDMs to communicate the ‘why’; if we need something for the case or if it’s one that’s not for us, for example.

Ultimately, it’s not for the broker’s benefit, it’s helping to educate the clients so we’re all singing from the same hymn sheet.

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

Do your research. Whether that’s chatting to a tax adviser about how best to structure your next venture, or where economists believe interest rates will go and the global factors impacting them.

A lot of people want a 2-year fix because that’s what their friend did, or simply because that’s what

they’ve always done, but is it right for them?

Think before adding fees to a mortgage. Yes, a deal with fees may be the most cost-effective over the next two or five-year period, but over the life of the mortgage, the interest accumulated could prove to be of a similar amount. This means that it may work out overall cheaper to select a deal without. Ask your broker for their thoughts.

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

Weirdly, I’m quite good at basketball.

Not sure how it came about as none of my friends play, but it’s something I’ve always had an interest in.

Outside of Newcastle, the Lakes is my favourite place – whether that’s ghyll scrambling, paddle boarding or sipping in beer in a pool overlooking the mountains, it’s my ideal escape. ●

Established

1985, first BTL product in 1995 Products ◆ Buy-to-let mortgages for: first-time landlords; experienced portfolio and limited company landlords; single self-contained units and large HMOs and MUBs. ◆ Refurb-to-let with the ability to apply for a BTL application at the same time. ◆ Product switch up to three months ahead of current mortgage maturing, access to Track to Fix feature and 0.40% proc fee. ◆ Forward funding facility up to £2m, with no additional underwriting for new properties over six months.

Contact details stephen.harrison@paragonbank.co.uk 07974980065 July 2025 | The Intermediary

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B U Y - TO - L E T Opinion

The success of buy-to-let is important to us all

T

he private rented sector (PRS) in the UK is facing one of its biggest shifts in decades. With the Government’s net zero ambitions driving plans to overhaul Energy Performance Certificate (EPC) standards, landlords, brokers and lenders are all bracing for change. Yet there’s a noticeable feeling in the market that everyone is still holding their breath.

At present, we’re in a holding pattern. The Government’s revised EPC framework rules, the Home Energy Model, aren’t due until next year. Yet landlords expecting to commence new tenancy agreements are still expected to upgrade their properties to meet higher standards by 2028 – a deadline that feels increasingly unrealistic considering landlords may have less than two years to improve more than 2.5 million properties. Moreover, all private landlords will have to get their rental properties up to a Band C by 2030.

The Government estimates that landlords will have to pay between £6,100 and £6,800 to comply. Those actually operating in the market believe a significant proportion are facing costs in excess of £10,000.

Further challenges exist – a big contingent of the UK’s PRS stock is leasehold, creating the kind of bureaucracy that is in most cases insurmountable when it comes to agreeing what upgrades can be carried out. Heat pumps, double and triple glazing, cavity wall insulation and connecting to heat networks are simply unworkable for a sizeable chunk of rented homes.

That’s not to mention the serious practical issues. How do landlords plan upgrades when the goalposts aren’t yet defined? Where are the

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qualified assessors and tradespeople to carry out works in such a compressed timeframe coming from now?

Even with the Government’s recently announced skills investment into the construction workforce, it will be years before they make an appearance at the scale needed.

According to Kingfisher – which owns B&Q, Screwfix and Tradepoint – the UK could face a shortfall of 250,000 qualified tradespeople by 2030.

Government targets mean workforce capacity is already overwhelmingly focused on new-build.

Opportunity from chaos The industry and landlords themselves have been vocal about their concerns – particularly as failure to comply with the new rules will mean landlords receive a £30,000 fine per property. It has even made its way into Parliament, with Greg Smith, Conservative MP for Mid Buckinghamshire, raising the issue in the House of Commons in March.

He has seen a number of individual private landlords with just one or two properties coming to surgeries to say they will “simply sell up and remove those properties from the private rented sector because they cannot afford to bring properties up to EPC C.” He is far from alone.

Record numbers are selling off, homes according to latest research by the National Residential Landlords Association (NRLA). Figures from Q4 2024 showed one in four landlords had sold off at least some of their rental homes last year, with the number investing in new properties at just 8%.

Alongside this, demand from tenants continues to grow, with Zoopla revealing the number of enquiries about every home to rent this year is now 31% higher than pre-

ROB MCCOY is senior product and business manager at TMA

pandemic levels. It is pushing rents up and up – something which comes with a host of its own problems.

Regardless, amid the complexity and uncertainty we are actually seeing a number of opportunities for brokers emerge. As ever, it comes down to transactions. Rather than spend valuable time and money with older properties or those unsuitable for retrofit, many landlords are looking to purchase properties that are already rated EPC A to C, or which can be upgraded without a disproportionate spend.

Landlords selling also adds to the stock available for purchase by first-time buyers and homemovers.

This creates momentum across the entire property market, with transactions looking healthier as this year progresses. Bank of England data backs this up, with Q1 figures showing the value of gross mortgage advances increased by 12.8% from the previous quarter, to £77.6bn – the highest new advances since 2022 Q4, and 50.4% higher than a year earlier. The value of new mortgage commitments decreased by 1.5% from the previous quarter to £68.2bn, but remained 13.5% higher than a year earlier.

Remortgaging also represents an opportunity for brokers – many landlords with larger portfolios are looking to rebalance loan-to-values across their book. Advisers are invaluable at this juncture.

With rental stock a pivotal piece of the housing tenure mix in this country, it is imperative we do not lose sight of the value the landlord market adds to our housing mix. ●

B U Y - TO - L E T Opinion

A white-paper to shed some light

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his year has been momentous at Cotality, following our rebrand from Corelogic. It reflects the breadth of what we now represent: collaborative insight, deep industry understanding, and intelligence that supports the entire property ecosystem. As such, you would expect us to be working hard to support the industry reach net zero.

Increasingly, lenders’ understanding of climate and net zero compliance risk as it affects their balance sheets and origination appetite is becoming a priority. In the buy-to-let (BTL) market, the need is now immediate, though for lenders of all hues it is very much on the agenda.

Temperature check Government legislation is set to enforce a minimum Energy Performance Certificate (EPC) rating of Band C on all properties starting a new private rental tenancy agreement from 2028, and for all private rented homes from 2030. The Future Homes Standard is set for 2030, while new criteria will apply in EPC assessments from 2026 – though we are still waiting for the final detail on those.

There is still much up in the air, yet lenders know that investing in systems and processes that are fit for a future we can see coming takes considerable time. Partly for this reason, we commissioned independent research to find out what lenders are feeling about it.

Our report, ‘Temperature Check 2025: How prepared are buy-to-let lenders for future property risk?’ reveals a number of key concerns that are broadly consistent across the market. Among the insights gleaned by gathering views from credit and risk executives across a range of specialist UK BTL lenders, building societies and banks across the UK, was evidence that some lenders are

currently laying the groundwork to ensure they limit their own exposure to ‘net zero risk’ when approving new loans.

The reality is that loans being written today will still be in term when the regulations change – raising several questions when it comes to regulatory compliance. How lenders are choosing to approach this varies across the market.

Some lenders plan to integrate with more ‘dynamic data sources’ for new buy-to-let lending, and refinance to help modernise how they assess property-level environmental risks and energy performance.

The research highlighted a number of potential sources of data, including: o Smart meter data, providing near real-time insights into actual energy consumption patterns; o Half-hourly electricity usage and pricing data, available to suppliers and aggregators with consent; o Weather and flooding data from the Environment Agency and the Met Office; o Satellite and aerial imagery for monitoring land movement and surface water; o Open geospatial datasets from Ordnance Survey and local authorities; o The Government EPC database; o Property-level retrofit and building improvement records, where available, from local councils or industry schemes.

However, some lenders have not yet fully worked out how net zero deadlines will affect their future lending appetites. When we launched the report in June, we held a private event at Bletchley Park. We were joined by key representatives from lenders and valuation firms, who gamely joined in a spirited discussion around the research.

While it emerged that all lenders want to act to mitigate the impact

MARK BLACKWELL is COO at Cotality

of climate change, starting with the risk sitting on their own loan books, ongoing regulatory indecision at policy level is holding them back.

Critical work As a result, lenders and valuers warned this could lead to intense competition to lend against EPC band A, B and C private rented homes within one or two years.

The research covered other ground, too, including a broadly held concern that well-intentioned environmental policy changes could lead to some very serious social consequences. There was genuine worry that moving too quickly to force landlords to improve or move their property portfolios without a workable strategy to fund it would mean hundreds of thousands of tenants could lose their homes.

The need to work closely with those in the social housing sector was raised as ‘critical’ to avoid negatively impacting the provision of homes for those living in rented properties that will become unlettable after 2028 to 2030.

Lenders are clearly motivated to play their part in tackling climate change, beginning with the environmental risks tied to their own mortgage portfolios.

While a looming regulatory deadline is driving urgency, many lenders are struggling to make the progress they’d like – largely due to gaps in data and limited access to reliable scenario modelling.

The good news is that solutions do exist, and lenders are exploring a variety of strategies. But what our research also made clear is that reaching net zero is far from simple.

Thankfully, we are ready to help with the solutions the market needs. ● July 2025 | The Intermediary

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BUY-TO-LET CRISIS?

PROPERTY PANIC L andlo andlords rds should remain calm calm,, despite the headlin headlinee s

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he UK jobs market has been making headlines, for all the wrong reasons. At first glance, landlords could be forgiven for thinking that the outlook for the jobs market looks bleak.

A quarter of a million jobs have been lost since last autumn’s Budget, according to HMRC figures.

109,000 of those jobs were lost in May alone. Unemployment has risen to its highest level in almost four years. The retail and hospitality sectors have been hit hardest and saw the sharpest falls in employment in March and April.

For landlords, this might raise concerns about tenants’ ability to meet rent payments; news like that might, understandably, spark fears of rental arrears. A closer inspection, however, reveals a more complex and

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layered picture – with some reasons for landlords to avoid being overly pessimistic, and even some causes for cautious optimism.

From robust wage growth to the sustained resilience of certain sectors, landlords have grounds to remain confident about their tenants’ continued financial stability.

Doubting the data First, the employment data itself warrants a bit of scrutiny. The Office for National Statistics (ONS) has acknowledged that its labour market figures are not entirely reliable, due to methodological challenges such as declining response rates. While the headline figures are concerning, they may not fully reflect the reality on the ground. Landlords might take these statistics with a proverbial pinch

MARTIN SIMS is distribution director at Molo

of salt and focus on some broader economic trends.

One of those trends is the resilience of the public sector. The free marketeers might not approve, but the overall size of Government in the UK is growing, not shrinking.

In Q2 2016, there were 384,200 civil servants. There are now 516,500, and employment in the civil service is at record levels. This growth reflects increased hiring across departments like health and education. These plans will add to public sector headcount growth.

The public sector’s stability provides a buffer against the volatility seen in the private sector, ensuring that many tenants are secure in employment here. The ‘lanyard classes’ are in little danger of being removed from posts, and for landlords with public

B U Y - TO - L E T Opinion

sector tenants, the risk of missed rent payments is not increasing.

Third, wage growth remains positive. In the three months to March, average weekly wages rose by 5.6% excluding bonuses, boosting workers’ purchasing power.

This is particularly significant when compared to trends in the rental market.

According to Zoopla, average UK rents for new lets in April were 2.8% higher than a year earlier, the lowest rate of rental inflation since July 2021. With average monthly rents at £1,287, this translates to a modest £35 annual increase.

The fact that wage growth is outstripping rental inflation means tenants are better positioned to afford their rent, easing potential financial strain.

Ebbs and flows Beyond these factors, landlords can take heart from the adaptability of the UK workforce. While retail and hospitality have faced challenges,

other sectors are showing signs of growth. The professional services and technology sectors continue to expand, particularly in urban hubs like London, Manchester, Reading and Bristol.

These industries attract well-paid professionals who are likely to be reliable tenants.

The rise of hybrid and remote working has also broadened the pool of potential renters, as employees are no longer tied to living near their workplace.

This flexibility has increased demand for rental properties in outer-suburban and more far-flung commuter areas, where landlords can tap into a diverse tenant base.

So, while rental demand might be a little soft at the moment – according to Hamptons the number of tenants registering with them is down 17% year-on-year – I think it’s likely to rebound as wage growth empowers young professional tenants, relatively new to the workforce, to take the plunge and move away from home.

This supply dynamic should support the rental market in the coming months, particularly in highdemand areas.

Cautious optimism While the UK jobs market appears hugely challenging at first glance, landlords have ample reason to remain optimistic.

The unreliability of UK jobs data, the resilience of the public sector, strong wage growth, and emerging opportunities in growing industries, all point to a rental market that remains robust.

Tenants are better equipped to meet their rental obligations, supported by rising incomes and Government interventions.

For mortgage brokers advising landlords, the message is encouraging: despite the headlines, the fundamental principles of the UK rental market remain strong, and landlords, although adapting and changing in profile, can continue to invest with cautious optimism. ●

B U Y - TO - L E T Opinion

Demonising landlords won’t fix the housing crisis

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o be a UK landlord, you must be resilient and incredibly thickskinned. This has arguably become even more true in the past 12 months, as the Renters’ Rights Bill has been reborn under the new Labour Government and has quite rapidly pushed its way through the House of Commons, and now into the Lords.

However, the challenges for landlords are not just legislative, but narrative. Perhaps fuelled by this anti-landlord legislation, the constant bashing of landlords in the mainstream media and across social media has risen to another level.

In fact, when asked during our recent survey, only 9% of landlords said the media portrayal of the buy-tolet (BTL) market is fair or accurate.

Demonised The biggest theme among landlords was that they felt demonised.

In truth, it’s an issue not unique to landlords in the UK. During his time as Irish Taoiseach, Leo Varadkar quite publicly denounced the demonisation of landlords – and small landlords in particular – underlining the need for landlords to meet the demand for rentals. Last year, we also saw that viral clip of a landlord on Australia’s version of ‘Question Time’, sharing her frustrations of feeling demonised as a landlord and guilty for even owning properties.

This perhaps stems from another key point raised by respondents, which is the view that by being a landlord, you are instantly ‘quids in’ – making lots of profit as high rents come rolling in. It has certainly been lost in general discourse that landlords have been facing their own cost pressures as rising interest rates,

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higher operating costs and increased regulation all take their toll.

As one respondent put it: “Landlords are all painted as rogue, greedy parasites. The fact of increased interest rates, regulation, etc, is never addressed.” Another spoke of the view that landlords are rolling in cash, making huge amounts of profit, or are just rogue.

Tarred by the same brush Branding all landlords as ‘rogue’ does a massive disservice to the overwhelming majority who genuinely care about their properties and the people who rent them.

Respondents were under no illusions that there are bad apples in the sector, but categorically disagreed with the generalisation. This is especially true for smaller landlords who have invested their savings or inheritance in their properties, in the hope of providing a pension.

Landlords also agreed that reform is needed, but the worry is that the Renters’ Rights Bill goes too far in the wrong direction.

The consensus among decent landlords is that reform must be balanced so it protects both the tenant and the property owner, who takes on all the risk and makes all the investment to make the rental available in the first place.

One respondent said: “There are poor landlords out there and reforms are needed to address this, but there are also lots of good landlords that will find it harder and will exit the market. These people are not being listened to, or are portrayed as fat cat money grabbers.”

Unintended consequences It is those smaller landlords who probably find the demonisation most

ROB STANTON is sales and distribution director at Landbay

unfair – the ones that play a vital role in propping up a private rental market that is already underserved and in high demand.

With the addition of restrictive legislation and increased red tape, we give this vital cohort of landlords even greater reason to stop expanding, or worse, dispose of properties entirely.

It will serve as a massive wake-up call to landlord bashers when a reduction in landlords doesn’t reverse a housing crisis, and a drop in rental properties only serves to increase rents.

Rental properties play a critical role in the UK’s housing mix – particularly for transient workers, students, prospective buyers and importantly, never-buyers. We must protect decent, good-quality landlords at all costs.

As a sector, we must do more to counteract this anti-landlord rhetoric and throw our support behind these landlords. As a lender, our role is to ensure that landlords and the brokers supporting them have access to diverse, innovative products at competitive rates – enabling them to capitalise on investment opportunities and refinance successfully.

The Government undoubtedly has a role to play, too. While it has started to address historical failings in planning reform, housing supply and social housing expansion, it also has a key role to play in helping to flip this narrative and acknowledge the role landlords play.

Given how it is pushing ahead with the Renters’ Rights Bill and all the conversations around this, it probably reflects the confidence many have in actually seeing this through. ●

B U Y - TO - L E T Opinion

Understanding limited company complexity

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ne of the most significant evolutions we’ve seen in the buy-to-let (BTL) market over the past decade is the growing prevalence of limited company structures used by landlords.

Once a niche element of our sector, Special Purpose Vehicles (SPVs) have become the norm for a substantial segment of the landlord market, with the latest data showing more than 400,000 active buy-to-let companies now registered, and more than 61,500 formed in 2024 alone, according to analysis of Companies House data

by Hamptons.

Much of this growth has been driven by the phased removal of mortgage interest tax relief for individual landlords, which prompted many to incorporate their portfolios and seek the tax efficiencies a limited company structure. But this change has also introduced new challenges, particularly when it comes to understanding modern SPV set-ups.

At Fleet Mortgages, we’ve seen this evolution first-hand. A growing proportion of adviser-submitted applications now come from landlords with more layered or non-traditional company configurations. These are not just simple standalone SPVs. Increasingly, they form part of a broader group structure, where the SPV is a subsidiary of another limited company, or perhaps holds shares in other companies itself.

That creates complexity, not only for advisers but for lenders too. Because unlike the relatively straightforward underwriting process for an individual borrower or even a basic SPV, these cases require greater scrutiny around shareholdings, director alignment, ownership

hierarchies and control. In response to this, we’ve reviewed and updated our own criteria in this area. We can now look to accept more complex group structures as standard, including up to three layers of ownership, SPVs that hold shares in other limited companies, and SPVs with more than one corporate owner above.

In other words, we’ve brought our lending policy in line with what we’re increasingly seeing in the real world.

We made these changes not just to be more competitive, but because we understand that the market is evolving, and we want to evolve with it. These updates are designed to help advisers get more of their cases through and give greater clarity and flexibility when dealing with corporate structures that may previously have fallen outside traditional criteria.

Forming relationships To support this, we’ve also updated our ‘Holding Company Examples’ Guide, which advisers can access via our website. It includes clear diagrams showing some examples of structures we can and can’t currently lend to, making it easier to identify where the client’s business fits in. Whether it’s a single holding company above the SPV or multiple subsidiaries within a group structure, we’ve laid out how these could be presented and what we’ll need to proceed.

Of course, criteria changes alone don’t replace the importance of good advice. For advisers, there is an ongoing need to deepen understanding of limited company lending and ensure this allows you to take a holistic view of the client’s set-up. That might mean looking beyond just the applicant entity and understanding the full company structure, including

WES REGIS is national account manager at Fleet Mortgages

shareholders, directors and any linked companies.

It may also mean rethinking how to approach portfolio clients. The most successful landlord borrowers today are running professionalised property businesses, often across multiple entities, for reasons ranging from tax planning to risk management.

Advisers who can speak that language, ask the right questions, and prepare cases accordingly are offering real added value, and giving themselves the best chance of placing that business quickly and efficiently.

We’ve built our proposition at Fleet around supporting specialist lending and working closely with advisers. So, if a case still doesn’t quite fit our enhanced criteria, that doesn’t automatically mean it can’t be considered. Therefore we strongly encourage advisers to speak to their business development manager (BDM).

In this environment, the best results come from strong relationships.

Advisers who proactively engage with the lender and make use of the support on offer, whether through updated literature or portfolio structuring guidance, are best placed to capitalise on these policy changes and secure positive outcomes for landlord clients.

This latest update is another step forward in aligning criteria with the growing sophistication of the market. As a specialist in this space, we’re committed to being the kind of lender that doesn’t just keep pace with landlord borrowing behaviour, but helps advisers move ahead of it. ● July 2025 | The Intermediary

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

Brokers are shaping what comes next

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here’s a misconception that product innovation starts in a boardroom.

That lenders invent things in isolation, test them in spreadsheets, and then present them to brokers as finished ideas. But the most valuable developments usually start somewhere far more grounded: a call, a coffee, a case that doesn’t quite fit.

Because it’s brokers who see the cracks first. They’re close to the clients navigating change, rebalancing portfolios, responding to regulation, and reframing their strategies for the long term. The question is whether lenders are truly listening.

More o en than not, brokers don’t just identify the problem. They bring the spark of the solution. The challenge, then, is whether lenders are set up to do something with it.

Insight becomes structure At HTB, that’s how we try to work. Portfolio Edge is a great example of what can happen when broker feedback drives product design. It came directly from repeated conversations about what landlords were facing: a need to reshape portfolios, release equity, manage affordability, and do it all without being forced into someone else’s timeline.

For many, the pressure was building. Rising costs, tighter affordability margins, and shi ing tax policy meant decisions couldn’t be delayed. But the tools just weren’t there.

The existing market options didn’t fit. Most lacked the structural flexibility to support both short- and long-term goals in a single move. The answer wasn’t just a new product,

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it was a two-part structure that gave clients clarity, control and the confidence to act.

Portfolio Edge combines a term mortgage for retained assets with a bridging facility for those earmarked for sale. The term gives stability for the core portfolio. The bridge adds flexibility to support the transition.

Together, they offer a single solution that enables landlords to reposition efficiently, managing tax, affordability and strategy with far fewer compromises, while laying the groundwork for what comes next.

Whether it’s the next acquisition or a future refinance, the structure supports the full investment journey.

It’s a simple idea, built to support a complex reality.

Complexity isn’t the problem Brokers rarely bring us easy cases, and we wouldn’t want them to. It might be a mixed-use portfolio, an unconventional income profile, or a time-sensitive restructure involving multiple moving parts. That’s the nature of today’s market.

Some lenders treat complexity as a reason to step back, but really it should be seen as an opportunity to engage. Because in most cases, these deals are absolutely deliverable.

It’s just a ma er of having the right mindset, the right structure, and the ability to move with the realities of portfolio management.

Not just products For lenders, broker input should not just guide what we build, but shape how we think. Portfolio Edge wasn’t the result of a product brainstorm.

It was the result of case-by-case

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

collaboration, understanding what clients needed, where the friction was, and what was stopping brokers from moving forward.

More often than not, brokers don’t just identify the problem.

They bring the spark of the solution” As the landscape continues to evolve, with regulation shi ing, investor sentiment maturing, and the market becoming more professionalised, that partnership ma ers more than ever.

Brokers are interpreting the change, advising clients through it, and helping them plan what comes next. Our role must be to support that journey, not with off-the-shelf solutions, but with structures that match the way clients actually invest.

That support goes both ways.

Brokers challenge us to think harder, act faster and structure be er. That’s how progress happens when neither side se les for what already exists.

So, to brokers everywhere: keep bringing us the difficult cases. Keep pushing for be er answers. Because when we work together, the solutions that emerge are built to last.

If it’s complicated, bring it on.

There’s no need to wait for the market to shi before lenders act – if brokers are seeing it now, that’s when we want to hear it. ●

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

We must support developers to build new homes

E

very time the Government is due to deliver a Spending Review or annual Budget, the housing market holds its breath.

The spring Spending Review this year focused on funding for affordable and social housing – but will it deliver meaningful change?

Chancellor Rachel Reeves confirmed that the Government will invest £39bn over the next 10 years as part of its Affordable Homes Programme, calling it “the biggest cash injection into social and affordable housing in 50 years.” The money will be allocated in tranches, with around £3bn released each year until 2029, rising to £4.5bn by 2035-36.

It constitutes direct Government funding to support housebuilding, with a particular focus on new homes for social rent. Government will also provide an additional £10bn for financial investments, including to be delivered through Homes England to “crowd in private investment and unlock hundreds of thousands more homes.” This was interesting, particularly considering the method of distribution that is proposed.

We will see a new National Housing Bank (NHB) established, which will be a publicly owned subsidiary of Homes England and backed with a further £16bn provided by the Government.

According to a statement, the NHB will “accelerate housebuilding and leverage in £53bn of additional private investment, creating jobs and delivering over 500,000 new homes.”

In practice, this means Homes England will issue Government guarantees directly, with greater autonomy to make the long-term investments and support small to medium enterprises (SMEs) with new

lending products. It’s hoped it will also enable developers to unlock large, complex sites through infrastructure finance, and scale up investment into partnerships that draw more institutional investment into housing and mixed-use schemes.

The NHB will also work with local leaders to develop integrated packages of financial support to deliver their housing and regeneration priorities, alongside wider land and grant funding.

Reactions were mixed, Kate Henderson, chief executive of the National Housing Federation, quoted as saying the funding package was “transformational” and the “most ambitious affordable housing programme we’ve seen in decades.”

Several think-tanks were less enthused, suggesting that it wasn’t a real boost from previously announced finance at all.

However, what really ma ers is how this money is deployed on a practical level – and whether planning bureaucracy can be sorted out to make a sufficient difference to the situation we have seen over the past few years.

A survey of 31 house builders by the Home Builders’ Federation last October found that almost 20,000 Section 106 affordable homes with advanced planning permission had been put on hold due to a lack of buyer.

Barra Homes’ director of planning Philip Barnes has suggested that “thousands of completed affordable homes” sit empty. The reasons are complex, but come down to funding and other priorities such as retrofi ing existing housing stock. The boost to publicly funded grants for housing associations could begin to alleviate this challenge. Local authorities will have to play ball, however.

Last summer, Savills outlined

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

the challenge. Planning obligations typically require affordable homes to be occupied before the private offering on a development can be completed.

In some instances, private developers are unable to access development finance, progress on site, or even seal a land deal without a Section 106 partner in place. Greater flexibility has to be pushed – otherwise this will continue to hinder the provision of new affordable homes, and planned developments to deliver all other forms of housing will stall as a result.

Collaboration At a recent collaboration meeting, we were delighted to hear from key industry players. Overall, the outlook for the mortgage market is reasonably upbeat – brokers are reporting that affordability has significantly improved in the past six to eight weeks, with some borrowers able to secure around a £35,000 upli due to improved stress testing changes.

Housebuilder incentives continue to play a key role with supporting homebuyers. We have also seen several lender criteria improvements, such as increased loan-to-values (LTVs), improved foreign nationals policy, enhanced affordability on new-builds, and innovation such as the GenH New Build Boost scheme.

The sector has come a long way since the depths of the Global Financial Crisis; achieved through cross industry collaboration and reflected in lenders’ risk appetite and proposition improvements, providing greater choice for brokers and the end consumer. ● July 2025 | The Intermediary

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

One year in: Labour must provide greater certainty

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t’s now been over a year since Labour secured a significant majority in the General Election, marking its return to Government a er 14 years in opposition.

With a sizeable electoral mandate, expectations of wholesale Government intervention and industry reform was understandably high. The Government’s ability to deliver on some of its key campaign promises, however, has faced early headwinds.

Indeed, the global landscape has posed significant challenges.

Geopolitical instability – from ongoing conflicts in Europe and the Middle East to upheaval in the financial markets due to President Donald Trump’s trade policies – has taken up a lot of the political and news agenda.

Meanwhile, inflationary pressures at home and a slower-than-expected base rate cu ing cycle from the Bank of England have constrained economic growth, leading to increasing political pressure from other parties – as well as rebel Labour MPs. In combination, these factors mean the Government has o en been forced to prioritise shortterm crisis management over longer-term policymaking.

Lacking momentum Despite these challenges, however, the Government has taken some positive steps. The abolition of the ‘non-dom’ tax status was a flagship policy delivered early on. But it has been replaced by a revised residencybased system that allows for a bit more flexibility for investors while improving tax revenues. Although details are still emerging and clarity from Whitehall remains limited, it is positive to see the party listening

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to concerns regarding a hard-line removal of non-dom status.

Meanwhile, in recent weeks, a £39bn funding package was announced to boost housing supply, alongside commitments to streamline the planning process – including the use of artificial intelligence (AI) to reduce delays. Additionally, a £10bn investment is being channelled through Homes England to support housing delivery.

On paper, these initiatives have the potential to stimulate the property market and address some longstanding structural issues. But execution is everything – and in this regard, consistency has been lacking.

There have been several instances where policies have given way to confusion. U-turns on welfare reform, debates over winter fuel payments, and a high-profile emotional moment for the Chancellor during Prime Minister’s Questions have all contributed to a sense of instability.

For investors, brokers and developers, the overriding concern remains the same: a lack of certainty.

Details remain sparse While it’s encouraging to hear ambitious policy announcements, the property sector needs more than ambition – it needs detail.

Take, for example, proposed changes to Energy Performance Certificate (EPC) regulations. A timeline has been set – new rental tenancies must qualify as a Band C or higher by 2028, with all other rental properties following by 2030. However, the details of what changes will be required and what support landlords can expect remain rather unclear.

Similarly, while the scrapping of the non-dom tax regime was quickly

PARESH RAJA is CEO of Market Financial Solutions

announced, the revised residencybased scheme is still evolving, leading to further hesitancy among overseas investors.

What’s more, although money has been announced to accelerate housebuilding, the Government has yet to provide developers with enough confidence. They need assurance that demand for new homes will be sustained, and that market conditions will remain stable; confidence that’s hard to come by while Government fails to increase economic growth and investor sentiment.

Of course, some factors lie beyond the Government’s immediate control. Construction costs, interest rates, and broader macroeconomic conditions will all shape the outlook in the months ahead. But messaging and direction ma er. Whether it’s planning reform, energy efficiency regulations, or tax policy, providing the market with definitive deadlines and granular detail on delivery will enable stakeholders across the property sector to plan, adapt, and invest with greater confidence.

That clarity is what will allow the property sector to regain momentum.

In parallel, lenders must continue evolving their product offerings to meet the changing needs of investors and brokers. Everyone across the sector has a role to play in building a more stable, forward-looking market.

The past 12 months may have been about laying foundations – shaky as they may seem – but as we enter Labour’s second year in power, the time for delivering tangible progress has arrived.

Together, the public and private sectors can achieve it. ●

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

Bridging the big deals

O

nce considered a stop-gap solution for modest property purchases, bridging is increasingly becoming a strategic tool for sophisticated investors and developers. The numbers tell the story: according to Bridging & Development Lenders Association (BDLA) data, the average bridging loan in the UK now sits at £540,000 – higher than many might expect.

We’ve been witnessing this shi first-hand. Our own average bridging loan size is £810,490, and we’re comfortable underwriting up to £20m across both residential buyto-let (BTL) and commercial assets.

These aren’t rare exceptions – they’re reflective of a market that’s maturing in scale, ambition, and complexity.

High-value deals are not confined to London postcodes or headlinemaking developments. We’re seeing substantial cases in regional cities, smaller towns, and even semi-rural locations. Whether it’s a mixed-use

conversion or refinancing a portfolio in a limited company structure, the demand for tailored, larger bridging loans is only growing.

But with greater value comes greater complexity. Timelines can be tight, and clients are o en juggling multiple moving parts – planning approvals, refinance exits, capital redeployment.

Broker expertise is critical, and so is the lender they choose to work with.

High value bridging cases don’t leave much room for error. Certainty of funding, clarity on structure, and the ability to make decisions swi ly and sensibly can make or break a deal.

We’ve built our bridging proposition around this very principle. As a fully licensed UK bank with a specialist lending mindset, we bring the best of both worlds: regulated credibility and agile execution. Our team is experienced with complexity and we take a hands-on approach to structuring solutions that work in the real world. Crucially, we assess each application on its own merits – not against a one-size-fits-all checklist.

MIKE SAYS is CEO of GB Bank

For brokers handling these kinds of cases, having a lender that genuinely understands the nuances of high-value bridging can transform the experience – not just for them, but for their clients. Deals progress faster. Issues get solved earlier. And everyone has confidence that the funding will be delivered on time.

The bridging market is rich with potential. But unlocking that potential, especially at the higher end, means knowing who to work with.

For brokers, the opportunity is clear. Bigger deals come with more complexity, but greater rewards.

Working with a lender that specialises in larger loans and has earned a recognised pedigree in this area can be the key to unlocking that opportunity.

Because when it comes to bigticket bridging, expertise isn’t just an advantage. It’s a necessity. ●

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Three ways we’re helping brokers and landlords grow with confidence From smarter criteria, expert support and cashback rewards, we’re helping landlords go further

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All information correct at 28/5/25. Visit our website for further information and full terms and conditions. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales under company registration no. 09872265 at Suite 101, The Nexus Building, Broadway, Letchworth Garden City, Hertfordshire, SG6 3TA.

February 2025 | The Intermediary

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Q&A

Together

The Intermediary speaks with Tanya Elmaz, managing director of intermediary sales at Together, as the lender prepares to step into the next stage of its evolution Can you talk us through the changes that have happened at Together recently?

This is the beginning of Together laying a foundation for its future growth. We’ve been around for 51 years now, and we want to make sure that we are around for at least another 50.

Cheryl Brough has come on as chief people officer, to help us develop our talent programmes.

Dave Sutherland is our chief operating officer.

He comes with loads of experience in the operations and transformation world, in the finance industry and retail.

Then we have a brand new role – chief marketing officer Candice Lott. We’re really looking forward to seeing where we can take our marketing and our messaging.

Alongside all of that is the news that Marc Goldberg is retiring. We still have him for 18 months – that’s plenty of time, coupled with the succession plan for Ryan Etchells, who is already our chief commercial officer. His responsibilities are widening to incorporate products as well as distribution and sales.

This is all under the banner of Richard Rowntree, who came in as group CEO about six months ago.

You’ve had your own change too – how do you envision leading the intermediaries team?

I’m really excited about it. I’ve been at Together for about 10 years, so I’ve been invested in the intermediary channel all the way up.

In the past nine to 12 months we’ve been working on expanding our geographic regions.

I’ll continue that growth – the more brokers can access us and talk to us, the more they can understand how we can support them. So, the first port of call is panel growth and to support brokers.

I’m going to continue to lead the sales team in understanding the ‘Together way’. We’re unique.

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The Intermediary | July 2025

I don’t think there’s another specialist lender that has nine different products in two different sectors. A lot of what we do is building solutions.

I’ll continue to build the sales team so that they understand the way in which we work, and of course leading the way with our Hero products – regulated bridging, unregulated bridging, commercial bridging and commercial term.

We’ll also be building the culture that we have, which is a ‘talent up’ culture, and a relationship culture as well. We have a culture of taking initiative, delivering and going outside the box.

We often joke that we don’t like to say ‘no’ to any business. It’s not because we lend on absolutely everything and to anybody, but we are always there to build solutions.

How important is intermediary business to Together’s future?

Typically for the past five years it has been 5050 intermediary to direct business, but that balance is tipping slightly, and we’re now at 55% intermediated. I want to take that up to 60%, and support all those brokers to work with us.

We seek to continuously deepen our relationships with our existing partners. We work with packagers, and they’re really key to do our business, but there are always new brokers and new introducers, so there has to be a continuous evolution of those relationships, even with our existing packagers. Deepening that relationship is really important.

Then, there’s a continuous cycle of new brokers that want to learn about the specialist market. A lot of the time these brokers believe that these are markets that they can’t understand, so there’s a lot of education that goes into creating that continuous evolution.

That’s why we’ve increased the regional reach of the field-based team, to satisfy the needs of new brokers. There’s definitely scope for plenty of growth in the intermediated market.

For the last 10 years, Together has actually grown month-on-month, because of the demands of brokers wanting to understand specialist

Q&A

lending, and their recognition that we are a true specialist lender, with a broad range of products and the willingness to always find a solution.

How would you define Together’s place in the specialist market?

Where we see our role is continuing to be the dominant force that we are in this space. When it comes to new markets, we’ve always been there at the forefront. We were there at the forefront of bridging in the ‘80s, and then with houses in multiple occupation (HMOs), holiday lets and business loans. We are always on the front foot when it comes to meeting customers’ needs, because we are so bespoke. We don’t just have products on a shelf. When you build solutions as the norm, you’re constantly gaining feedback from brokers and from customers.

With a loan book of £7.8bn, I think we are the largest non-bank specialist lender in the UK. So we’re dominant in that way as well, but it’s really about the uniqueness we bring to the market.

There are some high street lenders looking to dip their toe in the specialist market at the moment, but it’s just a toe. Then you have the challenger banks, which do a great job in certain sectors, but who do you have that does all the products and can flex their criteria across all of them? That defines Together’s role in the specialist market.

While lots of lenders have for many years digitalised their offering, so that brokers and customers can self-serve, we are a relationshipbased lender. Pick up the phone, speak to us about what you’ve got in front of you and how we can help. No matter how big we become in the next 50 years or more, we will never lose our relationship focus edge.

Are there any changes coming down the line that brokers should be excited for?

We’re always looking at our products, and we’re always looking at how we can tweak and widen our criteria, based on feedback from brokers.

What we’ve done in the past three months is widen our referral process. That means TANYA ELMAZ that we want to talk

to more people and be even more flexible. We’ve also changed our product cards. Instead of keeping them lean, we’ve outlined all our quirks and our flexibility and shown the expansion.

This year, we’re looking at our commercial term, how we can expand our loan-to-value (LTV), how we might change the split of residential and commercial to make it a bit more flexible, whether we can use AVMs in the semi-commercial space.

We’re also looking at bridging, to define a more bespoke refurb product.

Then, we’re looking at our place in the large loan space. We might not be as well-known in the large loan space as we would like to be.

In general, what we are looking to do moving forward – and have already commenced – is talking about our products in a slightly different way. We want to present them propositionally, as solutions. That means case studies and bringing to life the impressive depth of our flexibility and the way we construct solutions.

What are the opportunities and challenges in this market?

While seems that we’ve had a little more economic stability this year, what we know is that you can’t rest on that certainty. Meanwhile, the cost-ofliving crisis hasn’t gone away, we’ve just got more used to dealing with it.

Competitors are a challenge for each other, particularly as those that aren’t steeped in this market decide to show their take on specialist finance. Everybody is looking at how they can satisfy customer and investor needs better, and that is fuelling growth in specialist lending.

Many more customers now fall into that ‘specialist’ category. It’s not necessarily nonstandard any more, because the way people live, earn money, and interact with money has changed. The growth of specialist lending is an opportunity, but one that brings with it the challenge of competitors.

Finally, I’ll say ‘regulation’, but it’s not in the same sense as I might have said a few years ago. Previously, the challenge would be around it becoming more stringent, but we’re seeing something different now.

There’s an appetite from the regulator to take another look at boundaries and apply more flexibility.

It’s not a challenge necessarily, but we need to challenge ourselves to keep up to date with and understand it , to make sure that we move forward correctly. ● July 2025 | The Intermediary

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

Six lessons from the first six months

A

t the start of 2025, a er more than two years of hard work, we officially launched ModaMortgages to the whole of the market – a proud and, in truth, quite emotional moment. This is an opportune moment to reflect on the lessons learned so far.

is driving up standards 1 Competition

According to Moneyfacts, the number of BTL mortgage products available across the market reached an all-time high of 4,144 in June. Upfrom 3,926 in May and 2,935 last year.

Beyond ensuring rates are competitive, lenders must focus on their USPs, and the quality of the broker and borrower experience.

Our mo o at ModaMortgages is to the home of ‘smarter, faster, simpler’ BTL mortgages. The competition in the market makes these differentiators more important – and indeed, such is the competitive nature of the market right now, that standards will likely be driven higher, which benefits all parties.

market is more resilient than many think 2 The From regulation and tax to Government policy and interest rates, there has never been a time when the industry has not faced its own unique set of challenges. When taken at face value, those challenges are o en turned into negative headlines.

Despite the negative speculation about the future of BTL and the fears of landlords, the sector is in rude health. There is clearly plenty of good business to be done.

BTL investing remains a ractive to a significant number of individuals and companies. The prospect for long-term capital growth and healthy rental yields is still there – it is purely that landlords’ exact wants and needs

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The Intermediary | July 2025

evolve in line with the economic climate and regulatory landscape.

Being back on the road, meeting with brokers and a ending events, I’ve been reminded of just how robust the sector is – it constantly adapts, and its resilience should not be underestimated.

on policy will help 3 Clarity

Brokers and clients are understandably frustrated about the lack of long-term clarity around what touted changes will be exactly, and when they will be implemented.

The past six months have coincided with a new Labour Government wanting to put its stamp on domestic policy a er 14 years in opposition.

The conversations I have with brokers are not necessarily about being pro- or anti-Labour – they’re calling for detail about new policies and reforms so they can prepare.

The role of the broker is more 4 important than ever

There was a spate of stories doing the rounds in the trade press earlier this year about brokers being cut out of deals. Some lenders are purportedly communicating directly with borrowers.

This is a serious issue. But more broadly, it taps into a wider problem wherein the role of the broker is underplayed or misunderstood.

With new technologies being implemented all the time, and more lenders investing in marketing on social media platforms, there could be a temptation to think that brokers have less of a role to play. Brokers are still essential in facilitating highquality business and managing the process smoothly for the borrower.

Brokers can do a huge amount of heavy li ing in working with the customer throughout the lifecycle of a mortgage application. The

DARRELL WALKER is group sales director at Chetwood Bank

fact that they own the relationship must be respected, with lenders in the specialist market focused on delivering the best possible experience for the broker.

To communicate directly with the borrower that an application has been successful or a product is coming to the end of a fixed-term is inappropriate when a broker was the one to introduce the deal. It is a worrying trend.

industry is becoming more diverse 5 The One of the most upli ing things I’ve noticed has been how much more diverse the industry is becoming.

It’s becoming more diverse in the events hosted, the people a ending them, the ways people are connecting and networking, and of course the teams behind the lenders and brokerages.

There is still a great deal more progress to be made, but it has been lovely to see a much more diverse collection of people coming together in different se ings.

cannot allow inertia to set in 6 We

One of the most common talking points in the BTL market this year has been interest rates – though there’s nothing new there. We still expect the Bank to cut the BBR once or twice more between now and December. It is crucial, however, that we don’t allow inertia to creep in – it can be easy for prospective property investors to sit tight and wait, resulting in the market finding itself in a holding pa ern. The onus must be on lenders and brokers to act with confidence, flexibility and optionality to ensure the market remains active and fluid. ●

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

Developers: Taking the legal weight off

D

evelopment finance for small to medium (SME) developers can o en be delayed or held back by a range of legal issues. Section 106 agreements, planning guidance, title queries or borrower agreements can all stymie a development, if not handled with a commercial approach, due diligence and skill. Having a close alignment between lender and lawyer can greatly mitigate the issues that developers face, at every stage of a loan. Lenders and their clients are afforded far greater certainty, and the importance of this certainty cannot be underestimated. Even if legal issues that arise are insurmountable, this can be identified at the earliest opportunity and mitigated to prevent borrowers losing any additional time or money.

Addressing legal hurdles One thorny legal issue, for example, is the intricacies of Section 106

agreements. The requirement to integrate these obligations in a development can be especially burdensome for SME developers, who do not have the same financial resources as larger developers.

There is li le doubt that this process can be sped up substantially by having lending and legal teams working tightly alongside each other to cra creative and commercial solutions to the recurring challenges Section 106 agreements pose to developments.

This saves time and money for developers, who – particularly at the earlier stages – are keen to maximise cost savings where possible.

Many borrowers are also becoming mired in the current delays brought about by the ‘Gateways’ in the Building Safety Act. There is no shortcut or silver bullet for the current delays, but what can make the process as simple and as effective as possible is the correct preparation and presentation of legal documents during the early stages of a development.

DIPINDER SUREY is transaction management lawyer at Atelier

By controlling what can be controlled, and ensuring no further delays come about, the already onerous bo lenecks are minimised.

In ensuring these contracts and documents are resolved as early as possible, issues are far less likely to arise further down the line.

A collaborative approach Overcoming costs and obstacles over the course of a development is no small feat. The turning point comes with creating solutions unique to each client situation. Cra ing these solutions is far simpler with the combined input of a diligent and hardworking credit team, alongside the legal flair of transaction management. Having close partnerships between developers, lenders and legal teams cannot be understated to unlock much-needed housing supply across the country. ●

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

How to obtain max value for second charge clients

W

hile second charge business volumes continue to gather pace, I believe there is still no time for complacency. Every lender, broker and stakeholder in the sector is commi ed to growth, as we are seeing a wider acceptance of second charge mortgages across the intermediary channel. But the task of fulfilling the potential of the sector will not be won if we sit back believing that the job is actually done.

In the past, there was a time when master brokers – packagers – were the main, and in some cases the only, conduit for accessing second charge lenders. However, in the past few years more lenders have opened their doors to direct business.

Working with lenders Today, advisers are tasked more than ever with ensuring that customers are given recommendations based on thorough analysis of the products and pricing that most closely match their needs. How they reach that recommendation is based on a mixture of industry knowledge, experience and the way advisers choose to si all the information they gather to reach a conclusion leading to a specific recommendation.

Of course, sourcing systems are an indispensable aid for every mortgage broker – technological advances have simplified the sorting of lending options.

However, the more complex a client’s individual circumstances, the more likely that advisers should make use of specialist distributors to provide a finer level of sourcing for second charge choices that sourcing engines cannot yet match.

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The Intermediary | July 2025

Advisers are time poor and are having to si through masses of lender information, a lot of which is hard to find, and yet so much of the heavy li ing can be done by exploiting the resources provided by specialist distributors.

They not only help to educate advisers about second charge mortgages and the wider specialist lending sector, but also convert many practitioners to the concept of making more use of their experience and human expertise, backed by their broad based panels and close relationships with those lenders.

If I was a broker coming to second charge for the first time and used to dealing directly with mortgage lenders for most of my first charge needs, I would like to know that, if I wanted to, I could deal with a second charge lender directly – but the question I would ask is, would I want to?

While barriers to entry are being dismantled for the sector to grow, education remains a priority. Part of that education means helping new introducers to understand that they do have a choice as to how they can access second charge lending. Whether they choose to use it, is up to them.

The role of distributors What I would say to all brokers is that they should assess the advantages and disadvantages of direct contact as opposed to using a third-party specialist distributor. For brokers with the luxury of a backup team to make the string of individual enquiries to each lender in order to come up with a genuine recommendation based on rate, service and suitability to the client’s needs, then going direct can work well for them.

However, my question to brokers working on their own and without the

LAURA THOMAS is regional sales manager at Equifinance

There is a real advantage in having a specialist distributor’s resources, which includes access to all the major lenders in the sector” benefit of a researcher or paraplanner, is how much time do they really have to make that kind of assessment before making a recommendation?

I would suggest that, because of the need to research further advances and remortgages as well, the answer in many cases would be ‘not much’.

More lenders are likely to offer a direct route, but for the majority using a third-party to provide origination, communication and the all-important preparation of the application, there is no real business case to make the change.There is a real advantage in having a specialist distributor’s resources, which includes access to all the major lenders in the sector.

Their knowledge of lenders’ individual requirements and the option, should I choose it, to provide my client with a full advice service, would leave me free to concentrate on new business, and therefore makes a most compelling argument. ●

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

The debt spectrum: More cases deserve a second look

I

n a sector that o en highlights its inclusive and flexible approach, support for borrowers with past or ongoing debt arrangements still appears patchy at best. An Individual Voluntary Arrangement (IVA) or Debt Management Plan (DMP) on a credit file can prompt a hasty ‘no’ from many lenders.

The scale and complexity of personal debt in the UK has changed dramatically. A growing number of borrowers are entering into formal arrangements, not because they are irresponsible with their finances, but because they must take action, and this seems like the most appropriate option.

For brokers, that has created a unique challenge – one that’s less about inflexible rules and more about what debt solution suits.

A growing proportion Government data shows that IVAs continue to make up more than half of all personal insolvency cases in England and Wales. More than 67,000 were registered last year alone.

Meanwhile, the use of Debt Relief Orders (DROs) has climbed sharply following regulatory changes, with DROs now accounting for around 37% of insolvencies.

The number of people in the UK living with some kind of formal debt arrangement is increasing. In the 12 months to 30th April 2025, one in 417 adults in England and Wales entered insolvency. That includes individuals who have since completed an IVA, DMP or bankruptcy and are now back in regular employment, managing their finances as best they can, and trying to secure a mortgage or remortgage. In other words, people trying to move forward.

One of the difficulties brokers face is working out which debt solution cases can actually be placed. There’s o en very li le guidance, and credit reports usually don’t tell the full story.

Take IVAs, for example.

Government figures show most are completed successfully. That should prompt a different type of question: not ‘Has this person ever had an IVA?’ but ‘How long have they been in it, and how have they managed it?’

A DMP with over a year of regular payments might say more about a borrower’s behaviour than a standard score ever could. Equally, a DRO that was discharged more than two years ago may not carry the same implications as one that’s still in place.

But these nuances can get overlooked.

At Norton Home Loans, we apply a structured but flexible framework when reviewing cases involving IVAs, DMPs, or past insolvency. We can consider borrowers with an IVA in place if it has been running for at least 54 months and is due to be se led from mortgage proceeds, provided the Supervisor confirms they will release their interest in the property.

We also regularly support applicants who have completed their IVA and are now seeking a fresh start. For DMPs, we typically look for at least 12 months of satisfactory payments, with full details of the plan disclosed, but again, we can also look at cases where the plan has been fully se led. DROs must have been discharged for at least two years, and bankruptcies for three.

Alongside this, we apply a unit-based system to adverse credit, focusing not only on what has happened, but how the borrower has responded.

As formal debt solutions become more common, lenders will need to keep tailoring their approach. That doesn’t mean compromising on

DAVID BINNEY is head of sales at Norton Home Loans

risk, but recognising the difference between someone in difficulty, and someone who has taken positive steps to address it.

Too o en, decisions are dictated by how something looks on paper.

When it comes to adverse credit, it’s not always that helpful. A satisfied County Court Judgement (CCJ) or a default from two years ago might still be flagged, even if the borrower is now in a completely different financial position.

Are the payments regular? Has the borrower stayed engaged with their arrangement? These are the questions brokers are already asking, and that lenders need to take more seriously.

Balanced decisions There’s a need for greater clarity, not just on what is or isn’t acceptable, but on what kind of conduct actually ma ers. The right supporting information can make all the difference. But so can the confidence to challenge assumptions.

Most brokers working in the specialist space know that no two adverse credit cases are the same. But unless criteria reflects that, borrowers will continue to be le behind.

As the lines between prime and non-prime continue to blur, thought needs to be given to how we assess creditworthiness.The job is to move beyond headline numbers and think about borrower behaviour. Recovery won’t always be visible in a credit file.

But with the right approach, it can be supported. The opportunity lies in recognising progress and being prepared to act on it. ● July 2025 | The Intermediary

55

Q&A

LifeSearch

The Intermediary speaks with Lisa Kelly, claims manager at LifeSearch and winner of the ‘Hero in the Middle’ category at L&G’s Business Quality Awards Can you provide some details on the reason you received this award?

This was quite a long-standing case. When I spoke to the claimant originally, he had been diagnosed with a terminal illness, but a very unusual one.

He’d already had a form of leukaemia, and he had been given the all-clear. So, he’d gone through all his treatment and gotten through to the other side. Then around Christmas time he got a viral infection. He went in for some tests and was then told that if he was given treatment, he could live for five days, and if he wasn’t given treatment he could live for three days.

He and his wife had five children, with three under the age of three. The claimant was a stayat-home dad and looked after the three youngest children, and his wife was a GP and did quite a lot of exploratory work for the NHS. He didn’t want to spend the days that he had left sorting out his insurance. He wanted to set everything up for the kids, write them birthday cards and take his family out to dinner.

I agreed to start the claims process on their behalf with L&G. I normally find it’s more efficient if the client does it themselves so that they can answer any specific questions, but in this instance, I thought it was a better option.

I had to do it in a roundabout way, because if you start a terminal illness claim, then the insurer will have to contact the GP to check that they fall within the stance of having less than 12 months to live. However, if it is a death claim, it’s simpler because it’s just a confirmation of death. It needed to be a death claim despite the fact he hadn’t died yet – to make the process easier for the family.

That’s what L&G did.

He lived for the five days. They’d been to dinner, had the time together, and then he admitted himself into hospital.

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I advised his wife of The Ruth Strauss Foundation, which is a charity that helps young children prepare for the death of one of their parents. There’s not a lot of claims like this, but when I have supported families with similar cases, then I tend to I utilise this charity.

I then started the claim process with the claimant’s wife. We’d just been informed at that time by our business development manager (BDM) that they were doing a new online process for claims at L&G, so we both downloaded it and went through the process.

The policy was very young, and then it was determined that the claimant had been to the GP prior to taking out his policy, with certain symptoms that could have been put down to the start of his leukaemia.

So, it was a complex process with a lot of detailed information to cover, which is what L&G recognised when they awarded me at the Business Quality Awards.

‘HERO IN THE MIDDLE’ LISA KELLY

Q&A

What was it like supporting the family during a complex and emotional claim?

It was one of those where my experience and perseverance, I suppose, came into play. I dealt very closely with L&G, and that brought me closer to the claim.

While I am empathic, I don’t get emotionally involved in cases because the clients don’t need that from me. They need me to stay strong, be efficient and work on their behalf. I obviously do feel it, but the best self I can be is by being strong and proactive in supporting them.

However, this case was emotionally draining.

We did form a friendship in certain ways. The claimant’s wife has stayed in contact and every so often I get an update on how the kids are.

What is the protection industry getting right at the moment, and where is there room to improve?

What does winning this award mean to you?

It means awareness. I speak at lots of events, spreading awareness so that as many people as possible are protected correctly.

We hear a lot of people saying, ‘Oh, I don’t need this cover, I don’t need this policy, because I’m too young and fit and healthy’. You just do not know what’s around the corner, so if I can utilise any forum to spread that word then I will.

It’s lovely to be recognised for doing that, because I do work hard and I do take my job very, very seriously. The fact that I’ve been given an award is lovely, it really is.

How did your previous experience prepare you to take on this case?

When I first took on this job, as a hybrid role, I dealt half the week doing complaints and then some days doing claims.

Then, when I was quite new in the role, Covid-19 hit. My children have grown up, so I didn’t have to do home schooling like a lot of my colleagues did.

During Covid-19, we were getting a lot of claims in where other members of the team were home schooling, and they couldn’t really speak to people.

Generally, I do what I need to do on each case, and I look at each case in its entirety. If I’m unsure of something, I listen to the advice calls and all that takes time.

It was quite apparent that the customer didn’t know that he had cancer prior to doing the application. When I listened to the application call, he was singing and making jokes for the children – he and his wife were having banter, and the adviser was involved.

There was no doubt in my mind that this was not a man that had been given some sort of diagnosis that was going to be life-changing for him and his family.

They’re getting many things right – because there’s a lot changing in the claims world – but there’s still a lot of work to be done. It would be very nice if insurers looked at the claims process in the same way as they do at the front end of business.

If you have an underwriting question or query about the application, it takes two to three days to come back with an outcome.

If you have a claim query, some of them are on it, but the average wait is about seven to 10 working days. I’ve got some insurers that are on 15 to 18 working days. That’s a long time to assess people’s information.

There’s lots of reasons why. It’s more complex with things like income protection because you’re not only looking at medical assessment, but you’re also looking at financial assessment. If it’s a critical illness or a terminal illness, then you’re in the hands of a GP, or a consultant, and you’re waiting for their information to come back.

I know there’s a lot being done in between to try and open up NHS records and try and streamline the process. The more we talk about it and try and influence it, the more that will be done.

Positively, there’s so much that has been done recently and everyone is interested in the claim process at the moment. It is progressing, but there’s always more to be done.

What advice would you give to others based on this case?

Treat people how you would like to be treated, and treat each case on an individual basis.

I volunteer for Marie Curie on a weekly basis where I am speaking to and dealing with people with terminal illness so I can get an understanding of what they’re going through, and how they are coping with it. I also participate in all the Marie Curie training courses. A few weeks ago, I did one on dementia.

It’s important to look at customers as reallife people and listen to them. I’ve got an online qualification in counselling so that I know how to talk to people, and I utilise my experiences with other cases quite significantly.

If there’s anything that I can do support – I make sure that I make time to do it. ● July 2025 | The Intermediary

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P RO T E C T I O N Opinion

Optimised journey: It’s about more than just speed

A

dvisers understand that by embedding a conversation about home insurance into the mortgage advice process, they can improve client outcomes, enhance both the service they provide and their revenue growth, and drive greater customer retention.

The ability to achieve all these outcomes, however, hinges on several things. How the general insurance (GI) recommendation has been positioned with the client, the efficiency of the quote journey, and the accuracy of the quote itself are all vital.

Over the past few years, our research has shown that around 50% of advisers have reported occasionally missing opportunities to sell GI, and we want our tech enhancements to help address this – helping advisers to offer more quotes while be er protecting their clients.

Too o en in financial services, we see quote optimisation becoming about the pursuit of speed alone.

Focusing on quicker quotes, offers and decisions. But an effective journey is about so much more than that. Yes, let’s make the journey as slick as possible, but it needs to be an intelligent, carefully considered approach to make sure it’s actually delivering good outcomes.

This means asking the right questions, not the fewest. When we’ve asked the question directly in our Adviser Survey, advisers told us overwhelmingly that they would prioritise a more accurate quote over a faster one.

In recent years, we’ve worked hard to refine our quote journeys to ensure they’re meeting the needs of advisers and end customers alike, as this ultimately aids us in our

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ambition to ensure that every home is fully protected. We started with the refinement of our home insurance quote journey and integrating with third-party data providers such as LexisNexis Risk Solutions to prepopulate certain data, resulting in advisers being able to generate quotes in under a minute.

Having seen the impact that our improved home insurance quote process has made for advisers, we rolled it out across our other products, with Landlord’s Insurance and more recently our Mortgage Protection offering following suit.

The right price But we’ve gone further than just timesaving enhancements by analysing our data and listening to feedback from our distributors. This has helped us to refine our question set to ensure more customers receive the right price for them.

A recent example has been streamlining the options we present when it comes to build type to maximise the number of returned quotes. In collaboration with our underwriters we’ve removed the ‘bricks over timber’ build type option, which means for properties with a timber frame and brick exterior, advisers can simply select ‘brick’ as the response option, since it’s effectively a standard build type.

Around 53% of homebuyers are looking to purchase a new-build property, according to the Mortgage Advice Bureau – many of which will be built via a ‘bricks over timber’ model – so making this particular change ensures that risks can be quoted more effectively, reduces the risk of a quote being wrongly declined and therefore removes a point of frustration for advisers.

LOUISE PENGELLY is director of proposition at Paymentshield

We’ve also upgraded functionality and navigation to make it significantly easier for advisers to review and adjust quote details in the Adviser Hub. While we always champion an advised conversation when it comes to home insurance, we know that sometimes consumers prefer to be directed towards an online journey where they can complete the purchase in their own time.

This is why we launched a supplementary part of our referral service last year, which provides the option of an immediate automated quote which can be sent digitally to clients via email or text, for them to complete themselves. This empowers advisers who are time poor or don’t have GI permissions, but still want to ensure their clients can access quality protection.

Since launch, this journey has also undergone a refresh to make it quicker and easier for customers to obtain a quote. This includes a more intuitive step-by-step process, a reduction in the number of fields required, and a more accessible, user-friendly interface to provide a smoother, faster quote from start to finish.

In addition to our large-scale surveys with advisers, we conduct regular user-experience focus groups with advisers to ascertain how our platform can be made more user-friendly.

We’re confident that we’ve currently got the balance right between speed, accuracy and quotability across our quote journeys, but we will continue to listen and evolve in line with advisers’ changing needs and experiences. ●

P RO T E C T I O N Opinion

Hot summers show that the right home insurance matters

I

n the UK, hot weather is usually greeted with open arms, but rising temperatures can bring more than just sunshine. As each summer gets ho er, the risk of heatrelated home fires and damage increases. From spontaneous combustions to exploding aerosols, many homeowners are unaware of how vulnerable their property can be during extreme heat. Even more concerning, many don’t realise what their home insurance may or may not cover.

Wennington Wildfire One of the most dramatic examples of heat-induced home destruction occurred on 19th July 2022 in Wennington, East London.

On one of the UK’s ho est days on record, a fire quickly spread across parched grass and gardens and engulfed nearly 20 homes. The blaze was so severe that the London Fire Brigade declared it a major incident.

Many families were evacuated and le with nothing but the clothes on their backs. Entire homes were lost.

Some homeowners had buildings and contents cover that would eventually help with rebuilding, but others discovered gaps in their policies – especially around limits and exclusions – or experienced delays in the claim handling process.

Less obvious danger While wildfires and spontaneous combustion might sound like extremes, the truth is that heat-related home fires can happen.

Take aerosol cans, for example.

In several reported incidents, homeowners have experienced explosions when pressurised cans – such as deodorants, air fresheners, or cleaning sprays – were le on windowsills or in conservatories during high temperatures. In one case, a can exploded through a window, triggering a fire and extensive property damage.

These types of accidents are rarely considered when buying home insurance, but the consequences can be costly. As a minimum, home insurance should protect your client against fire and storm damage.

STEPHANIE DUNKLEY is development director at Safe&Secure

However, not all policies are created equal. Here’s what you should check: Buildings insurance: Covers the structure of the home and should include protection against fire, subsidence, and explosions.

Contents insurance: Covers belongings inside the home, from furniture to electronics and should protect against accidental fire or heat-related damage.

Accidental damage cover (optional): A valuable add-on that can cover unexpected incidents.

While insurance provides peace of mind, prevention is also key, especially during very hot weather.

Clients should: store flammable items safely and out of direct sunlight; check garden waste – compost piles and dry leaves can ignite in hot weather; look for cracked roof tiles, exposed felt, or warped fixtures; trim overgrown shrubs and grass; and don’t leave appliances running una ended.

Final thoughts

As UK summers heat up, so do the risks of fire damage and insurance gaps

With ho er, drier summers becoming more common in the UK, it’s time to stop thinking of fires and heat damage as ‘freak events’. They’re happening more o en – and closer to home than many realise.

At Safe&Secure, based in Derby and serving customers across the UK for over 25 years, we understand that home insurance isn’t just about ticking boxes. It’s about making you’re your clients are protected when it ma ers most. ● July 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

SUFFOLK BS

CASE ONE Contractor with multiple short-term assignments

A

n IT contractor – who has worked on multiple six-month contracts the past three years – earns approximately £85,000 a year, with day rates fluctuating between contracts. They want to purchase a £425,000 property with a 10% deposit.

However, there are gaps of a few weeks between previous assignments, which have created red flags for lenders looking for continuity.

While their earnings are strong, the contractor wants to use a combination of limited company dividends and retained profits, thus leading to complications around how income is assessed.

Some underwriters have been unwilling to consider projected income or day rate calculations without a current contract in place.

WEST ONE LOANS

We offer mortgages for self-employed contractors (incl. IR35) provided the right documentation is submitted. Minor gaps in continuity are usually acceptable.

However, we require a current contract to be in place and will calculate affordability based on a five-day work week over 48 weeks a year. It is likely that we’d be able to assist once the applicant has a contract in place.

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With a healthy salary and a 10% deposit, you can see the strengths in this case. We only need a two-year history. A 90% loan-to-value (LTV) with a contractor income is also acceptable to us, though we would require a current contract to be in place.

We would first look to use the contract income at day rate x5 for 46 weeks per annum. If the contract work is sporadic, or there are significant breaks inbetween, then we may need to consider net profit after tax and salary, or salary plus dividends.

BUCKINGHAMSHIRE BS

With the applicant working as a contactor for over three years we would need to treat them as selfemployed, so we would be looking for two-year income evidence, of which we would look to take an average of the last two years.

STAFFORD BS

In this scenario, we would assess the contractor’s income using their submitted accounts and SA302s. If their earnings have been consistent, we can consider a combination of salary and post-tax profit. Gaps of a few weeks between contracts wouldn’t be a barrier, provided they’ve maintained a stable three-year track record. Our approach supports contractors with varied but reliable earnings patterns.

TOGETHER

Together could consider this applicant’s income towards the affordability of their loan; our policy states we can accept this income type through self-employed SA302s, looking at the income

B RO K E R B U S I N E S S Case clinic

over the previous 12 months. If we are more than six months into their new tax year, we can also look to accept a projection of their future income on referral, provided we have supported documentation from their accountant or the company employing them. Although we could not reach the 90% LTV needed, we could look to support up to 75%, assuming the property being purchased is of standard build.

UNITED TRUST BANK

UTB requires the applicant to be working in a current contract at the time of mortgage offer. We would look to exercise common sense regarding gaps of a few weeks in between contracts, as this is not unusual and we have assessed numerous previous similar scenarios. We would assess the feasibility of affordability by assessing a limited company accountants’ certificate, ideally with projections provided. In most normal circumstances we would not look to use retained profits for affordability.

BUCKINGHAMSHIRE BS

The society would need the application to be submitted in joint names, the missed payment would be ignored, but the default would be included and would place the applicants on the Credit Restore product range, which still offers competitive rates. The society does not make a lending decision based on credit score, it looks at each individual case on its own merits. An explanation would be required for the missed payment and default. The only consideration would that the LTV would be max 70%.

TOGETHER

These applicants could be accepted on our Prime range, as we accept up to three demerits in the past 12 months. On our Prime Plus range it would be a maximum of one in 36 months, so just outside the criteria. Although we would be unable to offer the loan at 90% LTV, we could provide up to 75% LTV if the property is of standard build. This is of course on as long as the applicant’s affordability and valuations are sufficient.

UNITED TRUST BANK

CASE TWO Joint application, uneven credit histories

A

couple earning £85,000 combined (£55,000 and £30,000) is looking to take out a mortgage on a £290,000 home with a 10% deposit.

One applicant has an excellent credit score, while the other had two missed payments on a mobile phone bill and a £1,200 default registered nearly two years ago. Lenders offering competitive rates have been unwilling to proceed due to the presence of the default on a joint application.

While affordability wasn’t a concern, the couple are questioning whether to apply in one name, which would limit borrowing power, or continue to face restrictions due to the adverse credit on file for the second applicant.

HARPENDEN BS

We have a Credit Repair product, but unfortunately this would not suit the clients because the maximum LTV is 70%. Once the default has been satisfied for three years, they will be eligible to apply for our standard residential product.

Applications for a 90% LTV residential mortgage require all applicants to have no CCJs or registered defaults above £300 within the last three years.

CASE THREE Expats returning to the UK

A

British couple returning to the UK after eight years abroad want to purchase a £500,000 residential home using a 15% deposit. Their combined income while overseas was over £150,000 per year, but they have only recently secured job offers in the UK. With no recent UK credit footprint and no payslips from UK employment, the couple fall outside many lenders’ criteria. While their overseas earnings were high, there is concern about affordability based on future UK salaries and probation. A lack of active UK bank accounts and credit records has further limited their options.

SANTANDER

Santander assesses all applications on a case-bycase basis, so picking up the phone to one of our → July 2025 | The Intermediary

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team will help prospective borrowers ensure they have explored all of their options. If a customer has recently returned from living abroad, and they held a UK bank account while they were overseas, we often find these customers will be acceptable.

Those that don’t will naturally find their options are more limited, but again, speaking to a broker can help you understand your options. It is always worth completing a Decision in Principle (DIP) as with the soft footprint on credit bureaus it allows you to understand whether the customer can qualify for a mortgage. Santander accepts applications from customers in all contractual roles. We will also welcome applications from customers who have secured a permanent role but are still in their probationary period.

WEST ONE LOANS

We can provide mortgages to applicants in their probationary period. However, while the applicants comfortably clear the affordability criteria (based on previous income), we require 12 months of residence in the UK along with two months’ payslips and an active credit file to consider the loan. Had they been in the UK for a year, we would likely help the applicants if they returned after completing two months’ employment and their new salaries meet affordability thresholds.

SUFFOLK BS

We’d welcome this application, but we’d need them to have started their new job, and to see a payslip prior to the offer being issued. The lack of a UK credit and footprint wouldn’t be an issue for us as we’re used to lending to expats. We would, however, need them to have a UK bank account for mortgage payments. Any applicable probationary period would be fine with us, if they’re in the same line of work.

BUCKINGHAMSHIRE BS

The society can consider this, but LTV would be restricted to 70% if they have not been back for three years. We would need to understand the new jobs that they have secured, if it is the same industry that they were working in while overseas, and if there is any probation. A CV history from the applicants would also be requested.

STAFFORD BS

For returning expats like this, we don’t rely on credit scoring, so a limited UK credit footprint would not be a barrier. We would need to see copies of their UK employment contracts, and can 62

The Intermediary | July 2025

assess affordability using confirmed future income.

If they are continuing in the same line of work, probationary periods may be disregarded.

TOGETHER

Together could support these applicants if they confirm they now reside in the UK, though they will need to have had continuous employment for 12 months and proof of job contracts with the first payslip provided. The probationary period will not be an issue, and if they can set up a UK bank account before the completion of the loan this can allow an active loan with us to pay the direct debit payments. Subject to satisfactory checks from their previous country of residence that their credit was in good standing, Together could look to support with a mortgage of up to 75% LTV.

CASE FOUR Single applicant with heavy student loan deduction

A

28-year-old teacher earning £36,000 per year is looking to take out a mortgage on a £185,000 flat at 90% LTV. Despite having no credit issues and a stable job, affordability calculations are tight due to large monthly student loan deductions and pension contributions.

This has drastically reduced the maximum borrowing potential for some lenders, leaving the applicant frustrated at the gap between what they thought they could borrow and what was actually offered.

WEST ONE LOANS

The loan meets our affordability criteria, and based on credit profile, the applicant will be eligible for our Premier 90% LTV product. However, we will have to assess affordability based on actual monthly expenses and loan repayments to provide a clearer answer as to whether or not we could assist in this case.

SUFFOLK BS

Based on the information provided we’d be able to consider lending 4.49-times income, and while we’d have to deduct the student loan, we ignore pension contributions. It would really be

B RO K E R B U S I N E S S Case clinic

down to the figures we came to after running the affordability calculator on this one.

BUCKINGHAMSHIRE BS

The deductions would need to be deducted as commitments in the affordability, but the society does not apply difference stress-testing across our products. The case would need to fit affordability, and the society will review three months of bank statements to ensure all commitments have been considered. The other option could be a JBSP mortgage if the parents are willing to help support affordability over a 5-year period.

STAFFORD BS

In this case, where the deductions are impacting net income, we focus on true affordability rather than income multiples. Based on our assessment of net monthly income and assumed living costs, the applicant could afford the required loan amount over various terms. We also check affordability under potential interest rate increases to ensure long-term sustainability.

TOGETHER

Together could look to support this applicant via our stated expenditure tools. When confirming initial outgoings our system will use ONS figures as a guide. If this falls below what is required, we could then look to use stated expenditure, whereby the applicant can confirm their actual outgoings with proof. This provides a more flexible view on if the loan is affordable, and we could look to get a maximum 75% LTV on their loan.

UNITED TRUST BANK

UTB does take into account any deductions on an applicant’s payslip other than tax and National Insurance (NI) contributions. This is not limited to pension contributions or student loan repayments.

This will reduce the useable income.

During the application process, they disclosed a historical County Court Judgement (CCJ) from five years ago which had been satisfied but did not appear on their current credit file. The declaration caused some lenders to request evidence and explanation, and some still considered it a risk factor, especially as the client had no formal documentation to prove it had been satisfied.

WEST ONE LOANS

This loan would be affordable based on loanto-income (LTI) multiple being under five-times income. West One also commonly assists in cases where the applicant has CCJs, and most of the time we can discount CCJs if under £500. However, this is a unique case, in that the CCJ does not show up on their credit file. We’d have to know why it does not reflect, with proof that the CCJ has been satisfied. If these are provided and satisfactory, we are likely to lend to the applicant.

SUFFOLK BS

An LTV of 90% is MIG territory, so we’d need to understand further regarding the CCJ – the amount, reason for the CCJ and the date it was satisfied. Due to our manual underwriting, if we were comfortable with this, we could take a view. We’d be looking to see if the credit history had been clean since; the fact the customer has declared this up front, despite not being initially clear on the credit file, builds trust. The maximum we’d lend would be 4.49-times income.

BUCKINGHAMSHIRE BS

The society can look to support, but the applicant would need to provide details as to why the CCJ occurred. The society has a number of options from 75% LTV to 95%, but if the applicant is looking for 90% the CCJ cannot have been outstanding in total in the last three years, with no other CCJ registered in the last two years.

STAFFORD BS

CASE FIVE Historical CCJ without formal documentation

A

n applicant earning £47,000 a year is applying for a mortgage on a £260,000 home with a 10% deposit.

While this CCJ no longer appears on the credit file, we would need full details before proceeding. As with any declared adverse credit, we would require documentation confirming the CCJ was satisfied and an explanation of the circumstances. Without this information, we could not proceed due to the unresolved risk.

TOGETHER

If the applicant has had a clear standing for the past 36 months, meaning the CCJ has been paid July 2025 | The Intermediary

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B U Y - TO - L E T Case Clinic

or resolved in this period, Together can look into offering them a mortgage on our lowest price product. We allow up to a maximum of three demerits, including CCJs, for applicants in the previous 12 months to qualify for certain products, so as long as all other credit history fell within this range we could look to support them with a mortgage up to 75% LTV.

UNITED TRUST BANK

UTB will ignore any historical CCJs over two or three years old – product dependent – regardless of when registered and the CCJ amount. We may seek clarification on the amount of the CCJ for our records. If it is an acceptable amount, no further evidence would be required.

CASE SIX Residential buyer on maternity leave

A

client earns £48,000 annually and is currently on maternity leave. She has applied for a mortgage to buy a home worth over £260,000. She has employer confirmation of her return-to-work date, but her current income is based on statutory maternity pay. Some lenders won’t assess future affordability based on post-maternity salary, while others require written confirmation of full-time return and job security.

WEST ONE LOANS

We will be able to help the applicant on the following conditions: they will need to provide a letter from their company’s HR stating the date of return (must be within six months), a confirmation of her role, and employed income upon return to work. While she meets the affordability criteria based on previous annual earnings, we will require a second applicant, such as a partner or spouse, to consider the mortgage.

SUFFOLK BS

We’d work using the applicant’s return-to-work salary and hours, their pay, and their start date.

We’d also need evidence of savings, or how they intended to cover any shortfall in income while on maternity leave. Maximum lending would be 4.49-times, so slightly short of the required loan 64

The Intermediary | July 2025

amount, but we’d work on the £48,000 if that’s what they’re returning to.

BUCKINGHAMSHIRE BS

The society would need to understand when the applicant is returning to work and what terms they will be going back to. If the applicant is not due to return within the next three months, we would need to see what savings they have to help support if they were not to return. The society could consider a joint borrower sole proprietor mortgage if the parents are able to support, to help with the affordability while the applicant is on maternity leave.

STAFFORD BS

For applicants in a situation like this, we’re happy to assess affordability based on their confirmed return-to-work income. We would ask for a letter from the employer confirming the return date and the expected salary, including any agreed change in hours. If childcare costs will apply once back at work, we would also factor those into the affordability assessment.

TOGETHER

Together would calculate her income based on what she received at the time of completion. If this was statutory maternity pay, we could use this on the affordability calculation. If a return-to-work date was set, with the first payslip received before completion, Together could use the normal salary income. This would be to protect the applicant’s affordability during the time of the new loan just in case they were not to return to work for any reason. While Together could not lend 90% LTV, we could potentially help with 75% LTV.

UNITED TRUST BANK

UTB will require a letter from the employer confirming when the applicant is due to return to work full-time post-maternity leave, and the returning salary. We will then assess the remaining length of maternity leave, and the income received in that period. For full salary to be considered to support affordability, the applicant will need to have already returned to work full-time, otherwise we will only use the lowest income received in the current period before returning to work.

In some cases, there may not be any useable income to support the application if the applicant exercises months nine to 12 of maternity with no pay from the employer and no statutory pay.

However, if there are sufficient savings to cover the full salary that would be received, we may still consider using the full salary. ●

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B RO K E R B U S I N E S S Opinion

Change your life, not yourself

A

er 20-plus years of helping brilliant people grow, here’s my professional opinion: most leaders don’t need fixing — they need permission to become themselves. Coaching will change your life, but if done well, it won’t actually change you.

We spend much of our professional life hearing feedback about what we need to change, do more of, and aspire to. My clients can always reel off their weaknesses, their faults and their mistakes, but can be much slower to respond to the question, ‘what are you like at your very best?’

When coaching, I have absolutely no interest in what is perceived to be ‘wrong’ with you. I’m only interested in your potential to be more fully yourself. I work with leaders, from the inside out. Once you have greater understanding of what makes you tick, you are be er positioned to encourage, manage or lead someone else especially when they are very different from you as most people are, even if you appointed them in your own likeness.

My insights are derived from the enormous cannon of work produced by positive psychology. It may at times sound like motherhood and apple pie – and what exactly is wrong with either of those things? – but the research underpinnings are profound. Playing to your strengths causes engagement, which in turn contributes to success, wellbeing, health and happiness. Who would not want all that? Yet people o en deviate far from the activities that drive them.

So, I always start by establishing strengths. I ask a client to reflect on the last time they believed they were performing at their best. I always hope they talk about something that happened yesterday, but all too o en they reach back into their history. We then go through and pick out every

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strength, from the blindingly obvious to the seemingly trivial. They begin to take pride in an achievement that they previously took for granted.

We begin to build up a blueprint of unique strengths. From there, we can detect the pa ern that shows us their five or six signature strengths – characteristics which run through them like a stick of seaside rock. Then we examine how much they are currently using each strength professionally.

Job satisfaction As people advance through their careers, they risk finding themselves increasingly distanced from their core strengths. Seniority seems to demand different skills from them. They fit in, toe the party line and become less authentically themselves. They become concerned about minimising error and not revealing their weaknesses to the world.

As a result, work becomes less engaging and satisfying. Research tells us that for someone to be engaged they must be able to use their strengths, and that achieving ‘flow’ illustrates the level of engagement and consequent satisfaction.

We o en have to explore ways of using their strengths in novel ways to enliven their careers. Sometimes it’s a side project, and if all else fails, taking up an activity outside of work to activate their particular strengths.

For some, it means reconsidering their career trajectory.

This scenario is different for everyone. I have had a finance director describe a state of near rapturous flow while engaged in creating the perfect spreadsheet. Another talked about time standing still as they painted a picture of the future in a presentation to the whole company.

You are much more likely to get into that desirable state of ‘flow’ when you are using your signature strengths. In flow, you can lose all sense of time as

AVERIL LEIMON is co-founder of White Water Group

you are caught up in an activity where the challenge and your strengths are perfectly aligned.

When faced with a new and demanding situation, there is only one fallback position – play to your strengths. Because let’s face it, this is all you’ve got. Through coaching, we get back to establishing what makes each individual unique, and how they can be fully authentic at work. We also look at how strengths can sometimes get you into trouble, especially if overused.

Working with a board of directors, we did a ‘hot seat’ exercise where people took turns to say what they most admired and what they found most difficult to deal with in the other person. One chap was proud of his sense of humour, which he used to great effect o en to defuse tricky situations. In turn, his peers cited this as the thing they found hardest to deal with. It wasn’t a flaw. It was just that sometimes even as they laughed, they realised his rapier-like wit had, in fact, maimed them.

Coaching isn’t about adding more.

It’s about removing the fear that stops you showing up, debunking the erroneous beliefs that suppress your best self, and taking stock and reigniting your passion for what you do. ●

WA R N I NG , S I D E E F F E C T S M AY I NC L U D E : Stretching yourself by taking on new projects that activate those strengths.

Saying no to nonsense (politely).

Le ing go of the Overthinking Olympics.

Finally realising you are your best self.

B RO K E R B U S I N E S S Opinion

Buzzwords to authenticity: Close the comms gap

F

our in every five (81%) communications professionals believe they are doing a great job communicating with their internal and external audiences. Even when it comes to complex issues, 61% claim they excel. That’s according to a piece in Corporate Affairs Unpacked.

So far, so good. The problem is that communication professionals have an inflated opinion of themselves.

We know this, because only 39% of their audience agree with these comms professionals. In other words, the majority of the target audiences don’t know what these leaders are trying to say. Their messages aren’t breaking through.

What does this mean for leaders in the mortgage industry? A er all, in an industry built on trust, where borrowers are a empting to navigate complex financial decisions – and employees are seeking clear direction – this gap is a red flag.

Bin buzzwords First, rather than ignoring comms or treating it like advertising’s poorer cousin, they need to address the disconnect. I’d suggest that they start by ditching the marketing speak and management consultancy jargon.

It’s time for leaders to bin the buzzwords and speak plainly.

Mortgage borrowers and staff want human connection, not corporate platitudes. Leaders need to stop ‘boiling the ocean’, ‘circling back’ and ‘thinking outside the box’ – in fact, ‘going forward’ they should consign all that to the bin. The research backs this up: 77% of those polled say these cliches are overused.

It sounds obvious, but when it comes to corporate communications,

audiences just want you to speak like real people. They’re not automatons.

Not yet, anyway.

Second, display more empathy.

Audiences want it. If leaders are delivering news that might be difficult to hear, they should acknowledge that at the outset. Employees would like to see a boss who is more human.

But there’s a balance to be struck.

Think back to lockdown. CEOs were alive to the challenges faced by their employees. They were empathic.

Many issued regular updates on the business. Some shared their personal stories. We caught glimpses of the boss’ home (nice, wasn’t it). Employee engagement rose. CEOs really did lead. I remember being genuinely proud of the mortgage industry.

We may be back in the office three days a week, but audiences still want that authenticity. As international comms firm We, puts it – “your audience wants a face, not a logo.”

Third, when appropriate, more than half (52%) of those polled said they like leaders to use humour, and more than two in every five (44%) like unscripted or off-the-cuff briefings.

I am quietly confident this is the secret of Trump’s appeal in the US – his off-the-cuff stand-up routines contrast with polished, if bland, speeches read from a prompter of his rivals.

Fourth, ensure marketing claims are backing up with facts. Without proof points, a cynical audience will simply say, ‘I’ll be the judge of that’.

Too o en, claims are backed up by other claims. Try to use real-life case studies to bring these messages to life.

Fi h, actively seek feedback to help close the perception gap. Leaders within the industry could proactively gather input through surveys, focus groups, or informal check-ins to

JAMES STAUNTON is director at bClear Communications

understand what’s landing with audiences and what’s not.

This feedback loop ensures communications evolve to meet audience needs, fostering trust and clarity. Leaders might also consider listening to communications professionals when they try to advise organisations not to try to pass off marketing copy as hard news.

Ignoring feedback risks failing to bridge the gap in an industry where connection is paramount.

Communicate for change Industry leaders within the UK mortgage industry must seize this research as a catalyst for change. The stark disconnect between what firms imagine they are delivering and what audiences are taking away from their content demands a strategic rethink.

Ditching jargon and embracing plain, empathic language is essential.

Audiences like borrowers, brokers, and employees deserves top hear a human voice – not corporate noise.

The successes of lockdown comms, where authentic leadership boosted engagement, proves this approach can work – sustaining it in today’s hybrid workplace is non-negotiable.

Leaning into unscripted moments, and not being afraid to demonstrate a sense of humour, will help. And backing marketing claims with solid facts and real-life case studies will build trust and credibility.

By embedding authenticity, empathy, and evidence-based communication into their strategy, leaders can bridge the communications gap, strengthening relationships. ● July 2025 | The Intermediary

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M E E T T H E B RO K E R

Meet The Broker The Mortgage Atelier Marvin Onumonu speaks with Sonya Matharu, mortgage adviser and founder of The Mortgage Atelier Tell us a little bit about yourself – what made you become a broker?

I didn’t originally set out to become a broker, it sort of unfolded naturally.

I was working in a brokerage and found myself fascinated by the work.

Every day, I was learning something new, and I remember thinking, ‘I could really see myself doing this’.

But what ultimately drew me in were the clients. I’d hear them say things like, ‘If I’d known this earlier, I would have made different decisions’. It stuck with me just how much people’s financial choices impact their lives, their futures, and how often those decisions are shaped by a lack of knowledge or access to the right support.

I kept thinking, ‘This is wild, we’re not taught any of this growing up, and I’m only learning it because I happen to be in this role, in this environment’.

That’s what pushed me to become a broker. I didn’t just want to understand the process; I wanted to use that knowledge to genuinely help people make better-informed, more confident decisions.

What is something outside of work that people might like to know about you?

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Jadakiss. I’m absolutely hopeless with anything new, but give me something timeless and I’m all in.

The same goes for films. I’m one of those people who’ll rewatch old classics over starting anything modern. There’s just something about the style, the pace, and that unspoken elegance.

What would you say sets The Mortgage Atelier apart from other firms, and how does it support its clients?

The Mortgage Atelier is really everything I felt was missing when I first stepped into the industry. I didn’t want to create a firm that just did the job. I wanted to build an experience that felt calm, personal, and genuinely client-led. From the way we speak to clients to how our emails look and how onboarding flows, everything is designed to reduce stress and create space to think clearly.

Our client base is incredibly diverse, and the goal from day one has been to create something that feels human and welcoming, where no one’s afraid to ask questions or say, ‘I don’t understand’. That might mean tailoring the way we communicate or spending more time up front to really understand what matters to someone.

Something unique to how we work is how much attention we give to the emotional side of the process.

We don’t treat the mortgage as a

standalone task. Getting a mortgage is a huge decision, often at a huge life moment, and we want clients to feel supported from the very start.

That’s why we often hear from people who aren’t ready to buy just yet – they want to understand what steps to take, and they know they want us alongside them when the time’s right.

What are the main opportunities in the market for brokers?

One of the biggest opportunities right now is connection. So much of the process is automated now, but I’m hearing more and more from clients who say they don’t want another app – they want clarity, trust, and a real conversation.

That doesn’t mean tech isn’t important. It should absolutely make things easier and smoother. But it can’t replace the human part.

People still want to feel seen, especially when they’re making one of the biggest decisions of their lives. So, if you can show up, listen properly, and guide someone with care, you’ll always stand out.

What are the main issues currently affecting the sectors in which you operate?

One of the biggest issues right now is information overload. Clients are more informed than ever, which is

M E E T T H E B RO K E R

a positive thing, and something I actively encourage.

But the challenge is nuance. A lot of advice is being pulled from social media, headlines, or generic content.

While well-intentioned, it can lead to confusion, hesitation, or even missed opportunities.

areas. They can translate internal processes, provide crucial context, and help find solutions that systems alone can’t offer. That context is so important, especially when you’re trying to manage client expectations and keep the journey as smooth and transparent as possible!

In what ways could lenders better support brokerages?

How important is diversity in the industry, given your personal experience?

One of the biggest things lenders can do is protect the role of the business development manager (BDM). That relationship isn’t just a nice-to-have; it’s essential, and when BDMs become harder to reach or that personal connection is removed entirely, it has a real knock-on effect on service, trust, and even turnaround times.

A strong BDM relationship means having someone who understands how you work, what your client needs, and how to navigate the grey

It’s incredibly important.

Representation matters, not just for people entering the industry, but for the clients we work with every day. And not just when it comes to ethnicity. We need better representation across the board: neurodiversity, disability and health.

All of it.

I’m part of groups like the Diversity and Inclusivity Finance Forum (DIFF) and Intermediary Mortgage Lenders Association (IMLA) because I believe

education moves things forward, and visibility makes space for others, but that kind of work only really matters if it filters through to the everyday.

Allyship doesn’t need to be loud.

It’s in the small things; listening properly, asking better questions, making space without needing credit for it. That’s how change lasts.

Do you have a final message or thoughts?

We’ve got a few things quietly in the works! New ways to support clients earlier in their journey, and some plans to grow in a really considered way. But true to how we’ve always done things, we’re taking our time and doing it properly.

If there’s one message I’d leave people with, it’s this: you don’t have to have it all figured out to start asking questions.

Whether you’re a buyer, a broker, or somewhere in between, there’s power in simply starting the conversation. ● July 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Blueprint for a new generation of mortgage advisers

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n aging broker population coupled with high barriers to entry for newcomers has created a recruitment challenge that requires immediate solutions. This isn’t just about bringing new people into the sector, it’s about supporting the experienced, skilled advisers already working within it to take the next step.

Many of today’s most promising advisers are employed and thriving in their roles, but they lack the confidence, clarity, or support to make the leap into self-employment and build their own businesses.

Unlocking this potential is one of the biggest opportunities for the sector. It demands a more deliberate, supportive approach from firms and networks alike.

Breaking barriers For too long, the industry has struggled with a lack of visibility as a desirable career path, with many professionals admi ing they ‘fell into’ the role rather than actively pursuing it. This, combined with a lack of training routes for those who have the ambition and aptitude, but not the qualifications, has created a bo leneck for fresh talent.

The industry must shi from being a passive recipient of talent to an active cultivator. This requires a deliberate, multi-faceted strategy focused on lowering barriers, providing robust support, and showcasing viable longterm career paths.

But this is not all. If the industry is to thrive, we must offer ongoing support for sustainable development within the pre-existing industry.

This is where self-employment comes in. An appealing, viable, and

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BEN ALLKINS is head of mortgages and protection at Just Mortgages

o en fruitful step brokers can take to progress in their careers and maximise their potential.

Taking the leap Despite the appeal, many advisers are hesitant to step away from the security of an employed role. That o en stems from uncertainty – about earning potential, how to build a pipeline, or simply about what daily life as a selfemployed broker really looks like.

With the right tools, safety nets, and mentorship programmes in place, the transition from employed to selfemployed can be not just manageable, but empowering.

Financial uncertainty is probably the biggest barrier. Without a steady salary, the early months can be daunting. At Just Mortgages, we launched ‘New Starter Boost’ to address this issue. The combines access to pre-qualified leads with an interest-free commission advance.

Initiatives like this are vital as they de-risk this transition, allowing new advisers to focus on building their client base and finding their feet without immediate financial pressure.

It’s not just about financial support; it’s about visibility and reassurance.

The industry must do more to demystify the role of a self-employed broker and the pathways into it.

Informal, pressure-free events where prospective advisers can engage discretely with experienced professionals and support teams – honest, practical insight life as a selfemployed broker can only benefit the broker population.

Grow, develop, retain Once advisers make the move, the priority becomes sustainable, long-term growth and ongoing professional development.

At our recent Lender Fayre, Just Mortgages saw record demand for our licence qualification courses covering areas like commercial advice, equity release, and business protection. This is evidence that existing advisers want to deepen their expertise and offer more to their clients.

When networks invest in development and qualifications, they don’t just strengthen individual careers, they raise standards across the entire industry.

Self-employment doesn’t mean being boxed into one path. The skills developed as a broker – like regulatory understanding, client care, business development – open the door to a range of future roles.

Some advisers go on to become business principals, building and mentoring their own team, while others become area directors.

Others can move into specialist roles across compliance, training, or marketing, using their hands-on knowledge to shape the infrastructure of the industry.

Supporting that kind of progression builds both loyalty and leadership, two key components of business success.

The industry is facing an intensifying recruitment drought, but it is also si ing on a huge opportunity – a pool of talented, motivated advisers. By offering structured, practical routes into self-employment, while continuing to invest in adviser development, the sector can unlock this potential.

The future of mortgage advice isn’t just about recruitment. It’s about cultivation, confidence, care, and creating the conditions for success. ●

B RO K E R B U S I N E S S Opinion

Not all networks are created equal

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here’s a saying I saw the other day in another network’s recruitment e-mail: ‘Is the grass greener?’ It made me laugh, because it reminded me of something my mum used to say: “Doesn’t ma er how green the grass is, you still need a lawnmower to cut it.” And honestly, that’s the crux of it when it comes to network membership.

I’ve been in this business long enough to know that what’s on the brochure, e-mail or advert is rarely the full story. So if you’re directly authoriased (DA) thinking about becoming an appointed representative (AR), or an AR thinking about switching networks, let’s talk honestly about what really ma ers, and what might be hiding in the ne les.

A lot of networks are very good at shouting about what they offer, but too o en they’re shouting about the basics. Things that any decent service provider should be doing anyway, such as compliance support, systems access, maybe a shiny welcome pack.

What they o en fail to mention is what happens if or when you want to leave. You won’t usually hear upfront that your pipeline will be frozen for three months. Or that you’ll be charged for something called ‘run-off PI cover’, which doesn’t even apply to firms trading under a network’s umbrella. Or that exit fees are structured in a way that makes you wonder if anyone’s read the relevant law. If an exit fee isn’t a genuine reflection of loss, then what is it? A penalty for changing your mind?

That’s not the only place networks can make money off firms in ways that aren’t obvious. There’s a long list of costs that are o en buried in the small print: technology access, system licences, compliance file check charges, marketing levies, ongoing ‘support’ charges that don’t always translate into support, and upli s on

PI or Financial Conduct Authority (FCA) contributions. Firms may be told ‘no monthly fees’, but are rarely given a clear annual figure. O en what they end up paying is stitched together from five or six smaller, labelled costs.

It’s death by a thousand line items, and new firms in particular are the ones that get caught out.That’s why reading the full contract ma ers.

What happens when you leave? How long is your pipeline frozen for? Are you locked in for 12 months even if the service is poor? Is the commission you’ve earned yours, or subject to a clawback you didn’t expect? And if the network changes the contract mid-term, do you have any right to walk away without being fined? These are questions you deserve answers to before you sign, not when it’s too late.

Then there’s the issue of loaded premiums. Some networks push firms – subtly or not so subtly – to put clients on inflated protection or insurance premiums in order to hit network revenue targets. Others limit your ability to offer commission sacrifice or rebate to the client which, under Consumer Duty, seems very hard to justify.

Day one support If you want to do the right thing for your customer but find yourself blocked by your network’s commercial arrangements, then something’s gone wrong. Yet this is rarely mentioned in the recruitment conversation.

We’ve also seen some worrying trends around commission structures.

I was told recently, ‘We pay 100% of the first-year premium in protection commission.’ Sounds great, unless someone mentions that providers pay 200% of first year premium, with a two- or four-year clawback period.

No monthly fees? That’s nice.

But what about annual ones? Or onboarding costs? Or network charges that kick in only once you’re

AMANDA WILSON is strategy and development director at The Right Mortgage & Protection Network

commi ed? Selling the dream and slipping in the fine print later isn’t business, it’s a trap.

We do things differently. Not because it’s a flavour of the month but because we started this network with one goal: put advisers first. A er years in the sector, we learned what worked and what didn’t.

We made a choice to never sell out, especially to a corporate, to treat advisers as customers — not just numbers – and to build systems and services that support real growth, not control it.

When people say we are a cradleto-grave proposition, they’re right.

We support advisers from day one, through career progression, all the way to retirement, with real planning, real conversations, and a clear exit path that doesn’t punish them for moving on when the time’s right.

The firms that thrive in our network do so because they feel supported, respected, and trusted. They’re not afraid of asking tough questions, and neither are we in answering them.

So, if you’re being courted by a network promising the world, ask what happens if you decide it’s not right. Ask about exit terms, pipeline rules, PI cover, commission restrictions, premium structures, and the actual cost of doing business. Ask to speak to firms already inside and find out what it’s really like.

If you don’t get the answers you want and need, then just message me. I’ll tell you straight. Because not all networks are created equal, and choosing the wrong one could cost you far more than just your independence. ● July 2025 | The Intermediary

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T E C H NO L O GY Opinion

Modern lending platforms will be invaluable

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he mortgage market has undergone a profound transformation 2008, largely thanks to strengthened regulations designed to protect consumers and ensure market stability. Now, the Financial Conduct Authority (FCA) is proposing a fresh round of reforms through its Mortgage Rule Review (MRR). The direction of travel is towards a less onerous review of affordability at certain points in the process, particularly in areas such as term reductions and remortgage.

Ultimately, the conversation is steering towards a higher proportion of refinancing decisions being made on an execution-only basis. Leaving to one side the important consideration of advice needs at this juncture in a borrower’s journey, a change of this nature could reduce compliance costs and operational burdens for lenders.

It may well be a welcome prospect for lenders looking to maintain competitiveness in a market where speed and convenience increasingly drive customer choice.

However, simplification does not mean deregulation.

The FCA will be watching closely to ensure that lenders are on top of customer outcomes throughout their contracts. It will require systems that can rapidly assess borrowers against new criteria, integrating data from various sources, such as credit referencing agencies, and potentially even income verification via tokenisation under the Open Banking framework in future. Modern lending platforms with artificial inrtelligence (AI) or data analytics capabilities will be invaluable here.

The fight for market share also means that lenders need systems that scale easily and allow staff to prioritise

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cases which need intervention by specialist teams efficiently. Cloudbased platforms with flexible capacity can handle these fluctuations be er than legacy systems, many of which cannot even throw up a sufficient number of customer data points, let alone make sense of them.

Clear communication with customers is also crucial, especially when dealing with larger volumes of execution-only business. Lenders will need platforms that support automated, personalised messaging which explains product features and the potential risks associated with them. Post-transaction confirmation and ongoing reviews will become the paradigm to ensure compliance and good customer outcomes.

There is an added commercial consideration for lenders here, already visible in today’s market: pricing competition. To a large extent, the MRR proposals are likely to intensify competition in the mortgage market even further in order to maintain or grow market share.

Time is now This is not just a future that sits years down the line. We are here, now. For lenders the message is clear: adapt and innovate or risk falling behind. What ‘behind’ looks like will differ, but there is every chance it could mean balance sheet consolidation for smaller lenders across the market.

Despite the challenges, the MRR presents lenders with some strong strategic opportunities. Techsavvy consumers are crying out for a straightforward application experience, with many experienced borrowers keen to refinance without going through a fully advised process.

Moreover, lenders that embrace transparency and customer

JERRY MULLE is managing director at Ohpen

empowerment are likely to build stronger relationships and loyalty in a competitive market. By making it easier for customers to interact digitally with their mortgage accounts, lenders could also be more proactive in positively managing those who fall into arrears – key under the Consumer Duty. For those smaller lenders currently vulnerable to being forced to consolidate, this should be a key strategic priority.

The regulator has every intention of keeping pace with a rapidly evolving market environment. Its wants not just to protect consumer interests, but to actively make it viable for market players to improve their experience.

Streamlining compliance and expanding execution-only offerings promise efficiency gains. Traditional, paper-heavy processes won’t cut it.

Lenders must invest in user-friendly interfaces, automated workflows and self-service portals that can flex as the market does.

Balancing this with responsible and ongoing affordability review must underly any platform decisions lenders make now, particularly bearing in mind the Consumer Duty rules, and where customers may become vulnerable.

Many of the largest mortgage providers are already adapting product design and advice processes to support a range of refinance choices. Lenders will be under close scrutiny to ensure they deliver positive outcomes, not just improved processes.

Those who invest wisely in tech will not only comply, but gain competitive advantage by offering more flexible, transparent, and efficient services. ●

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Advertise with The Intermediary and reach 12,000 current and next-generation property finance business leaders.

With commercial opportunities spanning print, digital and events, The Intermediary has a multitude of creative channels that can deliver your marketing message to the people that matter.

Contact Brian West on BRIAN @ THEINTERMEDIARY.CO.UK to discuss how The Intermediary can help your business achieve its goals.

theintermediary.co.uk

T E C H NO L O GY Opinion

I

n today’s highly competitive mortgage and savings markets, retaining existing customers has never been more important. For lenders, it is fundamental to controlling costs, protecting balance sheet strength, and ensuring the longterm sustainability of the business.

While all lenders know this in theory, finding efficient ways to ensure they achieve it in practice can be challenging. For building societies and mid-tier lenders, the issue is particularly pressing – the high street banks can lend at such scale, they can price their cleanest criteria at rates below base.

This leaves lenders without this scale to fall back on with a strategic choice: many choose to offer customers value in the form of service and flexibility on criteria. For building societies especially, there has been a long tradition of offering personal service both face-to-face and over the telephone. It allows customers to ask questions, bypassing the irritation often experienced by borrowers trying to deal with larger organisations that rely on call centres and triaging customer service.

Now, however, we are at a moment in time where there are decisions to be made about how this service needs to evolve. Almost everyone in the mortgage and savings industries is fully on board with the idea that digitalising processes is a case of ‘when’, not ‘if’.

We recently commissioned some independent research into how the mutual sector is approaching these challenges today, and plan to publish our full findings later this summer. For now, I can share

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some of the consistently held views gathered so far.

Despite the obvious advantages, it seems there is persisting cautiousness to overhaul origination and servicing platforms in parts of the market.

Accepting the enormous benefits it can offer, the scale of the task of modernising bank and building society platforms and systems is impossible to overplay. Legacy programming dates back over four decades for some lenders. Customer files are collated in numerous ways, in numerous systems. The cost, the risk and the time it takes to upgrade or replace old processes remains daunting for some.

Nevertheless, through carrying out this research we found a tangible appetite for change, especially among tier two mortgage lenders. The large high street banks have been able to invest in new technology earlier, though still must contend with a plethora of legacy systems. Now, the market is seeing a wave of mid-level building societies embrace cloud-based offerings – either upgrading across the board or taking advantage of some of the more flexible plug-and-play options on offer.

For example, we recently announced that the Cambridge Building Society is our first customer to adopt and go live with its new mobile-first onboarding app for savers, a solution we launched in February this year.

The fully customisable mobile app is designed to tackle the common pain points of savings onboarding,

HAMZA BEHZAD is business development director at Finova

reducing manual handoffs and customer dropouts, enabling savers to open accounts in just a few minutes. By combining onboarding and in-life account management within one platform, the Cambridge is empowering its customers with a seamless, end-to-end digital experience.

On the mortgage side, self-service product switching solutions that cater to both customers and brokers acting on their behalf are an increasingly popular approach to upgrading systems for business growth while minimising operational risk.

We’re working with several lenders to integrate our newly improved retention portal, fully powered by our SaaS banking originations platform, to streamline the mortgage switch journey for existing customers who are approaching the end of their fixed-term deal.

While upgrading back-end systems is essential, customer-facing tools like

T E C H NO L O GY Opinion

mobile apps and online portals are equally critical. These platforms play a vital role in maintaining ongoing engagement, especially in the savings market where customers interact more frequently.

Savings customers may log in to check maturity dates, transfer funds, or manage savings goals – all of which help build a consistent digital relationship. When lenders offer tools like in-app goal setting, crossaccount payments, live chat support, or personalised product nudges, they not only increase retention but also elevate their position as trusted financial partners.

Mortgage and savings products often go hand-in-hand – and institutions that treat them as part of a coherent, digital-first customer journey will be better placed to deepen loyalty and drive lifetime value.

Balance sheet size matters A number of factors are driving lenders’ decision to invest in technology now, with broader regulatory and systemic shifts creating an even stronger argument to encourage borrower retention.

The Prudential Regulation Authority (PRA) has powers under the Building Societies Act to direct societies to merge if it considers it necessary to protect members’ interests. The Global Financial Crisis of 2007-8 offers a stark reminder of what happens when balance sheets weaken – numerous societies were forced into mergers. More recently, the wave of consolidation has

continued, with Coventry Building Society acquiring the Co-operative Bank and Nationwide acquiring Virgin Money.

Customer value Retention also plays a crucial role in delivering fair value to customers – something now firmly embedded in regulatory expectations under the Consumer Duty.

Supporting customers at the end of their deal and offering them competitive retention products is part of delivering on this duty.

Systems that provide customers with a slick interface to choose a refinance route that suits them are a big draw for borrowers – especially those with the confidence to selfselect, having gone through the remortgage process in the past.

Broker benefits Following the Financial Conduct Authority’s (FCA) Mortgage Rule Review (MRR) consultation proposals, there has been a lot of back and forth on what the future holds for advisers in a world where execution-only transactions are made easier.

However, through conversations with various building societies – both large and smaller – it’s very clear that intermediaries will remain a crucial partnership for lenders post MRR. Indeed, what matters to lenders at the point of refinance is that customers

have a choice. The Intermediary Mortgage Lenders Association (IMLA) predicts that broker market share will rise from 87% in 2024 to 91% by 2026.

Many lenders are responding by ensuring that their retention processes work just as well for brokers as for borrowers.

Appetite for change Our research found that midtier lenders overwhelmingly see upgrading by adopting cloud-based platforms as essential to supporting retention. Ultimately, this is about more than technology or cost-saving.

It is a cornerstone for how lenders can deliver long-term value, maintain their independence, and continue to serve their members and customers effectively.

As competition intensifies and regulatory expectations rise, those lenders that can combine smart technology investment with a genuine focus on customer value will be best placed to thrive. Retention isn’t just good business sense, it’s vital to the future of the sector. ●

July 2025 | The Intermediary

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T E C H NO L O GY Opinion

AI advice?

Bring it on

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here’s been a lot of concern raised recently, not just within our industry, but across the board regarding artificial intelligence (AI). It seems the shift has gone from ‘will it take over our jobs?’ to ‘when will it take over our jobs?’

I’m fully aware that many individuals will be asking apps like ChatGPT to answer their mortgage related questions, or even to steer them towards a specific lender or product.

Even a simple Google search no longer brings up the top websites or news pages to refer to and look for an answer to your question – no, it’s now an ‘AI Overview’ that takes up the majority of the page. But fear not!

There’s a small print at the bottom that says ‘AI responses may include mistakes. For financial advice, consult a professional’. I wonder how many people are reading that?

What I think this potential AI overthrow is going to do to the industry is cause more panic, resulting in knee-jerk reactions. Will we start seeing more brokerages adopting an AI model? We’ll likely see more apps coming to smartphones where you can get ‘advice’ in a heartbeat and choose the product that suits your specific needs.

Lenders are also trying to adopt it for faster underwriting – even reading income documents, bank statements and, most worryingly, official identification documents.

So far, I’ve probably sounded fairly negative regarding AI integration in the industry, which will seem to contradict the article title. So, let me explain.

I actually welcome AI advice.

Brokerages implementing AI to guide clients – and eventually provide recommendations – sounds great. Think of the costs those brokerages can cut.

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Imagine how many will be doing it!

It’ll become the ‘new normal’.

That right there is why I welcome it. Let it be the ‘new normal’. Let brokerages all do the same thing; implement this tech, sign up with newly formed tech agencies who not only charge you thousands for lead-gen but also want you to upgrade your tools, customer relationship management (CRM), back-office, website – the list goes on. That’s fine by me.

The reason I welcome it is that finally the firms that are truly focused on outstanding client service – working hard to reach deliverable solutions, building extensive knowledge to be able to face any question with confidence and realworld experience – will then become the niche.

They will be the ones that get the clientele who want a service where they’re not just pushed towards a lender or a product, but educated along the way, who want someone who understands the process and the fundamentals of why a certain option is best now and in the future.

Those brokerages will become fewer. The market will actually become less saturated, and those who are left will be distinguished as the true advisers who want to make a

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

lasting impression and difference to every client they speak to.

That is where those brokers will get true clients for life. They’re unlikely to have to be haggled on a fee as they haven’t been undercut by other brokers who claim they offer the same service. Now, the service provided by the firms – and brokers who truly love what they do – will shine brighter than ever. The love for advice in the industry will grow again.

Eventually, we will then see the importance of human-to-human liaison in such an important part of life. People will continue to recommend human advice to others.

They’ll share the knowledge picked up by these exceptional firms and brokerages who care so deeply about their clients, and eventually, the demand will rise again.

The knee-jerk reactions will eventually falter, and true advice will become the absolute gold standard in financial services again.

So, yes, AI – bring it on! And, for the record, this article was written entirely by a human. ●

As AI becomes more integrated, the value of human advice is set to stand apart

T E C H NO L O GY Opinion

AI’s distant promise

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he key challenge facing technology companies looking to introduce artificial intelligence (AI) has always been the ‘black box’ characterisation of the technology.

Given the inherently opaque nature of machine-learning algorithms, isn’t AI effectively excluded from providing financial guidance?

The imperative to produce coherent logic underpinning every step of a decision has meant that the answer to this question has historically been a categorical ‘yes’ – it is excluded. That is, until now, according to some in the fintech space. They say that, thanks to AI’s rapidly evolving capabilities, this exclusion is fast becoming obsolete.

Apparently, AI has perfected the collation of exhaustive time-stamped, tamper-proof and minutely detailed digital logs. Every customer step is traceable via inputs, logic, and outcomes, accountable via tying decisions to data and goals, and auditable via time-stamped records.

On request, it is said to be capable of producing a PDF showing each step of a client’s journey, with raw data streams exportable as a CSV. An application programming interface (API) for regulators might even allow decisions to be interrogated – for example, ‘why was that particular loan selected?’

Automation to autonomy Combine this with so-called agentic AI – where autonomous AI makes decisions and takes action on behalf of users – and, the argument goes, you have a massive game-changer in the years ahead.

Unlike traditional AI, agentic AI can set goals, plan, adapt to changing conditions, and execute complex tasks independently. It’s an AI with initiative, capable of reasoning through problems to produce an ideal outcome.

In theory, this allows the optimal selection of a product that arguably meets all customer care concerns. A user can ask an agentic AI platform, for example, to source the best value £20,000 loan to expand their business.

It would analyse the request to identify key needs (£20,000, business expansion, ‘best’ loan), prompt for preferences (fixed or variable rate, term), gather data (bank accounts, credit scores, and business financials, all with consent), and search eligible loans, running a cost/benefit analysis on each.

An optimal loan would be selected, and the application paperwork automatically completed, including all required financials. The intermediary would then present the consumer with the suggested loan for electronic signing.

Promise versus practice But the key words in all the above are ‘in theory’. Despite the impressive potential that is outlined, there are no platforms currently in existence – or near to existence – that deliver anything like what I have just outlined. Some providers might be utilising elements of AI, but few, if any, are actually doing so to an extent that amounts to much.

There is a good reason for this yawning gap between what could be and what actually is – to many, the downside risks still outweigh the potential benefits.

Technology providers know that over-dependence on autonomous systems cuts human oversight, and that this can lead to biases embedded in algorithms that disadvantage or even exclude certain demographics. Errors or biases in AI systems might lead to regulatory breaches or financial harm, raising questions about accountability and liability claims.

Even if a qualified adviser remains acting as an intermediary, sceptics

DAVID WYLIE is commercial director at LendingMetrics

Given the inherent risks [...] the road to AI is going to remain long and probably heavy going”

argue that any AI means consumer agency is subverted, and an AIdriven decision is no guarantee of ‘best outcome’.

On paper, the win for consumers is optimal product, freed time and reduced paperwork. For the industry, it’s more loan approvals, reduced fraud and default rates.

But, understandably, UK regulators remain cautious. They describe themselves as ‘pro-innovation’ and point to engagement with industry through the AI Consortium and the Financial Conduct Authority’s (FCA) AI Lab and Digital Sandbox, however, progress has been far from rapid.

There is no AI law currently in place in the UK, and Labour’s recent move towards EU re-alignment might mean us adopting the EU’s restrictive AI Act at some stage.

Caution ahead The bottom line is that, given the inherent risks and the absence of a clear stance from UK Government and regulators, the road to AI is going to remain long and probably heavy going.

The type of all-singing-and-dancing AI platform that we might think is just around the corner is still some years away. ● July 2025 | The Intermediary

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Swansea

focus on ...

SWANSEA Each month, The Intermediary takes a close-up look at the housing market in a specific region and speaks to the experts supporting the area to find out what makes their territory unique

O

nce a quiet contender on the UK property map, Swansea is emerging with real momentum. With its blend of coastal lifestyle, improving infrastructure, and relative affordability, the area continues to attract attention from buyers and brokers alike.

National economic pressures – particularly around inflation, interest rates, and lender caution – are shaping the market, but locally, confidence is beginning to resurface. Whether it is the return of first-time buyers, the steady interest from investors, or a growing emphasis on energyefficient new-builds, Swansea’s housing landscape is evolving in step with wider trends, while retaining a character all its own.

This month, The Intermediary spoke with local experts to see what is driving demand, and how borrowers are navigating change.

Average prices House prices across the Swansea postcode area have seen modest but steady growth over the past year, with the average property now priced at £218,000, marking a £4,500 (2%) increase year-on-year. The median sits slightly lower at £185,000, reflecting a market where affordability remains a key driver. Established homes currently command an average price of £216,000, while newly built

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properties are significantly higher at £292,000, underscoring the premium attached to modern, energyefficient builds.

Detached homes continue to lead at an average of £327,000, followed by semi-detached (£192,000), terraced (£152,000), and flats (£143,000).

Transaction volumes have dipped, with total sales down 12.4% year-on-year – a sign of market caution amid ongoing economic uncertainty. The majority of sales occurred in the £100,000 to £150,000 range, accounting for 23.9% of all transactions, closely followed by the £150,000 to £200,000 band (22.9%).

Regional disparities remain notable.

The most affordable postcode is SA13 3, where the average home costs just £107,000, while at the opposite end of the spectrum, SA3 1 commands an average of £528,000.

Steady momentum Swansea’s housing market in 2025 is defined by steady momentum, realistic pricing, and a surge in buyer activity as the city continues to appeal to a broad cross-section of home seekers.

According to Shaun Sturgess, founder and managing director at Sturgess Mortgage Solutions, demand for property in the area is certainly on the rise.

He says: “While we’re not seeing the rapid spikes of 2021/22, properties that are priced correctly are still moving,

especially in key areas like Gorseinon, Killay, Sketty, and areas close to the M4.”

Family homes, in particular, are holding their value, driven by consistent demand from both locals and those relocating.

Andrew Blundell, mortgage and protection adviser at Just Mortgages, notes that enquiry levels are high, with “lots of customers going to market and achieving sales quickly,” especially as many aim to complete purchases before the end of the year.

“Enquiry levels are strong as we draw into what is often the busiest part of the year for brokers for purchase applications,” he confirms.

This seasonal surge coincides with a wave of remortgage activity, as households exit low fixed-rate deals.

Mark Jones, director and mortgage and protection adviser at Mortgages

Insatiable appetite SHAUN STURGESS founder and managing director at Sturgess Mortgage Solutions

JESSICA O’CONNOR is deputy editor at The Intermediary

by Mark confirms that the average property price has risen since April, reinforcing confidence among buyers and sellers alike.

Despite the uptick, signs of a buyer’s market remain, with Jones highlighting that “properties are, for the most part, being accurately valued,” as vendors recognise that overpricing deters interest. Sturgess adds that 2025 has been “easily the busiest year I’ve ever experienced,” crediting a more informed, digitally engaged generation of clients who are turning to brokers in greater numbers than ever.

He adds: “More people now understand the value of using a broker rather than just sticking with their current lender, and platforms like TikTok and Instagram have played a huge role in that. It’s created a more informed, more proactive generation of mortgage clients — and that’s reflected in the sheer volume of enquiries we’re receiving.”

Appetite and type Residential appetite remains robust, particularly in the lower to midmarket segments. Nevertheless, Christopher Davies, principal at First Mortgage Solutions, notes that “houses over £400k seem to be staying for sale

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he Swansea housing market remains steady. While we’re not seeing the rapid spikes of 2021-22, properties that are priced correctly are still moving, especially in key areas like Gorseinon, Killay, Sketty, and areas close to the M4. Family homes are holding value, and there’s consistent interest from both local buyers and those relocating for lifestyle or work reasons. The appetite for residential mortgages has been almost insatiable. I’ve been a broker for nearly 10 years, and 2025 has easily been the busiest year I’ve ever experienced. We’re seeing an incredible mix of clients – from first-time buyers and home movers to those looking to remortgage or consolidate.

I think a big part of this surge is down to consumer awareness.

Buyer appetite has picked up again since the start of the year. Firsttime buyers, in particular, have shown real intent, especially as fixed rates started to stabilise and even edge down in Q1 and Q2 of 2025.

We’ve had multiple weeks where applications were approved instantly.

The main trend at the moment is a shift toward shorter fixed-rate periods. Clients are far more rate-sensitive now and want the flexibility to review their mortgage within two to three years in case rates drop further. Another noticeable pattern is the rise in clients using gifted deposits – more families are stepping in to help younger buyers.

Buy-to-let has been more cautious, but not dead. We’ve helped several landlords remortgage this year, and there’s still good appetite, especially in student-heavy areas like Brynmill and Uplands. Landlords are being more strategic – switching to limited companies, reassessing yields, and looking for value rather than just adding to portfolios. Sensible, longterm investors are still active and keen to lock in competitive rates.

for a lot longer,” largely due to the lingering impact of post-Covid interest rate rises.

Across the board, brokers report a sustained hunger for residential mortgages, driven by a mix of firsttime buyers, movers, and those nearing the end of low fixed-rate deals.

“The appetite for residential mortgages is high, and always will be,” Davies adds, underlining the importance of expert advice as clients to today’s more elevated rates.

Jones agrees, noting that after a brief lull around April – attributed to Stamp Duty changes – the appetite for residential mortgages remained strong, especially as lenders began slashing rates in a competitive bid for new business.

He explains: “The shift from June into July has brought what appears to be a rate war among lenders competing for new business. As a result, we’ve seen a noticeable increase in client enquiries. → July 2025 | The Intermediary

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L O C A L FO C U S Swansea

Expert advice needed ANDREW BLUNDELL mortgage and protection adviser at Just Mortgages

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t the moment the housing market seems strong, with lots of customers going to market and achieving sales quickly. Enquiry levels are strong as we draw into what is often the busiest part of the year for brokers for purchase applications.

Purchase activity seems strong at the moment, with a lot of customers prioritising getting their house onto the market and sold, so that they can be in their new home by Christmas. With so many coming to the end of low priced fixed rates during 2025, there has been and still is a huge opportunity for brokers to help customers whose rates and outgoings are going to change considerably. First-time buyer activity is also strong – historically a customer base that really benefits from dealing with an experienced broker.

Main challenges for brokers this year will still be assisting customers who have low fixed rates ending and who are going to see a huge change in their mortgage commitment as a result of moving onto a new fixed rate. In addition, helping customers purchase in their sole name is an ongoing challenge due to high house prices.

Banks do seem to be making efforts to aid affordability and improve customers abilities to borrow the loan amounts necessary. First-time buyer schemes with enhanced affordability offerings have become offered by more providers as the year has progressed, and we’re continuing to see the emergence of more low deposit mortgages, and even the recent launch of 100% mortgages from April Mortgages.

Most borrowers are rate-savvy and tend to respond quickly to downward trends in interest rates.”

According to Sturgess, “clients are far more rate-sensitive now and want the flexibility to review their mortgage within two to three years.” He also highlights a rise in gifted deposits, with more families stepping in to help younger buyers.

A varied yet increasingly defined borrower base is taking shape across the region. With an average resident age of 43.4 years and steady population growth over the past two decades, Swansea offers a diverse client base.

However, first-time buyers remain the dominant force.

Sturgess says: “Our core demographic is still made up of first-time buyers and young families, [bolstered by] second steppers – people who bought small in 2020–2021 and are now upsizing.”

Jones says “first-time buyers continue to lead in terms of the number of applications over the past year,” averaging around age 34.

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He adds: “There’s nothing quite like seeing their excitement when they finally collect the keys to their first home. While most clients have saved the bulk of their deposit themselves, it’s common for the ‘Bank of Mum and Dad’ to step in by topping up the shortfall or, in some cases, providing the full deposit.”

Beyond younger buyers, Swansea’s appeal is broadening. Sturgess reports a noticeable increase in “professional clients relocating from Cardiff or Bristol, who are choosing Swansea for lifestyle and affordability,” while others seek help with porting existing mortgages or consolidating debts.

For brokers, this diverse mix brings both opportunity and complexity. As Blundell points out, first-time buyers in particular “really benefit from dealing with an experienced broker,” as do those now facing the end of historically low fixed-rate deals.

Popular lenders When it comes to lender preferences in Swansea, a handful of names

consistently stand out. Nationwide appears across the board as a go-to choice, praised for both its product range and service standards.

“Our top three lenders are Nationwide, Halifax and NatWest,” says Davies, adding that “they all have their good and bad points when it comes to criteria,” but remain popular due to their broad appeal and consistent delivery.

Sturgess also highlights Principality Building Society, Santander, and NatWest, particularly when it comes to turnaround times and customer service. For more complex or specialist cases, he notes that The West Brom and Skipton Building Society have also been “really strong.”

HSBC joins the list of top-tier lenders in the region, especially for mainstream residential cases.

Jones notes: “Nationwide and HSBC consistently deliver excellent service and competitive product offerings for our clients.”

Swansea Building Society is widely respected across the advisory community for its bespoke underwriting and personal touch.

Jones says: “They’re willing to discuss most cases individually and can consider applications that fall just outside standard criteria, provided there’s a sound rationale for lending.”

He adds that the lender is “respected by both brokers and clients,” not only for its flexible approach but also for its deep community roots and charitable efforts. Swansea Building Society remains a trusted option “for bespoke or complex mortgage needs.”

New developments Swansea’s housing landscape is being steadily reshaped by a mix of ambitious regeneration projects and a robust pipeline of new residential developments. The average price of a newly built property in the area now stands at £292,000 – down 1% yearon-year – with the majority of sales occurring in the £200,000 to £300,000 range. SA16 0 has seen the highest concentration of new home sales.

Jones says: “Swansea always seems to have a new-build development underway, which is an encouraging sign of steady growth. One of the most consistently active areas is SA1, close to the waterfront, where ongoing projects include new houses, apartments, and social housing.”

L O C A L FO C U S Swansea

For buyers looking for a more suburban lifestyle, Jones points to developments on the outskirts, particularly those with easy access to the M4: “There’s always scope for further expansion […] offering a balance between convenience and tranquillity.”

Sturgess also highlights strong demand and supply in the SA4 postcode, covering Gorseinon, Penyrheol and Loughor.

He explains: “The SA4 postcode is growing in popularity due to new-builds, school catchments, and commuter access to the M4. There’s a strong pipeline of development around Parc Mawr and surrounding areas.”

Infrastructure investment is adding further momentum, Jones notes: “Swansea is benefiting from some fantastic projects that are either newly opened or under construction.”

He cites the recently completed 104,000 sq. ft office block on The Kingsway, which is set to bring over 600 jobs into the city, with companies like TUI already on board.

Additionally, the Ospreys rugby club has announced a major redevelopment of St Helen’s Stadium, featuring stateof-the-art pitches and modernised

fan facilities – underlining Swansea’s growing appeal as both a residential and economic hub.

Rental market In contrast to a residential market on the rise, Swansea’s buy-to-let (BTL) market has cooled in recent years, reflecting a national trend shaped by ongoing rental reforms. At 18.8%, the proportion of private rental stock in Swansea is notably below the England and Wales average of 23.6%.

Davies says: “The BTL market has slowed right down due to the tax changes over the last few years. We still have many buy-to-let clients, but they are mainly product transfers or remortgages.”

Despite the challenges, brokers say the market is far from dormant.

Sturgess explains: “Buy-to-let has been more cautious, but not dead. We’ve helped several landlords remortgage this year and there’s still good appetite, especially in student-heavy areas like Brynmill and Uplands.”

Landlords are becoming more strategic – reassessing yields, operating through limited companies, and looking for long-term value rather than rapid expansion. Sturgess adds: “Sensible, long-term investors are still

A buyer’s market MARK JONES director and mortgage and protection adviser at Mortgages by Mark

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e are seeing signs of a buyer’s market. Increased competition among high street estate agents is becoming increasingly evident – which ultimately benefits sellers.

Interestingly, this surge in competition hasn’t led to lower fees across the board. Instead, we’re seeing a shift in seller preferences toward independent estate agents.

First-time buyers are extremely eager to purchase, but there’s a shortage of suitable stock. Swansea always seems to have a new-build development underway, which is an encouraging sign of steady growth.

Given the city’s wide geographic spread, there’s always scope for further expansion. One of the most consistently active areas is SA1, close to the waterfront. For those seeking a quieter lifestyle outside the city centre, there are also numerous developments on the outskirts of Swansea, ideally located just off the M4 motorway.

On the commercial side, Swansea benefits from some fantastic projects that are either newly opened or under construction. Notably, a 104,000 square foot office block recently opened on The Kingsway in the heart of the city, while the Ospreys rugby club has committed to major overhaul of St Helen’s Stadium. These projects alone highlight why Swansea is such a promising place to live, work, and invest.

Swansea Residents

738k Average age

43.4

Residents per household

2.31

Swansea postcode area.

Source: www.plumplot.co.uk

active and keen to lock in competitive rates while they can.”

Jones says: “While some enquiries for new purchases have progressed to full applications, it’s become increasingly difficult for clients to borrow the loan amounts they need. Lenders have tightened their affordability, which has ultimately led to reduced borrowing capacity.”

Still, Jones notes that Wales is currently seeing “record-high gross rental yields on newly purchased buyto-let properties,” and with interest rates and product options becoming more competitive, the second half of 2025 and into 2026 could signal a return to form.

Overall, Swansea’s property market paints a picture of cautious optimism, grounded in economic realism but buoyed by sustained demand, an evolving borrower base, and a housing stock that reflects both heritage and modernity.

While headwinds persist, local brokers are seeing real signs of resilience. Regeneration and a robust appetite for homeownership continue to drive activity across a wide spectrum of buyers. As the city grows and adapts, its appeal lies in variety, something increasingly valued by both locals and those relocating from further afield.

As Jones puts it: “Swansea, with its unique blend of coastal charm, urban convenience, and rural tranquillity, presents a diverse landscape for potential buyers.” ● July 2025 | The Intermediary

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On the move...

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ime Finance has appointed industry, to join the team was an Bethan Holliday as head of opportunity I could not turn down.” operations in its asset finance Managing director Steve Nichols team. In her new role, said: “Her arrival comes at a key time Holliday will be responsible for the for the business as we embark on our overall operations of the team, BETHAN HOLLIDAY new three-year plan and continue to deliver sustainable growth. reviewing systems to improve “Bethan will play a key role the ease and efficiency of in making our business more business finance for SMEs. efficient, helping to develop She said: “I am excited to our automation capabilities join Time Finance as the with the rest of the leadership business accelerates its team, as we strive to offer a growth journey. Having consistently great service long regarded Time for our brokers, customers Finance as a challenger and innovator in this and suppliers.”

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SBG appoints David Wright to lead exit consulting proposition

Marsden Building Society appoints head of mortgages

esame Bankhall Group (SBG) has appointed David Wright to lead its exit consulting service for advisers looking to sell their business.

Wright joins from Compre Group, and has also worked at One Four Nine Group and Ernst & Young. He will report to Claire Cherrington, director of PMS and Bankhall.

Wright said: “It’s a great time to be joining SBG as the business expands its support for [DA] firms.

“There’s huge demand from both buyers and sellers – but many IFA firms aren’t prepared for a sale, which can limit their value and options.

“Our exit consulting proposition is different because we’ll be working directly with sellers – helping them maximise the value of their business through a targeted action plan focusing on areas such profitability, quality of data and compliance – before ultimately presenting a business that’s a ractive and aligned to the right buyer.”

arsden Building Society has appointed Jo Cave as head of mortgages.

Cave joins from JO CAVE Barclays, where she spent 20 years in mortgage operations. As head of mortgages, Cave will be involved in plans for growth in the mortgage market.

This includes developing new platforms and Assisted Decisioning to improve service for intermediaries and clients.

Cave said: “The Marsden’s culture, values and ambition is what drew me to the team."

DAVID WRIGHT

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RECRUITMENT

Chetwood Bank appoints Natalie McNamara as mortgage distribution manager

Time Finance appoints head of operations

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SPONSORED BY

hetwood Bank has appointed Natalie McNamara to its distribution team as mortgage distribution manager, following over a year as head of network growth and distribution at Loans Warehouse.

She will be working across both ModaMortgages and CHL Mortgages for Intermediaries to support its network and mortgage club partners.

Roger Morris, group distribution director at Chetwood Bank, said: “This is another important step in our journey to think differently about how we engage with the market. We firmly believe that now more than ever, education and knowledge-sharing are what mortgage NATALIE advisers value MCNAMARA most and Natalie will play a key role in helping us deliver just that.

Exciting times ahead.”

Paragon bank expands SME lending team

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aragon Bank has added two members to its SME lending team to boost green energy finance offer and support more small businesses.

Andy Craggs has joined to lead on green energy lending. Craggs was previously managing director at ECS Group and most recently business development manager at Premier.

Emma Gorman has also joined, bringing 13 years’ experience, including at Hampshire Trust Bank (HTB), Macquarie Bank and Aldermore Bank, as well as working for an asset finance brokerage.

Stewart Good, sales director of SME lending, said: “Their combined expertise and ambition will be instrumental in driving our growth."

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