The Intermediary – June 2025

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

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

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

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From the editor...

H

aving toyed with us for a few weeks, the sun has finally decided to make a proper show of it, and the past week or so has felt decidedly more optimistic as a result – both in general and in mortgage market terms. There’s nothing quite like the first burst of British summer sun to make everything seem a li le less bleak.

Perhaps this is why the market seems like it has hit into its stride. Mortgage pricing remains higher than many might find ideal, but lenders have been making rate cuts in anticipation of future base rate reductions.

Meanwhile, higher loan-to-values (LTVs) are improving the options for first-time buyers, and some lenders are making changes to enhance buy-to-let (BTL) affordability.

On the specialist side of the market, second charge and bridging loans continue to see growth, while product innovation continues apace across the board.

As is always the case in the UK, though, there’s the threat of rain behind every sunny day. Affordability remains tight as raised living costs remain, swap rates are volatile, and BTL landlords are facing tough decisions – as ever – when it comes to remaining viable in an increasingly restrictive environment, which is only going to become more difficult with upcoming reforms.

The substantial rate drops hoped for by many prospective buyers are continuing to prove a fantasy. And of course, no one will be unaware

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of the mounting international instability that, at the very least, will affect investment prospects in this market.

Just like any forecast, it’s hard to get a good picture of whether the outlook is bright or grey, and it’s worth planning for both.

Nowhere else is this more evident than in the ma er of the Financial Conduct Authority’s (FCA) current regulatory consultation.

Some are looking ahead with optimism to the rationalisation and streamlining of certain regulatory requirements, which they believe will open up creativity and innovation across the market. Others, meanwhile, are concerned by the potential opening for execution-only transactions, and what this might mean for the broker, the prevalence of advice, and indeed for customer outcomes as a result.

That’s the subject of our feature this month, where Marvin Onumonu talks to the experts about what to expect for this market’s regulatory future, how its past has shaped mortgage advice over the years, and how businesses of all types can prepare for what’s to come. It’s a topic that echoes throughout this month’s issue, as the experts clamour to have their say.

You can also read about everything from tech advancement to remortgage market pa erns, succession planning to conveyancing costs, and more, in order to bring you what you need to be prepared, whatever the weather. ●

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

Clare Beardmore | Dave Harris | David Castling David Whittaker | Donna Hopton | Eddie Lau Gavin Diamond | Greg Went | Hamza Behzad Harpal Singh | Ifthikar Mohamed | James O’Reilly Jerry Mulle | Jim Baker | Jim Boyd | Joe Pepper Jonathan Rubins | Karen Noye | Katherine Pinnell

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Angus MacNee | Anna Lewis | Ashley Pearson Averil Leimon | Caroline Payne | Claire Askham

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

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

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Contents

INTERVIEWS & PROFILES

Feature 26 C H A RTING A COU R S E

Marvin Onumonu asks how regulation is shaping the lending landscape

REGULARS

Broker business 68

A look at the practical realities of being a broker, from wellbeing and succession planning to the monthly case clinic

The Interview 38 PARAG ON

Local focus 86

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

Andrew Smart talks bold tech transformation and the need for certainty, speed, and a human touch

Meet the Broker 66

On the Move 90

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

SECTORS AT-A-GLANCE

Residential 6 Buy-to-let 32 Specialist Finance 42 Second Charge 56 Protection 58 Later Life 60 Technology 80

86

M E TA M O R T G AG E S

Joel Bailey-Wilson on the realitiees of running a brokerage in the modern market

In Profile 18 L E G A L & G E N E R A L M O R T G AG E C L U B

Clare Beardmore discusses the lessons learned in three decades since the club’s launch

Meet the BDM MOLO

48

LIVEMORE

62

Agnes Zhang and Steven Bailey discuss the challenges and opportunities for BDMs

The Intermediary | February 2023

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RESIDENTIAL Opinion

A lending strategy beyond base rate predictions

A

s the industry continues to anticipate the Bank of England’s next move, much of the conversation around mortgage lending remains dominated by one question: when will rates fall?

But while rate cuts will inevitably make headlines, pinning hopes of recovery on interest rate changes is both risky and short-sighted.

The real opportunity lies in taking action now. Lenders must build longterm resilience into their offerings, while brokers must continue to help clients make informed decisions based on personal circumstances, not economic forecasts.

The cost of hesitation We’re seeing more would-be borrowers holding off, waiting for the ‘perfect’ rate, a sharper drop in inflation or a more stable outlook. But this delay comes at a cost.

House prices in many areas continue to climb – the most recent official figures from the Government show that average UK house prices increased by 6.4% in the 12 months to March 2025, reaching £271,000.

When rates eventually fall, demand is likely to spike, potentially driving prices even higher. For brokers, the message is clear: pausing on the sidelines can cost clients more in the long run. Timing the market may feel safe, but it often leads to missed opportunities. Brokers play a key role in helping buyers weigh up the bigger picture.

This is also where lenders must step up. Rather than waiting for rate cuts to do the heavy lifting, now is the time to offer innovative solutions that meet evolving borrower needs.

Intermediaries need options that

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The Intermediary | June 2025

reflect realities their clients face today, not assumptions about where the market might be tomorrow.

For example, we recently reduced our stress rates across both residential and buy-to-let (BTL) applications, with the lowest now at 6.25% and 5.70% respectively. Earlier this year, there were further sweeping criteria changes, the biggest of which sees that the society now accepts 100% of second income, and recognises child maintenance payments.

We also engaged the market ahead of the significant Stamp Duty changes that took effect in April by introducing a residential cashback product that helped prospective homebuyers – especially first-time buyers – get up to £5,000 in cashback to soften the immediate impact.

These changes are designed to support borrowers who might otherwise struggle to pass affordability checks, particularly those with complex income streams or nonstandard employment. It’s a clear example of how lenders can take meaningful steps today to widen access and empower brokers, to better serve a diverse client base.

More than a rate Today’s borrowers are more financially aware and digitally informed than ever, but that doesn’t mean they’re confident. Many are navigating complex situations, from irregular income to rising rental costs, and are unsure how to align their personal circumstances with what lenders expect.

That’s where brokers add tremendous value, not just as product matchmakers, but as longterm advisers. When clients are overwhelmed by economic noise, brokers are the ones who can reframe

GREG WENT is chief lending officer (interim) at Nottingham Building Society

the conversation around readiness, affordability and lifestyle fit.

That is why a steady, informed voice matters more than ever. Lenders should be supporting intermediaries with clear product criteria, transparency around decision-making and tools that help make those conversations easier. It’s not just about better deals; it’s about better guidance.

Don’t miss the window One insight we’ve seen in today’s market is that higher interest environments often present more leverage for buyers. When demand is cooler, clients may have room to negotiate, secure seller incentives or avoid bidding wars – all of which can result in savings that far outweigh small changes in the interest rate.

This won’t last forever. When base rates do start to fall, competition will intensify. Buyers who move now – with the right financial plan and the right advice – may find themselves in a stronger position than those who wait.

There’s no doubt that confidence has been shaken in the past few years. But brokers and lenders have the power to rebuild it – not through guesswork or hype but by offering pragmatic support, long-term thinking and real solutions.

Brokers who guide clients with clarity, and the lenders that equip them with flexible, responsible products, will lead the market forward. The best lending strategy doesn’t wait for perfect conditions. It takes action and supports customers where they are, right now. ●

RESIDENTIAL Opinion

Economy steadies, but there’s a bumpy road ahead

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his commentary was written on the morning of the Chancellor’s Spending Review before any formal announcements. Events may have moved on by the time of publication, but the pressures and challenges outlined still sit at the heart of the UK’s economic outlook.

The UK economy is showing signs of stabilising. After months of patchy data and political noise, we’re beginning to see a more coherent – albeit cautious – narrative emerge.

The International Monetary Fund (IMF) has nudged its 2025 growth forecast for the UK up to 1.2%, with 1.4% expected the following year.

That’s a positive development, but the message from the IMF is also clear: without a step-change in productivity, longer-term prospects remain underwhelming.

Government ministers have welcomed the update. The Chancellor pointed to strong early-year growth and international support for her economic plan. But look beyond the top-line figures, and a more fragile picture comes into focus.

Since the Autumn Budget, more than 270,000 jobs have been lost, marking the steepest drop in employment since the early stages of the pandemic. The rise in National Insurance Contributions (NICs) for employers has been widely cited as a contributing factor, particularly in sectors like hospitality and retail. For businesses already managing higher borrowing costs and shaky consumer confidence, this additional overhead has been difficult to absorb.

Unemployment has now risen to 4.6%, the highest in nearly four years. Although questions remain around the quality of the Office for

National Statistics’ (ONS) labour force data, the direction of travel is clear.

Redundancies are up, vacancies are down, and confidence is fragile.

The Bank of England has responded by starting to loosen monetary policy.

The Bank Rate now sits at 4.25% after four cuts, with more expected before the year is out. Inflation is falling back, and forecasts suggest it may drop below 3% in early 2026, which should give the Bank more flexibility to support growth.

That said, for borrowers, the benefits of rate cuts have been limited so far. While some expected mortgage rates to fall in step with the Bank Rate, the reality has been more subdued.

Most lenders had already priced in expected cuts.

Swap rates are higher than they were this time last month, reflecting wider market caution and ongoing geopolitical uncertainty, particularly from the US. As a result, the expected wave of cheaper mortgage deals has yet to materialise. The housing market has, unsurprisingly, remained flat.

Transaction volumes are subdued, and while prices have held up better than many anticipated, overall activity remains well below typical levels.

With buyers still constrained by affordability, especially in the South and major cities, it’s difficult to see momentum returning in the shortterm unless there’s a material shift in rates or employment confidence.

The Spending Review may go some way to clarifying the Government’s position. Departments are awaiting their budgets through to 2029, and the pressure to invest in public services without spooking the markets is acute.

Defence and healthcare are expected to receive priority, but with borrowing already elevated, further tax changes are hard to rule out.

NICHOLAS MENDES is mortgage technical manager at John Charcol

This is where politics and economics begin to rub up against one another.

The Chancellor has built her fiscal stance around discipline and credibility, but critics argue it risks suppressing the very growth she aims to support. Talk of a ‘double debt mountain’ – both formal borrowing and hidden liabilities – is becoming more prominent in policy circles, and investors will be watching closely.

For now, sterling remains relatively strong, up around 8% against the dollar this year. But much of that has more to do with US uncertainty than UK strength. The pound’s position may prove fragile if growth falters or if international investors lose faith in the UK’s ability to balance growth with control.

Real wage growth has provided a degree of short-term support to households, and consumer spending has proven more resilient than expected. But with job losses mounting and pay growth beginning to slow, that buffer may not last.

Wages are now rising at 5.2% annually, down from previous months, and further softening seems likely.

In many ways, the next six months could be decisive. If the Bank can continue to ease rates, if the Government can avoid overcorrection on tax, and if business sentiment stabilises, we could see a more durable recovery emerge. But that’s still a big ‘if’.

At present, this remains a recovery that feels vulnerable – moving forward, yes, but without much margin for error. ● June 2025 | The Intermediary

7

RESIDENTIAL Opinion

Loosening of credit criteria brings data to the fore

S

ince the Bank of England began to raise the base rate in December 2021, the remortgage market has been at a disadvantage to product transfers. Higher monthly repayments as mortgage rates jumped from sub-2% to over 5% coincided with inflation topping 10%, a cost-of-living crisis and sky-high energy bills.

However, over the past 10 months, the base rate has been coming back down. This has already prompted much speculation about whether we could see a spike in remortgage activity, with customers more likely to switch lender to benefit from one of the highly competitive rates on the market at the moment.

There is a potential challenge in the way of this, in the Financial Conduct Authority’s (FCA) view – as its Mortgage Rule Review (MRR) consultation paper published in May shows. Out of 1.6 million borrowers who remortgaged in 2024, some 83% stayed with their existing lender and 17% remortgaged to a different provider – broadly consistent since the regulator began collecting data on product transfers in 2021.

The likelihood is that remortgage volumes should climb this year, but growth is also likely to be hampered by the need for borrowers to go through a full affordability underwrite if they are to switch lenders. The question of convenience is an important one, particularly in an environment where rates are coming back down.

The MRR proposes to address this by simplifying the affordability rules for a like-for-like remortgage – even where the borrower is switching lender. Its reasoning relies, in part, on the growing role that data plays in risk assessment within lenders.

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The Intermediary | June 2025

The FCA paper says: “There is significant momentum to digitise the home-buying process, speeding up conveyancing and HM Land Registry processes. Alongside existing, swift tools – such as automated valuations, credit file and HM Revenue and Customs checks – and potential efficiency and innovation that can be delivered through Open Banking, we want to explore options to streamline affordability testing requirements where the customer is remortgaging to a cheaper deal on similar terms.”

Yet it goes on to highlight the existing Modified Affordability Assessment (MAA) rules, which give lenders the flexibility to carry out a modified affordability assessment where the consumer has a current mortgage, is up to date with payments, does not want to borrow more, and is looking to switch to a new mortgage deal on their current property.

Some further stipulations apply, but they are perhaps not as onerous for lenders as one specific consideration which has hampered uptake. The FCA’s regulatory data indicates that “to date this option has not been widely adopted, supporting approximately 2,655 transactions.”

The proposal is to amend the MAA to permit lenders to enter into a new mortgage contract where it is more affordable than either a customer’s current mortgage, or a new mortgage product that is available to that customer from their current lender.

The FCA paper says: “As with the current MAA, this would be optional for lenders to use and depend on their risk appetite. However, we believe widening the scope of when a firm can use the MAA could increase the commerciality of this option and the number of customers who could get a better deal by changing lenders.”

STEVE GOODALL is managing director at e.surv

This may alleviate some of the challenges, but it does not deal with the capital risk assessment – and that is the consideration I’m referring to.

Looking ahead If the FCA’s proposals go ahead, we must consider what a swifter remortgage market looks like and how it interacts with understanding collateral – assuming previous credit underwriting of individuals suffices.

We must be sure that our automated valuations evolve to deliver decisions based on all the data points that can impact value over a given period.

There are structural risks which homeowners may choose not to disclose under a product switch: cracks in walls may suggest subsidence or structural movement, for example.

Climate risk associated with flooding or drought – leading to the potential for subsidence – could shift significantly over a decade.

Energy efficiency, regulatory compliance with net zero rules due to come into play for residential homeowners – how do these things affect the capital risk sitting on lenders’ balance sheets? Not to mention structural alterations, extensions or unauthorised building works that could make a property unmortgageable.

The potential loosening of credit criteria brings the role of property data to the fore. Many lenders will require a robust mix of digital data sources and ongoing physical inspections to maintain an accurate view of risk exposure and, therefore, appetite to take on new loans. ●

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RESIDENTIAL Opinion

T

here was a school of thought – sensible in theory, wrong in practice – that the recent Stamp Duty threshold changes would trigger a noticeable drop-off in transaction volumes. Less urgency to act due to those greater costs, resulting in demand and activity dropping off. It sounded plausible,

looked logical, but certainly from our perspective, it hasn’t happened.

The market’s still ticking along, buyers are still buying, movers are still moving, and that persistent hum of conveyancing activity hasn’t softened.

If anything, the opposite. Which means one thing: conveyancers are under just as much pressure as they were pre-change, and probably always will be. The shortage, for example, of ‘bums on seats’ in the sector doesn’t look like it’s going to be filled.

So, what happens next? My view is that conveyancing fees will go up – they already are, and they should.

HARPAL SINGH is CEO at conveybuddy

Why? Well, for a start, I’m not sure there’s another part of the homebuying journey where the service demanded is so high and yet the price paid is still stuck somewhere in 2016.

We sold our previous business eight years ago, and I can tell you with absolute certainty that conveyancing fees haven’t shifted much since then.

Meanwhile, inflation has increased massively – so have house prices, and pretty much everything else associated with the market.

Yet we still hear complaints when a law firm asks for £100 more on a case. Madness. It’s part of the reason why, for so long, firms have been locked in a race to the bottom. Lower fees. Bigger caseloads. More strain.

Worse service.

But something’s changing.

The smarter firms – the ones that understand their value – are putting their prices up. Not because they want to be greedy, but because they know what it costs to deliver a good service.

They know that without good service, clients suffer, and brokers are left picking up the pieces.

Let’s be honest, those cost pressures are real. The recent increase in National Insurance (NI) contributions has hit many firms square in the face.

Overheads have gone up across the board, from payroll to professional indemnity insurance. Firms have to

RESIDENTIAL Opinion

spend more just to stand still.

In an industry where margins were already thin, something’s got to give. Either the service dips, or the price goes up. And rightly, many are choosing the latter.

The right people It’s not just about keeping the lights on. It’s about holding on to the people who actually do the work.

As mentioned, good conveyancers – actual qualified, experienced fee-earners – are increasingly hard to find.

In places like Manchester, Leeds, and Cardiff, where multiple large firms compete for a limited talent pool, staff retention is a full-time job in itself. If a firm can’t afford to pay competitively, it’ll lose people.

When that happens, it loses service standards, too.

The challenge isn’t just getting people in the door – it’s keeping them. Good people know their worth. They’re not going to stay in roles where the workload is brutal and the salary hasn’t moved in five years. Firms that want to deliver great service need to pay enough to keep their teams stable. Fundamentally, that has to be paid for with increased

fees. Think about it. What do your clients want? It’s likely they want clarity, speed, and confidence. What do you want? Happy clients who come back again and refer their friends. Neither of those things is helped by conveyancing being done on the cheap.

When a firm earns £100 more per case, that gives them room to breathe.

Caseloads drop. Phones get answered.

Enquiries get dealt with. Pipelines move quicker. Completion dates hold.

Suddenly, everyone’s blood pressure is lower, and you’re not fielding angry calls from clients.

If you’re thinking, ‘But hang on, won’t my client care about paying more?’, then let me be blunt: most clients are not au fait with what conveyancing should cost. They’re not comparing a £750 quote to a £950 quote and demanding answers.

They’re just trusting you to steer them to someone who gets the job done. So, if you tell them this slightly pricier option means better service and fewer delays, they’ll nod and say, ‘Thanks, that’s exactly what I need’.

Considering commissions Now, here’s the bit that’s often overlooked or misunderstood. Just because a quote is high doesn’t mean the firm’s getting paid well. We’ve seen quotes from other panel managers that are £300 more than ours, yet the law firm earns less because of commissions.

We pay one

Too many still chase the cheapest deal and pass on the cost in other ways – hidden fees, unclear quotes, poor service”

of our firms a significant amount more than one of our competitors, and yet somehow our total quote is still cheaper. It will not take a genius to work out why.

As a panel manager, we’re not taking the Michael when it comes to our panel fee. We believe in paying our firms properly, while keeping things fair for the client.

Which, of course, makes your choice of panel manager more important than ever. Are they paying their firms properly? Are they squeezing them dry? Are they using their margins to add value or just extract more?

The sad truth is that too many still chase the cheapest deal and pass on the cost in other ways – hidden fees, unclear quotes, poor service.

You want transparency. You want integrity. You want to know that when fees go up, they’re going to the right place. At conveybuddy, we make sure that happens. We’re not perfect, but we’re proud of the way we support our panel, our brokers and, ultimately, our clients.

Cheap rarely means cheerful in the service industry. Conveyancing is no different. So let’s stop pretending that a race to the bottom helps anyone.

The best firms know what they’re worth. The best brokers understand the value of good service.

Together, we can help clients get what they really need: a smooth, successful move from start to finish. ● June 2025 | The Intermediary

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RESIDENTIAL Opinion

Changing what’s possible for the customer journey

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ay saw the Financial Conduct Authority (FCA) publish its Mortgage Rule Review (MRR) consultation paper, which aims to give consumers “more choice” in how they deal with their mortgage.

A central focus is making the process of switching lender at remortgage easier, faster and with a lower threshold for underwriting and the consequent paperwork it entails.

At the end of a fixed term, many borrowers now use firms’ internal product transfer or ‘rate switch’ product. According to the regulator, out of 1.6 million who remortgaged in 2024, some 83% stayed with their existing lender and 17% remortgaged to a different provider.

The paper notes: “There are several barriers or transaction costs, both in time and money, that make external remortgaging less attractive, even if cheaper options are available.

“Customers may make a conscious choice to stay with their current lender because of these. These barriers can include conveyancing, valuations, engaging with a mortgage adviser and affordability assessments. By contrast, these don’t apply when completing an internal product transfer, and an affordability assessment is only required where the change is material to affordability.”

This recognises an unintended consequence of the existing regulatory regime. Essentially, consumers are disincentivised from shopping around and may end up paying more than is necessary for their mortgage.

The proposed amendments have a positive logic behind them, though we wait to see the final detail before assessing how they work in practice.

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The Intermediary | June 2025

The FCA is definitely on the same page as much of the industry when it comes to the way that data use and digitalisation is changing what is possible for the customer journey.

Automated implications The paper acknowledges that there is “significant momentum to digitise the home-buying process,” including speeding up conveyancing and HM Land Registry processes.

Alongside existing tools such as automated valuations, credit file and HMRC checks, and the potential efficiency and innovation that can be delivered through Open Banking, the regulator wants to explore “options to streamline affordability testing requirements where the customer is remortgaging to a cheaper deal on similar terms.”

This has implications for affordability, but for lenders there is also property risk that has to be considered. Where a lender engages a customer in a straightforward product transfer, its understanding of the capital value, title and property condition – within whatever bounds deemed necessary at the point of origination – is as complete as it can be.

In the event that a borrower transfers via a similar product switch, on the same or similar terms, the new lender will be relying – at least partly – on the existing one’s underwriting.

The affordability assessment, under the FCA proposals, will be based on payment history – the more robust, the lower the implied risk, is the theory. Where payments are lower following a switch, logic should dictate that the borrower can pay.

Relying on another lender’s assessment is separate from this.

Just as a borrower’s financial

AHMED MICHLA is head of business development at Cotality

circumstances may have changed since their last assessment, so may have the property’s condition and value.

Flood risk is dynamic, with new areas becoming exposed each year.

Title assessment, including rights of way and boundaries, as well as land search results, can be cursory all the way through to comprehensive.

Permitted development rights (PDR) allow for material changes to a property’s construction, without the need for a change to be recorded. Trees grow, bamboo, Japanese knotweed and other organic threats to a property’s structural resilience change quickly.

Decision-making support Lenders will need new sources of risk data to support their lending decisions. As the consultation paper highlights, this data is increasingly available in a format that becomes useable and meaningful at both an individual property level and for a mortgage book. But this is only one side of the coin when it comes to accessing true value from these sources. Lenders must have systems and technology capable of integrating with new data streams and pulling a sufficient number of elements out of a far wider data pool.

Data is only as good as the tools to make use of it – and the reality is that much of the mortgage industry’s systems are not set up for this new world yet. A wholesale system replacement across the entire market is a daunting prospect, yet if lenders are to facilitate the proposed changes, newer systems must be put in place to protect lenders’ risk exposure. ●

RESIDENTIAL Opinion

Parking fines: Driving near prime mortgages

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any of us know that sinking feeling when you spot a parking ticket on your windscreen. It’s a frustration that millions experience each year. In fact, research from Confused.com at the end of 2024 revealed that a staggering 16 million parking fines were issued in the UK between 2022 and 2024.

It’s obviously an infuriating experience, particularly if you didn’t think you were doing anything wrong, or thought you’d followed the rules correctly. However, that parking fine can be far more than just a nuisance – it can have an enormous impact on the recipient’s finances.

Should a fine go unpaid, it can escalate into a County Court Judgment (CCJ). These stay on a person’s credit file for six years and can have a longlasting influence on the driver’s ability to access finances, particularly a prime mortgage product.

Brokers we have spoken with in recent months have highlighted that clients who would otherwise have a great credit score are instead paying the price for a simple oversight.

It just serves to highlight the need for lenders to step up on supporting those who only just miss the mark for prime, by offering a product such as near prime.

Broadening support The past few years have been marked by sustained financial pressure for UK households, with rising outgoings on everything from energy bills to Council Tax. This increase in costs has resulted in some households missing the odd payment.

In many cases, the credit issues in question are minor, just a temporary

issue which has now been resolved.

Yet the long-term consequences can be disproportionately severe.

The only way to do that, however, is to introduce products and criteria that genuinely meet the needs of these near prime borrowers.

For example, when we increased the maximum level of unsatisfied registered defaults last year, from £1,000 to £2,500, it was because it had become clear that a higher cap was necessary to support more near prime borrowers.

This was also the driving factor in our recent move to raise the maximum loan-to-value (LTV) available on our near prime products to 90%. It’s about ensuring that those with more modest deposits can still access the funding they need.

As lenders, it’s crucial to work closely with brokers, and use their insights to pinpoint where improvements can be made to make the process easier. Obviously lenders must be responsible, but where flexibility and more understanding criteria can be introduced, it will make a significant difference to the options at the disposal of brokers and their clients.

The increase in activity we have seen for near prime in recent months has been striking. The number of applications in April was up by 28% on the previous month, which itself had set a new record high.

Compared with a year ago, applications nearly tripled, while there was also substantial growth seen in the value of applications.

This growth not only demonstrates how our improvements have resonated with brokers, but it also highlights the level of need for this sort of flexible lending by a mainstream lender, rather than relying entirely

DAVID CASTLING is head of intermediary distribution at Atom bank

The past few years have been marked by sustained financial pressure for UK households...from energy bills to Council Tax” on the specialists that cannot support borrowers as and when they regain prime status.

The bigger picture The escalation of a simple parking fine into a CCJ may sound disproportionate, but it illustrates a broader truth: minor credit events can significantly restrict mortgage options. In such cases, intermediaries play a critical role in ensuring that clients are not automatically excluded from homeownership, and that their borrowing journey can progress.

It is essential that brokers have a clear understanding of which lenders are equipped to support near prime borrowers – not only at the point of need, but over the life of the mortgage. We not only proactively monitor a customer’s circumstances, but automatically offer them a prime rate at maturity, if they are eligible.

Lenders and brokers should always think about the long term, alongside the immediate need.

With the right support, today’s near prime borrower can become tomorrow’s prime customer. ● June 2025 | The Intermediary

13

RESIDENTIAL Opinion

Rebuilding credit shouldn’t take sacrifice

I

14

n today’s marketplace, straightforward mortgage cases are increasingly rare.

Buyers and brokers alike are navigating a tougher economic climate, with affordability a major concern, lending criteria remaining narrow for those outside prime profiles, and the rising cost of living continuing to apply pressure.

The pressures on UK consumers are both well-documented and intensifying. According to The Money Charity’s April 2025 statistics, households are seeing steep increases across essential bills: The Energy Price Cap rose by £111 in April, bringing average energy bills to £1,849.

Water bills in England and Wales surged by 26%, with the highest average reaching £703.

Council Tax increased by 5% to 9.99% depending on the region, further straining monthly budgets.

Additional hikes in broadband, phone, transport fares, and other utilities have compounded this pressure.

Bankruptcy remained at about half of pre-2020 levels, 11% lower than in April 2024.

In the 12 months ending 30 April 2025, one in 417 adults in England and Wales entered insolvency, at a rate of 24.0 per 10,000 adults.

This is higher than the rate of 21.6 per 10,000 adults (one in 463) who entered insolvency in the 12 months ending 30 April 2024.

There were 7,273 Breathing Space registrations in April 2025. This is 5% lower than in April 2024.

Further data from the Insolvency Service illustrates the growing financial fragility: In April 2025, 10,012 individuals entered insolvency in England and Wales. This was 8% higher than in March 2025 and 4% higher than in April 2024.

The individual insolvencies consisted of 589 bankruptcies, 3,837 debt relief orders (DROs) and 5,586 individual voluntary arrangements (IVAs). DRO numbers in April 2025 remained similar to the record high levels seen over the past 12 months.

The number of IVAs registered in April 2025 was similar to the average monthly number seen in 2024.

Restoring control

The Intermediary | June 2025

Adding to these challenges, inflation jumped to 3.5% in April, from 2.6% in March, driven by household cost increases and employer cost passthroughs linked to recent National Insurance and minimum wage hikes.

Core inflation climbed to 3.8%, highlighting a sustained squeeze on disposable incomes.

While two interest rate cuts had been expected this year, April’s inflation reading has cast doubt, with some economists now predicting only one cut, adding further uncertainty to mortgage affordability.

For me, these numbers tell a clear story. More households are struggling to stay afloat, and for many, a single missed payment or unexpected cost can trigger wider financial distress.

Traditional lending models o en don’t cater to those with impaired credit profiles, even when past issues were caused by temporary or uncontrollable events.

Recognising this, a growing number of lenders are stepping up with innovative solutions that not only offer access to credit, but also support financial recovery. One such solution is our Credit Restore mortgage,

H

CLAIRE ASKHAM is head of mortgage sales at Buckinghamshire Building Society

Traditional lending models often don’t cater to those with impaired credit profiles, even when past issues were caused by temporary or uncontrollable events” tailored for clients with historical credit challenges. We’ve recently increased the maximum loan-to-value (LTV) on this product from 70% to 75% to offer even greater flexibility and opportunity. This, alongside other specialist products in the market, provides much-needed breathing space, and a much-needed pathway to financial stability.

As an industry, it remains vital to deliver responsible options which allow borrowers to repair their credit profiles over time, without being unnecessarily excluded from homeownership or viable refinancing opportunities. For brokers, these options allow them to expand their advisory toolkit, enabling them to service the needs of clients who might otherwise be le behind.

Rebuilding credit shouldn’t be an uphill ba le fought alone. With the right products, advice, and support, more people can move from financial recovery to long-term resilience, and take meaningful steps toward securing their future in the homes they need and deserve. ●

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RESIDENTIAL Opinion

Remortgage trends reflect shift towards stability

W

e are witnessing a real moment of change in the UK remortgage landscape. For the first time in over two years, more than half of all borrowers selected 5-year fixedratemortgage products.

This signifies a shift away from opportunism and toward intentionality. Borrowers are choosing long-term certainty, even when economic forecasts point to rate reductions in the not-too-distant future. That decision speaks volumes about where borrower sentiment is heading.

Return of the 5-year fix It’s a sign that borrowers are moving away from relying on market shifts and instead prioritising financial stability. They’re prioritising certainty over speculation. That’s a big shift from the rate-chasing behaviour that defined much of the post-pandemic remortgage market.

It’s also a strong signal of how recent economic instability has shaped consumer thinking. The past few years have brought inflation spikes, global energy shocks, and household budget squeezes. Against that backdrop, it’s no surprise that homeowners are re-evaluating their appetite for risk.

Even though base rate cuts are still on the cards for 2025, many borrowers seem to believe those cuts will be slower or smaller than anticipated.

Rather than holding out in the hope of better rates, they’re opting to secure what’s on offer now, especially as many lenders are pricing 5-year deals competitively to attract market share.

There’s another, more urgent dynamic at play, too. A wave of

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The Intermediary | June 2025

borrowers is now emerging from low, sub-2% fixed deals agreed during the pandemic. With those rates expiring, the alternative is jumping to standard variable rates (SVRs) that can be three or four-times higher.

That kind of payment shock isn’t something borrowers are willing to accept lightly. Many are choosing to remortgage ahead of time, locking in a deal before their current term ends.

The result? We’re seeing a more proactive, engaged borrower base that’s focused on long-term affordability and peace of mind.

At LMS, we’ve seen increased activity in remortgage instructions and completions as borrowers take action earlier in the cycle. The message is clear: consumers are planning ahead, and they’re looking for solutions that help them do so with confidence.

The implications What does this behavioural shift mean for the market? First, it puts a spotlight on the importance of clear, flexible product design. Borrowers don’t just want a low rate, they want to understand what that rate means for them now and down the line. They want transparency, not complexity.

Lenders that can offer products that support long-term financial resilience and explain them in simple, relatable terms will have the edge. That means offering real clarity on repayment expectations, exit fees, and how products might respond to changes in the base rate.

It also reinforces the value of strong partnerships between lenders and intermediaries. As the market becomes more nuanced, borrowers are turning to advisers not just for access to deals, but for trusted guidance.

They need someone to help them

NICK CHADBOURNE is CEO at LMS

navigate the options and align their mortgage strategy with their broader financial goals.

The broker’s role Explaining the implications of a 5-year fix versus a 2-year option, exploring what overpayment flexibility might look like, and helping clients stresstest different rate scenarios are all part of delivering value.

With product proliferation only likely to increase in a competitive lending environment, tailored advice will be a key differentiator. Borrowers are more cautious, but they’re also more engaged. That opens the door to more meaningful, long-term adviserclient relationships.

Intentional borrowers What we’re really seeing is a new kind of borrower behaviour emerging that’s cautious, measured, and futurefocused. That’s a healthy development.

It suggests that UK households are becoming more financially resilient, and more prepared to make decisions that protect them against volatility.

For the wider market, it’s a sign that the post-pandemic recalibration is still very much underway. As more borrowers come off low-rate deals, we can expect remortgage activity to stay strong into Q3 and beyond. The appetite is there, but so is the demand for clarity, guidance, and longterm value.

The takeaway is simple: the long game is back. In an environment shaped by uncertainty, borrowers are choosing stability, and the market must adapt to meet them there. ●

RESIDENTIAL Opinion

How Welsh law is reshaping conveyancing

E

ngland and Wales may share a border – and a legal heritage – but increasingly they’re speaking in different dialects of the law. For conveyancing firms, that means becoming fluent in two evolving legal systems, each with its own terminology, processes, and expectations.

Recent shifts in Welsh legislation – most notably the replacement of Stamp Duty Land Tax (SDLT) with Land Transaction Tax (LTT), and the forthcoming Building Safety Bill – illustrate how the two jurisdictions are setting their own legislative agendas.

For firms operating across both nations, this divergence brings new operational, compliance, and advisory challenges.

A change in legal vocab Since 2018, property transactions in Wales have followed a different linguistic path, with LTT replacing SDLT. This wasn’t just a semantic switch, it signalled Wales’ intention to write its own tax code, shaped by its specific housing and economic goals.

For conveyancing firms, this has required more than a simple translation. Processes had to be adapted to ensure that transactions are interpreted correctly within each tax framework. Letters, documents and digital systems have all been reworked to align with the nuances of LTT, ensuring clients receive accurate, context-specific advice.

Distinct development Planning law offers another clear example of legal divergence.

While England operates under the long-established Town and Country Planning Act 1990, Wales

has developed its own legislative framework through the Planning (Wales) Act 2015. This introduces unique provisions tailored to Welsh priorities, such as a stronger focus on sustainability and strategic coordination.

The terminology itself has shifted, too. In England, local authorities refer to ‘Local Plans’ to guide development. In Wales, however, it’s ‘Local Development Plans’ (LDPs) – documents that place a greater emphasis on community involvement and long-term environmental impact.

For conveyancing professionals, fluency in both systems means understanding not just the different words, but the different planning philosophies underpinning them.

Similar structure While England implemented its Building Safety Act in 2022, with the Building Safety Levy intended to be introduced in 2025, Wales is preparing to publish its own version: a legislative equivalent written in a different dialect.

Though the subject matter may be shared, the legal expressions will diverge – reflecting Wales’s own regulatory priorities and approach to safety in the built environment.

For firms like Movera, keeping up with this evolving bilingual legal system requires close monitoring of legislative updates and an agile approach to internal processes.

Just as fluency requires attention to subtle shifts in tone and meaning, so too does effective legal compliance in two jurisdictions.

For clients navigating property transactions in Wales or moving between the two nations, the divergence in law can be confusing – especially when the language

KATHERINE PINNELL is head of legal and technical services at Movera

of regulation looks familiar but behaves differently.

Firms must act as interpreters, guiding clients through the correct processes and translating legal differences into clear, actionable advice.

Some clients may discover opportunities within Wales’s distinct legal landscape, while others may require extra support to understand the implications.

In both cases, conveyancing firms must be equipped to offer culturally – and legally – fluent services.

Futureproofing The flexibility afforded to Welsh policymakers has enabled laws to be tailored to national priorities.

However, for businesses operating cross-border, it introduces complexity.

Navigating two legal dialects requires careful coordination, with separate systems in place to ensure transactions remain compliant – something Movera has already embedded into its operations.

The Welsh Government has signalled that further legal divergence is on the horizon. For firms, this means continuing to develop a strong command of both jurisdictions’ legal languages – understanding not just the vocabulary, but the intent behind the legislation.

Movera is investing in training, systems, and regulatory awareness to ensure it can continue to operate confidently across borders.

As the legal dialects of England and Wales grow more distinct, firms that can switch seamlessly between them will be best placed to serve clients with clarity and confidence. ● June 2025 | The Intermediary

17

●

In Profile.

Q&A

Jessica Bird speaks with Clare Beardmore, director of distribution and Mortgage Club, mortgage services at L&G, about the lessons learned in three decades since the club’s launch

C

lare Beardmore stepped foot into Leek Building Society at the age of 20, and went from serving at the counter to leaving two decades years later as head of sales. At Legal & General (L&G), Beardmore describes her role as director of distribution and Mortgage Club as being a “champion of advice,” leading the effort to “make a difference” in a market that is not just about financial transactions, but getting people into their dream homes.

This year, L&G’s Mortgage Club business celebrates its 30-year anniversary. The Intermediary sat down with Beardmore to hear about the changes and challenges, and understand what might be coming in the next 30 years.

Major milestones

L&G’s Mortgage Club business reached this “super milestone” by “thinking passionately about mortgages and advice,” Beardmore explains, adding: “What has been very clear over the years is that L&G is a strong CLARE source of safety and security that can really BEARDMORE support difficult situations.”

Over the past 30 years, there has been no lack of foundation-shaking events through which the club has had to prove steady, from the Global Financial Crisis to Covid-19 and Brexit.

“It’s at times like that, that L&G sits perfectly, able to listen to lenders and brokers, and really support the market,” says Beardmore.

Overall, Beardmore believes that L&G’s Mortgage Club business has “made a difference in the industry” in its first three decades, acting for advisers and lenders, including supporting businesses with the tools to reopen after Covid-19. As a result of this journey, a quarter of all mortgages in the UK market now pass through the club’s proverbial doors. This puts it in a strong position to continue supporting, growing and improving the market.

Beardmore says: “As director, that’s one of my overriding impressions – what a significant role we’ve got. It’s unique that we can talk to lenders 18

The Intermediary | June 2025

and advisers and get their viewpoints. You can support bringing new lenders into the market, giving them a platform, which ultimately changes the landscape, opening up criteria and bringing better competition.

“If we’ve got a strong housing market then absolutely it’s good for the country, and with our market share we get a good picture of what’s going on out there. With that insight, we can challenge positively, we can point things in the right direction.”

In the time that L&G’s Mortgage Club business has been active, the market has seen the relationships between brokers, lenders and the end customer shift. Beardmore says navigating this changing relationship is “what we do well” – influencing the advice and lender markets to “challenge the status quo.”

“We can highlight what’s going well with lenders, but we also know what’s making advisers unhappy, like dual pricing or reduced proc fees for product transfers,” she explains.

“We’ve got a unique position from which to drive conversation and debate, while considering all the parties in the equation.”

The Mortgage Club also has a role acting as “the combined voice of the adviser when it comes to things like regulatory consultations.” On the other side of this, it provides roadshows and continued professional development (CPD) opportunities for advisers themselves.

Human advice

For Beardmore, while the past 30 years have seen many changes, especially in how advice is delivered, there is something fundamental that underpins this market.

She says: “I’ve been speaking to a lot of advisers, especially over the past few weeks since the release of the CP25/11, and what shines through is that human interaction and empathy are what makes the difference in our industry.

“Whether a person is looking for a tailored mortgage or a suitable protection product, it is that thoughtful and specialist advice that can

I N P RO F I L E

make the difference. I’ve heard so many stories about customers who went it alone and made a less than ideal decision. Whenever an adviser stepped in, the outcome was far more positive.”

To this end, while tech – and particularly artificial intelligence (AI) – has a key role to play, it is unlikely to replace the adviser. Indeed, this would be a “massive shame” to Beardmore: “Has AI got a heart? Absolutely not, and in this industry that’s what’s needed.”

She adds: “If you combine transformation, technology and people together, you get the ideal combination. But on its own, how does AI drive a market forward? How does it spot new opportunities and chances to innovate?”

Nevertheless, Beardmore is still clear that the tech journey is an important one to get right: “We’re passionate supporters of tech, if done in the right way.”

In the early days, with the club’s unique selling point (USP) of payment on advance, Beardmore points to the use of yellow stickers and carbon paper forms as the height of advancement. Now, Ignite and Club Hub provide brokers with fingertip access to affordability, criteria, product and property resources. L&G, Beardmore says, is more than willing to “keep up with the pace of change.”

This pace was, of course, accelerated by Covid-19, which pushed the market further down the path to automated valuation models (AVMs), electronic ID verification, and in a more general sense, the drive for decisions to happen earlier in the homebuying journey.

Beardmore says: “The earlier a decision can be made, the better. Advisers and customers want that certainty. I don’t think we’re there yet.

Everybody thought that the golden bullet would be API connectivity, but adoption is a challenge.

“There’s a nervousness in the industry around the ‘robots taking over’, but you can see that things are beginning to evolve. People are beginning to adapt their plans. Advice is human, but technology can get rid of the grind.”

Part of the club’s role is helping understand how to bring in new innovation as well as improve the use of data, always with the goal being for the customer to receive the best service and advice.

“We give brokers access to research tools, and we expect lenders to keep them up to date,” Beardmore explains. “That ultimately drives better consumer outcomes, so we play a crucial part.”

While the correct implementation of AI is at the forefront of the tech conversation, Beardmore boils this down further, suggesting that a key question is how this sector uses data to “drive the market forward.”

“We know that people’s lifestyles are changing, there are more self-employed people, more people

facing financial difficulties,” she says. “How do you use data to create new opportunities? Then, from a surveying perspective, how do you use data to really support decisioning as early as possible in the journey?”

The next 30

Beardmore says more than anything, the coming decades will be shaped by the next generation of customers. Indeed, with Gen Z not far off the first-time buyer mark, the future might come along sooner than many realise.

Firms will have to consider how future borrowers want to interact and conduct the mortgage journey, while still ensuring they benefit from that all-important human advice.

Beardmore also points to changing attitudes to debt in retirement, which will shape the later life market and its relationship with more ‘mainstream’ residential lending as people take on longer terms.

Meanwhile, the next cohort will likely spark more of a focus on green and sustainable products and buildings, which begs the question: is the market ready to offer innovative ideas that are attractive to Gen Z? “From a lender perspective, Gen Z are different,” Beardmore says. “They are big advocates of a ‘side hustle’ and being both employed and selfemployed. The customer that we serve now is very different from when I bought my first house. We absolutely should know what they want.

“We’re moving into a new era and we have to make sure the new customer is being catered to, while not forgetting that people live longer and work longer. The makeup of the population should drive what we do, the products that are offered, and how advice is given.”

This might sound like far too much change and nuance for advisers to keep track of, particularly while they must also provide an empathic helping hand to borrowers, keep on top of regulation and compliance, and manage the daily work of running a business.

This, Beardmore says, is where clubs can make all the difference, providing education resources, technological services like L&G’s Referral Pro, the ability to “earn while you learn” about new markets and product sets, access to third-parties and CRMs, and on top of it all, thought leadership from different perspectives.

For the immediate future, the club is developing the learning and development piece in particular, continuing to underpin the value of advice , and fundamentally working to get people into homes.

Beardmore concludes: “It’s not just a payment route, it’s wider support. We’ve got to evolve, and the pace of change is only going to get quicker.” ● June 2025 | The Intermediary

19

RESIDENTIAL Opinion

An unsung hero for the self-employed

F

or the UK’s selfemployed, the path to homeownership is o en less about affordability and more about acceptability.

Despite healthy incomes, many entrepreneurs, freelancers, and limited company directors encounter roadblocks when applying for mortgages – not because they can’t afford the loan, but because the system isn’t built for how they earn.

Break with tradition Traditional lending models still favour salaried applicants with consistent income and long-term employment history. But for the self-employed – whose earnings may be seasonal, contract-based, or recently increased – mortgage assessments can o en feel like trying to fit a round peg into a square hole. It’s a structural issue in the market, and one that urgently needs rethinking.

A growing number of borrowers in this space could benefit from more nuanced solutions, and that’s where Part and Part mortgages can come into the equation.

Unlike the more common repayment or interest-only models, a Part and Part mortgage allows a portion of the loan to be repaid on an interest-only basis, with the remainder paid down through capital and interest. The result is lower monthly repayments compared to full repayment loans, while still enabling borrowers to build equity over time.

Practical applications This structure proved invaluable in a recent case involving a limited company director in the printing industry. Looking to purchase a £449,950 property with a 5% deposit

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The Intermediary | June 2025

in the North East of England, the borrower needed over £427,000 in finance. Their latest accounts showed strong profits of £68,000, a significant rise from £35,000 the year before, following the award of several new business contracts. But despite clear affordability, the combination of limited trading history and high loanto-value (LTV) would have excluded them from many mainstream lending options.

With lending criteria that allowed for the use of the latest year’s accounts and income multiples of up to 5.5-times at 95% LTV, the case was assessed favourably. The solution was a Part and Part mortgage split between £249,950 on an interest-only basis and £177,502 on repayment, structured over a 30-year term.

Crucially, the loan structure ensured that the borrower would retain at least £200,000 in equity by the end of the term, meeting minimum regional equity thresholds and offering future flexibility, including the option to downsize.

Intelligent design This case is a prime example of how criteria should be designed to support real people with real borrowing scenarios, many of whom are can be overlooked by mainstream lending channels.

For borrowers like this, whose income is real and reliable but doesn’t align neatly with rigid underwriting templates, a Part and Part mortgage can be a lifeline. It offers a balance between immediate affordability and long-term security, especially where income is expected to rise, or where future asset sales or pension access are anticipated.

More broadly, this case reflects a key lesson: modern borrowers need

ASHLEY PEARSON is head of intermediaries at Loughborough Building Society

Traditional lending models still favour salaried applicants with consistent income and long-term employment history. But for the selfemployed [...] mortgage assessments can often feel like trying to fit a round peg into a square hole” modern mortgage options. Selfemployment is no longer a niche, it accounts for around 13% of the UK workforce, yet mortgage innovation has been slow to catch up. Criteria that consider recent earnings rather than multi-year averages, and products that offer flexibility without unnecessary risk, are increasingly essential.

Part and Part mortgages won’t be right for everyone, but in an era where financial lives are more fluid than ever, they offer a muchneeded alternative. For the selfemployed in particular, they might just be the unsung hero of the mortgage market. ●

RESIDENTIAL Opinion

The return of the 100% mortgage?

Probably not…

T

here has been a lot of noise around 100% mortgages in recent weeks due to the emergence of two new entrants in this market. Is this the start of the return of higher loan-to-value (LTV) lending, or is it the case that it’s never really been away? “The reports of my death are greatly exaggerated,” to quote Mark Twain.

Let’s peek behind the curtain to see what’s going on, and whether 100% lending is really back, or whether it’s still a product in search of a market.

A large part of the interest in 100% mortgages seems, at least in part, to stem from the association with 100% loans and the financial crisis of 2007-8.

Having been at the heart of the Global Financial Crisis – at Lehman Bros at the time, in fact – most the issues stemming from the mortgage market weren’t from 100% mortgages per se, but broadly from lax lending decisions and a lack of adequate capital underpinning the loans.

While the now infamous Northern Rock Together mortgage – “Infamy, infamy, they’ve all got it in for me,” Kenneth Williams – let people borrow up to 125%, ‘only’ 95% of it was in the form of a mortgage, with the remainder coming in the form of a personal loan.

Since this point in time, as lenders and brokers are no doubt fully aware, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have put in place a large number of measures to (a empt) to prevent the events of the Global Financial Crisis reoccurring.

Chief among these is the adoption by banks and lenders of countercyclical capital buffers, or put simply,

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the need to hold an awful lot more capital against loans in the ‘good times’, against possible events in the ‘bad times’! In practical terms, this means that lenders are now having hold significantly higher levels of capital against higher LTV loans. In short, this makes lending at higher LTV not only more challenging, but significantly more expensive.

From a very practical point of view, the default probability of a 100% mortgage customer rises significantly over and above a customer who is pu ing down a deposit of even 10%, quite simply as they have ‘no skin in the game’. On top of this, the loss severity, should the worst occur, is obviously and quite simply likely to be a sum significantly greater than zero, especially when you build in arrears and likely losses on the property.

100% challenging The above, in practical terms, will mean two things when lenders look to develop products. First, lending criteria that is restricted to only those clients with the best credit profiles and higher incomes to limit risk of credit or payment default. Second, rates that reflect the additional capital that has to be deployed against the loan.

On the first point, the challenge or contradiction here is that high credit or high income customers are usually not the sort of customers who typically need 100% mortgages.

The other challenge with 100% mortgages is around the borrowing requirement. Many, or indeed arguably most first-time buyers (FTBs) in the South, are looking for a stretch on income multiples above 4.5-times. As well as the deposit itself stretching the customer’s purchasing power, lenders will look favourably on most FTBs with a deposit – the larger

PETER STIMSON is managing director of mortgages at MPowered Mortgages

The challenge or contradiction here is that high credit or high income customers are usually not the sort of customers who typically need a 100% mortgage” the be er! – given the decrease in risk, loss severity and capital requirements detailed above. This is generally not the case on 100% loans.

In summary, a 100% mortgage is more expensive, will mean generally lower borrowing outcomes and a smaller property budget, and will be restricted to a smaller customer cohort by virtue of credit and income.

Does that mean that they don’t have a place? No, of course not. Not everyone has access to ‘bank of mum and dad’ or the means to save for a deposit, and for some they will be absolutely the right choice. I just don’t see that, considering where lenders and the market are now, it’s ever going to be more than a niche product.

These products are too challenging and expensive to fund, and there are other, be er options out there for many customers, such as Joint Borrower Sole Proprietor mortgages or family springboard mortgages and lend a hand options. ●

RESIDENTIAL Opinion

Market cools, but don’t mistake it for a collapse

T

he mortgage market has had a ji ery start to the second quarter.

A er the surge in completions at the end of March, driven by the Stamp Duty changes, the latest Money and Credit data from the Bank of England reveals just how sharply activity has fallen away.

April saw net mortgage borrowing swing from a robust £13bn in March to -£0.8bn – a drop of £13.7bn in a single month. Gross lending halved to £16.9bn, while repayments also dropped, but not by enough to offset the collapse in new activity. It’s the steepest monthly fall in gross lending since June 2021.

While it’s tempting to read this as a market in retreat, advisers will know it’s more a case of pausing to catch its breath.

Much of March’s momentum was artificially inflated by the rush to beat the Stamp Duty deadline. Buyers, brokers and lenders alike had a clear incentive to get deals over the line before thresholds reset. What we’re seeing now is the natural hangover from that sprint finish.

Approvals data tells the real story.

House purchase approvals fell again in April, down to 60,500. That’s the fourth consecutive monthly decline, and while not catastrophic, it’s an unmistakable signal that demand is so ening. Remortgaging approvals, meanwhile, ticked up slightly to 35,300, but these figures only include remortgages with a different lender, and overall refinancing activity remains subdued.

This ties in closely with the Financial Conduct Authority’s (FCA) lending data for Q1, which captured the peak of the pre-April rush. Those figures showed gross advances rising

12.8% on the quarter to £77.6bn – the highest since Q4 2022. It’s also a 50% increase on the same period last year, but as with the Bank’s March figures, this shouldn’t be mistaken for a true return to form. It was a blip caused by a policy deadline, not the start of a sustained recovery.

In truth, Q2 looks set to be defined by ‘wait-and-see’ behaviour. With no clear timeline for rate cuts, plenty of would-be borrowers are holding back. The effective interest rate on new mortgages nudged down slightly in April to 4.49%, but this is still high by recent standards, and affordability remains a constraint.

Refinance window For existing borrowers, the average rate on the outstanding stock of mortgages edged up again to 3.86%.

The refinance window that many borrowers are entering now is tighter than they expected when they took out their deals, particularly if they fixed at rock-bo om rates a few years ago.

The FCA data did show one trend that merits close a ention: the share of new advances with loan-to-values (LTVs) over 90% rose to 6.7%, the highest level since the financial crisis.

That might reflect lenders trying to tempt first-time buyers back into the market, or buyers stretching to access it. Either way, it’s a sign that risk appetites are shi ing again. Advisers must be vigilant when helping clients structure deals. It’s one thing to get a high LTV mortgage agreed, but another to ensure it’s sustainable.

What we’re not yet seeing, reassuringly, is a spike in distress.

New arrears cases fell slightly, and the total value of balances in arrears dropped by 2.9% on the quarter, even if they remain higher than a year ago.

But this is a lagging indicator, and the

KAREN NOYE is mortgage expert at Quilter

broader economic picture remains fragile. According to early PAYE estimates for May, payrolled employee numbers fell by 274,000 compared to last year. If that trend continues, lender affordability models will tighten, and some borrowers may find the window to refinance narrower than they expect.

For advisers, this is a moment to step in and help clients tune out the noise. It’s tempting for borrowers to try and time the market – holding out for rate cuts or hoping for a sudden improvement in affordability. But the reality is that any improvements will likely be incremental.

Market conditions are more stable than they were a year ago, but they’re not exactly benign. Clients still need careful budgeting and clear advice to avoid overextending themselves.

The broader lesson from April’s data is that policy shocks – like a sudden change in Stamp Duty – can dramatically warp short-term activity.

But when the dust se les, structural challenges remain. High house prices, squeezed budgets, and cautious lenders all point to a subdued market over the summer. That doesn’t mean there’s no business to be done, but it does mean that advisers will need to work harder to help clients find value, particularly those coming off fixed rates or looking to move in a flat market.

The headline figures may bounce up and down, but the fundamentals are clear: affordability remains tight, rate uncertainty persists, and borrowers need guidance more than ever.

Advisers who can keep their clients calm and well-informed in this environment will be doing them a greater service than simply securing a headline rate. ● June 2025 | The Intermediary

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RESIDENTIAL Opinion

A new era for Shared Ownership?

W

ith news of the Government’s funding for affordable housing and the retirement of the Help to Buy scheme, there is more a ention than ever on ways to best help first-time buyers into home ownership.

Shared Ownership remains one of the most accessible options for those with smaller deposits, particularly in the current economic climate, but it hasn’t been without its challenges.

That’s why the recent introduction of the Shared Ownership Code, led by the Shared Ownership Council, represents a potentially significant step in the right direction.

The Code sets out voluntary standards for housing providers, aiming to address long-standing issues that have undermined trust in the model. These include service charges, lease extension policies, and clarity around defect periods, all historical issues that have affected customer outcomes. While the Code won’t solve everything overnight, it does begin to put clearer protections in place for consumers and improves consistency in how Shared Ownership is applied.

Time for transparency Importantly, the Code responds to criticisms raised in last year’s Government report, which highlighted how inconsistent practices, and a lack of transparency were impacting buyers.

In some cases, residents found themselves facing rising service charges or unclear repair obligations, while others were unaware of how staircasing – gradually buying more of their home – could help them reach full ownership. Most significantly, Government data shows that fewer than 3% of all customers with Shared Ownership reached their ultimate goal of full ownership.

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At West Brom Building Society, we have long supported Shared Ownership as part of a diverse housing market. It’s not a product that is suitable for everyone, but for the right customer, in the right circumstances, it can offer a pathway to homeownership that might otherwise be out of reach.

But it must be delivered fairly, transparently and consistently.

The new Code is designed to raise standards and rebuild confidence, among consumers, the housing sector and the intermediary community.

When customers understand what they’re signing up for, feel confident in their housing provider, and are supported to staircase towards full ownership, more people stand a chance of achieving their goal of homeownership. That’s the model we should all be striving for.

Buyer constraints Shared Ownership helps chip away at the affordability challenge by reducing the initial deposit and purchase amount. Buyers only need a deposit for the share they are buying, not the full property value.

In an economic climate where many renters are struggling to save due to rising living costs and rental prices, this smaller upfront cost can make a real difference.

Recent research by West Brom Building Society found that 45% of private renters have not yet been able to start saving for a house deposit.

Many are constrained by high rents, increased living costs and a lack of affordable alternatives. Shared Ownership, if delivered properly, can help open a door that would otherwise remain closed.

The success of Shared Ownership isn’t just about affordability, it’s also about ensuring those homes are made available. If the Government is to meet its housing targets over the next five years, Shared Ownership can play a

ALASDAIR MCDONALD is head of intermediaries at West Brom Building Society

Many [prospective buyers] are constrained by high rents, increased living costs and a lack of affordable alternatives” key role in increasing the volume of affordable new homes and broadening access to those homes.

Intermediaries have a vital part to play in this. Shared Ownership is still unfamiliar territory for many buyers, and some customers don’t realise they can staircase to full ownership – or worry it’s like renting with strings a ached. The intermediary community can help demystify the model, explain the protections offered by the Code, and reassure clients that the goal of full homeownership remains achievable.

The Code won’t fix every challenge overnight, and it is still voluntary, but its adoption by more providers signals a growing commitment to raising the bar. With more support and more transparency, Shared Ownership can fulfil its potential as a viable and sustainable model for homeownership, especially for those who might otherwise be priced out.

Shared Ownership, with the right regulation and clearer protections is evolving. It’s not perfect, and it won’t be suitable for every customer.

But thanks to the Code, the sector is taking steps to build confidence and raise standards. With the right advice, provider and product, Shared Ownership can offer a clear path to homeownership for those who need it most. ●

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by Marvin Onumonu

As the mortgage sector moves through the middle of the 2020s, regulation remains a defining force. The Financial Conduct Authority’s (FCA) consultation paper CP25/11 may have closed, but it continues to fuel speculation and debate among lenders, brokers and key players across the market.

For some, the proposals signal a long-awaited opportunity to streamline lending processes and increase flexibility; for others, they raise concerns about weakening the consumer protection safeguards established over the past decade.

Against this backdrop, the sector is reflecting on its regulatory journey and considering the direction of advice, compliance, and innovation in the years ahead.

From caution to Consumer Duty In the aftermath of the Global Financial Crisis, mortgage lending was reshaped by a wave of strict regulation. The Mortgage Market Review (MMR), introduced in 2014, established robust affordability checks and made regulated advice central to most transactions. Industry leaders widely consider this a turning point for responsible lending and consumer protection.

Clare Beardmore, director of distribution and Mortgage Club, mortgage services at L&G,

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reflects: “One of the biggest changes to our market was MMR. That was the time that we decided as an industry that advice was best for the end consumer.”

In the years following these reforms, firms invested in new processes, compliance teams, and technology, striving to meet the rising expectations of the FCA and restore trust in the market.

Today, advice is the market’s default, providing reassurance for both consumers and firms.

Beardmore adds: “The FCA talks about how 97% of transactions are now advised. That’s a huge change. Only 3% of the time people do not get advice and recommendations on their mortgage, and that's great because it's not just about the product, it's about the term, it's about the repayment method.”

The introduction of Consumer Duty in 2023 shifted the focus further, from merely following rules to delivering positive customer outcomes. The regulator now expects evidence that borrowers genuinely benefit from products and services, requiring not just compliance, but a deeper sense of ethical responsibility and proactive care.

Katrina Hutchins, principal, mortgage policy at UK Finance, says: “What we see is Consumer

Duty as the guardrails to these choices. So, where they're choosing to adopt the new rules, they'll need to consider their Consumer Duty obligations to ensure customers receive a good outcome.”

However, while regulation has delivered greater stability and protection, it has also introduced friction – slowing processes, increasing costs, and sometimes making it harder for consumers to secure deals quickly. This tension is now at the heart of the debate about the future shape of regulation.

Regulation under review The FCA’s publication of CP25/11 in May 2025 marked a significant bid to simplify responsible lending and advice rules, making it easier for consumers to switch mortgages or change their terms.

Central to the proposals is the removal of the rule obliging lenders to recommend advice, paving the way for greater use of execution-only sales and faster processes for those who feel confident making their own choices.

Harpal Singh, CEO at conveybuddy, says: “On the face of it, the language was framed around improving consumer access, removing friction, streamlining the process. But make no mistake: the proposals point directly to wanting to increase execution-only mortgage sales and an attempt to remove advice from those cases where it deems it unnecessary and expensive.”

For the regulator, this is not a retreat from Consumer Duty, but a realignment with its fiveyear strategy, which aims to foster innovation and competitiveness. The FCA argues that excessive guidance and bureaucracy can hinder both consumers and firms, and that a streamlined marketplace will benefit those who are digitally confident, while keeping support in place for those who need more help.

However, the short consultation period – less than a month – sparked concern across the industry about the potential consequences of such rapid change. Many felt the window for feedback was too narrow, given the scale of the proposed reforms.

Faizan Haq, senior policy manager at the Finance & Leasing Association (FLA), recognises both the aims and the practical demands of new regulatory moves. He says: “Both lenders and intermediaries are working hard to meet new regulatory expectations from the FCA. Recent consultations, including the MMR and the next steps on Consumer Duty, reflect a growing focus on customer outcomes and fair value.

“These are welcome aims that align with the industry's commitment to responsible lending.

However, some of these changes do require careful planning and system updates which firms have had to prepare for.”

Hutchins highlights the importance of engaging with trade bodies and staying informed on FCA plans: “It’s really important for those mortgage lenders and intermediaries to engage with their relevant trade body, to stay up to date with FCA plans and to understand their expectations around any new rules [...] there’s a great opportunity to help shape those rules by responding to consultations.”

Industry groups, advisers and networks have expressed a range of views, with some welcoming the opportunity for greater efficiency, but many warning of the risk that consumer interests could be undermined if advice becomes less accessible or if protections are weakened. Some respondents have also highlighted the challenge of ensuring that firms are given enough time to adapt to any changes and to update their systems, processes and staff training accordingly.

Changing roles and risks Across the market, people have raised concerns about the potential risks to their roles, as well as to consumer outcomes. Since 2015, advice has been the norm in the vast majority of new mortgage sales, reflecting the value both advisers and consumers place on professional guidance in a complex market.

Mortgage advisers now deliver far more than just rate comparison – they provide guidance on protection, insurance, and long-term financial stability, building relationships based on trust.

The consultation’s emphasis on ‘flexibility’ and ‘removing friction’ has ignited fears of a return to execution-only models and a widening of the advice gap. Singh warns that these proposals could have a “seismic impact” on advisers, undermining both mortgage advice income and long-term client relationships: “It’s the lenders who stand to gain from more direct business, fewer broker commissions paid, and a tighter grip on the customer journey.”

While execution-only may seem “frictionless,” Singh describes it as “risk-laden,” particularly for those lacking the knowledge or confidence to choose suitable deals. He also notes that most brokers don’t charge fees and often deliver greater value through advice.

Kate Davies, executive director at the Intermediary Mortgage Lenders Association (IMLA), stresses the importance of clear advice triggers: “Of course borrowers should be able to engage with their lender to ask questions and clarify certain aspects about their current mortgage product – but where this leads to a

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June 2025 | The Intermediary

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discussion about changing the product, the advice trigger needs to be pulled.”

On the other hand, some in the industry see potential benefits. Haq observes that many firms are adapting with clearer customer journeys and stronger internal processes.

Michael Shand, managing principal at Capco, describes the FCA’s review as a positive step for consumers with simple needs: “The FCA’s review into mortgage rules is a welcome step, making it simpler for many customers to switch to better mortgage deals.

"For those with straightforward, low-risk circumstances, this could mean real savings and a much smoother experience. However, simplification must not come at the expense of safeguarding more vulnerable customers or those navigating complex mortgages.”

For lenders, the reforms are seen as “absolutely positive,” according to Hutchins, who goes on to highlight the flexibility and optional nature of the changes.

The key challenge will be ensuring that innovation and efficiency do not leave vulnerable consumers behind.

Davies says: “In order to comply with the Consumer Duty, lenders will always need to satisfy themselves that a borrower will be able to meet the higher payments associated with a term reduction.

"It is not clear how a lender could do this properly without undertaking an affordability assessment.”

She cautions that removing existing protections risks confusing what has become a clear demarcation for lenders.

Shand adds: “Firms must ensure their systems are designed to support all customers, including those who may struggle with digital access, confidence, or understanding.”

Hutchins agrees: “It’s really important that all regulators work together and discuss the changes that they’re looking to make, to make sure that they’re done correctly, and to consider any unintended consequences.”

While the proposals may look positive on paper, Singh warns: “The worry is not just what these proposals mean in theory, but what they could signal in practice. If the journey to advice has camouflage netting thrown across its path, then over time the consumer experience may regress to one of faceless processes, low-bar suitability, and higher lifetime costs.”

He adds that the ripple effects could impact the advice sector, with fewer mortgage leads, reduced protection uptake, and erosion of recurring client relationships.

Operationally, firms are feeling the pressure.

Haq notes that complying with new regulatory standards always requires careful planning and system updates.

Davies underlines that lenders need time to make strategic decisions and train staff, warning that borrowers may expect new processes before lenders are fully prepared.

p

Navigating uncertainty As the sector digests the outcome of CP25/11, firms will be reviewing their processes to determine where advice remains essential, and where streamlined digital journeys might serve consumers better. The Consumer Duty remains a safeguard, demanding good outcomes for all, whether or not they have the confidence to self-serve.

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The Intermediary | June 2025

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Looking ahead, Shand sees an opportunity for firms to rethink customer engagement. He says: “This review also provides an opportunity for firms to rethink how they engage with customers across the mortgage lifecycle. With simpler switching comes greater responsibility around communication.

“Firms must ensure customers understand their options, protections and rights, know when and how to act, and are supported with clear, timely information.

The goal should be to deliver smoother journeys without sacrificing clarity or care.”

Innovation, competition, inclusion The closing of the CP25/11 consultation marks the start of a new phase. The FCA is expected to publish its policy statement later this year, with further reviews and discussion papers to follow.

The direction is clear: regulation will continue to prioritise simplicity, efficiency, and consumer empowerment, while questions of protection and fairness remain central.

Digital transformation is set to play a central role in the next chapter for lenders, brokers, and consumers alike. Lenders are investing in new platforms that promise smoother onboarding, automated affordability checks, and easier product switches. Artificial intelligence (AI) and automation are now being explored for everything from credit assessment to fraud detection. However, even as technology raises the bar for speed and convenience, it introduces new risks – digital exclusion, data security, and the loss of the personal service that many customers still value.

Singh warns that, over time, consumer experience could regress to “faceless processes, low-bar suitability, and higher lifetime costs.”

Davies points out that while technology may streamline processes, widespread implementation will be challenging, especially for larger lenders with legacy systems.

She observes: “There may well be scope for lenders to streamline and speed up the assessments which they deem necessary – but this would not require a regulatory change.”

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"If we can't even agree on the choice of lunch sandwiches..."

She adds that adapting systems to accommodate these changes would be both expensive and complex, making widespread implementation challenging.

For those embracing innovation, Shand believes that a more flexible regulatory environment could drive progress, enabling firms to refine processes and develop more user-friendly digital tools, but stresses the need for robust accountability. Under Consumer Duty, firms must ensure positive outcomes for all customer groups, which requires ongoing monitoring and tailored support, especially for those less able to engage with new systems.

There is optimism about the role of AI in supporting customers through their mortgage journeys, especially as digital engagement becomes more common.

Hutchins says: “With the interaction trigger, for example, if we can make it easier for customers to ask questions about their mortgages, then we can see a big benefit in tech or AI helping support customers through those journeys.”

Beardmore notes that the consultation outcomes could fundamentally alter the industry, particularly if the removal of interactive dialogue prompts a shift towards more executiononly sales. She believes this could accelerate technology-driven customer journeys, increasing

the use of tech in execution-only models, an area that should be closely monitored by regulators and industry leaders alike.

Hutchins sees changes to the interaction trigger as particularly impactful for both customer experience and how lenders operate.

“We believe, based on members’ feedback, that amending the interaction trigger should have the most significant impacts,” she says.

"Amending the interaction trigger will allow lenders to improve their customer choice and reduce friction in the preferred channel that the customer wants to discuss their mortgage.

"This should avoid them being forced down and advised through unnecessarily.”

Hutchins adds that this should help lenders support confident customers making their own decisions by providing clear facts without veering into advice.

She says: “We expect this change to largely benefit the cohort of customers that are most confident in making decisions about their mortgage. So, we don't anticipate it having a negative impact on brokers.”

A future-proofed approach As regulation in UK lending continues to evolve, adaptability will be essential. The most successful firms will treat compliance not as a burden, but as an opportunity to build trust and stand out in a crowded market. Advice is set to become a value-added service, tailored to the customer rather than simply a regulatory checkbox.

The best providers will aim not just to meet minimum requirements, but to exceed them – delivering both compliance and a positive customer experience.

Singh cautions that the threat for advisers is “not just regulatory, it’s existential,” urging firms to stay engaged and vocal as the FCA’s reforms shift the sector toward more direct distribution. He believes that advisers who adapt, maintain their professional standards, and embrace new technologies will be best placed to thrive in the years ahead.

Looking forward, regulation will remain on everyone's minds – shaping product design, consumer protection, and innovation.

Haq believes that collaboration between the FCA and industry can deliver both better outcomes and new opportunities, while Shand encourages firms to use regulatory change to enhance both fairness and efficiency.

As the industry awaits the FCA’s final word on CP25/11, the work of future-proofing lending is already underway – one process, one policy, and one customer journey at a time. ●

REGULATORY

Milestones ◆ PS12/16: Mortgage Market Review (MMR) rules (2012) – Overhaul of mortgage affordability and advice requirements following the Global Financial Crisis. ◆ CP11/31: Building the Rulebook (2011) – Early consultation on mortgage reforms. ◆ TR14/20: Thematic Review of Responsible Lending (2014) – Stresstesting and oversight of responsible lending practices. ◆ PS18/14: Senior Managers & Certification Regime (SM&CR) (2018) – Greater personal accountability for senior management in financial services. ◆ PS19/14: Switching Simplified (2019) – Easier mortgage switching for consumers. ◆ PS22/9 / FG22/5: Consumer Duty (2022) – Outcomes-focused regulation raising standards for firms and customer outcomes. ◆ GC22/2: Fair Value Guidance (2022) – Clearer expectations for delivering fair value to customers. ◆ CP25/11: Mortgage Rule Review (MRR) (2025) – Proposals to simplify rules and increase flexibility in mortgage lending and advice.

B U Y - TO - L E T Opinion

Diversification isn’t just about the numbers

I

n buy-to-let (BTL), the word ‘diversification’ gets thrown around a lot – but most interpret it to mean owning a lot of properties. At Fleet Mortgages, we’ve worked with investors who hold 15 properties, and yet they’re arguably less diversified – and more exposed – than others who hold just three.

That might sound counterintuitive, but if all those properties are targeting the same tenant demographic, in the same part of town, then the investor is effectively making the same bet again and again. It’s like saying you’ve got a diversified portfolio because you own shares in five highly specific tech companies. You’re still reliant on a single market narrative playing out.

True diversification in property comes down to three things: type, location, and time. Get these right – in combination – and investors are much better placed to ride out the inevitable swings of the market.

Let’s start with property type.

Different kinds of homes attract different tenants, and behave very differently depending on market conditions. Flats in city centres, terraced homes in commuter belts, three-bed semis in the suburbs – all cater for different needs and pressures.

We’ve seen huge divergences in performance post-pandemic. For example, the exodus to more space boosted family homes, while the return to offices renewed appetite for central flats. An investor who holds both is naturally more resilient. One dips, the other rises. It doesn’t take clever forecasting – it’s just smart structuring.

Then there’s location. We tend to talk about ‘the housing market’ like it’s one thing, but anyone in this industry knows how localised things are.

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There are times when Manchester is surging, while Birmingham pauses.

Regeneration in Liverpool, HS2 offshoots in Leeds, commuter uplift in East Anglia – these aren’t just headline trends, they’re practical signals that opportunities and risks vary enormously by postcode.

Helping spread your client’s portfolio across different regions doesn’t just protect against downturns, it also helps them capture upsides when other areas stall.

Perhaps the most overlooked aspect of diversification is time. Most property investors aren’t buying 10 properties in one go, they’re building steadily, one acquisition at a time, based on when they’ve saved a deposit or spotted the right opportunity. They might not realise that this patience is an advantage. By buying at different points in the cycle, they’re naturally averaging out their exposure.

One property might have been bought in a seller’s market at a premium; another might have been snapped up in a downturn at a discount. It smooths out peaks and troughs and takes a lot of the emotion – and guesswork – out of the equation.

You benefit from a broader exposure to the full cycle, and over time, the returns tend to level up.

Method not madness I always say the market rewards methodical investors – the ones who take their time, do their homework, and build their portfolio thoughtfully across different places, property types, and periods.

Right now, we’re seeing more landlords think strategically about yield and tenant demand, especially as the regulatory landscape tightens.

The upcoming Renters’ Rights Bill, for instance, introduces limits on rent

LOUISA RITCHIE is national account manager at Fleet Mortgages

increases and tighter eviction rules.

Investors who are overextended in one high-cost area, banking on aggressive rent rises to deliver returns, may now find themselves squeezed.

Conversely, landlords who diversified into houses in multiple occupation (HMOs) or multi-unit blocks (MUBs) – and who understand the rules around licensing and Article 4 directions – may find themselves with a stronger yield cushion.

We’re seeing rising interest in this segment of the market. In recognition of the complexity involved, we’ve recently put out a comprehensive HMO guide to help advisers and clients navigate the planning and compliance landscape confidently.

At the same time, we’ve continued to adjust our product range to reflect where demand is heading. For example, recent cashback offers on our HMO and MUFB products are designed to support landlords with upfront costs, which are typically higher for these types of properties.

Those details matter, especially when margins are tight and borrowers are under pressure to make deals stack.

All this circles back to the original point: success in this market isn’t about the number of properties.

It’s about building a portfolio that’s resilient, responsive, and aligned with market realities – not just market hype.

This is the conversation you should be having with your landlord clients.

It’s not just about sourcing the next mortgage; it’s about supporting a longterm strategy that works – whatever the market throws their way. ●

B U Y - TO - L E T Opinion

The public (and ChatGPT) are wrong about landlords

A

li le while ago, I asked ChatGPT – just for fun – to describe the stereotypical landlord in the UK. The response was both amusing and depressingly familiar. According to the artificial intelligence (AI) chatbot, the typical landlord is “dishevelled and hands-on, rather than slick and professional.”

The caricature is of a middle-aged man in a paint-spla ered fleece – probably a former tradesman who picked up a few cheap houses in the ‘90s and now coasts by collecting rent. He’s tight with money, avoids spreadsheets, and isn’t big on service.

This may seem like a cartoonish stereotype, but it’s one many people genuinely believe.

The outdated image of landlords as amateurish and disengaged isn’t just lazy – it has real-world consequences.

It shapes how landlords are portrayed in the media and how they’re treated by policymakers.

The frustrating thing is that it couldn’t be further from the truth.

Today’s landlord is increasingly professional, strategic, and commi ed – and the data proves it.

Our own data shows a 50% rise in landlords under 40 over the past five years, and separate research from our colleagues at Paragon Bank shows a 61% increase.

Crucially, these younger landlords own more than five properties each, on average, according to UK Finance.

Nothing but a number

Becoming professional

Let’s start with age. It’s true that the median landlord is 59, and two-thirds are aged 55 or over, according to the English Landlord Survey (ELS). Many of these were early adopters who got into buy-to-let (BTL) when it was in its infancy in the 1990s and early 2000s.

That may sound like confirmation of the stereotype – but dig deeper and a different story emerges. UK Finance data shows the average age of a landlord taking out a BTL mortgage was just 43 in February 2025, down 3.5 years since 2014.

Another clear sign of this professionalisation is the soaring popularity of limited company ownership structures.

In 2024, a record 61,517 new limited companies were set up to hold buyto-let properties – a 23% increase on 2023’s already record-breaking figure. The total number now exceeds 400,000, according to estate agents Hamptons.

This isn’t happening by accident.

Landlords are incorporating in order to operate more tax-efficiently, more

Serious service What does that tell us? That landlords are ge ing younger, and they’re not simply topping up their pensions – they’re building serious portfolios and treating them as long-term businesses.

Some may argue these landlords are the exception – that most own just one or two properties and are in it for passive income.

It’s true that 45% of landlords own a single property – but they account for just 21% of tenancies, according to the ELS. Meanwhile, the 17% who own five or more properties are responsible for 49% of all tenancies in England.

That alone challenges the idea of a sector dominated by parttime dabblers. Managing multiple properties requires financial discipline, legal knowledge, and operational rigour – the hallmarks of any professional business.

DAVID WHITTAKER is CEO of Keystone Property Finance

Landlords may not always shout about what they do – but that doesn’t mean they deserve to be dismissed as amateurs.

It’s time we update the image” professionally, and with long-term strategy in mind.

The idea that most landlords see property as a something they do on the side doesn’t hold water, either.

A recent survey by Landbay found that more than half of landlords manage their properties full-time. This includes not just larger portfolio owners, but many smaller landlords who take their responsibilities seriously.

Yes, there are still small-scale landlords with one or two properties, but the direction of travel is clear. The sector is becoming more professional, structured and long-term in its outlook.

Landlords may not always shout about what they do – but that doesn’t mean they deserve to be dismissed as amateurs.

It’s time we update the image.

Landlords are not the problem caricatured by public perception – they’re part of the solution, and they deserve to be treated accordingly. ● June 2025 | The Intermediary

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B U Y - TO - L E T Opinion

T

here’s a lot of negativity in the wider press recently regarding landlords. How they prevent first-time buyers getting on the ladder. How portfolio landlords contribute to a housing shortage.

How people shouldn’t profit from housing people.

It’s easy to jump onto this argument and say how it’s unfair – but in the property market, landlords are an absolute necessity. Not only are landlords now going to be providing a better living environment for millions of tenants across the country with upcoming Energy Performance Certificate (EPC) requirements, but they are also a key part of the newbuild infrastructure, too.

Opening the door I’ve mentioned it a number of times before, but I really want to see lenders opening up their appetite to developments that are geared more towards investor buyers, or sometimes even converted office buildings or similar, that are then creating

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social housing for those in need – including asylum seekers or other vulnerable people.

It’s that investor appetite, even if it isn’t always mainstream appetite for purchasing a two-up-two-down single family let, that helps prop up the development sector in the UK. Without investors having appetite for some new-build properties, regeneration in certain areas and cities would halt.

We often see these investors requesting specialist assistance to find a suitable lender for a development with very minimal owner-occupier exposure – yet they still continue to buy these properties and add more and more to their portfolios.

With such appetite, developers will continue to build. We also see many first-time movers renting these properties, taking advantage of some exceptional amenities in the building, and contributing to the local economy.

I’m even going to go out on a limb and say that landlords actually have a bit of a hard time. I will caveat this with the fact that I am fully aware there are some bad landlords and that

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

should never, ever be tolerated. But those who want to provide a good level of housing – who react to regulatory changes in a positive manner, and who want to maintain a well-lookedafter home for their tenants – I feel need further support from lenders.

This support could come in a number of guises. First, with the Labour Government’s Net Zero agenda, they are aiming for all properties in the private rental sector (PRS) to reach an Energy Performance

B U Y - TO - L E T Opinion

Certificate grade of Band C by 2030.

Now, on an older property – perhaps Victorian – this sometimes would cost such a significant amount of money to achieve, that many landlords may completely fall short of reaching such a task. It could be tens and tens of thousands for this to even get close – and who knows, it might actually be impossible to achieve after all that work anyway!

So, where could such support come in? Could the Government work with lenders so there’s perhaps a form of low interest further advance that could be taken out – not dissimilar to the old Help to Buy Equity Loan scheme – in order to boost such property enhancements?

Lenders no doubt want to keep their buy-to-let (BTL) book, or even grow it significantly, so I’m hoping discourse can happen, if it hasn’t already.

Listen to the market Away from the energy performance side of things, where can further support come from to keep landlords interested in buying property as a whole?

I think the answer is simple: lenders need to continue to take feedback from brokers, especially more specialist brokers, to get a feel for what appetite is out there.

If my firm were consulted, we’d definitely ask for lenders to open up to more investor-led developments in order to keep appetite high.

We’d also be asking for lenders to consider longer-term corporate lets or those housing vulnerable tenants. We know that the current Government has the task of increasing the supply of social housing high on the agenda. The landlord has a part to play in making this a reality.

It’s always a knock-on effect. If landlords had further support, then there would be more success for developers when building, which in turn will prompt them to continue building – ultimately creating more homes that then become accessible to the many, not the few.

If there was support for landlords to increase energy ratings, then tenants would hopefully have lower bills due to more efficient homes, and this could increase the ability to save to

go towards their own purchase in the future, should they want to.

If there was support from lenders opening their appetite for varying types of tenancies, then the Government would edge closer towards achieving its pledge. It might then allow landlords to diversify – and instead of snapping up some of the traditional family homes, they might purchase more niche investments – ultimately freeing up the ‘standard’ side of the market for first-time buyers and home movers.

In 2025, more than ever, dialogue is important. We know changes are afoot. Brokers are adapting, lenders are listening, and we all have a part to play in keeping the industry moving smoothly. Everything has a knockon effect, and it sometimes isn’t as negative as first thought. ●

June 2025 | The Intermediary

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B U Y - TO - L E T Opinion

Could letting agents be as valuable as estate agents?

W

ith the Renters’ Rights Bill expected to come into force in England later this year, many tenants and tenants’ rights groups have welcomed the increased security renters will enjoy in future.

However, landlord groups warn this will come at a price, namely further rent rises and an increase in tenants being issued with County Court Judgements (CCJs). This is because the new legislation will mean a more complicated and lengthy court-based process is needed to evict tenants who stop paying their rent.

While this lengthy process may provide additional breathing space to tenants who fall on hard times, any rent that isn’t paid will still be owed and can be claimed via the eviction process. It can easily take a year for a tenant to be evicted via the court process, meaning a lot of debt could accumulate and landlords will be more inclined to pursue this.

A common reason tenants get into arrears is because they become ill or injured and are unable to work.

Workplace sick leave entitlement, Statutory Sick Pay (SSP) and benefits o en come nowhere close to covering the high price of today’s rents.

Unfortunately, renters are far less likely than homeowners to have income protection (IP) – research from Royal London revealed that while 20% of homeowners had IP, the percentage fell to 6% among renters.

The missing link A key reason is that most renters lack connections to professionals who would recommend it to them. IP isn’t something consumers usually seek out, but rather something sold to them

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by advisers. Homeowners o en take out IP when securing a mortgage, typically on the recommendation of the mortgage adviser, to ensure they can continue covering repayments.

Advisers have long established links with estate agents, with mortgages being the obvious product needed by their buyers. I’d like to see similar referral systems set up between le ing agents, tenants and financial advisers.

This could go a long way to ensuring that tenants are adequately protected from the risk of being unexpectedly unable to work and therefore falling behind on their rent and potentially losing their home.

According to the English Housing Survey (EHS), 35% of households are now renting, and their financial commitments are likely to be just as high, if not higher, than those who own property. In fact, research from Zoopla earlier this year suggested it was cheaper to own a property as a first-time buyer than rent in most areas across the UK. All signs point to the idea that renters need IP just as much, if not more, than homeowners. This is particularly true given that the average age of a first-time buyer in England has now risen to 34, according to Government data, with many renting for longer than in the past.

Le ing agents have, for a long time, either directly sold landlords or given referrals for rent guarantee insurance, which covers lost rent and legal costs if a tenant stops paying. All evidence points to the fact they’ve ramped up efforts on this front to protect landlords as the new legislation looms.

With this in mind, shouldn’t they also be preparing tenants by suggesting IP? There’s no reason this couldn’t be as mutually beneficial for agents as referral agreements

CAROLINE PAYNE is acting head of sales at Shepherds Friendly

for insurance or mortgages. Beyond commissions, le ing agents would benefit in other ways, most obviously by keeping landlord clients happy.

If a tenant becomes ill and has IP, they are more likely to keep up with rental payments and less likely to lead to the aforementioned lengthy eviction proceedings.

Addressing supply It’s also possible that income protection could benefit both landlords and tenants by helping facilitate tenancies in the first place.

One of the expected consequences of the Renters’ Rights Bill is a further tightening of supply in a rental market where there is already fierce competition among renters for properties. Over the past few years, we’ve seen a number of companies spring up offering tenants services to help them stand out from other applicants. Firms that reference tenants in advance of applying and provide ‘rent passports’, as well as companies providing paid guarantors, are just two examples.

In a similar way, it’s possible that a tenant showing a potential landlord that they have taken out cover to protect themself if they are unexpectedly off work could sway things in their favour.

Income protection may not be suitable for all renters, but it seems fair to assume it would be beneficial for a significant number. I believe le ing agents could play a vital role in connecting renters with advisers who can help them assess its suitability for their circumstances. ●

B U Y - TO - L E T Opinion

BTL still appeals to Millennials and Gen Z

T

here’s been no shortage of headlines in recent years suggesting that the buy-to-let (BTL) market is in decline.

Whether it’s rising interest rates, tax changes, regulatory hurdles or increasing operating costs, there’s an endless conveyor belt of factors that create a perception that BTL no longer offers the same appeal.

At the same time, we’ve seen a shi in the way younger generations approach investment. The popularity of retail investing and digital assets – cryptocurrencies, NFTs – has grown significantly, and we’re o en told that the next wave of investors is opting for liquidity and mobility when building their investment portfolios.

As a result, there’s considerable debate about whether traditional assets are losing their appeal. But just how accurate are these assumptions?

Is the BTL market genuinely being le behind, or is there still underlying demand among aspiring investors?

To explore these questions, Market Financial Solutions commissioned an independent survey of 2,000 UK adults, which assessed public sentiment towards the BTL market and property investment more broadly – this is what we learned.

Driving demand Despite the challenges facing landlords, BTL remains a compelling investment option for many UK adults. For instance, 33% of respondents want to own a BTL property in the future. Notably, this figure rises to 54% among those aged 18 to 34, and drops to just 14% among those aged 55 and over.

While some of this disparity can be a ributed to older adults potentially already being property owners or

landlords, it does illustrate that younger people still regard BTL as a goal worth pursuing.

In my view, it’s because of the wellestablished perception of bricks and mortar as a safe, secure asset to invest in. This is built on decades of data, with people across the UK having seen both property prices and rents march upwards throughout their lifetimes.

The context in which the next wave of investors grew up is also important.

From the Global Financial Crisis of 2008 to Brexit, the pandemic, and the current inflationary and highrate environment, there has been no shortage of volatility in the financial markets. In contrast, property has demonstrated remarkable resilience.

UK house prices have shown strong growth over the past decade. Although higher interest rates have impacted buyers’ spending power in recent years, prices have largely held firm.

It’s hardly surprising that 60% of survey respondents believe that property is a good way to build longterm wealth, while 37% would rather invest in BTL than in stocks or shares.

Aligning with the mindset A lack of supply and increasing demand in the private rental sector (PRS) means that rental yields have also climbed steadily in the last decade or so. As such, for investors seeking both income and capital appreciation, buy-to-let offers dual benefits that few other asset classes can match.

For younger investors, this combination is a ractive. In recent years, the ideas of ‘passive income’ and ‘side hustles’ have become increasingly popular, especially on social media.

Now, managing a rental property is by no means a passive activity, but with the help of third-parties, it can be done alongside a regular nine-to-five.

PARESH RAJA is CEO at Market Financial Solutions

As such, BTL offers a stable option for investors seeking to increase and diversify their income streams beyond their salaried jobs.

Supporting this, our research revealed that 81% of UK adults who want to invest in a BTL property would ideally use the rental income to support – not replace – their primary income or retirement plans.

Implications for brokers BTL investments have been labelled as increasingly unappealing in recent years, but this is far from the truth.

The rise in house prices and borrowing costs, coupled with tighter rules in the rental market, have created challenges. But the UK’s love affair with property remains intact, and many still see real estate as a reliable source of capital growth.

For brokers and lenders, this presents both a responsibility and an opportunity. There is a clear appetite among prospective investors. However, many of these individuals are entering the market for the first time, and in far more complex conditions than previous generations faced.

It is vital that finance providers focus on education and support.

Clarity around affordability, tax, and regulation will help prospective landlords make informed decisions.

Equally, lenders must continue to offer more flexible, tailored products that reflect the diverse needs of borrowers. In doing so, the market can maintain the momentum that has built so far this year, and usher in the next generation of investors. ● June 2025 | The Intermediary

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The Interview.

Paragon

that has made the bank a BTL mainstay for three decades?

To find out, The Intermediary sat down with Andrew Smart, strategic transformation manager at Paragon, to discuss why the future of BTL needs just as much empathy as it does logic, and how an ambitious transformation programme started with a simple goal: “certainty, transparency and speed.”

Ambitious transformation

Jessica O’Connor speaks to Andrew Smart, strategic transformation manager at Paragon, about the lender’s bold tech transformation – and why certainty, speed, and a human touch remain central to its future

A

s Paragon prepares to mark 30 years in the buy-to-let (BTL) market – and over 40 since its launch – the business is demonstrating that longevity and innovation are not mutually exclusive.

From the launch of its new mortgage origination platform to a strategic reshuffle of internal teams and structures, the specialist lender is doubling down on innovation, investment, and impact. With fresh talent, new processes, and a recent Platinum award from Investors in People, Paragon is pushing hard on performance.

What does this mean for brokers and customers on the ground? And how does a lender rebuild a mortgage journey from the inside out – without losing the specialist touch

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The Intermediary | June 2025

Smart joined Paragon nearly four years ago, bringing close to 30 years of experience across the financial services sector. His career has spanned a range of disciplines, including sales, operations, credit risk and, more recently, transformation and change. What drew him to Paragon, he says, was the alignment between the company’s ambition and its culture.

He recalls: “I’d heard a lot about what a great place it was to work, and also that it was really ambitious in its vision to be the leading specialist bank that was technology enabled.

“But more importantly, it is an organisation of which the employees are proud.”

It was that dual focus – on cutting-edge innovation and a strong internal culture – that made the opportunity stand out.

Smart explains: “That was really key […] we want to be extremely technology enabled, but actually, it’s all about the people within the organisation and getting that across as well.”

So, when Paragon launched what would become its most ambitious mortgage transformation programme to date, the chance to step in as a leading member of the team was, in his words, “too good to miss.”

Challenging familiarity

Building a mortgage origination platform from the ground up was “a significant undertaking” – not least because it involved replacing legacy systems that had been in place for decades.

Smart says: “In some cases, platforms were about 30 years old […] while they’ve got their quirks, they’re like an old friend to a lot of people who use them.”

This familiarity posed one of the main challenges – introducing digital enhancements while ensuring that the people using the system felt supported and understood.

T H E I N T E RV I E W Paragon

Smart adds: “It’s really just about understanding how you’re going to bring this digital enablement of systems to life, but also bringing the people along with you as well – showing all of those key benefits.”

Smart also notes the bank’s initial search for an off-the-shelf solution as another challenge: “We searched the market [but] ultimately none of it did everything that we wanted to do. We then made the decision to build in-house, on a low code cloud-based platform.”

Smart recalls: “At times, when faced with the overwhelming amount of work to do, everybody on the project had their ‘foot of the mountain’ moment. It would be fair to say that all of us looked at it and thought, how are we going to get across all of this?”

But the scale of the task also proved to be the foundation of its success, he adds: “Through that, we made the best decision we possibly could – because that meant that we were in complete control of the product.

“Everything that we’ve done is to support the specialist requirements of not just us, but the brokers and customers that we serve – and it was great to be in control of that.”

Valuable feedback

Launching a platform of this scale was never going to be without trepidation.

“It’s always nerve-wracking to launch anything really,” Smart admits. “But for a platform of this size and its sophistication – it is extremely nerve-wracking.”

The team approached the rollout with care and precision, opting for a six-month pilot phase, which was later extended to allow for deeper engagement with early users. The response was overwhelmingly positive.

Smart says: “We were blown away by the feedback we got. A lot of people were saying things like, ‘It’s so slick, it’s modern, we love the integrations you’ve got with services like Companies House.’”

Beyond the applause came invaluable insight.

One frequently cited area for improvement was the platform’s property schedule upload, with brokers recognising the direction of travel, but offering practical suggestions to refine the process further. Their input allowed the team to refine and enhance key features ahead of the full market launch in March 2025.

Smart says: “We made sure that we ironed out those constructive areas of feedback, but we kept the best bits where people were saying, ‘This is great, and it’s hit the mark.’”

Reflecting on the launch, he says: “Overall, I would say I’m extremely pleased – and grateful

for the feedback as well, because that’s what it’s all about.”

As he points out, internal testing is one thing, “but it’s when it gets out in the wild that you get that real valuable feedback.”

Investing in people

Alongside its platform transformation, Paragon has been making strategic investments in its people. Smart notes: “We’ve got a laser-sharp focus within the organisation on being the best in the buy-to-let business. We’ve made a series of appointments and promotions to ensure we’re set up for success.”

While technology plays a vital role, platforms and processes are only part of the equation.

To support this, Paragon has taken a dualpronged approach: retaining and empowering experienced staff, while bringing in fresh talent to challenge conventional thinking.

Smart says: “What we’ve done recently is blend the best of existing members of staff, who have years’ worth of experience and know our business really, really well, and put them at the forefront of some of these key areas.

“But we’ve also brought in new people who’ve got new ideas, new experiences and actually what they do is just keep that fresh perspective and make sure that we continue to be outwardly focused.

“Obviously, what we always want to do is make sure we’re not just looking at Paragon, but that we’re looking at the wider market and the things that are happening there. That was all part of a strategic structural reorganisation.”

Paragon’s approach to investing in its people goes beyond strategy – it is deeply woven into the organisation’s culture. That commitment has earned national recognition.

Smart explains: “We’re really delighted and proud to be a Platinum Employer for Investors in People. Only 8% of companies in the UK achieve this accreditation, so it’s a really big thing for us.”

The accolade is testament to Paragon’s emphasis on development and progression, but also to its effort to create a truly meritocratic environment.

Smart adds: “This is what I describe as giving the opportunity to everyone. We do invest across the board, and that means those opportunities are absolutely there – but that’s only part of the equation. You also need to enable people to take advantage.”

That philosophy is evident in the bank’s proactive stance on diversity and inclusion.

For example, rather than viewing workplace flexibility as an added perk, Paragon treats it → June 2025 | The Intermediary

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T H E I N T E RV I E W Paragon

as a critical enabler of equity in the workplace.

Smart explains: “It’s important for us to make sure that women are not disadvantaged in any way. We’ve got hybrid working, we’ve got flexible working options, but we also have a lot of role models within our business.”

He points to a defining example of this cultural strength: “We’ve got a female managing director for the mortgage business, and a female director of mortgage lending, so it’s female led, and our transformation team is actually 80% female. The delivery manager and the lead architect on the platform are both women too. That gives you an idea of just how strong that culture is.”

Paragon’s view of inclusion extends well beyond gender representation, Smart adds: “We’re also founding members of the body Progress Together, which is seeking to achieve greater levels of socio-economic diversity in the workplace.”

The commitment runs through the leadership ranks, with chief people officer Ann Barnett sitting on the Progress Together board.

Paragon is keen to ensure its values are not just aspirational, but backed by results and real-world impact with “the evidence to back it up.”

A human approach

As Paragon continues to evolve its offering, including the launch of its new mortgage platform, it remains firmly committed to maintaining a hands-on, human approach where it matters most.

For Smart and his transformation team, the idea is not to choose between technology or real human interaction.

He explains: “Our whole approach in the transformation team is that we just see them as complementary – so neither one to the exclusion of the other. It’s about operating the two and deploying them intelligently, understanding that each has its relative merits, but also its limitations as well.”

This philosophy informs how Paragon applies automation: strategically, and where it makes the biggest difference.

Smart describes “low complexity transactions” as ideal candidates for technology-driven solutions.

He notes: “The demand from consumers is for that digital-first approach […] there is definitely a growth of that happening.

“The benefits really, in terms of what customers see when you put those things through technology, is speed, efficiency and quicker answers.”

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Nevertheless, Paragon’s role as a specialist lender brings added layers of complexity to its proposition, meaning cases often cannot be neatly routed through an algorithm.

In practice, this means simpler cases move faster through digital channels, while more intricate or sensitive matters receive the depth of care only a person can provide.

Supporting intermediaries

Paragon is also deepening its ties with the intermediary market – particularly through increased engagement with broker networks and clubs. Smart explains: “We are working hard to increase distribution. I mentioned growth, and that’s something we’re absolutely keen to maintain momentum on.”

Reaching a greater share of the market is central to that ambition, especially through the channels that brokers trust and rely on.

Smart says: “The vast majority of broker firms are part of clubs and networks. We’ve got a unique opportunity to work more closely with those networks and clubs and show them the benefit of what we can do.”

In today’s complex market environment – shaped by ongoing economic volatility, shifting regulation, and policy changes – these partnerships take on even greater significance.

Smart explains: “Never more so than now […] has it been more key for landlords to be given the best advice. Broker firms that are part of these networks and clubs are really supported with education and other forms of support.

“Paragon is absolutely uniquely placed to help support those broker networks and clubs because we spend a lot of time on insight and research and do a lot of educational pieces that can be consumed.”

Beyond the functional benefits, this outreach is also helping Paragon shape perceptions of its brand, Smart notes: “That helps us get our brand and our name out there, and in turn that we do much more than the common perception of Paragon that is out there. Some people think that we are just sat in that specialist market, but actually we’ve got a much wider range of customers that we can support.”

Tackling complexity

For brokers looking to make the most of what Paragon has on offer, Smart’s advice is both practical and reassuring: lean into the platform, embrace open communication, and make use of the people behind the process.

He explains: “The platform is great for helping to write first-time submissions. Because of the data ingestion that we’ve got – which is

T H E I N T E RV I E W Paragon

prepopulating company details for instance, or helping brokers get to the heart of who owns these limited company structures, etcetera – a lot of the heavy lift is taken off the broker, making sure that the applications, when they get submitted, are in the absolute best place to be right first time.”

But not every case is straightforward, and Smart point out there are built-in opportunities for brokers to flag complexities or clarify details at every stage of Paragon’s process.

“That really helps to head off questions later down the line,” he explains.

To support this, Paragon recently rolled out secure direct case messaging, allowing brokers to communicate directly with underwriters.

Describing Paragon as “one of the few lenders that actually encourages direct contact between brokers and underwriters,” Smart says that each case is assigned a dedicated case owner, providing brokers with a consistent point of contact throughout the process, adding: “We would just say: never feel afraid to reach out, to provide more info, ask questions.”

Certainty and speed

At the core of Paragon’s mortgage platform is a promise to cut through industry noise, and to provide decisions that are faster, clearer, and more dependable. While it may be a straightforward proposition on the surface, it is one that reflects a deep commitment to structural change.

Smart says: “The guiding principles are certainty, transparency, and speed.”

These are not just abstract values – instead, they are actively shaping the platform’s design and day-to-day performance. Smart says the ambition is to reduce friction at every stage for Paragon’s broker partners, starting with initial applications.

He adds: “We want more of our applications getting an instant decision upfront. We want more of those decisions to hold through the process, and we also want to be clearer at the outset in terms of what we need from brokers.”

In practice, this means brokers are not left guessing or chasing updates, as clearer expectations are set from the beginning.

A key enabler of this progress is the platform’s ability to draw from digital data sources right at the outset.

Smart says this richer data set helps Paragon build a fuller understanding of each applicant from the start, adding: “Then when we piece that together with the information the broker provides, we feel we are giving clearer decisions that will hold.”

He continues: “We do a decision in principle on every single case – and certainly a large proportion of our business would receive an instant decision. We are hovering at around the 78% mark at the moment.”

For the more complex cases, underwriters take the lead, but brokers still benefit from clearly defined next steps and requests.

“With that instant decision, we then confirm what we need from the broker – for example supporting documentation,” Smart adds.

The goal is to compress the time and effort required to move from submission to offer, without sacrificing quality or accuracy.

As Smart puts it: “All those things coming together, we would expect to see quicker offers for brokers and customers.”

Raising awareness

While the platform launch marked a major milestone, for Paragon it was only the beginning. Backed by a dedicated transformation team, the bank’s vision to become “the leading technology enabled specialist bank in the UK,” can be seen in other areas of the business too, such as the launch of the Spring savings app.

Smart says: “We’ve already completed several enhancement drops,” with many of the refinements coming directly from broker feedback. That iterative approach is part of what sets Paragon apart – taking real-world insights and acting on them quickly to make the platform faster and smarter. The next wave of innovation is already underway. Leveraging the platform’s growing bank of data, Smart and his team are now exploring how to streamline the process even further.

He explains: “We think we can actually reduce the number of documents that we take from brokers.”

While he remains tight-lipped regarding some of the “exciting things” on the road ahead, the bank prioritises less friction, more intelligence, and better outcomes for brokers and customers alike.

But innovation is not just about tech. It is also about expanding reach and reshaping perception.

“Buy-to-let is in our DNA,” Smart says. “We don’t only want to be seen as just the home for seasoned professional landlords; we also want to be known for those first-time buyers too.”

He concludes: “With all of that experience, we should be the natural fit for people to go to. Given our heritage, and when you add in all of the capability of the new system, this is the ideal point to be raising awareness.” ● June 2025 | The Intermediary

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

Four tips for faster bridging completion

I

n bridging finance, speed is everything. Whether your client is chasing an auction deadline, refinancing before penalty interest kicks in, or seizing a time-sensitive investment, the ability to complete quickly is o en what makes or breaks the opportunity.

But fast bridging isn’t just about how quickly a lender can issue a decision in principle (DIP). The real challenge lies in ge ing from application to completion – and that requires alignment between lenders, surveyors, lawyers and you, the broker.

At Castle Trust Bank, we’ve completed refinance loans in as li le as nine hours, so we’ve seen first-hand what it takes to deliver fast and reliable outcomes. Here are four practical tips that can help you accelerate your bridging cases and deliver a standout result for your client.

Get it right first time The quality of the initial submission can make or break a case.

Incomplete documentation, vague details or inconsistencies only slow things down.

A fully packaged application that includes valuation instructions, planning documents (where relevant), exit strategy details, and redemption statements (if applicable) enables underwriters to progress the case without unnecessary back-and-forth.

Be er still, use a lender that offers a broker portal with real-time case tracking and automated prompts. This avoids duplication, reduces admin, and ensures nothing gets missed.

At Castle Trust Bank, our PULSE application platform offers a slick user journey, only asking pertinent questions and enabling brokers to obtain multiple quotes on the same case. It also delivers instant pricing, immediate terms and instant creditbacked DIPs.

Choose a responsive lender and lean on your BDM Bridging isn’t always straightforward.

You’re o en dealing with complex ownership structures, non-standard property types, or tight timeframes.

This is where people ma er. Look for lenders that offer direct access to decision-makers and where your business development manager (BDM) acts as a problem-solver, not just a

ANNA LEWIS is commercial director at Castle Trust Bank

salesperson. The ability to escalate quickly, clarify requirements, or unlock a deal structure can make a world of difference.

We’ve structured our team to provide upfront certainty, with a daily drop-in that enables our BDMs to discuss cases with key decision-makers and respond to brokers quickly and with confidence.

Consider dual legal representation The legal process can be one of the biggest bo lenecks in any bridging transaction. Dual representation, where a single solicitor acts for both the lender and the borrower, can streamline communication, eliminate duplication, and save days on completion.

It’s not suitable for every borrower, particularly those with complex legal considerations, but for experienced landlords and investors who prioritise speed, it can be a highly effective strategy.

Use title insurance to avoid search delays

Complex decision-making: People matter when bridging is not straightforward

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The Intermediary | June 2025

Traditional local authority searches can take weeks. Title insurance is a smart alternative, providing cover against the same risks without the wait.

It’s especially useful on refinance cases or when dealing with tight auction timelines, and it can also help get complex deals over the line. At Castle Trust Bank, we use title insurance as standard on many of our bridging cases to keep things moving. ●

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

Government proposals could ease the path

I

f the UK is to meet its housing targets, SME developers must be able to operate in a market that genuinely works for them. The latest Government proposals suggest this is now be er recognised at policy level, and that there is a growing understanding of the barriers for smaller developers.

Deputy Prime Minister and Housing Secretary Angela Rayner has outlined reforms intended to give small to medium (SME) developers a clearer route to market. For those grappling with planning delays, restricted land access and tightening funding conditions, these measures could represent welcome progress.

The test will be whether they translate into meaningful change.

A look at the proposals One of the headline proposals is to introduce a more streamlined planning process for small sites, with delegated officer decisions for developments of up to nine properties.

This could help address one of the most common frustrations for SME developers: lengthy and unpredictable planning delays that can hold up otherwise viable schemes for months, or even years. Faster decisions are clearly welcome, though they will only be effective if local planning departments are properly resourced and accountable.

The Government is also proposing a new medium site category, covering schemes of 10 to 49 properties. These sites would benefit from simplified biodiversity requirements and exemption from the Building Safety Levy, helping ease some of the cost and viability pressures.

Beyond planning, the proposals include steps to improve land access,

which has long been a major challenge for SME developers.

Homes England is expected to release more land specifically for SME builders, supported by a new National Housing Delivery Fund to improve access to both land and finance. In addition, a pilot Small Sites Aggregator will look to combine smaller brownfield plots that might otherwise remain underutilised.

Realism on delivery These are sensible proposals that reflect many of the issues developers, lenders and industry bodies have raised in recent years. However, it is important to be realistic about the pace and impact of any reforms.

Planning remains highly inconsistent across the country.

Some authorities are severely underresourced, with wide variations in decision times and processes.

Delegated officer decisions for smaller sites will help, but capacity remains the critical constraint.

Without sufficient investment, even well-intentioned reforms may not shi the dial.

Land access is another key issue.

Smaller developers remain at a disadvantage when competing with larger builders that can afford to land-bank. Releasing more land for SME builders is positive, but the mechanism will need to be carefully managed to ensure genuine access and opportunity.

Above all, SME developers need certainty. They cannot plan their businesses around future reforms or untested pilots. They need to know that the planning process will be consistent and that funding will be available when it is needed.

In the current market, access to

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

funding remains as important as access to land or planning consent.

Developers want lenders that can offer consistency, flexibility and real partnership.

Recent years have seen some lenders become more cautious, tightening criteria and reducing leverage. Developers managing multiple schemes need funding that is pragmatic and aligned to how they operate.

This is why we have focused on increasing our ability to support clients as they grow. We recently raised our maximum lending to £35m per borrower. We have also introduced revolving credit facilities to give experienced developers flexibility across multiple projects.

Crucially, our funding is backed by a strong savings base, not external credit lines. In a market where funding volatility remains a concern, certainty is a key differentiator.

Looking ahead The Government’s ambitions to increase housing delivery are well placed. SME developers must be central to that effort. Planning reforms and improved land access are important steps, but they will only translate into delivery if backed by consistent, flexible funding and a market that developers can rely on.

Certainty is the foundation that enables developers to commit to new schemes and invest in their businesses.

While policy may take time to evolve, it is vital that lenders continue to provide the stability and partnership that SME developers need today. That is where we remain firmly focused. ● June 2025 | The Intermediary

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

Why the quiet winner is now semi-commercial

I

n a year that’s already delivered a fair share of market ups and downs, semicommercial property is quietly growing in popularity. It’s not the trendiest asset class.

It certainly doesn’t get as much press as student accommodation. And not every lender operates in this space.

But for brokers and investors looking for flexibility and resilience, semicommercial property is looking like a shrewd play.

That’s something we’ve seen firsthand. Brokers are coming to us with clear intent – they’re not testing the water, they’re ready to move.

While the Easter slowdown and early May bank holidays are always part of the cycle, the pace we’re seeing now feels different. More focused.

More decisive.

Why now?

Semi-commercial – or mixed-use, as it’s sometimes called – covers a wide range of properties. Retail units with flats above. Cafés with residential space on site. Small local schemes that blend commercial activity with residential use. What sets them apart is how they spread risk – two income streams, two tenancy types. One helps balance out the other. If a flat sits empty, the shop below might still be paying rent. If the shop becomes vacant, the flats could still be let.

In a market where nothing is guaranteed, that dual layer of income provides something lenders and borrowers alike can take comfort in.

A semi-commercial investment relies on the performance of both the residential and commercial elements.

While some investors may still have concerns around the commercial sector, the data suggests resilience in key areas. According to Knight

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Frank’s ‘UK Real Estate Navigator’, published in early 2025, commercial investment volumes hit £10.1bn in Q4, the strongest quarter of the year, and a 29% on Q3. Retail saw £2.3bn in transactions, almost double the average seen since early 2022, while industrial and logistics reached £2.9bn, their highest since mid-2022.

Office investment also picked up, totalling £3.6bn.

That wider recovery ma ers. It shows that investors are active again, but they’re choosing their spots.

Income stability, asset resilience and long-term potential are top of the list.

That’s exactly where semicommercial fits in. It blends residential and commercial income, o en with be er yields than pure resi and less volatility than pure commercial. In a market still adjusting to rate shi s and price sensitivity, that dual-income profile gives borrowers more flexibility and lenders more confidence in the underlying asset.

Not every lender One of the quirks of the semicommercial space is that it’s not universally serviced. Some lenders avoid it altogether, viewing it as too niche or too complex. Others may struggle to price or underwrite mixeduse assets effectively, especially if their teams are siloed between resi and commercial.

For brokers, this creates a challenge.

You might have a perfectly viable client with a good quality semicommercial asset, but you’ll need to know where to go.

We’ve spoken to several brokers in recent weeks who’ve said the same thing: they want to place these kinds of deals, and they know clients are interested. But it’s a space that requires

GAVIN DIAMOND is CEO at Inspired Lending

Income stability, asset resilience and longterm potential are top of the list” confidence, both in the asset and in the lender’s ability to assess it properly.

From our side, it’s an area we’re comfortable with. We’re happy to look at semi-commercial deals. And we’ve built the flexibility into our process to assess the whole picture, not just one part of the property in isolation.

Solid option, uneven market Semi-commercial has emerged as a practical route forward. It suits this moment: a bit more flexible than pure commercial, o en be er value than standard resi, and still offering meaningful returns. In this environment, it stands out for its balance. It doesn’t rely on one tenant type. It isn’t tied to a single income stream. And it offers investors the chance to blend residential stability with commercial opportunity.

For brokers, it’s a deal type that can unlock options – especially if you’re working with clients who value diversification or are looking to de-risk future income. For lenders like us, it’s a space we’re very happy to support.

Semi-commercial might not be everyone’s focus, but right now, it’s definitely having a moment. And we’re here for it. ●

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

Unlocking opportunities for your clients

W

hen the property market is described as ‘unpredictable’, it’s usually shorthand for the simple fact that no two deals are the same. As a lender, I’ve long accepted that a degree of flexibility is o en required. But in the current climate, where property professionals are juggling complex portfolios, different timelines, and competing priorities, that flexibility is being tested more than ever.

A recent £4.5m transaction we completed at Alternative Bridging shows what’s possible when that adaptability is built into the funding structure from the start.

We worked with a returning client with multiple property interests across the North of England. Three distinct facilities were arranged: one to refinance an existing commercial bridging loan, another as a development exit facility for a residential scheme, and a third to support a pre-let retail and office investment.

Each loan had its own terms and timelines, but together they formed a single, structured package designed to meet the client’s broader funding objective.

Not every deal fits A few years ago, this kind of case might have been seen as overly complicated, or simply not viable.

However, we’ve found that separating out the different elements – rather than trying to force everything into a single loan – o en results in a smoother, more efficient outcome.

For brokers, it’s a reminder that the best route forward isn’t always the most obvious one.

It’s not always clear at first glance when a deal needs to be split. But there are signs. Different asset classes, overlapping deadlines, and shi ing valuations all suggest a more segmented approach might work be er.

In this case, one asset was ready to exit, another was income-generating, and a third was under offer. A single facility wouldn’t have done justice to the client’s strategy, and in fact, might have ground everything to a halt.

Three Rs The ‘refinance, release, reinvest’ cycle is one I’m seeing more regularly.

Clients are increasingly looking to refinance existing assets, free up capital, and move it into new opportunities. What ma ers is making sure one part of the funding doesn’t hold back another. By structuring loans individually, we allow borrowers to keep momentum, while still maintaining overall clarity.

There’s wider evidence that bridging remains central to broker activity.

According to Knowledge Bank, ‘regulated bridging’ was the most searched-for criteria by brokers in the first quarter of 2025. That doesn’t surprise me. Short-term finance continues to play a critical role in ge ing deals over the line.

There are also clear indicators that bridging continues to play a central role in the market. According to recent data from the Bridging & Development Lenders Association (BDLA), overall loan books have grown by 14.4%, passing the £10bn mark for the first time, and reaching £10.30bn.

Pipeline business has also shown strong momentum, with applications rising by 3.9% in the fourth quarter alone, taking the total to £11.30bn.

JONATHAN RUBINS is chief commercial officer at Alternative Bridging Corporation

Clients are increasingly looking to refinance existing assets [and] free up capital” That kind of growth underlines what we’re seeing day-to-day: brokers and borrowers turning to bridging not just for speed, but for flexibility and structure when the mainstream options fall short.

In this deal, communication was key. We worked closely with the broker to agree terms, secured updated valuations where needed, and issued separate offers for each facility. Our underwriting team collaborated with our legal partners and the client’s solicitor to make sure everything progressed without delay.

As I o en say, delivering a structured deal like this isn’t about being clever, it’s about experience. It’s about knowing when to keep things simple and when to step back and consider whether there’s a be er way to approach the funding altogether.

Structured bridging won’t be right for every case. But when you’ve got layered funding needs or multiple moving parts, it can make all the difference. For brokers, the important thing is to recognise when a deal could benefit from that kind of flexibility, and to have a lender on board that knows how to make it work.

Bridging isn’t just about speed. It’s about solutions that reflect how real borrowers operate, giving brokers confidence that the funding will fit the deal, not the other way round. ● June 2025 | The Intermediary

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Q&A

RAW Capital Partners

The Intermediary speaks with Tim Parkes, chief executive at RAW Capital Partners, about human expertise in the face of a changing international borrower market RAW Mortgage Fund is celebrating its 10th anniversary this year. How would you describe its evolution?

It has certainly been an exciting and quite enjoyable 10 years. We started off with a very small team and we had amazing support from investors and professionals, but it was hard work.

We completed on our first mortgages less than six weeks after we began putting the ideas and documentation together.

We have an amazing team that we’ve built, and we now have more than 25 people in three locations – Guernsey, London and Southampton.

When we set out, I was determined to provide great service – the sort of service you used to be able to get from your bank manager 30 years ago.

Obviously, these days there there’s more work to be done, more forms to fill in, but we’ve tried to stay steadfast to that service ethos. We turn decisions around within 24 hours so that brokers and borrowers know where they stand.

What we’ve really focused on is looking at borrowers’ circumstances ‘in the round’, rather than using a rigid sort of set of criteria, or a tickbox approach.

As a smaller and more bespoke lender, we’re able to be a bit more fleet of foot, a bit more specialist in that consideration. We deal with some quite complex cases, and we’re always prepared to consider those. There’s a great opportunity where it’s not a big enough deal for others.

We’ve now got borrowers resident in more than 50 countries. A lot of the mainstream lenders exclude international borrowers, but throughout our evolution that flexibility has always remained.

How do you keep that ‘bank manager’ service?

We get the brokers to tell the story of each borrower – their makeup and history. So, for 46

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example, you might have a client who’s now retired and has got a small income, but a large amount of assets, or a strong borrower with a less compelling property. Looking at those things in proportion and understanding that history is important.

After that initial in-depth conversation, we try to build systems which only require one input of data and are linked to each other. We use automated communications and standard documentation which help us to be efficient.

But the thing that makes us unique is our people. That’s what makes the difference.

What are some key changes to RAW’s proposition over the years?

Originally, we were expecting to do nearly all of our business in London, but we’ve certainly opened up our books much more.

We’re also a bit more flexible on high rises. There have been lots of developments in London, such as around Battersea Power Station and Canary Wharf, and we’re much keener to lend on those types of developments now than 10 years ago.

The market has moved, and we’ve had to move with it, albeit still with a focus on the quality of the property. Compared to other countries, regulation around high-rise buildings in the UK is really quite strong. That’s a really positive change. There’s great opportunity with that sort of property where it’s well-regulated and well-constructed.

Fundamentally, we’ve always tried to lend against good quality property in good locations.

What underpins our mortgage is the quality of the property we’ve lent against, and therefore the quality of the risk.

We’re careful to lend to borrowers who we believe will be good payers. That might be because they’ve got decent income, or because the property is likely to attract decent tenants.

The recent uplift to 70% max loan-to-value (LTV) doesn’t change that strategy. It simply expands our opportunities. We have been very conservative on LTVs in the past, but expanding that doesn’t

Q&A

necessarily mean letting your guard down. The higher the LTV, the more robust the property and borrower should be, but there’s good quality business to be had.

What are some of the biggest shifts you’ve seen in the UK market?

There are the obvious things like Covid-19 and Brexit, which impacted the market in some positive, some negative ways. But it’s the tax changes that drive the underlying long-term changes, whether that’s Stamp Duty or tax relief.

In the run up to when we launched in 2015, the We’re seeing a lot of landlords give up because market had a bit of a bull run after the financial it’s less easy to do business and make profits. crisis, property prices were going up for a That’s tough for the market – we’re not building considerable while. Then, with Brexit came a social housing, we’re reliant upon the private bit of a slowdown. Property price increases rental sector (PRS) for the rental market, haven’t been quite so bullish since then, and people need to rent. but they have been robust through the I do worry that some changes will pandemic, and despite various changes erode the attractiveness for property to Stamp Duty, they remain pretty investors in the UK, though that mayb positive now. be an advantage for overseas clients.

Part of that is driven by the lack of The BTL market has dropped in scale. building over the past 30 years relative Some of that is political – there’s a bit to demand – and the insatiable appetite in of short-termism. We still need more the UK for owning property. housing, and if people can’t afford to buy, Non-UK borrowers, whether expats or you’ve got to find people willing to invest in TIM PARKES the rental market. So, I think we’re naïve in foreign nationals, like the UK because of the certainty that the market is robust, as well as the UK. We put too many barriers in place for a very well-regarded legal system compared to property investors when we should be attracting many other countries, one which makes sure a investors. person can be confident in ownership.

The Renters’ Rights Bill obviously puts more Even considering factors like Brexit, foreign burden on landlords. It will hopefully remove nationals often see the UK as a safer place for some poor-quality landlords and properties from their money and their assets. Over the last few the market, and it puts renters in a much stronger years, for example, where inflation in Turkey has position, but there is a balance with these things. suddenly increased dramatically, people are keen I certainly think complexity makes it harder to get assets to a more stable jurisdiction. for people to get past ‘go’. If you can’t tick all When we first started off, international buyers those boxes, you then end up needing to go to a were focused on London, but we’ve seen quite a specialist who understands your particular market. lot of focus recently on other cities – Manchester, Obviously, that’s hard if you’re somewhere else in Birmingham, Leeds, Liverpool. They seem to follow the world, knowing which brokers and lenders to where the football teams are based! go to – do you just pick the first broker that shows Prices are obviously quite high in London, so for up on Google? a buy-to-let (BTL) borrower, what you’re looking It’s also hard when lenders want to make their for is a positive yield. It’s much easier to create life easier by using a computer front-end. That’s that in Manchester or Birmingham now. why we’ve kept the human front-end deliberately If you look domestically, there’s a lot of talk in our own business. about the Renters’ Rights Bill. That matters less to international borrowers, not least because Where do you see RAW going 10 they normally put their trust in a managing agent. years from now?

Often, they’re investing because they want to protect their capital, and they think the UK is a We’ve grown pretty steadily over the past decade, better jurisdiction for that. That means there will I expect that to continue – more like 200 people, still be a strong demand in the future. rather than 25, and we’ll expand within the UK, as The feedback we get from brokers typically is well as looking at having people on the ground in that they like coming to us because they can talk some of our clients’ jurisdictions. to a human being, they can get some feedback.

We’re keen to develop, making sure that They like being able to fire questions off to us quite we maintain service and that ‘whole picture’ quickly to get some idea about whether they’re consideration for borrowers. ● wasting their time or not.

How has international interest in UK property evolved?

June 2025 | The Intermediary

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Meet The BDM

Molo

The Intermediary speaks with Agnes Zhang, international telephone BDM at Molo How and why did you become a BDM? I started my career in banking, where I spent six years as a relationship manager, working with clients across sectors including Government and the gaming industry. Handling large cash transactions really strengthened my due diligence and ‘know your customer’ (KYC) skills.

After that, I transitioned to account management at a mortgage brokerage, where I discovered how much I enjoyed helping people buy homes and walking them through decisions that would impact their everyday lives and futures.

After two years, I moved into a business development manager (BDM) role. I spent a lot of time at industry events, meeting with estate agents, buyers and solicitors.

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Meeting with all these different people taught me what each group really valued and how their needs connected to our business objectives. The experience only made me more excited about business-tobusiness (B2B) relationships, and pushed me to expand my experience across the industry.

What brought you to Molo?

Molo had already worked closely with the brokerage where I was before, so I was familiar with the culture and some of the team already. This helped me, as it didn’t feel like stepping into something completely unknown.

I saw how strong the partnership was between my old company and Molo, which convinced me it was

the right career move. The skills I learned in my previous role, such as due diligence and relationship management, are still very relevant in my current role, despite the target audience having shifted. My focus now is to promote Molo’s products and service proposition to brokers.

What makes Molo stand out?

Molo understands the international market. We had established ourselves in the domestic buy-tolet (BTL) market, and when we become part of ColCap – as a wholly owned subsidiary – this enabled us to expand our reach and better serve broker clients across different jurisdictions. We are flexible with our solutions, working both with first-time buyer and first-time

MEET THE BDM

landlords with no minimum income requirements and more experienced International Investors.

Our ORA account facility was built specifically for international clients who don’t have an established UK credit footprint.

From a personal perspective, I love how each BDM brings a unique set of skills to the distribution team.

Our managers are always supportive and know the industry inside out – they really get what we’re offering clients. Molo has a culture where people respond quickly and share knowledge freely. Everyone is working toward the same goals.

What are the challenges facing BDMs right now?

Being a relatively new BDM, I am still working on building trust and confidence with our broker partners.

It is something I keep focusing on.

Beyond that, we are all dealing with much more competition now, not just from other lenders but from all the information brokers can easily find online.

We need to keep proving that talking directly to a BDM and getting dedicated support is what adds real value.

The mortgage industry keeps changing, too – criteria shift, rates change, and market conditions are always moving. We must stay on top of everything and adapt quickly.

Brokers expect a good service that helps their business, and that goes beyond, offering market insights and advice.

Finding the right balance is key.

We need to use technology to be efficient, but we cannot lose that personal connection that makes relationships work. It is a highpressure environment with lots of volume to handle.

What are the opportunities for BDMs? Every challenge creates an opportunity. Plenty of brokers still prefer talking to real people

instead of just using digital tools.

Our business runs on daily calls and face-to-face meetings, which puts BDMs in a great spot to become real strategic partners.

We can be the trusted advisers who help brokers work through complicated policies, structure their deals and grow their businesses.

The market is flooded with generic information, so when we offer guidance that is personal and timely, it makes us stand out.

The industry seems to be moving back toward valuing relationships over everything else. BDMs are perfectly positioned to drive that shift. We can build stronger trust with brokers, while helping them increase their business volumes at the same time.

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

I like to get involved with brokers from the beginning of their journey, making sure that they really understand our criteria, calculators and fees, as well as what we need from them.

When borrowers have questions or concerns, I am always there to give them quick answers and support. It keeps the whole broker-borrower relationship running smoothly.

I try to stay on top of things and be proactive. That way, I can help brokers set the right expectations and avoid delays, so everyone feels confident about the process.

I also follow up regularly on complicated cases and keep brokers updated on policy changes. It means they can offer solutions that really fit their clients’ needs.

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

I used to box and fence competitively. Every year, I try to pick up something new – dancing and piano have been my most recent hobbies. I make a conscious effort to spend less time on social media, allowing me to focus on real experiences.

For example, meditation and yoga have helped me feel calmer and more centred. That sense of balance carries through how I connect with others. I find I’m more patient and present, which has naturally strengthened my relationships both personally and in the workplace.

I find I can engage with people more clearly, with less stress, and just be more genuinely empathic with them. ●

Molo

Established in 2017 Products ◆ Individual and limited company BTL mortgages ◆ Standard BTL for single units ◆ Portfolio landlord support ◆ Specialist BTL for HMOs and MUFBs ◆ Green BTL Contact details Agnes.Zhang@molofinance.com 0756294908 For more details of your dedicated BDM, scan the QR code:

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

Now, more than ever, successful borrowing comes down to finding a broker who is established and knows the ins and outs of the market.

June 2025 | The Intermediary

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

From unstable to unshakable

F

or small and medium-sized (SME) developers and property professionals undertaking heavy refurbishment or development projects, the UK market continues to present both opportunity and volatility in equal measure.

These borrowers – o en highly skilled, resourceful, and with a strong understanding of their local market – are the backbone of the UK’s housing delivery outside of major PLC housebuilders. But they are also among the most exposed to disruption, particularly when it comes to costs, timelines, and accessing the right funding.

Right now, the word we hear from them most o en is ‘uncertainty’.

Shifting landscape Rising costs are still a major challenge.

Although some material prices have levelled out since the height of postCovid and post-Brexit disruption, others – like insulation, timber, and electrics – are still unpredictable.

Skilled labour is another ongoing pressure point, with availability patchy in many areas. That not only drives up costs, but can also create delays, especially on projects with tighter build schedules.

Planning remains a hurdle, too.

Even for developers working under permi ed development rights (PDR) or change-of-use, the process can drag, with timelines slipping more o en than not.

When you’re working to slim margins, these kinds of hold-ups or unexpected costs can seriously affect the bo om line. There’s still strong demand for well-built, energyefficient homes – but with mortgage rates in flux, today’s buyers are more cautious and price-sensitive than they’ve been in recent years.

While the opportunity is there, it’s a tough climate to navigate.

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Certainty matters In this context, certainty is more than just a nice-to-have, it’s a critical foundation that allows developers to plan confidently, manage cashflow, and deliver on their ambitions.

For borrowers taking on a heavy refurbishment project, knowing that funding will be available for each drawdown without unnecessary hurdles is vital. Many work to tight schedules and need a lender that understands the build process, can adapt to on-site changes, and doesn’t make them jump through hoops once a facility has been agreed.

For those embarking on a groundup scheme, having confidence in the structure of their finance – from day one through to exit – can make the difference between a viable site and one that never gets off the ground.

Developers aren’t just seeking funding; they’re seeking partnership and pragmatism.

Time and again, we hear the same sentiment: “I just need to know where I stand.” And understandably so. In an environment where so many variables are beyond their control, certainty from their lender becomes the one area they should be able to rely on.

What does certainty look like?

It isn’t about grand promises – it’s about sticking to the other three C’s: consistency, communication, and clarity.

As a lender in this space, you must ensure you have built an offering around common-sense underwriting, realistic timeframes, and a team that doesn’t think twice to pick up the phone and talk through a case when things aren’t too straightforward.

For us, it’s about clear criteria from the outset, so brokers and borrowers can assess fit quickly and efficiently, as well as underwriters who understand construction and the development finance market – and who are empowered to make decisions. Speed and transparency are

JIM BAKER is sales director at Masthaven Finance

big – particularly when it comes to drawdowns and site inspections, but perhaps most importantly of all: no surprises! Developers have enough of those without their lender chiming in. This isn’t revolutionary, but in a market where many have experienced changing goalposts or slow decisionmaking, it makes a real difference.

The role of the broker We also recognise the vital role brokers play in delivering that certainty. It’s the broker who understands the client’s plans in detail, prepares a robust case, and helps manage expectations on all sides. We see our best outcomes when there’s strong communication between broker, borrower, and lender – where everyone is working towards a shared goal. That collaboration is especially important on heavy refurbishments, where project scopes can change during the works. Flexible doesn’t mean vague – it means clear parameters and a team that can respond quickly.

As the market continues to evolve, we expect demand for refurbishment and smaller-scale development funding to remain strong. There’s an ongoing need for housing in the UK, and SME developers are central to meeting that need, o en delivering creative, high-quality schemes that larger players overlook. It’s our job as a lender to give them the confidence to keep going, take on that next project, commit to that next build, and know they have a funding partner who understands what’s at stake.

When you’re trying to bring a site to life – whether a rundown building ready for transformation or a patch of land with potential – certainty can go a long way. ●

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

A

t Excellion Capital, we recently conducted a piece of research that found property investors can benefit from yields of up to 12.5% by purchasing a three or four-bed property and converting it into a six-bed house in multiple occupation (HMO).

Upon publication of those findings, we received a number of enquiries from property investors interested in venturing into the HMO sector, intrigued by the strong potential returns at a time when planning authorities are being encouraged to push residential applications through in support of the Labour Government’s determination to increase the delivery of homes available in the UK. Following these conversations, I thought it would be useful to explain

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more closely what sort of financing options investors should be looking at to fund an HMO conversion, and how a debt adviser or broker can ensure investors are accessing the best rates possible at any given time.

Taking the bridge The nature of HMO conversions means that they are perfectly suited to bridging loans, which investors can use to fund both the acquisition of a property and its conversion.

Investors should see this as a real benefit of conversions as lenders tend to show strong favour towards bridge loans – not only do they complete much faster than development loans, but they also require far less oversight.

My experience tells me that lenders are willing to provide an HMO bridge loan with very high leverage, often 75% against the purchase price, plus

ROBERT SADLER is vice president of real estate at Excellion Capital

100% of costs. However, the problem for investors is that new bridging lenders are constantly coming to the market, while existing lenders continuously update their offerings

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

without making huge efforts to advertise them.

required loan, and thus offering unusually attractive rates.

Unadvertised deals

Lender personality

I would say that a debt broker’s greatest strength is their insider knowledge. The best brokers are constantly on the lookout for the very best deals, and gain this insight by meeting with lenders and scrutinising the debt market on a daily basis. At Excellion, we pride ourselves on the fact that there is not a deal out there we don’t have eyes on.

A property investor who is rightly focusing their attention and expertise on which asset to acquire, and how best to refurbish or convert it, simply doesn’t have the time required to stay fastidiously in the loop with debt offerings.

Nevertheless, having a comprehensive rolodex of available deals is useless unless you also know what sort of project they’re most suited to. So, a broker’s insider knowledge must be matched with the experience required to know the best available deals to suit each given project that an investor brings to them.

On top of that, brokers should also be aware of which deals lenders are realistically going to approve, because the deals they advertise on their websites, which are frequently out of date anyway, are usually the most ‘attractive’, such as 90% loan-to-cost (LTC) and pricing as low as 0.70% per month, which, in reality, are only going to be approved under the rarest of circumstances.

Speaking of what lenders are actually likely to lend, a good broker is also able to create some competitive tension by having multiple lenders actively bidding to provide the

As well as knowing which deals are currently available to suit an investor’s requirements, and which deals are most likely to be approved, a good debt broker is also familiar with the nuances and idiosyncrasies of each given lender, as well as their sentiment towards each specific type of development, such as, in this case, HMO conversions.

I, for instance, know that some lenders insist on seeing a detailed track record from the developer that shows specific experience in developing the asset being built – such as purpose built student accommodation (PBSA) – whereas others are willing to be more flexible, where general development experience is enough.

Some want 100% personal guarantees (PGs), while others want smaller PGs or none at all. We take the time to understand this, which saves a lot of time when it comes to selecting the right lender for any given project.

Being familiar with the quirks of each lender also means a broker understands each of their credit processes, such as how long they take and how commercially minded they are. As a former banker myself, I have a particularly strong understanding of how these credit processes work.

This understanding of nuance also means that a broker can be on-hand to find the investment loan that an investor will need in order to exit the bridge loan.

Brokerage is about advising an investor every step of the way, providing detailed knowledge on aspects of the deal that they don’t yet

know about. Any investor who is looking to partner with a debt broker must ensure that they select a broker who is very much going to work for them, not the lenders.

While many relationship managers will view the borrower as the client, the actual fact is that they work for the lender’s shareholders.

This is a critical difference, because if things go wrong, I have personally seen lenders suffering internal difficulties – such as regulatory issues, loss of funding or a run of defaulted loans – and quickly turning their back on previously favoured borrowers, cancelling previously approved loans, sharply raising rates on refinance, or looking for ways to exit an existing loan. Not every lender operates this way – I have worked for lenders that are very reasonable – but it is a crucial point that needs to be considered.

A broker must be on the borrower’s side at all times, with no conflicting interests that might cause them to push an investor towards a deal that is less than optimal for them and their circumstances.

My firm view is that debt brokerage should be a collaborative process – the relationship between me and my clients is one of creative and strategic partners rather than teacher and student.

An investor has unmatched expertise in the processes of acquiring assets, converting them, and extracting profit from that endeavour, while I bring to the table my ability to pair that vision with the most appropriate and least cumbersome financing available.

It is through this partnership of shared knowledge and passion that the greatest successes are found. ● June 2025 | The Intermediary

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

Simple questions, complex answers LUKE WILLIAMS is specialist property adviser at Pure Property Finance

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More brokers are relying on specialist partners to help make sense of a complex market

ith terms including the word ‘mortgages’ generating more than halfa-million Google searches a month in the UK alone, many prospective homeowners are still confused about how mortgages work, what they’re eligible for, and how to navigate a challenging market.

Typically, a lot of lenders will let a buyer borrow around four to 4.5-times their annual income. It’s important to reiterate in initial meetings and calls that any debts, or having a credit score that isn’t as good as it should be, could mean that a customer will have to borrow a li le less, or pay a li le more in fees. We are seeing that more products are becoming available for 95% and even up to 100% loan-tovalue (LTV), which is a huge boost for market confidence.

This will especially help first-time buyers get onto the property market, but it’s important to remind customers that even though this could be an option, any funds that they can put down towards a deposit will hugely help them in the long run.

For more specialist products, such as second charges and bridging finance, it’s very much more scenario

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specific. It’s always best to discuss with a specialist partner how to find the most appropriate solution for your customer.

Mortgage rates and availability There’s definitely some optimism that rates might so en a li le bit throughout the year, but it won’t be a dramatic drop. With inflation starting to ease ever so slightly, lenders are still pricing conservatively and are reluctant to make any huge changes.

The Bank of England base rate is a key driver in interest rates.

We’ve started to see this come down consistently, with two members of the Monetary Policy Commi ee (MPC) most recently voting for a 0.5% cut.

Mortgages may follow in the coming months, but they won’t reach prepandemic levels for a long time as banks are easing themselves back in at a slow rate.

Lenders use swap rates as a foundational element in pricing fixedrate mortgage products. Swap rates are also improving, which allows for reduced fixed rate pricing, and also helps with customer affordability.

Ge ing a mortgage starts with preparation. A lot of customers – especially first-time buyers or someone that’s not bought a house in

the past 20 years, will be confused by the process and may need additional handholding from a broker or specialist adviser, especially if it’s a new type of mortgage they’ve not had to deal with before.

If someone’s income is a bit more complex, whether they’re selfemployed or have multiple different income streams, then you need to advise your client that this could be a bit more complex than your typical mortgage and talk them through the process from the start.

With the property investment landscape ever changing, more brokers are relying on specialist partners to assist with acquisitions that need to complete quickly, utilising bridging finance for speed, or to allow for refurbishments before clients move in or let out.

Sometimes bridging loans are seen as a last resort, but in some instances this shouldn’t be the case, especially to speed things up for a client.

Credit challenges It’s not impossible to get a mortgage with bad credit, although you may wish to seek help from a specialist mortgage adviser or broker in ge ing your client the best rate.

It’s definitely easier for a borrower to get a mortgage that they desire, with be er fees, if their credit score is good, but specialist lenders offer mortgages to those with poor credit or who’ve previously missed any payments.

A major downside is that the rates can be higher than a normal mortgage and the deposit needs to be larger than 10%.

A good broker will help borrowers find the right specialist lender, and might advise them on whether it would be worth building their credit score up beforehand. ●

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

Hotspots for commercial finance

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ogether’s latest report, ‘Cities in Focus 2025: Commercial Property Insights’, has highlighted three key UK cities: Birmingham, Manchester and Glasgow that brokers can capitalise on outside of London.

Birmingham Centrally located and full of potential, Birmingham is a racting a growing number of businesses, sectors and skilled professionals. 70% of commercial property professionals see strong opportunity in Birmingham’s office and retail sectors over the next five years, and 78% view student housing as especially promising.

With the rise of e-commerce, there is also an excellent opportunity for investment into property that supports logistics and distribution.

Access to key motorways like the M6, M5 and M40, along with good rail and air freight routes, makes Birmingham an excellent location for companies in the sector.

TANYA ELMAZ is director of intermediary sales at Together

Manchester Manchester continues to defend its reputation as a Northern powerhouse.

Across the city, projects are appearing offering a mix of retail, tech, student housing and mixed-use developments.

77% of property professionals consider retail investment in Manchester a solid opportunity over the next five years. 40% point to semicommercial properties as offering long-term potential.

The outlook for buy-to-let (BTL) shows a similar trend. A third of local landlords expect rental yields to rise by up to 10% in the coming year. Together’s own BTL lending in Manchester surged by 92% year-onyear, reaching £52.5m in 2024.

Glasgow Scotland’s commercial heart is undergoing its most significant transformation in 50 years. At the centre is the regeneration of key retail areas. 80% of commercial property stakeholders see value in Glasgow’s retail market over the next five years.

98% of commercial property professionals in Glasgow are actively considering semi-commercial properties, with 63% feeling optimistic about forthcoming changes to planning regulations.

The mix of large-scale regeneration, increasing footfall, and supportive policy shi s make the city a key area of opportunity for the coming year.

Opportunities abound These cities each offer numerous opportunities, and Reeves’ £15bn investment in transport infrastructure is only going to create more.

Brokers who take the time to understand cities outside of the capital will be best placed to achieve the right outcomes for their customers. ●

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February 2025 | The Intermediary

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

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ebt is one of those subjects we struggle to speak about clearly. It sits uncomfortably in people’s lives, sometimes hidden in the details of a bank statement, sometimes out in the open in the form of mounting credit card bills or a skipped repayment.

We know the pressure is there, and that it rises at certain times of the year. Summer, for many, is one of those times.

There’s a sort of collective assumption that summer brings relief.

The days are longer, the heating is off, and a few of us manage to get away.

But for a lot of people, especially those with children, summer means rising costs. Childcare, family holidays, school uniforms, meals out, meals in.

Add to this the backdrop of a sluggish economy and rising borrowing costs, and what should feel like a season of ease becomes yet another stress point. And not the kind you can resolve by making sandwiches instead of eating out. It’s structural, cumulative, and very often quietly overwhelming.

These pressures rarely arrive in isolation. They’re piled on top of debts already carried over from winter. Credit cards stretched too far in December. A short-term

loan that became longer term than planned. Increasingly, the stories we hear are the same: people juggling multiple repayments, each with a different rate, a different term, and a slightly later deadline than they can keep up with.

These aren’t people who’ve been reckless with money. They’re people who’ve fallen behind, often slowly, sometimes all at once, and have found there’s no easy way to catch up.

Taking control This is the point where consolidation becomes more than financial strategy.

It becomes a lifeline. While that might sound dramatic, it’s no more so than the situation many clients describe to their brokers.

Second charge mortgages are now among the most powerful tools we have for helping people reduce monthly outgoings and regain a sense of control. They don’t make debt disappear. They won’t erase the last few years of inflation or frozen wages.

But they do offer something subtly radical. The chance to make debt manageable again.

At Norton Broker Services, we see this every day. Most of the second charge enquiries we support are for exactly this purpose, with clients looking to roll multiple debts into a single, more affordable repayment.

The reasons vary. Some need breathing space after a change in income. Others are planning ahead before it gets worse. But the pattern is consistent. People aren’t looking to borrow more. They’re looking for a way to breathe.

Battling misconceptions For brokers, there’s a crucial role to play here. Second charges remain poorly understood in the wider market, not helped by the fact that they sit somewhere between first mortgages and unsecured loans, and are often overlooked by clients who could benefit most from them.

Many don’t even know these loans exist. Some assume they’re only for the desperate. Others have simply never had a lender, or a broker, suggest that there might be another way.

But the demand is real and growing.

According to the Finance & Leasing Association (FLA) stats released in March 2025, second charge mortgage lending was up 18% on the same month the previous year. That’s not a blip. It’s part of a much larger trend, one that reflects rising debt levels and a lack of other affordable options.

Meanwhile, about seven million people in the UK are currently behind on at least one household bill, according to Money Advice Trust. January 2025 alone saw £1.1bn

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

borrowed on credit cards, according to the Bank of England’s Money and Credit report.

The financial pressure isn’t anecdotal. It’s all happening in plain sight.

Yet, even now, second charges are rarely part of the mainstream conversation. Brokers who raise them often have to explain the whole concept from scratch, a strange situation given how many clients they could help.

At Norton, we work closely with advisers to cut through that confusion.

We support everything from case placement to packaging and lender comms. We help get the paperwork right, the first time. And we stay in the loop, because what clients need most, especially when they’re under pressure, is clarity and speed.

What matters just as much as the mechanics is the mindset shift. For too long, financial support has been framed around people who are doing well, with a side note for those who fall behind.

But that’s not how most lives work.

They change. They hit bumps. And the idea that debt is always a sign of failure, rather than a moment that needs addressing, remains a dangerous myth.

Second charges aren’t magic, and they’re not right for everyone. But for

the right client, at the right moment, they can stop the spiral. They can give people back the ability to plan, instead of panic.

As the broker, you need to carefully consider the client’s financial capabilities to ensure they are fully informed of the risks, and able to manage their monthly repayments.

You might be the only person who asks a client how things are really going, who doesn’t just talk about rates, but about long-term solutions that can help reduce overindebtedness. When you do, we’re here to help you help them. ●

EDDIE LAU is broker account manager at Norton Broker Services

P RO T E C T I O N Opinion

Little-known cover: Maximising home insurance

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oo o en when consumers are navigating the world of home insurance alone, it isn’t given the consideration it deserves. There are a number of risks.

One is underinsurance: consumers not having adequate protection to meet their needs. Another is cover confusion or crossover: consumers either not realising they can claim for something, or holding separate policies that might not be necessary.

Many people today take out standalone insurance policies for things like their phone or engagement ring, not realising that they might already be covered for that through their home insurance, or that the most economical way to protect those items might be to add them on to their home insurance instead of opting for a standalone policy.

This is one of the many areas where advisers can add immense value, by facilitating a conversation around these finer points. When we’ve conducted research with consumers over the years, it’s clear that the journey of purchasing insurance via a price comparison site doesn’t suit everybody, as we’ve found that the sites can sometimes leave people feeling unsure about their cover.

In 2023, almost a quarter of our survey respondents stated they lack confidence in what the policy covers when purchasing a policy via a comparison site.

Advisers can play a really important role in ensuring their clients are fully clued up, and in flagging some commonly overlooked areas. It also enables advisers to more easily demonstrate the value of a product, and – in some instances where consumers are paying for additional

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cover where they don’t need to – could help them to save money.

Here’s a look at some of the li leknown areas that consumers could see covered by a comprehensive, quality policy, which they might find surprising.

Mobile phones Perhaps one of the biggest culprits for cover duplication is mobile phones.

Typically, home insurance will cover phones within the home for loss and damage if the client has taken out optional accidental damage cover, which could work out cheaper than taking out a separate policy.

Despite this, phones are o en forgo en about, with people perhaps more commonly associating accidental damage with protecting sofas or carpets.

Some form of mobile phone the cover within the home is usually included as standard within a home insurance policy. Loss, the and accidental damage for a mobile away from the home is usually covered within a personal possessions add-on.

With snatch phone the s on the rise – rising by 150% year-on-year according to Government figures – it’s a clear area in which advisers can emphasise the value of this cover.

Aside from phones, there any many things that clients might not be aware they could claim for if they opt for the ‘personal possessions’ optional extra when purchasing their policy.

While people might typically think about things like bikes, jewellery or cameras, quality personal possessions cover also extends to money and credit cards outside the home, too.

Digital information Consumers might not realise that they can typically claim up to £2,000 for

LOUISE PENGELLY is proposition director at Paymentshield

the loss of electronic data downloads, be er known as digital assets.

This could be an online music or film library worth hundreds or even thousands of pounds, or treasured photo albums in digital form that have become compromised.

Garden and freezer Contrary to popular belief, contents don’t have to be locked away in the house, garage or shed to be covered by home insurance. A quality policy will protect ‘contents in the open’ too. This means valuable belongings like garden furniture, barbeques, pizza ovens and trampolines.

Plants in the garden is another good one for any green-fingered clients.

This tends to be covered as standard in highly rated policies, and in our case we cover up to £2,000.

If a freezer unexpectedly breaks down, it’s not just the cost of the item itself that policyholders will need to consider, but also the value of the contents. Many people don’t know that spoiled food is o en covered by their home insurance.

Being armed with some of these li le-known examples can serve advisers well in highlighting the differences between home insurance products, and provide practical demonstrations of why prices may vary – in turn, bringing the value of a policy to life a bit more for a client.

For any advisers wanting to brush up on their product knowledge, our GI Academy is full of resources to help them feel more confident when it comes to discussing general insurance with their clients. ●

P RO T E C T I O N Opinion

Why home insurance can help ease ‘Awful April’

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pril 2025 has been dubbed ‘Awful April’, as millions of households found themselves facing rising costs. From increased Council Tax and soaring energy bills to steeper water bills and broadband hikes, the average household faced hundreds of pounds in additional monthly expenses.

As these increases strain budgets, one o en-overlooked area where clients have an opportunity to save is home insurance.

While it might not be the first expense that comes to mind when trying to cut costs, reducing home insurance can be a smart and relatively easy way to claw back some financial control.

With inflation still affecting many sectors, the cumulative effect of even modest savings in areas like insurance can help buffer the blow of more essential costs.

So, there are several effective strategies homeowners can use to reduce the cost of home insurance.

Get an advice-led service By using a broker such as Safe&Secure, as many as 30 high quality products can be compared in a short phone conversation, while ensuring the home insurance fits the needs of the consumer.

Increase the excess Excess is the amount agreed to pay towards a claim. Opting for a higher excess may result in a lower premium, as long as the amount is affordable should there be a need to make a claim.

STEPHANIE DUNKLEY is development director at Safe&Secure

Bundle buildings and contents If a client is paying for separate buildings and contents insurance policies, they should consider combining them. Many insurers offer discounts when both types of cover are in one policy.

Improve home security A home fi ed with an alarm system, CCTV, smart locks, or even motionsensor lighting is less a ractive to burglars. Some insurance providers offer discounts for enhanced security features, as they reduce the likelihood of a claim being made.

Pay annually, not monthly Paying monthly might be easier to budget, but insurers o en charge interest for this convenience. If a consumer can afford to pay annually, it can lead to savings of approximately a month’s worth of insurance in some instances.

Avoid over-insuring Ensure that a client’s contents cover reflects what they actually own.

Many people estimate too high, which means paying for coverage they don’t need. Likewise, ensure their buildings insurance reflects the cost of rebuilding the home, not its market value.

The impact of making these changes can be significant. For instance, one Safe&Secure customer saved £210 on their renewal premium – which had jumped by 54% – simply by se ing aside time to talk with one of

our home insurance advisers on the phone. That’s more than enough to offset the rise in broadband, water, and even a chunk of the energy bill increases.

Even smaller monthly savings of £15 to £20 from switching providers or adjusting your policy can add up to £180 to £240 a year. That’s cash that can be redirected to cover energy hikes, food inflation, or even transport costs.

In the context of ‘Awful April’, every penny counts. The Office for National Statistics (ONS) recently reported that 65% of UK households have noticed a significant rise in living costs since January 2025.

While cu ing down on discretionary spending – like entertainment, dining out, or the hairdressers – is the usual go-to solution, savings on non-discretionary items like home insurance offer longterm financial relief.

Moreover, proactively managing these expenses sets a precedent for smarter financial planning. As more households face economic uncertainty, taking control of fixed costs like insurance becomes not just a money-saving tactic, but a vital part of financial resilience.

April may have been financially brutal, but there are steps homeowners can take to fight back.

Reassessing home insurance and finding ways to lower the premium could be a crucial way to help mitigate the broader cost-of-living pressures.

By dedicating time to review a policy and make few simple changes, your clients could walk away with real savings. ● June 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

Harsh truths in the later life market

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s we move through 2025, there’s no denying the later life lending market – which, we must admit, has weathered more than its fair share of storms – is showing real and renewed signs of positivity, and an increasing willingness to adapt from both advisers and providers.

We’re seeing advisers rethinking how they approach their conversations with customers. Lenders, meanwhile, bring with them a real desire to offer innovative, flexible products to market that are more responsive to what customers actually want.

About affordability However, that positive momentum shouldn’t distract us from a couple of harsh truths. First and foremost, I remain seriously concerned about the way affordability is being assessed, because right now, the data tells us we’re simply not doing enough.

Platforms like Air show that only one in five customer searches include any form of affordability data. That is an increase, but I’m afraid given what we have available for clients, it’s just not good enough.

We know that a significant proportion of customers are both willing and able to make some level of interest payment. That doesn’t mean they want to pay a full interest bill for the rest of their lives, but it does mean they want flexibility. It’s here that advisers must reframe their assumptions.

There’s a growing cohort of existing – and potential – lifetime mortgage customers who want to retain control, reduce the eventual impact on their estate, and frankly, take advantage of the increasingly compelling product options now on offer.

What worries me is that many of those products – particularly those rewarding even small interest

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payments with lower rates – aren’t being considered early enough in the advice process.

If affordability assessments aren’t being factored into those early conversations, it’s no surprise opportunities are being missed.

Advisers must challenge themselves and their processes, and ask open and assumptive questions. In other words, simply assume that the client will want to be servicing some, or all, of the interest from the get-go. The difference could be transformative, in product choice and outcomes.

At more2life, we’ve recognised this challenge and are determined to help shi the dial. We were among the first to build in product incentives for those customers who want to make payments on their lifetime mortgages, and we’re continuing to invest in tech integrations that make it easier for advisers to source those options based on real affordability data.

We’re also working closely with advisers to pilot smarter case-filtering tools; solutions that make it quicker and easier to rule out cases that were never going to get off the ground.

Because that’s the second big challenge we face: the sheer volume of wasted time and effort on cases that aren’t viable. We all know the pain of investing time and money only to discover a property is fundamentally unsuitable. It’s inefficient, it’s demoralising, and it’s happening far too o en.

If we can use technology to get to a ‘no’ faster, that’s a win for everyone.

Just as importantly, it creates the headroom to say ‘yes’ more o en too, especially if we’re also pushing to broaden criteria.

We know this kind of collaboration is essential. Advisers and lenders must work together, sharing data, insights, and commi ing to a more joined-up way of working. The legacy model, where we all operate in silos and default to old processes, is not

DAVE HARRIS is CEO at more2life

going to cut it in a more complex and competitive market.

It’s also worth pointing out that the industry rightly celebrated a 29% year-on-year rise in equity release borrowing in Q1 2025, as was recently revealed by the Equity Release Council (ERC). Just read the coverage of this report on Sky News, and you will understand why we still have a real job to do in helping customers understand what’s available, and the options that now exist to combat one of the main ‘cons’ raised – namely cost.

That article noted the surge in demand as consumers respond to Inheritance Tax changes and seek more flexible ways to pass on wealth.

What it didn’t mention at all was the evolution of Interest Reward products, as offered by more2life and other lifetime mortgage providers.

These are not niche offerings; they’re increasingly core to what we’re doing as a sector. They represent a vital tool for customers who want more control and for advisers who want to demonstrate real value.

If there’s one message I want to hammer home to all later life stakeholders, it’s this: we can’t continue to be busy fools. Yes, we’ve improved. Yes, more customers are being served. But one in five affordability assessments is not a stat we should be comfortable with.

And continuing to waste time and resources on cases unlikely to make it through to completion is not something we should accept.

At more2life, we’re investing in the solutions, but we can’t do this alone. Let’s step up. Let’s use the tools available to us. Let’s get to a ‘yes’ or a ‘no’ quicker, and let’s give customers the full benefit of the innovation we’ve worked so hard to bring to market. ●

L AT E R L I F E L E N D I NG Opinion

Make it easier to say yes to older borrowers

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s the UK’s population ages and house prices keep rising, the role of the mortgage market in supporting those who own homes is becoming larger and more systemically important for society.

While there has been innovation in the market that serves older borrowers – with the launch of retirement interest-only (RIO) mortgages and more flexible lifetime mortgage options with both drawdown and repayment terms – there is, nevertheless, further to go.

In May, the Financial Conduct Authority’s (FCA) Emad Aladhal, director of retail banking, delivered the keynote speech at this year’s Building Societies Association (BSA) Annual Conference. Announcing the publication of the Mortgage Rule Review (MRR) consultation paper, which proposes some relaxation of affordability assessment in like-forlike or similar refinancing, Aladhal drew specific a ention to the market for older borrowers.

It was gratifying for all of those in the audience, the majority of whom have been commi ed to the mutual lending sector for many years, to hear such praise of the work we do to serve customers who are underserved.

He said: “For 250 years, building societies have led the way in the mortgage market, providing community-driven and innovative financing to fulfil the ambitions of aspiring homeowners.

“We need a market that can serve everyone…as term lengths extend and the average borrower gets older, later life lending is no longer a niche, but increasingly the norm. We all need to face up to the complexities – and opportunities – of increased consumer

need to continue borrowing into later life. To make the changes meaningful, we need you – the industry – to take up the gauntlet of innovation, to use the flexibility we aim to create, to make meaningful progress for our communities.”

He’s right – the ability to serve older borrowers, especially those who still require finance a er their retirement, has not been straightforward.

Yet there are plenty of us who have gone out of our way to consider the challenges that exist and try to provide solutions.

New solutions The proposals set out by the FCA in its Mortgage Rule Review look particularly encouraging for borrowers who need – or just want – to extend their term borrowing past their conventional retirement age.

The way we work and how we retire has changed beyond recognition over the past 30 years – we agree wholeheartedly with the FCA that it’s about time we had a regulatory environment that reflects this.

Relaxing the strict affordability assessment rules brought in a er the Global Financial Crisis does not mean abandoning all reason or sense. Rather the opposite, in fact.

The consultation paper says: “We propose to remove the requirement for a full affordability assessment when reducing the term of a mortgage. This would make it easier for consumers to reduce the term of their mortgage, where it is appropriate for them.

“This would, among other positive effects, reduce the risk of borrowers being unable to meet contractual repayments later in life, where lifestyle changes are likely.

“By removing the prescriptive requirement, firms would be able to

KATHY BOWES is intermediary manager at Cambridge Building Society

The way we work and how we retire has changed beyond recognition over the past 30 years” determine what form of assessment would be proportionate to the customer’s needs.

“Firms would need to meet their obligations under the Consumer Duty, in particular to act to avoid foreseeable harm to retail customers and to equip them to make effective and properly informed decisions.

“We still expect firms to consider affordability in line with the Consumer Duty/PRIN 2A and a firm’s responsible lending policy where it chooses to make use of the changes.”

An eye on innovation The industry is currently locked in debate over the potential implications should these plans become a reality.

Yet, lenders are already thinking ahead of the curve.

Building societies already account for 57% of retirement Interest-only mortgages. Meanwhile, innovation is woven into the history of this sector – you only have to look at the lending we already do for retired borrowers.

There will always be a need for a range of options, and not all borrowers have the same circumstances or objectives. We look forward seeing the final proposals, as these could ensure that lenders like ourselves are able to introduce more innovate solutions for the ever-increasing demand for later life lending. ● June 2025 | The Intermediary

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Meet The BDM

LiveMore Mortgages

The Intermediary speaks with Steven Bailey, key account manager for London and the South East at LiveMore Mortgages How and why did you become a BDM? My career began in call centre management straight out of college, where I worked with telephony teams before moving into the lender side of the industry.

Having held an internal sales role at Landbay, I realised I didn’t yet have the broker relationships needed to succeed in national account manager roles and similar positions.

A recruiter gave me some great advice: to ‘walk the walk’ of a business development manager (BDM) first – get out there, build relationships and gain field experience. That led me to my first BDM role at Bluestone.

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I’d previously had some account management experience at OneFamily, working with some of their top 10 firms nationally, so I had a strong foundation to build on.

Now, having been a BDM for a few years, I’m enjoying the freedom, the variety, and especially the opportunity to develop meaningful broker relationships.

What brought you to LiveMore?

I’ve always enjoyed working in specialist lending – there’s something really rewarding about solving problems for clients and finding the right solutions, not just processing a volume of applications.

What attracted me to LiveMore was the opportunity to be part of a relatively young business, an exciting brand with huge potential.

I was excited by the growth story, especially with the appointment of Paul Lewis, sales director of mortgages and the chance to help shape the business from the ground up. I didn’t want to be just another cog in a large machine – I wanted to make a real impact and be part of a team building something special.

What makes LiveMore stand out?

Product innovation, hands down.

I’ve seen more product development in my first two months at LiveMore

MEET THE BDM

than there’s been elsewhere in a very long time.

There’s a real appetite here to create solutions that work for consumers – it’s not about ticking boxes but about truly helping people, and LiveMore has developed technology to make that happen.

Tools like LiveMore Mortgage Matcher® provide practical solutions for brokers and borrowers alike.

What’s also great is the underwriting approach – LiveMore wants to say yes to lending and has a perfect balance of being big enough to support growing volumes as we scale-up, but small and agile enough to treat each case on its merits which means the team will work hard to make a deal happen when possible.

What are the challenges facing BDMs right now?

It’s a competitive landscape. As mainstream lenders lean more into technology, specialist lending is feeling the pressure to evolve and stand out.

Interest rates have also been a factor – we’ve had historically low rates for so long that some borrowers are holding off, hoping they’ll come down again.

Add in a turbulent few years – from geopolitical tensions to domestic upheaval like the mini-Budget – and it’s been an uncertain time.

But there’s hope that 2025 could bring some much-needed stability and more borrower confidence.

What are the opportunities for BDMs? As vanilla lending becomes increasingly automated, the real growth area lies in specialist lending and advice. Borrowers now often have complex financial situations – multiple income streams, self-employment, age-related considerations – and they need tailored advice.

That’s where BDMs can really shine. Brokers are open to working

As vanilla lending becomes increasingly automated, the real growth area lies in specialist lending and advice.

Borrowers now often have complex financial situations – multiple income streams, selfemployment, age-related considerations – and they need tailored advice” with specialist lenders because we help them solve the interesting challenges their clients present.

If you can provide those answers, there’s a huge opportunity to add value.

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

I take a fairly old-fashioned approach – to me, the broker is the customer and it’s my job to deliver exceptional service. That means timely responses, honest guidance and real support – beyond just talking about products and criteria.

I aim to add value, whether that’s through highlighting later life lending opportunities, helping them replace dipping buy-to-let (BTL) income with new revenue streams, or just making their job easier.

We have tools like the preapplication enquiry form – ideal for checking quirky equity release property cases with an underwriter – and LiveMore Mortgage Matcher, which helps with affordability and structuring. It’s all about finding the right solution, not just pushing one product.

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

There are more options out there than you might think, so speak to a broker to get specialist advice.

If you’re not ready to downsize or have a more complex financial situation, don’t assume you’re out of options just because you’ve reached a certain age.

I recently worked with a 69-yearold client who had lived in her family home for 30 years. She didn’t want to sell, but thought she’d never get access to finance again – but we were able to find her a solution.

What is something people might like to know about you outside of work?

I’ve done a 12,000ft sky dive, I’m currently training for my fifth Tough Mudder, and I got my first tattoo at the age of 44. I’m married with three kids, and as a proud rugby fan, I’ve even had the chance to play at Twickenham, which was an incredible experience. ●

LiveMore Mortgages Established in 2019

Products Mortgage products specifically designed for individuals aged 50 to 90-plus, including: Standard Capital & Interest, Standard Interest Only, Standard Part & Part, Retirement Interest Only (RIO), and Lifetime (Equity Release) mortgages.

Contact steven.bailey@livemorecapital.com 07944 302737

June 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

May you live in interesting times

T

here is a phrase which suggests that we should never live in ‘interesting times’. The implication is that bad things will follow. We are definitely living in interesting times, and our sector is arguably facing one of the potentially biggest turning points that it has ever seen. And I believe it promises to be good news!

Radical thinking We’ve all heard the fact that the market has to grow, that pensioners are not able to sustain their standard of living, and that property wealth is a potential answer to many of the sticky questions facing Government.

However, while the sector has been preparing for growth, building standards, developing advice excellent and looking for referral relationships, we’ve yet to see this forecasted growth.

Now, change is on the horizon.

At the start of March, Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA) announced

that in June, there would be a public discussion into lending in later life.

This was followed by a speech at the JP Morgan Pensions and Saving Symposium at the end of March, which talked about “bold ideas for a joined-up future.”

He mentioned radical thinking and asked whether, “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?”

It’s a question that the Equity Release Council has long pondered. As a trade body and a standard se er, we are commi ed to empowering more over-50s to make informed choices about property wealth. Not everyone can – or indeed should – access their housing equity, but every homeowner should consider what role property plays in their retirement.

To be er understand this role, the Equity Release Council asked independent consumer group Fairer Finance to consider how property

Every homeowner should consider what role property wealth plays in their retirement plans

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JIM BOYD is CEO of the Equity Release Council

wealth can bridge the later life funding gap.

Using new economic modelling, they concluded that half of UK households are expected to require housing wealth to support their funding needs in later life and retirement. They went on to say that should this happen, we would see a £21bn annual boost – in today’s prices – to the economy from 2040.

To deliver this possibility, Fairer Finance went on to make five policy recommendations, which included the provision of more age-friendly properties, no Stamp Duty for lasttime buyers, and the normalising of housing wealth usage in later life.

Ambitious plans They also suggested that we need to reform regulation around later life advice, to break down advice siloes and ensure consumers are supported to maximise the use of all their assets as they approach retirement. This is a big ask, but one that has the potential to pay off for every organisation and individual who operates in the property and pensions arena.

While some problems clients face cannot be solved by good advice, there are many which can, and no adviser wants to turn someone away. We must build a market where clients are comfortable discussing how housing wealth can support their retirement aspirations, and how, as advisers, you can help them or get them the help they need. It’s ambitious, but a ainable.

I look forward to reading the FCA’s discussion paper and I am confident that we will buck the trend – as ‘interesting times’ can now mean change for the good – good news for our sector and our customers! ●

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Contact Brian West on BRIAN @ THEINTERMEDIARY.CO.UK to discuss how The Intermediary can help your business achieve its goals.

theintermediary.co.uk

Meet The Broker Meta Mortgages

Marvin Onumonu speaks with Joel Bailey-Wilson, founder, mortgage and protection broker at Meta Mortgages Tell us a little bit about yourself – what made you become a broker?

My path to becoming a mortgage broker wasn’t a straightforward one.

Growing up, I always had a passion for helping people, and initially dreamed of becoming an actor. But as I began to understand how the world works, I became fascinated by finance and the intricate ways money moves through our economy.

After completing my university studies in finance, I found myself at a crossroads.

Securing a job as a financial adviser proved challenging. This led me to explore the world of property and mortgage broking.

A pivotal interview with an estate agency changed everything when I 66

The Intermediary | June 2025

expressed my interest in becoming a mortgage broker.

The opportunity to help people, especially first-time buyers (FTBs), while providing financial guidance became my calling.

What is something outside of work that people might like to know about you?

I’m really passionate about health and wellness. In my spare time, I enjoy going to the gym, playing football, and regularly playing squash with friends.

Not only does it help me stay in shape and keep mentally fit, it also gives us the space to have meaningful conversations about

personal growth, building towards our goals, and finding ways to support others.

I also enjoy doing charity work – I’ve helped various charities and churches to host events to help raise awareness.

I’m currently preparing for the London to Brighton Bike Ride to raise funds and awareness for a fantastic children’s charity. It’s a great opportunity to test both my physical and mental resilience for a good cause.

Beyond fitness and charity, I love reading and watching podcasts focused on knowledge, personal development, and growth.

I also love visiting different countries – I’m fascinated by how different each country is in terms of culture, pace of life, economy, and people. Not to mention soaking up the sun and enjoying time by the sea!

M E E T T H E B RO K E R

As the founder of Meta Mortgages, what sets it apart from other broker firms?

What are the main issues currently affecting the sectors in which you operate?

What sets Meta Mortgages apart is our unwavering commitment to quality service over volume.

Unlike many firms driven purely by income, we focus on providing a personalised, comprehensive approach to each client.

We don’t just process mortgages; we educate and empower our clients to understand their financial journey.

The sector isn’t without its challenges. Communication remains a critical issue. Too often, different stakeholders – brokers, estate agents, solicitors – operate in siloes, which can be confusing and frustrating for clients. At Meta Mortgages, we work hard to break down these barriers and ensure everyone is aligned and informed.

Another significant challenge is the need for greater collaboration.

Many firms are focused on individual success, but I believe there’s enough opportunity for brokers to support each other. By working together, we can ultimately provide a better service to clients and raise standards across the industry.

How does Meta Mortgages support its clients?

At Meta Mortgages, we prioritise transparent, continuous communication throughout the process. We ensure our clients understand every document and every step, supporting them well beyond the simple completion of a transaction.

Our goal is always to put the client first and guide them through what can often be a complex and daunting experience.

What are the main opportunities in the market for brokers?

The current mortgage market presents incredible opportunities for brokers. With the majority of clients now preferring mortgage brokers over direct bank applications, the industry is experiencing a significant transformation.

The increasing complexity of mortgage products means people need expert guidance more than ever before.

Clients are actively seeking professionals who can navigate the intricate landscape of financial products and provide clear, actionable advice.

In what ways could lenders better support brokerages?

Lenders could significantly improve support for brokerages by developing a more collaborative approach. While some lenders are making efforts to work closely with brokers, there’s definitely room for improvement.

They need to recognise that brokers are the primary channel through which clients find mortgage solutions, and stronger partnerships would benefit all parties, especially the end clients.

How important is diversity in the industry, in your own experience?

I’m acutely aware of the lack of diversity in our industry. Events like the Black Mortgage Professionals and Allies Networking (BMPAN) are crucial for raising awareness and creating opportunities for underrepresented groups.

My approach is simple: be available, be supportive.

Diversity is not just important – it’s essential if the industry is to reflect and serve the wider community effectively.

Are there any developments in the pipeline for the firm?

Currently, Meta Mortgages is experiencing exciting growth.

We specialise in FTBs and limited company buy-to-let (BTL) investors, and we’re expanding our services.

Beyond our core business, I’m developing plans to speak at industry events, focusing on education and empowerment.

The goal is not just to help clients secure mortgages, but to help them understand the broader financial ecosystem.

Do you have a final message to get across?

My message is straightforward: we’re here to help. Not just to complete a transaction, but to educate, empower, and support clients throughout their financial journey.

Whether it’s answering questions at unusual hours or breaking down complex financial documents, our commitment is unwavering.

For aspiring brokers, my advice is: seek knowledge, be persistent, and never be afraid to ask for help.

The mortgage industry is complex, but it’s also incredibly rewarding. It’s about more than just numbers – it’s about helping people achieve their dreams of homeownership.

As Meta Mortgages continues to grow, our core mission remains unchanged: providing exceptional service, delivering financial education, and supporting clients every step of the way.

We’re not just brokers; we’re financial partners committed to turning homeownership dreams into reality. ● June 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

I

t’s been a tumultuous start to 2025, with restrictions lifting on Stamp Duty, the impact of Trump’s trade tariffs, and rumours of regulation changes. So, taking steps to ensure your business is ready to weather any storm is important for every mortgage broker.

Here are my top five tips to help brokers grow their business during uncertain times.

1

Don’t underestimate your existing client base

While recruiting new clients is crucial to expanding your business, many brokers would agree that looking after their existing client base and nurturing those relationships is of equal importance.

It’s a good idea to take the time out and ensure you are utilising the full capability of your customer relationship management (CRM) systems, and are segmenting your client base to deliver tailored communications according to their individual needs.

Are you tracking when existing clients will be coming towards the end of their existing fixed term, and approaching them to support finding their next deal? Or contacting clients who have expressed a desire to extend or renovate their homes to talk about additional borrowing?

Your CRM provider should be able to provide a refresher on what their system can offer to ensure you’re making the most of the opportunities available.

It is important to consider any ongoing communications strategy to build relationships with existing clients that are less transactional.

You’ll remain a trusted resource, while keeping your name front of mind as they navigate future decisions, such as refinancing, purchasing their next home, or further lending on their existing property.

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Using email platforms to automate follow-ups, brokers could consider approaching existing clients to raise awareness of additional mortgage borrowing as a possible funding stream for work they may be considering on their home.

Similarly, this can be used to help clients consolidate debts and manage their monthly outgoings to reduce the financial strain many households are feeling at the moment.

At Leeds, in response to broker feedback and growing client needs, we have recently launched a new option allowing brokers to earn a competitive procurement fee on additional borrowing for the society’s existing mortgage holders.

2

Build a strong

personal brand

In a time where many mortgage holders and aspirational first-time buyers are turning to social media to find out more about what options they have in order to secure the home they want to buy, creating a strong personal brand is crucial to help brokers stand out from the crowd and build their credibility.

Sharing thoughts and ideas on social media is a great way to start engaging with potential clients online.

Providing tips to get clients mortgageready can resonate well, and reposting market updates and industry news could be invaluable to those looking to step onto, or up, the property ladder.

Brokers can take inspiration from lenders and industry experts to position themselves as thought leaders. Translating confusing jargon into a simple and easy to digest article

JAMES O’REILLY is head of intermediary partnerships at Leeds Building Society

is a great way to help potential new clients navigate a complex subject.

Think about the journey you want the client to follow. Will you be using social media to drive people to your website or get in touch with you direct? Are all of your online platforms of a modern, professional standard, and offering valuable information to borrowers?

3

Reviews and referrals

are worth their weight

in gold

When you’ve secured a great deal for a client, it’s the perfect opportunity for them to share their positive experience with people in their network. Do you actively encourage

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B RO K E R B U S I N E S S Opinion

your clients to leave positive reviews online? Or could they pass you onto their friends, family or colleagues?

You could consider entering people into a prize draw if they refer a friend.

You should also consider how well you grow your own professional networks. Consider approaching local housebuilders, accountants or solicitors, as well as joining any business networking groups, to help expand your profile.

4

Become an

SEO superstar

Search engine optimisation (SEO) is the term for improving how your website ranks on online search results pages. It’s no surprise that the pages borrowers land on first are more likely to win their business.

The most popular search words will drive the most online traffic, but will also be the hardest to gain traction with. Using free tools like Semrush, brokers can see how much search traffic a chosen keyword gets each day, and receive recommendations for related keywords that are easier to rank against. This is a simple and cost-effective way to identify how

your online presence can be improved and benefit from more organic online search traffic.

However, the days of ‘keyword stuffing’ are long gone – take the time to create website content that potential clients will find genuinely engaging, because that’s exactly what search engines will rank best.

5

Ask for

feedback

Feedback is crucial to growth and development. Ask your clients for verbal feedback on how you could have done even more to support them. That will help you to offer an effective service to even more people and become more efficient in delivering solutions.

Utilising a feedback form can be useful for those not comfortable asking for direct feedback, but make sure you are taking the comments

on board and making the most of the constructive comments offered.

Taking time out of your day-to-day role to focus on business strategy and your plans for growth can often drop to the bottom of the to-do list, so it’s a great idea to ring-fence a little bit of time each week to focus on what is next for you and your business.

Just blocking out 30 minutes each week is a great first step, and once you start to reap the benefits it will become a regular part of your weekly routine.

Many lenders offer tips to support their intermediary partners, so why not spend a bit of time this week to research what that first small step could be to make a difference to your business strategy? ●

June 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Charting your course, mortgage advice and beyond

T

he journey of a mortgage adviser o en begins with a clear, well-trodden path: an employed broker, typically in an estate agency branch, learning the ropes, building a client base, and honing those crucial advisory skills.

For many, the goal is to leverage this success into self-employment. This is a commendable and popular route, offering autonomy and significant earning potential.

But what if that isn’t the only hill to climb? For ambitious advisers, the landscape of career progression is broadening, offering diverse avenues that build upon their foundational experience in exciting new ways.

The modern brokerage or network isn’t just a launchpad for independent businesses; it can be a multifaceted ecosystem for continuous professional growth.

Expanding horizons One increasingly appealing option is the transition from mortgage and protection advice into wider financial planning. Advisers who have built trust and rapport with clients are uniquely positioned to discuss their broader financial goals. This can involve moving into areas such as pensions, investments, wills, and estate planning.

Recently, we marked an important milestone, as one of our advisers made the transition from offering mortgage advice to a broader financial advisory role within our financial services arm, Just Wealth. This move allows advisers to offer a holistic service, deepening client relationships and expanding their professional horizons.

It’s testament to the diverse talent and ambition within our network.

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Not only does this evolution enhance the service we provide, but it also enriches each adviser’s skill-set and opens new avenues for career growth.

Stepping into leadership For advisers with a flair for motivating others and a strategic mindset, management offers a compelling path.

The most direct routes o en involve roles like a divisional sales director (DSD), responsible for leading, developing and recruiting a team of employed advisers. Alternatively, within a self-employed structure, an area director role can be rewarding, supporting self-employed brokers in honing their business plans, driving growth, and facilitating recruitment.

These positions allow experienced advisers to multiply success across a wider team.

At Just Mortgages, both our employed and self-employed management teams are made up of former advisers who have a wealth of experience and expertise to share.

Diversifying skills The skills honed as a successful mortgage adviser – a ention to detail, communication, regulatory understanding and a client-centric approach – are all highly transferable.

These open doors to vital roles, offering new opportunities for career development and personal growth.

Ambitious individuals might find fulfilling careers in areas such as compliance, ensuring the business adheres to ever-evolving regulations.

Others might gravitate toward learning and development, where they can help shape the next generation of advisers by designing and delivering training programmes and mentoring new talent.

JOHN PHILLIPS is chief executive officer at Spicerhaart

Marketing is another exciting avenue, where advisers can apply their understanding of client needs and market dynamics to influence brand and outreach. They can also support self-employed advisers in developing their own style and strategy.

These roles enable advisers to apply their expertise in different, yet equally impactful, ways – offering fresh perspectives and introducing new challenges that keep their careers dynamic and rewarding.

Power of potential A large, well-resourced brokerage or network can provide the scale and infrastructure necessary to offer these varied opportunities.

For the ambitious adviser, this means there’s genuinely no ceiling on their potential. They can grow, pivot and specialise without necessarily having to leave the organisation they’ve come to trust.

For mortgage advisers mapping out their long-term careers, it’s worth considering the full spectrum of possibilities. While the traditional route to self-employment remains a strong option, it’s no longer the only one. It’s important for brokerages and networks to recognise the immense potential within their teams and to provide these avenues for growth.

If these options aren’t readily available in your current setup, perhaps it’s a good time to assess whether your ambitions are being fully supported. Exploring opportunities with organisations that champion diverse career progression could be the key to unlocking your full potential in this dynamic industry. ●

B RO K E R B U S I N E S S Opinion

Mindset shift: Time to get lucky

D

o you think some people have all the luck? Do you feel lucky? How much do you believe that you have achieved everything in life as a result of your own efforts? What part has good fortune played so far?

Luck can be seen as pure chance – outcomes occur randomly, and people assign meaning a er the fact.

However, psychologists have other theories about luck and how we can influence it, especially the roles of curiosity and behaviour.

Curiosity has been shown to be one of the positive emotions that increases happiness, but it is also central to increasing luck. It works by exposing you to new people, ideas and environments. It promotes lifelong learning, ongoing development and personal growth. Curious people ask more questions, make more connections and are more likely to recognise opportunities. So, curiosity creates the context for increased luck by making you interact with the world more dynamically.

Psychologist Richard Wiseman is one of the key figures who studied luck scientifically. He found that ‘lucky’ people tend to think differently, behave differently, and interact with the world in open, curious, and resilient ways. His conclusion: luck is largely a mindset and behaviour pa ern, not magic or fate.

According to Wiseman’s research, ‘lucky’ people simply cultivate habits that increase the likelihood of positive outcomes. He identified four key principles: Maximise opportunities for luck: Be open to new experiences.

Network widely and talk to different people. Break your routines so as to encounter new possibilities. Be curious – curious people explore more, which increases the chance of ‘lucky’ breaks.

Develop your intuition: Lucky people tend to trust their gut – they’re be er at recognising subtle cues and acting on them. They also take time to quiet their minds, which enhances intuitive insight.

Develop positivity: Optimists notice more opportunities. A positive expectation can become a self-fulfilling prophecy, encouraging risk-taking, persistence, and openness to feedback.

Turn bad luck into good: Lucky people reframe bad events positively and take constructive lessons from them. They maintain emotional resilience and adaptability. They see opportunities in setbacks.

Lucky people’s behaviour doesn’t stop there. They are likely to smile more, engage in more conversations, and are more socially connected. They notice things others miss, because they’re not overly focused or anxious.

They are willing to be more mentally and behaviourally flexible – they adapt quickly and try new approaches. They take small risks regularly, increasing the odds of something working out. They keep a positive mental filter – framing even failures as learning experiences.

So, luck isn’t magic. It’s behaviour plus mindset. You can change your relationship with chance – and that’s what makes all the difference.

If you want to increase your luck, I’ve included some exercises which will help you cultivate the mindset and behaviours of ‘lucky’ people.

I can’t promise that you will win the lo ery or land that new job, but if you practise the following activities, you will not only become happier and broaden your thinking, but also give yourself the best chance of creating the conditions that will foster positive outcomes, allow serendipity to happen and create opportunities.

A ‘lucky’ person would grab the opportunity! Good luck! ●

AVERIL LEIMON is co-founder of White Water Group

Exercise 1:

Journal to train your brain Each day, write down at least three chance opportunities you encountered, such as meeting someone new, stumbling across a helpful article, or an unexpected offer.

Reflect on these moments. What did you do that led to those moments?

How could you be more open to them tomorrow? This builds awareness of opportunity and reinforces behaviours that increase luck.

Exercise 2:

Develop curiosity Each week, try something new – a different route to work, a new hobby, talk to someone outside your usual circle. Ask at least one curious question in every conversation.

Curious behaviour leads to serendipitous encounters — those ‘lucky breaks’.

Exercise 3:

Visualise positive outcomes Every morning, visualise one positive unexpected event happening that day. For example: “Today, I might meet someone who helps me with my project.” Write it down and carry that expectation through the day. Positive anticipation primes your brain to seek and recognise opportunity.

Exercise 4:

Turn bad luck into growth or opportunity When something goes wrong, write down what happened, what you learned, and one possible good thing that could come from it. Try writing two or three alternative positive interpretations.

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B RO K E R B U S I N E S S Case clinic

Case Clinic Want to gain insight into one of your own cases in the next issue?

Get in touch with details at editorial@theintermediary.co.uk

CASE ONE Gifted deposit and irregular income

A

first-time buyer earning approximately £28,000 per year in a commissionbased sales role is looking to purchase a £220,000 flat with a 15% deposit gifted by their parents. Although their gross income is technically sufficient, their monthly earnings fluctuate significantly.

The applicant has had only one full year of employment in their current role, and the majority of their commission is not guaranteed.

This inconsistency has made affordability assessments tricky, particularly with lenders that require a two-year commission history or only consider base salary.

SUFFOLK BUILDING SOCIETY

Commission-based roles aren’t a no-no as far as we’re concerned. We would ask how much of the commission can be evidenced over the year to get a better understanding of the split between commission and guaranteed salary, if any. Our policy is to accept 50% of the commission in affordability calculations.

However, if this is a commission-based role in a commission-based industry, and we need more than 50% to make the numbers stack up, we will try to take a positive, common-sense approach.

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If affordability is still too tight, the purchaser could either increase the gifted deposit to 20%, add family members as Joint Borrower Sole Proprietor (JBSP), or both! The gifted deposit side of things is totally within our comfort zone and doesn’t pose any issues.

UNITED TRUST BANK

Unfortunately, UTB would not be able to help this applicant as we have a £40,000 per annum minimum income requirement for first-time buyer applications. Even without this minimum income requirement we would not be able to offer the mortgage they needed due to maximum loan-toincome (LTI) restrictions.

TOGETHER

This applicant would certainly be able to apply with Together. Although we could not get to the 85% loan-to-value (LTV) needed, we could consider the loan at 75% LTV with confirmation they have been in employment for 12 months continuously.

With regard to the bonus, if it was included on all payslips provided and evidenced as consistent via the year-to-date calculation, we could consider using this towards their affordability. The gifted deposit would also be no issue for Together.

BUCKINGHAMSHIRE BS

The society could look to consider using a percentage of the bonus income, but it would have to be 50%.

The other option that could be considered is if the parents could support on a JBSP until the applicant had a stronger track record of the bonus payments being received.

B RO K E R B U S I N E S S Case clinic

BUCKINGHAMSHIRE BS

CASE TWO Recent graduate, short employment history

A

24-year-old recent graduate has just started a role in a marketing firm with a £32,000 salary and is keen to purchase a £200,000 property with a 5% deposit under a Government-backed scheme. Despite a good credit record and a permanent contract, the applicant has only been employed for six weeks.

Several lenders have been unwilling to proceed without a longer employment history or a passed probationary period. The minimal deposit has further narrowed their lender options, especially when factoring in their student loan deductions and monthly commitments.

SUFFOLK BS

Having landed a great job, it’s commendable that this graduate is already keen to get on to the property ladder. However, we’d suggest they hold off on purchasing just for a little while.

We would need them to have passed their probationary period due to the high LTV and their limited employment history, and as they’ve experienced, many other lenders are like-minded.

However, if they were able to get a larger deposit together and have a longer employment history, they would have so many more mortgage options available to them.

UNITED TRUST BANK

UTB does not consider purchase applications under Government-backed schemes. In addition, the applicant would require a minimum of six months of employment in their current role if unable to evidence previous employment history.

TOGETHER

Together could consider this applicant if they have had 12 months continuous employment in any form. Applicants in a probationary period are accepted in line with standard criteria, as long as at least one payslip has been provided.

Although we could not stretch to 95% LTV, we could look at funding this case with a larger deposit at 75% LTV, if the property is of standard build.

The society would only be able to consider this if there was an option of JBSP, and the applicant would be looking for lending at 95% LTV. Mortgage Indemnity Guarantee (MIG) would be required and would be an issue with the applicant only just starting their role, and would require a longer track record of employment.

JBSP, however, would be restricted to 90% LTV so would need a slightly higher deposit.

CASE THREE Over-exposure to rental properties

A

n experienced landlord with six properties in their portfolio hopes to purchase a £275,000 buy-to-let (BTL) property with a 25% deposit.

Their personal income is £40,000, and their total rental income is around £50,000 annually.

However, several of the properties were mortgaged at relatively high LTV ratios, and the client has recently refinanced two of them. Their overall exposure to the BTL market has led some lenders to view their portfolio as high-risk.

SUFFOLK BS

Generally, we don’t consider background properties in our assessments; however, we’d be unable to accept this case as we don’t lend to portfolio landlords. If we could assist, then the background buy-to-lets wouldn’t be a consideration for our underwriting.

UNITED TRUST BANK

UTB would welcome this application subject to decision in principle (DIP), affordability and adequate stress-testing of the existing background portfolio.

TOGETHER

Together could consider lending to this applicant, and we would first of all check the Income Credit Report on the application. If this passed, and the credit profile was satisfactory, then we could proceed. As long as we could get the relevant charge required over the subsequent property, → would not be an issue. lending on this case June 2025 | The Intermediary

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TOGETHER

CASE FOUR Unencumbered foreign property

A

couple earning a combined £130,000 annually wants to buy a £600,000 home with a 10% deposit, intending to use equity from a mortgage-free property they own overseas as part of the deposit.

While their UK income meets affordability, difficulties arose when they attempted to release the equity abroad. Lenders have questioned the liquidity and timing of the funds being transferred from the foreign sale.

Additionally, currency conversion and international anti-money laundering (AML) compliance have created a bottleneck, leaving the couple’s offer at risk of falling through while they wait for international documentation.

SUFFOLK BS

With our experience in the expat mortgage market, we’re familiar with the complex nature of dealing with monies in different countries and currencies.

This is something we may be able to lend on, but we would require evidence that the couple had links to the country in which the overseas property is based – such as prior employment there or holding that country’s nationality. We would also require solicitors to fully evidence the funds trail.

Finally, the overseas country would have to be one not deemed as high risk, sanctioned or currently war-torn or in conflict.

If the couple were able to tick these boxes, then this is something that we would be happy to lend on.

UNITED TRUST BANK

UTB would consider this application in principle subject to DIP, affordability and adequate checks in relation to the source of the deposit.

Factors would include the country of origin for the deposit and the risk grading of that jurisdiction, along with how long the property overseas has been owned and how it had come to be mortgage-free.

Lender and solicitor checks would be required for the source of deposit to be deemed acceptable, and the deposit would need to be present in a UK bank account.

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Together could lend to these applicants at 75% LTV – our max LTV – assuming the property was of standard build. The normal compliance will be done via solicitors for source of funds, but this would not affect our ability to lend to these applicants.

BUCKINGHAMSHIRE BS

The society would not be able to consider this case due to the nature of the deposit.

If the property had been sold and the deposit was held in a UK bank account and satisfactory documentation could be provided to confirm the source of deposit, it could be considered.

CASE FIVE BTL remortgage with below-market rent

A

n experienced landlord earning £40,000 annually aims to remortgage a £300,000 buy-to-let property, originally purchased five years ago, now valued at £400,000.

The rental income, however, is just £950 per month, well below market rate.

Despite strong equity in the property, the rental income does not meet modern stress tests for the requested loan amount.

The tenant has been in place for many years under an old lease, and the client does not want to raise the rent.

Multiple lenders have declined the case, citing insufficient rental cover, even though the applicant has never missed a mortgage payment.

SUFFOLK BS

Unfortunately, this isn’t a case we could lend on, due to the requirement for top-slicing.

UNITED TRUST BANK

UTB would also require the £950 per month rental income to meet affordability requirements.

However, although we stress test our 2-year and 3-year fixed rate products, we don’t stress test our 5-year fixed rate products. There could be an opportunity on the 5-year product to meet affordability requirements. Had this scenario been flipped, and the rental income received been well

B RO K E R B U S I N E S S Case clinic

above market rate, then for affordability purposes we would use the market rate plus 10%.

HARPENDEN BS

Harpenden Building Society would be pleased to consider this case using top-slicing, providing the client was not a portfolio landlord.

Using our ICR, the maximum mortgage would be £148,000. However, with top-slicing we should hopefully be able to achieve the advance the client requires.

We would require the full details of the client’s income and commitments in order to carry out a full affordability assessment.

TOGETHER

If the ICR would not fit onto traditional calculations, Together can look to assess total secured debt-to-income ratio with the landlords other properties to help boost affordability for this property application.

50% of the net income received from other income can be used to boost the affordability, thus providing additional income to support the application. This can be provided via our ‘Accountant’s Reference Letter’.

BUCKINGHAMSHIRE BS

The society can now consider top slicing on buyto-let applications. The applicant would need to provide a full budget planner so affordability can be checked to see if the applicant has enough disposable income to help support the shortfall.

The applicant would need to have clean credit for buy-to-let lending.

CASE SIX First-time landlord intentions

A

client with no property ownership history, earning £42,000 annually, wants to invest in a £200,000 buy-to-let flat in Liverpool, using a 25% deposit from savings and a family gift.

Many lenders immediately rejected their application on the basis that the client was a firsttime buyer and first-time landlord – a combination some deem too risky. Despite a current healthy rental estimate of £1,100 per month, stress tests

were tight and lenders were concerned about the applicant’s lack of experience and modest income buffer for covering property maintenance or tenant voids.

SUFFOLK BS

We’d need to look at this with our manual underwriting hat on.

We would need evidence that this is not a backdoor residential mortgage application – where the applicant is applying for a BTL mortgage but intends to live in the property themselves, rather than rent it out. We’d need to know where the applicant is currently living, and where in relation to Liverpool.

We would also carry out a residential affordability assessment to ensure the application would work on a residential basis as well. If the latter worked out, and we were comfortable with the finer details, then we could consider this subject to rental ICR stacking up.

UNITED TRUST BANK

UTB would also be unable to consider lending to a first-time buyer and first-time landlord scenario.

Our lending requirements insist on the customer owning another property in the UK at the time of the application.

HARPENDEN BS

Harpenden Building Society lends to first-time buyers and first-time landlords providing they meet our minimum income requirement of £30,000 per annum, excluding the rent from the subject property. Also, the property must be professionally managed. We do have restrictions with regard to flats and would need to know more about the property before we could fully commit.

TOGETHER

At Together we lend to both first-time buyers and first-time landlords. In this case, as long as the Income Credit Report and stress testing achieved the required affordability, we could lend to this applicant at 75% LTV of the subject property, assuming it was of standard build.

BUCKINGHAMSHIRE BS

The society can consider this, but it would be based on full affordability and not ICR rental. The applicant would need to be able to afford this on capital and interest alongside living expenditure and debts. We would need to assess it this way to ensure that it is not a back top residential. ● June 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Mortgage clubs: Best of all worlds

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or many advisers, going directly authorised (DA) is a big business decision.

It offers much more freedom to run your firm in a way that works for you and your clients, a more flexible commission model and access to the whole lender market. But it also comes with considerable responsibilities.

Most mortgage brokers will begin their careers as an appointed representative (AR), operating under a network or principal firm that takes the burden of regulatory compliance, administrative and technology systems off their plates.

Ultimately, it is the network which is directly authorised by the Financial Conduct Authority (FCA) and, as such, it offers compliance support, training, and business guidance within a structure that all members must adhere to. That includes strict limits on the types of advice members can give.

There are many upsides. The network handles reporting and compliance requirements, and many with support lead generation, marketing, and provide fully managed customer relationship management (CRM) systems.

There is a cost a ached, with the network and adviser operating on a commission split model.

By contrast, DAs have full control and independence over which lenders to work with, what types of advice to offer, and which clubs to access products through. It comes with higher costs, with advisers responsible for their own professional indemnity insurance, compliance and CRMs. But then, DA firms also get to keep more of their commission.

A path for everyone There is no one-size-fits-all approach when it comes to choosing between AR and DA, it is all about finding the path that best suits a broker.

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This said, operating as a DA has become increasingly burdensome following the implementation of the FCA’s Consumer Duty rules and reporting requirements in 2023 and 2024.

In March this year, the regulator launched its market study into how well the distribution of pure protection insurance products is working for consumers.

The study will examine: if the structure of commission encourages advisers to suggest switching that may not be beneficial for consumers, if premiums are being raised by insurers to pay a higher commission to an intermediary, if the products provide fair value, and whether the market supports innovation and growth.

This is just the latest FCA review that touches on standards, and it goes to show how broad the responsibility of being a DA is.

While some firms will want the clear division of being a DA or AR, there is a third way that can offer the best of both worlds. This is a middle ground between the two options, where DA brokers can still enjoy similar support and expertise to what they would get from a network by becoming a member of a club.

DAs can access compliance support options such as file checking, compliance newsle ers and firm T&C visits, along with continuing professional development (CPD) knowledge, skills training events and other business development options.

The FCA’s focus is now firmly on firms’ ability to evidence how they are ensuring good consumer outcomes, both today and on an ongoing basis.

This requires meaningful data records, intelligent analysis and informative reporting. That takes increasingly advanced technology and systems that are fit for purpose.

All this while still generating and writing enough business to keep balance sheets healthy.

ROB MCCOY is senior product and business manager at TMA

Few DAs are keen to unwind their firms to return to a network.

Nevertheless, in this environment, structured support services are becoming a necessity to balance the expanding needs of a business.

Tech systems are a big part of this, and they’re expensive to invest in and keep at the forefront of a constantly developing market. Not only are good systems crucial to time efficiency, the right technology can help improve the mortgage application process, reduce the time to close and help minimise manual data input.

They offer flexibility – whether in or out of the office – and help firms to manage caseloads and streamline processes. Mortgage clubs can also use their wealth of knowledge and agnostic approach to systems to support DA firms when choosing the right tech options for their business.

AR or DA – and with or without independent compliance support services – the mortgage market today is a complex place to operate. Every adviser I know would say that all this is secondary to the job they actually do day in, day out. They care about their clients, giving them the best advice and support, and ensuring that they have the best experience possible.

Being a mortgage adviser is ultimately about doing a good job for clients. That takes an enormous amount of time and work in the background, when most advisers would rather be dealing with their client’s needs.

Adopting a hybrid approach that allows DA brokers to focus on the bit of the job they’re here to do can take a huge weight off their shoulders, all in the knowledge that they have the support of a big firm behind them. ●

B RO K E R B U S I N E S S Opinion

Mental health deserves more than polite nods

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ental Health Awareness Month has once again drawn to a close.

Awareness is good. It’s helpful to acknowledge that stress, burnout and anxiety aren’t just things that happen to other people, in other jobs, in different industries. They happen here within the mortgage and financial advice community, and more o en than many might admit.

But as ever, ‘awareness’ risks becoming the end of the conversation rather than the beginning.

If you’re an independent financial adviser (IFA) or mortgage broker, you don’t need a campaign to tell you what pressure looks like. You’re already living it. You’re ge ing the late-night texts from clients. You’re trying to explain for the fi h time why a missing payslip holds up the whole chain. You’re dealing with confusing underwriter feedback, chasing updates from people who don’t reply, and scrambling to keep up with yet another rate change while logging continued professional development (CPD) hours and answering your network’s compliance queries.

Awareness won’t fix that. And frankly, neither will a hashtag.

Speak freely The Cherry forum is one of the few places where advisers talk honestly.

It’s a long-running online discussion space where they have their own area to speak to peers, share experiences and ask questions. What makes it so useful is its informality.

People compare notes, test ideas, and sometimes let off steam. Because there’s a completely separate section where providers can post in their own forums, it’s one of the few places

where both sides of the industry can get a clear picture of what’s working, and what isn’t.

In a recent discussion, advisers talked about the pressure of trying to be ‘always on’. Answering queries out of hours, keeping up with product changes with li le notice, and acting as the single point of contact.

There was a call for more meaningful interaction. If a document is being declined, say why. If a case is being rejected, explain what failed.

It’s the silence, not the decision, that causes the most stress. Others pointed to the mental toll of working alone, juggling family responsibilities, and planning time off like it’s a military operation. All while trying not to drop the ball on live cases.

Some advisers gave credit to providers ge ing the basics right.

Knowledgeable people on the phone, clear comms, decisions that actually make sense. It is possible, just not widespread.

Day-to-day According to the fi h annual survey conducted by the Mortgage Industry Mental Health Charter (MIMHC), 21% of mortgage professionals said their mental health was ‘poor’ or ‘of concern’. 62% are now working more than 45 hours a week. A good chunk are doing over 60. This isn’t rare.

It’s not unusual. And it’s not being exaggerated. It’s just what being an adviser looks like for a lot of people.

When we see shiny campaigns about mental health, the question isn’t ‘why are they doing this?’ It’s ‘what are they actually doing, and how responsible are they in the first place?’

The truth is, most advisers aren’t asking for mindfulness apps or wellbeing webinars. They’re asking for working life to be less ridiculous.

DONNA HOPTON is director at Cherry

If a case is being declined, tell them why. Don’t just mark it ‘incomplete’ and disappear. If a client’s paperwork isn’t right, say what’s wrong. Don’t make them guess. If a call centre is the adviser’s main point of contact, try to get people who know what they’re talking about. If someone’s gone out of their way to build a relationship, don’t keep moving the goalposts.

None of this is revolutionary. But it would make a big difference.

To be clear, advisers and providers need each other, and plenty of providers are trying to improve things.

What’s being flagged here isn’t about who’s to blame. It’s about how the day-to-day machinery of the industry grinds people down. If you want to support mental health, fixing that machinery is a good place to start.

That doesn’t mean solving every problem. It means starting with the ones you already know about.

More than aware The problem with awareness is that it can feel like action without actually doing anything. It’s like updating your profile picture or liking a post. It gives you a sense of involvement, of having made a contribution, when really nothing’s changed.

Advisers don’t need more posts.

They need less chaos. Until things improve, until the basic stuff works be er, talking about wellbeing won’t go very far. The people who most need support will still be stuck fighting fires and wondering if anyone’s listening.

If the industry wants to show it’s serious about mental health, start with what advisers have been saying for years. Think prevention, not cure. ● June 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Supporting intermediary partners

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unning a brokerage is no easy task. We know that as well as delivering expert advice to clients, today’s advisers must also be marketeers, strategists, compliance experts, administrators, HR leads, financial planners and effective communicators. No one individual can realistically be an expert in all areas, all the time.

We’ve spent time listening to our broker partners. One message came through loud and clear: while most are highly skilled in their core advisory role, the broader demands of managing a successful business can be overwhelming. When you’re running a small or medium-sized (SME) firm, time is stretched, energy is finite, and it can be hard to find the headspace to work on the business, not just in it.

A skills partnership We’ve partnered with UK Business Mentoring to offer dedicated support that goes beyond product and policy.

This initiative is designed to help brokers strengthen their firms from the inside out, supporting both their commercial ambitions and personal growth. We understand both how important their businesses are to them, and how vital they are to us.

Through a combination of digital and in-person sessions, the programme tackles challenges many firms face but few have time to address. Whether it’s building a marketing strategy that consistently generates leads, identifying what truly sets your proposition apart, or tracking the return on your business development efforts, we want to help with that clarity and structure.

In the area of people management, many business owners are looking

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to grow high-performing teams, but need help with a solid framework for doing so. This programme helps those leaders step back and consider the systems they have in place. Are they a racting the right talent? Are the correct processes in place to nurture, develop and retain the team? What kind of leader are they, and how they might need to evolve their style as the business grows?

The future is now Succession planning is another key topic. O en, brokers put off thinking about what comes next, especially when client work takes priority. But having a clear strategy for growth, exit or sale can be a game-changer.

Whether considering retirement, bringing in a new partner or simply wanting to understand their firm’s valuation, these sessions provide the tools to make informed decisions.

Brokers can also look at strategic planning in a practical and accessible way. What’s the vision for the next three years? What are the key actions they need to take? What should success look like, not just in terms of revenue, but quality of life, team satisfaction and long-term viability?

Financial management, digital transformation, operational efficiency and customer retention are all on the agenda, too. The programme is designed to equip brokers with skills and knowledge that have tangible business benefits, while also giving them space to reflect on how they run their firm, what works, and where things could improve.

The sessions are built around the questions that ma er. Ponder for a moment and nail down the unique selling points. How are they communicating with prospects and clients? What are the bo lenecks

ALAN LONGHORN is head of mortgage sales and business development at Bank of Ireland for Intermediaries

holding them back? The course provides time and support to explore these issues properly, with insight from seasoned business mentors who understand the SME environment.

Expert help There will be a variety of engaging sessions, including a mix of formats to ensure accessibility and flexibility for everyone. We’ll be hosting a number of in-person events for selected participants based on session focus and logistics. In addition, a series of podcasts and digital sessions will be widely available, ensuring everyone has the opportunity to engage.

We want to help brokers navigate today’s market conditions, but also help them build a resilient, futureready business that offers options.

Whether that’s scaling up, stepping back or simply becoming more efficient, we would like to help firms do it on their own terms.

Too o en, the elements that feel hardest – such as leadership, planning or technology – can be le untouched. But these are the very areas where transformation can have the biggest impact.

We encourage all partners to keep evolving, stay curious, and prioritise their development as business owners, just as much as they do as advisers.

The intermediary landscape is changing. We’re proud to provide support with practical tools and guidance that will help advisers not only meet today’s challenges, but thrive in the years ahead. This is one more way we’re demonstrating our commitment to helping firms grow, lead and succeed. ●

B RO K E R B U S I N E S S Opinion

Why brokers must take their own advice

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very broker understands the value of planning.

It’s the foundation of good advice. Day in, day out, we sit down with clients to build tailored strategies that suit their circumstances, whether buying their first home, moving up the ladder, or planning for later life.

We ask the right questions, dig into the details, and ensure that the plan reflects not just where they are now, but where they want to be.

Essentially, brokers help their clients look at the bigger picture, and then build a plan that supports it.

But brokers need to ask themselves when they last took that approach for themselves and their businesses.

Keeping pace We’re an industry that prides itself on professionalism. Brokers today are more qualified, more client-focused and more ambitious than ever. But the pace of work can be relentless.

Client demand is high, regulation is always evolving, and staying on top of market trends is a full-time job in itself. With all of that to juggle, it’s no surprise that many brokers never quite find the time to sit down and think about their own business goals. And yet, this is arguably one of the most important things you can do.

Without a clear sense of direction, even the most talented broker can plateau. You may be excellent at servicing the needs of your clients, but are you moving forward yourself?

Are you building the business you always wanted? Are you preparing for the next stage of your professional journey, whether that’s expansion, diversification or even succession?

Every broker’s ambitions will be different. Some may want to broaden

their proposition, moving into holistic financial planning to offer more to their clients. Others might want to specialise, having pinpointed the opportunity to become the go-to expert in a particular niche.

For those in the later stages of their career, the focus might be on retirement – how to create a smooth exit and secure the value they’ve worked so hard to build.

Time may be tight, but unless you devote some towards a plan of your own, then you may start to stagnate.

The right support This is where a network can prove invaluable. The right network should help you plan, not just trade. It should offer space to step back and reflect, as well as delivering the tools, training and support to help you take action.

Most importantly, it should see you as an individual, not just a number on a spreadsheet.

That’s always been our philosophy at Rosemount. Every year, our brokers are invited to take part in one-to-one strategic planning sessions. This isn’t a performance appraisal, but rather an opportunity to get a be er sense of what those individuals want to achieve.

These sessions have led to all sorts of outcomes. In some cases, we’ve helped brokers transition into full financial planning, enabling them to retain more client relationships and grow their income streams. In others, we’ve helped structure succession plans for those thinking about retirement – sometimes years in advance, ensuring maximum value and minimal disruption.

There isn’t one ‘correct’ route for everyone, which is why it’s so crucial to come up with a personalised plan.

You wouldn’t advise a client to make

AHMED BAWA is CEO at Rosemount Financial Solutions (IFA)

With all [they have] to juggle, it’s no surprise that many brokers never quite find the time to sit down and think about their own business goals” big financial decisions without thinking about their future, so why would you leave your own to chance?

Not just clients The reality is, your future deserves just as much thought and a ention as your clients’. It may not always feel urgent, but it is important.

So, take that step back. Book time in your diary, away from client meetings and admin.

Ask yourself where you want your business to be in two, five or 10 years’ time. Then speak to your network about how they can help you get there.

If you’re with a network that values your individuality and is willing to listen, support, and strategise alongside you, then you’re already on the right path.

Ultimately, brokers must apply the same long-term thinking and planning that pays dividends to clients, to their own businesses. ● June 2025 | The Intermediary

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T E C H NO L O GY Opinion

Lenders must pick up the innovation gauntlet

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here is always a need for lenders to invest in technology – it develops on a daily basis, and customer expectations grow. Just think of the ease with which you can purchase virtually anything on Amazon.

In a world where customers expect a similar experience when it comes to ge ing a mortgage or refinancing, it’s nearly always a rude awakening.

Not only is the paperwork, forensic affordability check and seemingly endless to-ing and fro-ing a pain for borrowers, it’s wholly inefficient for brokers, surveyors and lenders, too.

The fact that financial services is so much more heavily regulated than other sectors is o en cited as the biggest barrier to cu ing out friction for customers. Now it seems the regulator aims to lower that barrier, while relying on Consumer Duty to maintain consumer protections.

Last month, the Financial Conduct Authority (FCA) published its Mortgage Rule Review (MRR) consultation proposals, which aim “to simplify some responsible lending and

Serving the underserved

advice rules for mortgages, making it easier, faster and cheaper for consumers to make certain changes to their mortgage and engage with their provider.” The proposals are fairly wide-ranging, but largely focus on improving customer experience, access and effective competition in the market.

Among other things, the FCA laid out proposals to make it easier to: remortgage with a new lender; reduce the length of a mortgage term; and engage with customers outside the regulated advice process.

Speaking at the Building Societies Association (BSA) conference in May, Emad Aladhal said: “We want to make it easier, faster and cheaper for borrowers to make changes to their mortgage.These proposals can allow lenders greater scope to innovate and develop their own approaches to deliver good outcomes, and in doing so, empower borrowers to make the right choices for their mortgage.”

He added that changing the regulations was just a first step: “It will take a truly collective effort on the part of lenders, our fellow regulators,

The FCA’s speech at the BSA also highlighted the developing needs of traditionally ‘niche’ markets. It singled out lending to older borrowers as one area needing particular support from lenders.

Aladhal said: “Later life lending is no longer a niche, but increasingly the norm. We all need to face up to the complexities – and opportunities – of increased consumer need to continue borrowing into later life.

“For those borrowers who, today, need to maximise their mortgage term to secure a home – what steps do you need to take to support those customers [to] manage risks arising from holding that debt for longer?”

It’s a brilliant question. How each building society – and other lenders for that matter – chooses to answer it will be different.

That is what breeds a healthy market that works for consumers. What all lenders will need in common is a system that can support their particular answer.

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JERRY MULLE is managing director at Ohpen

Government, developers and others to tackle the structural challenges facing the UK’s current housing market.

“To make the changes meaningful, we need you – the industry – to take up the gauntlet of innovation, to use the flexibility we aim to create, to make meaningful progress for our communities. So I ask you to consider where you can do more today. Where you can innovate, explore new ventures and review your practices.”

A public discussion is now underway, with heated views already coming out on when fully advised mortgage sales should be required and how the customer journey can be designed to carefully support borrowers making big financial decisions. However the wider industry and other key stakeholders respond to the FCA’s proposals, whatever rules the market ends up with, perhaps more important for lenders is what they do in that new world.

Aladhal made it clear that the FCA’s ultimate aim here is to support lenders to “generate sustainable growth.”

That is going to require changes – foremost in how lenders conduct their businesses. If more onerous rules are relaxed in certain circumstances where broader Consumer Duty rules overlay all conduct, lenders need processes that can flex and cope, and which can produce an evidential trail that satisfies their responsibilities.

This is yet more reason for lenders to review whether their technology and systems are fit for purpose. What is needed is flexibility, not just a different process or customer journey, but a system that can change to suit their needs and circumstances. For those facing such a decision, at Ohpen there’s help at hand. ●

T E C H NO L O GY Opinion

Value matters for clients and brokers

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ust over 10 years a er the Mortgage Market Review (MMR) rules came in – enforcing strict affordability checks and the necessity for mortgage advice in most cases of purchase and refinance – the Financial Conduct Authority (FCA) has published its new consultation for the market: the Mortgage Rule Review (MRR).

From MMR to MRR – this paper’s stated aim is to make it “easier, faster and cheaper” for consumers to speak to a mortgage provider about their mortgage needs, reduce their mortgage term and remortgage with a new lender.

It is hard to argue with these objectives – the process of remortgaging with the majority of lenders remains arduous at best, and outright stressful when it’s not going smoothly. While the endgame is one pre y much all lenders are likely to favour, the question is how to achieve that on a practical level.

If and when the rules change, in whatever form is decided in the final regulation, lenders will have to be able to put them into practice. The market has been on this path for some time now, even without the FCA review.

Rising interest rates from the Bank of England since late 2021 have prompted the lion’s share of borrowers coming to the end of fixed term deals to remortgage via a product transfer.

The ease of refinancing on the same terms without the need for a full re-underwrite has clearly appealed, particularly to those coming off very low fixes and facing a monthly repayment jump sometimes equal to several hundred pounds.

To the lenders we work with, it has remained of vital importance that they offer customers the choice between taking mortgage advice and doing a simple product switch – depending on their preferences, some people just like the reassurance

that a broker offers them. For those cases that require a bit more thought, lenders are finding the underwriting process is necessarily more in-depth and time consuming – more o en than not requiring advice and the aid of a broker. This makes the case for a slick and quick product switch in those cases that are a simple like-forlike remortgage even more compelling from the lender and broker’s point of view. The time saved on the la er cases frees up time to support borrowers who find themselves in the former circumstances.

Perfect platform All this requires a platform that can support it. That means flexibility and, in order to comply with the Consumer Duty, a clear evidential trail that shows step by step the customer choice of journey.

Building societies are extremely clued up on this at the moment, with those in the mid-tier particularly focused on improving the customer experience when doing a straightforward remortgage online. With or without a fully advised process.

At Finova, we are doing a considerable amount of work with lenders to find and develop solutions that help them achieve this in an affordable and effective way.

To support our own business proposition, we carried out some research with building societies from across a range of specialisms, and interviewed their technology chiefs to gain an understanding of where the market is in this journey.

The results, which we plan to share in full in the coming month or so, have been interesting and informative – giving a tangible overview that solidifies the anecdotal stories that circulate the market.

What is clear is how commi ed the mutual sector is to adopting cloudbased technologies to improve their

HAMZA BEHZAD is business development director at Finova

offerings to both customers and intermediaries.

The majority of mid-tier building societies have a chosen to invest in areas that deliver the most bang for their buck – with customer retention offerings at the top of this list.

This is true on both the savings and mortgages sides of building societies’ balance sheets, with the former very much focused on improving the customer journey and the la er more about offering choice – be that direct execution-only or advised, either internally or via their own broker.

Finding the balance The FCA has been careful to underline that an easier process for customers should not compromise on offering fair value. What the regulator proposes would allow for simpler affordability assessments where a proposed remortgage is on similar terms to an existing contract but more affordable than a new deal indicated by a customer’s existing lender. This would allow for a more proportionate and risk-sensitive approach, and enables consumers to more easily access a cheaper product.

Given that interest rates have been falling back consistently since August last year, there is a growing market need for this.

Finding new and efficient ways to support this retention is clearly the number one priority for lenders that compete on criteria rather than solely on price. Value is what ma ers – for customers and for brokers. ● June 2025 | The Intermediary

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T E C H NO L O GY Opinion

Is AI a threat to the mortgage broker’s job?

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rtificial Intelligence (AI) has been adopted by a huge spectrum of industries, with the financial sector reaping some incredible benefits. Many mortgage brokers and lenders are harnessing AI to automate processes, boost efficiency and offer advanced insights. However, there are growing concerns that AI isn’t simply a tool, but a potential competitor.

How AI interacts AI involves advanced computer algorithms designed to perform tasks that usually need human intelligence.

It is currently used in ways such as: automated property valuations; creditworthiness assessments; risk analysis; chatbots; and personalised mortgage recommendations.

AI can perform many of these tasks be er and without human error. This can make a broker’s input ineffective, but there is more to the role of a broker than these processes.

Mortgage brokers typically manage client relationships, document evaluation, and communication between lenders and clients. These client-facing duties are o en timeconsuming and labour-intensive for brokers. AI is rapidly automating several routine aspects of these tasks.

AI significantly reduces the time required for document verification, application processing, and compliance checks. Meanwhile, chatbots and virtual assistants provide round-the-clock responses to customer inquiries. These systems are useful for homebuyers, as AI can efficiently handle general communications, gather basic information, and recommend suitable products. It’s also beneficial for reducing workloads.

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AI algorithms can evaluate applications and financial histories with enhanced accuracy and consistency. By minimising human error, they improve decision-making quality and regulatory compliance.

Limitations AI can’t do it all, which is why the expertise of brokers will still be relied upon. This is especially true in areas such as personalised advice and empathy, complex financial situations, building relationships, ethical considerations and oversight, accountability and communication.

AI lacks the empathy and understanding needed to manage complex, individual financial scenarios effectively. For clients with unique circumstances, such as selfemployed individuals or those with unconventional incomes, AI cannot replicate nuanced human judgement.

Brokers regularly deal with complex financial backgrounds that defy straightforward algorithmic assessments. Mortgage brokers o en also develop lasting relationships, supporting clients across multiple life stages and financial events.

The Financial Conduct Authority (FCA) is already taking a close look at the integration of AI in the mortgage industry, keeping duty of care and borrower safety in mind throughout.

AI’s reliance on historical data introduces risks of bias or inaccuracies, complicating ethical decision-making.

Explaining complex AI-driven decisions clearly to clients can also be challenging. Brokers maintain an essential role as intermediaries.

Opportunities for brokers By cu ing out much of the monotony and labour-intensive processes, AI

IFTHIKAR MOHAMED is a mortgage consultant and director at WIS Mortgages and Insurance Services

tools make a broker’s job easier and more effective. This can manifest in a few different ways, from enhancing client relationships to offering greater industry insights. With routine tasks automated, brokers gain time to provide deeper, personalised support.

AI also allows brokers to improve client experience through faster application processes and more precise product matches. AI-driven analytics can equip brokers with insights into market trends and consumer behaviour, enabling expanded financial planning and risk management services.

The complete replacement of brokers is not going to happen anytime soon. The core of mortgage broking – personalised guidance, empathy, and intricate problem-solving – is beyond AI’s current capabilities.

By adopting AI tools early, brokers can position themselves as industry leaders and enjoy all of the benefits. Industry bodies recommend professional development focused on emerging technologies. Building partnerships with fintech firms will also help brokers stay ahead, ensuring they remain competitive in a digitalfirst mortgage landscape.

Brokers should actively engage with regulators and industry bodies to influence how AI is integrated into the sector. By participating, brokers can ensure fair practices and clarity regarding AI’s role.

By viewing AI as an intelligent partner rather than a threat, UK mortgage brokers can expand their capabilities and continue thriving in a changing industry. ●

T E C H NO L O GY Opinion

Architecting your business for an AI-driven future

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n the financial services sector, most applications of artificial intelligence (AI) seek to enhance existing processes to create efficiency, and the adoption curve is already steep. Recent joint research by the Bank of England and the Financial Conduct Authority (FCA) found that 75 % of UK financial services firms are using AI, up from 58 % two years ago.

Regulators are also signalling a clear tech-positive stance. In January, the FCA convened 115 experts for its first AI Sprint, to help shape a principlesbased framework. Then in April, it proposed a live AI testing service, giving firms a regulatory sandbox for consumer-facing models ahead of a planned launch in September 2025.

Most notably, the FCA has chosen not to impose prescriptive AI rules, instead stating that existing accountability regimes and outcomes-based regulation remain sufficient as the technology continues to evolve. This represents a clear alignment of regulatory priorities and technological capability.

Most independent financial adviser (IFA) firms utilising AI are doing so tactically – report dra ing, call transcriptions, customer relationship management (CRM) data-entry, etcetera. While adoption and the overall impact is clearly advantageous, treating AI as a bolt-on efficiency tool misses the longer-term strategic opportunity – a bit like businesses from the 1990s thinking a brochureware website was ‘going digital’.

Why? Because there is a larger transformation underway where, in the future, AI agents will become the primary way in which firms, clients, and stakeholders interact. This marks a fundamental shi from traditional human-driven workflows to AI-driven

services. In other words, a shi from human-first to AI-first interactions.

Now, despite the progress of AI advancement and the scale of opportunity it promises, the transition to AI-first won’t happen overnight. However, if nationals and networks – and by extension advisers – are to unlock and benefit from the true disruption and promise of AI, they will need to not only adopt, but architect their business around AI.

What does this mean?

It means having a cohesive strategy that considers technology interoperability, data sovereignty and AI, and its application to specific business use cases.

Advisers have historically treated data capture as admin rather than an asset and opportunity. In an agentic world, every field – fact-find, affordability, portfolio information – must be accessible, easily searched and understood, and managed with clear consent protocols. Only then can AI agents reason over it to derive insight and actions, without the requirement for endless analogue-to-digital data transformation and back-and-forth communication.

This will require a mindset and commercial – as well as technical – shi , particularly where a conflict exists between vertically-integrated and antiquated business models, and the value proposition that is in the clients’ best interests.

This conflict is further amplified

by AI favouring an IFA model, when the goal is to optimise for be er client outcomes, as restricted models will lack the product and solution range needed – and the usual commercial and compliance rationale for restricted propositions will no longer apply.

ANGUS MACNEE is CEO at ValidPath and Rimbal

This is a key point and one we believe at ValidPath: independent financial advice is the best framework to support positive client outcomes, and the only framework if you are striving for the best outcomes in an AI-driven and AI-first world.

In short, integrating the odd meeting transcription tool into today’s workflow is not enough. You must architect your entire business so that AI agents can transact with your data, processes and people safely and at scale.

The internet rewired distribution.

Platforms compressed fund costs.

Consumer Duty raised the bar on outcomes. AI agents will combine all three at once, redefining how value is created and delivered. The question, therefore, for every firm is blunt: will your systems be fluent in this new lingua franca, or will they still require manual translation?

At Rimbal and ValidPath, we believe this isn’t just an opportunity – it’s a responsibility. Advisers and their agents will continue to play a vital role, and those that architect their business for an AI-driven future will support be er client outcomes.

Embracing AI is not about replacing the human element, it is about enhancing it, and over the longerterm, shi ing human effort from production to supervision. Those that do not plan for AI risk watching from the sidelines as the next generation of advisers, and their agents, take the field.

Rimbal and ValidPath will continue to invest in AI-driven infrastructure for advisers. We are excited about the future of financial advice. ● June 2025 | The Intermediary

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T E C H NO L O GY Opinion

Will robots inherit the Earth?

“W

ill robots inherit the Earth?

Yes, but they will be our children.” It’s a quote that invites both awe and unease.

Marvin Minsky, one of the founding fathers of artificial intelligence (AI), believed not just in the rise of intelligent machines, but in their deep roots within us – creations shaped by human ingenuity, purpose, and values.

That view is especially relevant as AI begins to transform the mortgage and property sector.

There’s plenty of talk about disruption in the industry. Faster systems, automated decisions, smarter underwriting. Disruptions that understandably feel like a threat to some brokers.

But at its core, AI is not here to replace human input in financial services, it’s here to extend it.

From a broker perspective, will AI improve the industry, or turn us all into emotionless robots ticking boxes?

If we get this right, brokers won’t just survive the AI revolution. They’ll thrive within it.

AI is already doing useful work across the mortgage market. Optical character recognition can scan payslips in seconds.

Natural language processing (NLP) chatbots can answer first-time buyer questions at 10pm. Machine learning models can flag early signs of financial distress.

These tools are making the process faster, yes, but also smarter.

In the years ahead, we can expect AI to personalise mortgage offers based on borrower data, adapt affordability assessments accordingly, and offer ‘real-time underwriting’ based on evolving circumstances like income fluctuations, cost-of-living changes, or even Open Banking activity.

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But the goal isn’t to eliminate human brokers from the picture.

Doomed to obscurity The risk in all of this isn’t the technology, it’s the obscurity. As algorithms take a greater role in shaping lending outcomes, clients may find themselves facing decisions they don’t understand, driven by factors they weren’t aware of.

Was it their spending habits? A missed subscription payment? A short work history? Brokers will be essential as interpreters of AI-led decisions, translating the ‘black box’ into clear reasoning, challenging it when necessary, and advocating for clients whose stories don’t fit the algorithm’s neatest pa erns. This shi reframes the broker’s value.

There’s another side to this, too.

AI isn’t just reshaping how brokers deliver advice; it’s changing how they find and grow their client base.

With the right systems, brokers can now use AI-driven analytics to: Identify homeowners whose fixedrate deals are ending soon; Segment databases to find highvalue remortgage opportunities; Automate outbound communication with tailored, timely messaging; Optimise digital marketing with predictive lead scoring; Monitor online behaviours to time engagement perfectly.

This means less cold-calling and more precision. Less blanket marketing and more intelligent, datainformed outreach.

This is something that we at Oportfolio are really passionate about. Brokers using AI effectively can scale their operations, maintain closer client relationships, and build a business that responds to market changes in real time. The tools of the tech giants are no longer out of reach, they’re increasingly baked into the platforms brokers already use.

LOUIS MASON is marketing and communications director at Oportfolio

Picture the near future: a client logs into a digital portal, shares their income and property data, and is presented with a few tailored mortgage offers, instantly calculated using real-time affordability models.

Behind the scenes, AI cross-references hundreds of criteria in seconds. So far, so seamless. But the client has questions. They’re self-employed with variable income. They’re worried about upcoming maternity leave.

They’ve got two different income sources in different currencies.

That’s when the broker steps in, equipped with full visibility, aided by tech, and able to offer not just a product, but true, contextual advice.

AI helps with the logic. Brokers handle the reality.

AI is not an outside force disrupting our sector, it’s a tool we’ve built, and that we continue to shape. Like Minsky’s ‘children’, these technologies carry our intentions, our assumptions, and critically, our responsibility.

The challenge for brokers is to embrace these tools and look a er the children without losing sight of their human value. To lead with trust, not just tech. To combine the speed and scalability of machines with the wisdom and empathy only people can provide.

In that future, brokers don’t just coexist with AI. They lead the way forward. Avoiding it will leave you trailing behind in an industry that doesn’t wait. ●

T E C H NO L O GY Opinion

Future of digital property transactions

D

espite what all the naysayers and pessimists might say, the UK property market has continued to make progress in the last few years. Recent data from Smoove, part of the UK PEXA Group, shows that the whole home buying and selling process has improved: instructions increased by 32% in 2024 and fall-through rates have dropped.

Transactions are also being processed more quickly and efficiently, with completion times down 9% between 2022 and 2024.

We should celebrate this. It will be no surprise to this readership that such improvements are the result of a significant amount of hard work and commitment from all stakeholders.

On top of the work of conveyancers, lenders, estate agents and brokers, third-party tech providers and industry bodies such as the Open Property Data Association (OPDA) are striving to improve outcomes by working with the industry to foster a new era of efficiency, transparency and innovation.

That said, there is still a very long way to go. The level of uncertainty in the property transaction journey remains too high, given that, for most people, it’s their biggest financial decision. Time taken to complete is still far longer than consumers expect, and the same research from Smoove shows that this is a primary concern, with 51% of respondents who had bought a house in the last year stating they would prefer the process to take half the time than cost half as much.

Clearly, there is work to be done to bring the market in line with consumer expectations and reduce stress and uncertainty, both for them and for their advisers.

It’s not just consumers and market professionals that will benefit – ge ing the housing market moving has the potential to drive the UK’s economic recovery, so it’s natural that there is a vested interest from Government bodies, too.

Building on initial progress and reaching a point where the transaction process is seamless and efficient is not all that far away if we leverage the right technology.

Creating a reality PEXA recently completed the UK’s first fully digital property purchase in partnership with Hinckley and Rugby Building Society and Muve.

It was processed through PEXA Pay, the seventh net se lement payment scheme to clear through the Bank of England, which enabled the se lement of funds to happen almost simultaneously with the lodgement of title with HM Land Registry.

With technology now able to automate almost all the stages of the process, remove duplication of data entry and release funds and secure lodgement when certain conditions are met, the benefits are enormous.

For consumers, this creates faster, more transparent transactions that drastically reduce stress and uncertainty. In turn, brokers benefit from delivering be er outcomes and doing so more quickly and efficiently, which also means they can benefit from more work with the associated upli in revenue.

Lenders benefit from streamlined processes, while secure payment systems designed specifically for this purpose reduce the reliance on traditional banking systems and minimise the risk of errors or delays.

Conveyancers see their administrative burden drastically reduced and

JOE PEPPER is UK CEO at PEXA Group

increased profitability – the lessening risk of fraud reduces their insurance costs and operational overheads, while automation allows them to handle a higher volume of cases and focus on delivering the right levels of service and experience to the customer.

This change is crucial if the industry is going to be able to support the Government’s growth ambitions for the UK housing market.

Naturally, all market participants must embrace this innovation if this technology is going to pave the way for a more modern and efficient property market, but this is certainly not an issue judging by the level of positive support, interest and forthcoming collaboration PEXA has seen throughout the journey to the first digital transaction.

The level of interest following the Smoove conference in May, and the future launch of the full sale and purchase proposition, are testament to that.

None of this is speculation. The evidence of the benefits for the whole market can be seen in other similar legal jurisdictions, such as Australia.

The progress PEXA has made so far, along with the completion of the UK’s first fully digital property transaction, shows that the future of the market is very bright indeed. While the la er was undertaken in a trial phase, it marks a turning point in the evolution of the property market and lays the foundation for the future of property transactions in the UK. With continued collaboration and investment, the property market is poised to enter a new era of efficiency, security, and modernisation. ● June 2025 | The Intermediary

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L O C A L FO C U S Gloucester

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

Focus on ...

JESSICA O’CONNOR is deputy editor at The Intermediary

Gloucester

O

nce seen as a quiet contender in the South West, Gloucester’s housing market has been anything but sleepy of late. Whether young professionals drawn by improved transport links, families chasing good schools and green spaces, or buy-to-let (BTL) investors eyeing steady yields, Gloucester is quietly climbing the ranks of regional property hotspots.

Behind the Georgian façades and new-build estates lies a market shaped by shifting interest rates, tighter affordability checks, and buyers who are more price-savvy than ever.

Mortgage brokers in the region are finding that today’s clients come armed with spreadsheets, strategy, and a sharp eye for value.

This month, The Intermediary takes a closer look at how Gloucester’s property and mortgage landscape is evolving in 2025, and what brokers need to know about the buyers, lenders, and market forces reshaping the city’s housing scene.

Current values Gloucester’s property market has remained broadly steady over the past year, with average prices in the postcode area now sitting at £378,000 – a slight dip of just £1,600, effectively

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flat compared to the previous 12 months.

The median price is lower at £309,000, indicating a diverse range of values across the region. Established properties average £377,000, while newly built homes command a modest premium at £390,000.

Sales volumes, however, tell a more cautious story. Just over 8,100 transactions were recorded in the past year, marking a 13.4% decline yearon-year. Most activity is concentrated in the £300,000 to £400,000 range, which accounted for 22.1% of all sales, followed by the £250,000 to £300,000 band at 16.7%.

Gloucester’s affordability spectrum remains pronounced, from the accessible GL1 4 area, where the average property costs £171,000, to the more exclusive GL6 7 area, where homes fetch an average of £898,000.

By property type, detached houses lead the pack at £576,000, while flats offer a more attainable entry point at £200,000. Semi-detached and terraced homes average £335,000 and £291,000, respectively, keeping the city within reach for a variety of buyers.

Robust activity The housing market in Gloucester is showing robust signs of resilience and recovery, with brokers and estate agents noting a buoyant atmosphere

marked by rising stock levels and a more balanced dynamic between buyers and sellers.

Matthew Wasley, director at local estate agents Murdock & Wasley, points to “a strong flow of new listings across most price points” that is giving buyers more choice than they have had in recent years.

However, he stresses that “realistic pricing is key,” as informed buyers are increasingly price-sensitive in the current climate.

Confidence appears to be rebounding across the board, Wasley adds: “Confidence is returning to the market, largely due to a more stable

economic outlook and mortgage rates beginning to slowly decline.

“This has helped to unlock previously hesitant buyers and get chains moving again.

“The combination of increased stock and improved affordability has created a more active and balanced marketplace.”

Pete Dupree, managing director and adviser at brokerage Dupree & Co., echoes this sentiment, describing the appetite for residential mortgages as “strong,” and highlighting that many clients emerging from 5-year fixed-rate deals secured during the pandemic are “relieved” that today’s rates are rising less steeply than might have been expected.

Despite initial concerns that Stamp Duty changes earlier in the year might curb enthusiasm, he notes that “the level of enquiries has remained strong.”

Area affordability It is clear that Gloucester’s appeal lies not just in its affordability relative to the South East, but also in its blend of old and new.

As Dupree notes, the area boasts “everything you could want” from modern dockside apartments, burgeoning new communities and more established housing stock.

In addition, its pace of sale is another standout feature.

“Of the 50 largest cities in the country, property in Gloucester sells faster than 45 of them,” Dupree adds, with homes selling in an average of 52 days compared to the UK average of 68.

According to Kirsty Dudek, mortgage and protection adviser at

Resilient demand PETE DUPREE managing director and adviser at Dupree & Co.

G

loucester is a well-connected city, which has everything you could want, from modern dock-side apartments, burgeoning new communities to more established housing stock – with a mix of great schools, including grammar school options Appetite for residential mortgages has been strong! Record numbers of people are coming off their Covid-19 low 5-year fixes at the moment, so we are remortgaging many clients. They are usually quite relieved that yes, their rates are going up, but not by as much as they had feared.

We had thought the Stamp Duty changes earlier this year would diminish demand after a record-breaking February, but the level of enquiries has remained strong.

With increasingly complex and varied client situations, the idea of ‘main lenders’ is becoming less and less relevant – which makes using a broker even more essential than ever! Obviously the ‘old faithfuls’ remain popular – not a day goes by that we aren’t submitting applications to Halifax, Nationwide and the like – but the value of the smaller, potentially more flexible lenders, with their individual approaches to underwriting, nuanced criteria and innovative schemes, means Bank of Ireland, Skipton, Accord, Kensington are all popular with our team at the moment.

We have noticed some landlords exiting from the market as has been the case in most areas and has been reported nationally. While government policy around Stamp Duty and increased mortgage rates has potentially put off some small landlords, our limited company landlord clients have remained steadfast – and demand for rental properties remains, as do the underlying demands on the rental market.

Lavender Mortgages (Just Mortgages), the region’s employment base acts as another stabilising factor for the burgeoning property market.

She notes: “We are fortunate to be in an area which has a significant amount of manufacturing and

Government jobs locally, which helps to keep the market moving.”

At the same time, affordability challenges do still persist, especially for first-time buyers. However, recent market developments are offering a lifeline for some. → June 2025 | The Intermediary

→

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L O C A L FO C U S Gloucester

An active marketplace MATTHEW WASLEY director at Murdock & Wasley

T

he market in Gloucester is currently very buoyant, with a healthy level of activity and a noticeable increase in stock.

We’re seeing a strong flow of new listings across most price points, giving buyers more choice than they’ve had in recent years. That said, realistic pricing is key – with more properties available, buyers are well-informed and price-sensitive, so homes need to be positioned competitively to achieve a successful sale.

The appetite for residential purchases has been very encouraging.

Confidence is returning to the market, largely due to a more stable economic outlook and mortgage rates beginning to slowly decline. This has helped to unlock previously hesitant buyers and get chains moving again. The combination of increased stock and improved affordability has created a more active and balanced marketplace.

The lower to mid-range properties are moving particularly quickly – especially homes suited to first-time buyers or buy-to-let investors. In contrast, the top end of the market has been slightly more pricesensitive and slower to shift, often due to a smaller buyer pool and tighter lending criteria. That said, well-presented homes that are priced correctly are still finding buyers across the board.

There are some exciting developments and infrastructure projects in the pipeline across Gloucester and the wider Gloucestershire area. From new-build housing schemes to improved transport routes, the county continues to evolve. Several residential developments are underway in the outskirts, catering to growing demand for family homes with access to good schools and amenities. There’s also ongoing investment in city centre regeneration, including retail, leisure and public space improvements, all of which will continue to enhance Gloucester’s appeal as a place to live and invest.

Dudek says: “We have seen more products and schemes coming into the market to help more buyers get onto the property ladder.

“We have seen the return of the 100% mortgage, along with various lenders offering ‘income boosts’ for certain buyers.”

Buyer demographics This diverse and active marketplace is matched by an equally varied and evolving buyer demographic.

As of 2022, the area was home to around 664,000 residents, with a gradually ageing population and a 15.6% increase in numbers since 2002.

This growth, in turn, has translated into a steady stream of activity in the housing sector.

“Our client base is incredibly varied,” says Wasley, who works with everyone from first-time buyers

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and growing families to downsizers, investors, and those relocating to the region. Notably, the latter group is on the rise.

He adds: “One trend we’ve seen more of in the past year or so is an increase in buyers relocating to Gloucester, particularly families drawn to the area by its excellent grammar schools, strong transport links and a mid-level price range with great green spaces.”

This blend of affordability, lifestyle appeal and connectivity continues to make Gloucester a magnet for a broad cross-section of buyers.

Dudek says: “There is a good mix of both home movers and first-time buyers in the local area.

“The remortgage opportunities are also there, as we are encouraging our clients to review their current mortgage deal six months before it is due to expire.

“We are seeing those who were fortunate to secure a low interest rate come back into a higher market, so we are trying to prepare those clients as best as we can.”

Indeed, first-time buyers in particular are making their presence known throughout the region.

“We are seeing a lot of first-time buyer enquiries at the moment,” Dupree observes, attributing this to a growing confidence in the market as interest rates appear to stabilise: “Buyers are buoyed by the long-term predictions of steady interest rates and realising that now is as good a time as any to take the plunge!”

Lender options In Gloucester’s diverse mortgage market, lender choice is also becoming increasingly varied. As Dupree puts it, “the idea of ‘main lenders’ is becoming less and less relevant – which makes using a broker even more essential than ever.”

While high street stalwarts like Halifax and Nationwide still feature prominently – “not a day goes by that we aren’t submitting applications to [them],” he adds – it is the growing complexity of borrower circumstances that has brought a wider range of lenders into the spotlight.

Dupree says smaller and more specialist names such as Bank of Ireland, Skipton, Accord, and Kensington are gaining traction for their “individual approaches to underwriting, nuanced criteria and innovative schemes.”

Housing development Building on the growing need for flexible lenders and tailored solutions, Gloucester is also seeing tangible transformation in its physical landscape. New-builds in the Gloucester postcode area currently command an average price of £390,000 – slightly above the £377,000 figure for established homes.

While annual new-build sales totalled 307, most transacted in the £300,000 to £400,000 range, with GL3 1 emerging as a hotspot.

“We are spoilt for choice for new developments in the area at the moment,” says Dupree, citing the popularity of sites like Winnycroft in Matson and the well-established Kingsway and Hunts Grove schemes in Quedgeley.

L O C A L FO C U S Gloucester

To the north, momentum continues with a major 4,000-home satellite town between Gloucester and Cheltenham recently clearing its first planning hurdle.

Dupree adds: “We are in roadwork hell as we speak, but we are looking forward to the long-term improvements to the road network in the area.”

Dudek corroborates this assessment, noting: “Locally we are witnessing a surge in new-build housing developments due to demand in the area.

“Gloucestershire offers a good mix of urban and rural living so there is something for everyone.

“There are also lots of new attractions as well as historic locations which helps to make it a popular area to live in.”

Infrastructure is evolving just as quickly, as Wasley highlights the city centre’s ongoing regeneration and new transport routes.

One of the most anticipated is the University of Gloucestershire’s new campus, opening in the former Debenhams building.

“It will likely increase demand for student properties,” says Dupree.

Just a stone’s throw away, the new ‘Forum’ – an office, retail, and leisure hub beside the transport interchange – is expected to revitalise footfall and draw new interest to the city centre.

Buy-to-let Complementing the city’s evolving infrastructure is a rental market that remains resilient, even amid broader pressures. While Gloucester’s private rental sector (PRS) makes up 20.5% of housing – slightly below the national average of 21.3% – local brokers say demand has held firm.

Dupree explains: “We have noticed some landlords exiting from the market, as has been the case in most areas and has been reported nationally.”

However, he notes that “limited company landlord clients have remained steadfast,” reflecting a shift in landlord demographics toward more structured and tax-efficient ownership models.

Despite recent challenges, the fundamentals of the market remain

Increased applications KIRSTY DUDEK mortgage and protection adviser at Lavender Mortgages

T

here is a good mix of both home movers and first-time buyers in the local area and we have seen a steady influx of purchase applications in recent months. The remortgage opportunities are also there, as we are encouraging our clients to review their current mortgage deal six months before it is due to expire. We are seeing those who were fortunate to secure a low interest rate come back into a higher market so we are trying to prepare those clients as best as we can.

Affordability and house prices remain a focus point at the moment, although in recent months we have seen more products and schemes coming into the market to help more buyers get onto the property ladder – we have seen the return of the 100% mortgage, along with various lenders offering ‘income boosts’ for certain buyers.

We have seen an increase in purchase applications over the past few months. We deal with a wide range of clients with varying circumstances and often get involved in the more complex cases so have seen a recent influx in both self-employed and adverse credit applications.

We have seen an increase in home movers rather than people staying in their current home and potentially extending to create the space needed. The cost of extending your current home has significantly increased in recent years due to sourcing materials and more recently increases in inflation, so when weighing up the options we have seen more opting to move than stay put.

Gloucester Residents

664k Average age

42.9

Residents per household

2.35

Gloucester postcode area.

Source: www.plumplot.co.uk

strong. Dupree adds that “demand for rental properties remains, as do the underlying demands on the rental market.”

That demand is likely to grow further, particularly with the University of Gloucestershire’s new city centre campus poised to increase appetite for student accommodation.

Open for business Overall, Gloucester’s evolving housing story is one of resilience, reinvention, and rising appeal.

The city is managing to navigate economic uncertainty, while steadily transforming both its housing offer and infrastructure.

From new residential schemes and improving transport links to a strong mortgage sector that is embracing flexibility, the area is demonstrating an ability to meet the needs of a broad and changing demographic.

Whether it is first-time buyers finally taking the plunge, landlords adapting to a new rental landscape, or families relocating in search of quality of life, the message is clear: Gloucester is open for business.

With developments like the new university campus and The Forum breathing fresh life into the heart of the city, these changes are set to support what Wasley describes as “the city’s balance of affordability and lifestyle [that] continues to attract people from further afield.” ● June 2025 | The Intermediary

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On the move...

Together strengthens executive team as Goldberg retires

Knowledge Bank appoints criteria and partnerships manager

K

nowledge Bank has appointed Julie Bourne as criteria and partnerships manager.

Bourne will help develop the platform’s criteria database.

Bourne said: “I’m delighted to join Knowledge Bank and looking forward to this new chapter in my career.

“I remember many years ago seeing a very early demo and immediately recognising its potential to transform our industry.

“Having spent over 20 years in the sector – and filled out my fair share of criteria spreadsheets – I

truly understand the value Knowledge Bank delivers to brokers, lenders, and ultimately customers.”

CEO Nicola Firth said: “Julie’s appointment brings significant strength to our team. Her industry insight, energy, and expertise will be instrumental as we continue advancing our mission to equip brokers and lenders with exceptional tools and outcomes.

“At Knowledge Bank, our focus on criteria is something we take seriously – it’s what drives our innovation and commitment to the market."

M

JULIE BOURNE

NatWest Group appoints chief AI research officer

N

atWest has appointed Dr Maja Pantic as its first chief artificial intelligence (AI) research officer. Pantic is a professor at Imperial College London, and will focus on building up AI use cases, including using multimodal AI like voice and video to help tackle deepfakes, and using generative AI to improve AI controls.

She will also lead research into how AI is changing the banking industry and how new technology might shi customer behaviour in future, as well as progressing automation and AI tools across the bank to help colleagues work more efficiently.

Pantic said: “My career decisions have always been guided by two things: the opportunity to make an impact and the chance to learn.

“Joining a business like NatWest – given the vital role it plays in the lives of the customers and communities it serves – will not only give me the opportunity to work at the forefront of technological shi s in the banking industry at an immense scale, but to learn from leaders who instil a culture of learning and innovation throughout the bank.”

CIO Sco Marcar said: “It’s not the first time I’ve said that AI is helping us to be a simpler NatWest and to transform our customers’ experiences as we become even more of a trusted partner in the moments that ma er most. Maja’s appointment is another important and exciting milestone; her unique skills and experience will help us adapt and meet customers’ changing needs faster, and more effectively."

arc Goldberg, CEO of sales and distribution at Together, will retire in December 2026 a er 38 years at the firm.

Ryan Etchells, chief commercial officer, will take on extra responsibilities, and Together made three appointments. Cheryl Brough as chief people officer, Dave Sutherland as chief operating officer, and Candice Lo as chief marketing officer.

Goldberg said: “I am so proud of Together and all that the company has achieved, and have had the pleasure of working with inspirational colleagues, customers and business partners over the course of my career."

Group CEO Richard Rowntree said: “They bring extensive experience and will further strengthen and diversify our senior leadership team as we build on our past success and take the Group to the next level.

“I would also thank Marc for his outstanding contribution to Together over the last 38 years. It has been a great pleasure to work with MARC GOLDBERG him."

Assetz Capital hires Callum Ferguson to lead London and South West

A

ssetz Capital has appointed Callum Ferguson to lead its expansion in London and the South West. He joins with more than 15 years of experience in real estate and development finance, most recently serving as head of business development at Clearwell Capital.

Ferguson has held senior origination roles at private equity and debt funds since 2015, working across joint ventures, mezzanine and senior development loans for residential, commercial and mixed-use projects.

Andrew Fraser, chief commercial officer, said: “Callum’s appointment will enable us to build on the £178m of lending and CALLUM FERGUSON

the building of 804 homes we’ve supported in the region – enhancing our long standing commitment to house building.”

Ferguson added: “I am delighted to be joining Assetz Capital at such an exciting point in their journey. Their depth of experience and operational excellence is much admired within the industry and I look forward to growing the business’s footprint across London and the South West."

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