The Intermediary – May 2025

SECOND CHARGE FOCUS ISSUE

INTERVIEWS Interbridge and Equifinance look ahead at a changing seconds market

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

Intermediary.

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For Intermediaries Only Masthaven Finance, 3 Theobald Court, Theobald Street, Borehamwood, WD6 4RN. Masthaven Finance is a trading name of Masthaven Finance Group Ltd (14088677), Masthaven Finance Ltd (03709012), SF11 Ltd (07731478), SF13 Ltd (08273729), SF22 Ltd (14588596), SF24 Ltd (15589627), and Masthaven Finance M1 Ltd (14111987) all of which are registered in England and whose registered office is 3 Theobald Court, Theobald Street, Borehamwood WD6 4RN. Masthaven Finance Ltd is authorised and regulated by the Financial Conduct Authority. Firm reference number 300606.

SECOND CHARGE FOCUS ISSUE

INTERVIEWS Interbridge and Equifinance look ahead at a changing seconds market

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

Intermediary.

The

www.theintermediary.co.uk | Issue 28 | May 2025 | £6

THE RIGHT TOOL FOR THE JOB

The growth, evolution and success of second charge solutions

DIG I TA L E DI T ION

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

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

02-03-03 (3)

From the editor...

M

uch has happened since the last time The Intermediary dedicated a Focus Issue to the second charge mortgage market.Chief among the developments from our perspective, of course, was the success of our inaugural National Mortgage Awards – Second Charge.

We are now deep in the process of organising the next event, and November 2024’s glamorous evening feels like a lifetime ago.

The reason we chose to launch an awards event, in an industry where there are some well-established events that make for stiff competition, was in large part because we saw that there was a group crying out for it.

More o en than not, second charge market players get a somewhat cursory look-in – a few categories, at best – as part of a wider picture.

This is pre y starkly symbolic of the way this sector has been viewed in recent years. It feeds into a prevailing misconception that this is a niche product, with only a few uses in in circumstances that make it absolutely necessary.

The message of the Second Charge Focus Issue, then, has not changed hugely since last year. Between this, the awards, and all our other content focused on this market, we are still shouting about this product’s many uses, and the fact that, whether or not it’s right for every client – spoiler alert, it won’t be, and that’s fine – brokers must consider all the options for their clients to ensure the best outcomes.

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This time last year we were speaking to new entrant Interbridge about plans for taking the scene by storm, while hearing from other market experts and established lending leaders, who gave us a pre y uniform picture of steady growth that nonetheless felt like it could have been more meteoric had people understood the real value of this product.

At the time, we had a lot of discussion around market conditions being perfect for seconds to come into their own, but receptiveness among clients and first charge brokers potentially muting the sector’s success.

This year, while the old debate around ge ing more ‘whole of market’ players to engage meaningfully with seconds continues, the conversation does feel generally more positive.

New entrants are seeing smashing success, while established lenders and distributors are speaking with a greater sense of optimism about progress and growth in 2025.

Indeed, according to Pepper Money’s analysis of Bank of England and FLA data, this is the fastest growing segment in the post-pandemic property market.

It seems that those who might have dismissed this product before are coming around. Perhaps all the talk – and the celebration – of this market’s recent successes is having an impact.

Considering this sector’s potential for further growth, it’s worth keeping an eye on. ●

Jessica Bird @jess_jbird

@IntermediaryUK

Contributors

The Team

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SECOND CHARGE FOCUS ISSUE

INTERVIEWS Interbridge and Equifinance look ahead at a changing seconds market

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

Intermediary.

The

www.theintermediary.co.uk | Issue 28 | May 2025 | £6

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THE RIGHT TOOL FOR THE JOB

The growth, evolution and success of second charge solutions

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3

Contents

INTERVIEWS & PROFILES

The Interview 30 INT ERBRIDG E

SECOND CHARGE FOCUS ISSUE

Jonny Jones looks back at a year of success in the second charge market

Feature 6 FA S T E R , S M A R T E R , S I M P L E R

Bill Lumley asks how tech advancements are shaping the second charge industry

Opinion 14

30

The latest from Together, UTB, Loans Watehouse, Pure Panel Management and more

REGULARS

Q&A 20, 58

Broker Business 64

EQUIFINANCE

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

Local focus 82

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

On the move 86

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

Laura Thomas on communication, demand, and the changing world of second charge mortgages L O N D O N ’ S S U RV E YO R S

Tony Bunting discusses the changing valuations market

Profile 74 METLIFE

Phil Jeynes on product innovation and the road ahead for the business

SECTORS AT-A-GLANCE

Residential 34 Buy-to-let 44 Specialist Finance 50 Later Life 60 Protection 72 Technology 76

Meet the BDMs 28, 54 C E N T R A L T R U S T , B L U E S T O N E M O R T G AG E S

Liam Billings and Carly Wiggins discuss the challenges and opportunities for BDMs

The Intermediary | February 2023

3

S E C O N D C H A RG E In focus

Faster, smarter, simpler DIGITAL TRANSFORMATION IN THE SECOND CHARGE MARKET Bill Lumley for The Intermediary

The second charge mortgage market is experiencing a thorough technological revolution that is reshaping the way borrowers access home equity, and how brokers manage applications.

With lending in this sector reaching £1.6bn in 2024 – a 12% year-on-year increase, according to Bank of England and Finance & Leasing Association (FLA) data – digital platforms, automation, and analytics are driving unprecedented efficiency and accessibility.

Application automation Second charge mortgages have surged in popularity as homeowners seek alternatives to remortgaging. This is particularly the case for those locked into low-rate fixed mortgages secured before the 2022 interest rate hikes.

An estimated 40,000 households will opt for second charges in 2025, building even further on the £6.5bn in equity that has been accessed since the pandemic.

Technology is a driving force behind this market movement, enhancing efficiency,

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The Intermediary | May 2025

accessibility and appeal across the second charge market.

The second charge process, once bogged down by manual paperwork and lengthy approvals, is being transformed by digital platforms and automation.

Automation in underwriting, for example, leverages artificial intelligence (AI) to analyse credit profiles, property data and financial histories in real time, slashing approval times from weeks to days.

Lenders such as Together, in one example, use proprietary technology to integrate credit bureau data, ensuring swift, accurate decisions.

Shelley Stern, director of mortgages at Masthaven, highlights this shift: “We’re working towards rolling out a new system that will fully automate the application process, something we see as critical in today’s market, as intermediaries are under more pressure than ever to act quickly.

“When a deal is time-sensitive, waiting days for a decision just isn’t good enough for their clients.”

S E C O N D C H A RG E In focus

Certainty, speed and clarity are no longer ‘niceto-haves’, but are expected by modern borrowers and the brokers that serve them.

Stern says: “By streamlining the process end-to-end, we’re giving brokers faster access to the answers they need, without sacrificing the depth or quality of decision-making we’re known for. It’s about removing the friction, not the thinking.

“This approach has already started delivering results, as last year we introduced biometric ID checks and electronic signatures for our offer documents.

“That one change made a big difference, not just in turnaround times, but in how we protect both our customers and our business. It tightened our internal controls, strengthened fraud prevention and contributed to a noticeable rise in same-day application, offer and completion.”

Norton Broker Services has embraced similar technologies to modernise its approach to second charge mortgages.

Eddie Lau, broker account manager at Norton Broker Services, explains: “We work with many lenders who accept [automated valuation models (AVMs)] even on higher [loan-to-value (LTV)] cases, allowing for faster and more cost-effective property assessments.”

By using AVMs instead of physical valuations, Norton accelerates underwriting, while e-signatures for conveyancing documents enable completions in as few as 12 working days, even for complex cases.

Lau says: “The move to digital conveyancing with e-signatures has been a massive step forward. It’s not just about speed. It’s about giving borrowers and brokers a smoother, more reliable experience.

“We’ve seen turnaround times drop significantly, which is critical when clients need funds urgently.”

Norton has found that, through partnerships with lenders using integrated broker platforms, it has often been able to eliminate manual forms, reducing errors and speeding up application processing.

Seamless connectivity One Mortgage System (OMS) works hard to take a leading role when it comes to “seamless connectivity,” according to CEO Dale Jannels, integrating more than 14 application programming interfaces (APIs) with second charge lenders.

Jannels says: “OMS has significantly enhanced the second charge mortgage journey by leveraging digital platforms and advanced automation.

“These APIs enable both real-time quick quotes and end-to-end full applications, eliminating the need for manual rekeying and reducing time to offer.”

He adds: “For second charge mortgages, where speed can make or break a deal, our technology ensures that brokers can move quickly without sacrificing accuracy or compliance.

“Our integrations mean brokers can access a wide range of lenders in one place, saving time and improving outcomes.”

Selina Finance’s Broker Portal and APIs also aim to streamline applications.

Henry Vaughan, VP of growth at Selina Finance, says: “Our focus has always been on making life easier for brokers. We’ve built a smooth, modern process that removes unnecessary admin and speeds things up from the start.

“There’s no need for documents upfront, and smart APIs work behind the scenes to automate key steps.

“Credit file checks, valuations and affordability assessments all happen instantly, which means brokers can move quicker and get early clarity on each case.”

Vaughan adds: “We understand that brokers have different ways of working.

“That’s why we’ve developed flexible APIs that allow quotes to be generated directly from a broker’s [customer relationship management (CRM) system].

“This cuts out double-keying, reduces errors and makes the whole process far more efficient.”

Advanced analytics Analytics and machine learning are able to revolutionise risk assessment, enabling bespoke rates for diverse borrowers.

Unlike rigid credit score models, these technologies analyse nuanced data, making lending inclusive, according to Lau, who explains: “Norton partners with lenders that do not rely solely on automated credit scoring, and technology plays a vital role in this.

“By using such lenders, we can quickly identify and route applications from borrowers with adverse credit histories to suitable providers.

“This helps ensure that applicants who may not meet rigid prime lending criteria are still considered for appropriate lending solutions.”

He adds: “For borrowers burdened by highinterest credit card debt, Norton’s technology recommends second charge products that offer lower interest rates and longer repayment terms.

“Intelligent sourcing tools help match applicants with suitable products in real time, allowing borrowers to reduce monthly outgoings and restructure debt more sustainably.”

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May The Intermediary 2025 | The Intermediary | July 2023

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S E C O N D C H A RG E In focus

OMS’ credit search also works to support complex cases. Jannels says: “A key example is our credit search process, which occurs at the outset of the application.

“This gives brokers immediate access to a borrower’s full credit profile, enabling them to make faster, more informed sourcing decisions tailored to the client’s circumstances.

“This is especially valuable for clients with credit blips. By embedding this early in the journey, OMS reduces friction, improves sourcing accuracy and helps the broker get to a ‘right first time’ solution which ultimately benefits the borrower.”

Selina Finance targets self-employed and nonprime borrowers, a growing segment for whom second charge options can be vital.

Vaughan notes: “It’s clear the market is growing. We’ve used this opportunity to focus on segments that are often underserved, particularly self-employed borrowers and contractors. Our lending policy is designed to flex around non-

standard income, and we continue to adapt as customer needs change.”

API-driven pre-underwriting checks provide clarity, avoiding wasted effort.

Vaughan says: “Early eligibility is still one of the biggest pain points for brokers, so we’ve tackled that head-on.

“By running pre-underwriting checks on credit files and property details, we can provide reliable decisions in principle [DIPs] much earlier in the process.

“This gives brokers more confidence and avoids wasted effort down the line.”

Careful compliance Technology ensures compliance with Financial Conduct Authority (FCA) regulations, including Consumer Duty, as well as General Data Protection Regulation (GDPR) and anti-money laundering (AML) standards.

Stern says: “Our systems balance speed with the depth or quality of decision-making we’re

p

“I told you to only call on me for emergencies, Gordon. You just need a second charge.”

Equifinance is a leading UK specialist mortgage provider, working closely with our UK wide distribution partners to develop and deliver lending products that suit the needs of a wide spectrum of customer circumstances

www.equifinance.co.uk

Equifinance Limited is registered in England & Wales under Company number 07324100, registered address 3rd Floor, East One Building, 22 Commercial Street, London, England, E1 6LP. Equifinance Limited is authorised and regulated by the Financial Conduct Authority under reference number 717913.

Please note as Equifinance Limited is a lender and not a credit broker if you are considering taking out a mortgage you should seek advice from a firm that is authorised by the Financial Conduct Authority to do so.

You could lose your home if you don’t keep up your repayments on a mortgage or any debts secured on it.

S E C O N D C H A RG E In focus

SECOND CHARGE

In Numbers 2020 ◆ The second charge market expanded by nearly a third (31%) in 2020, showing its use in facing the immediate impact of the pandemic. (Source: Pepper Money analysis of Bank of England and FLA data)

2023 ◆ New second charge lending fell 10% year-on-year to £106m; the number of new agreements also dropped 10% to 2,406. For the three months to February 2023, agreements were down 2% year-on-year to 6,807.

(Source: FLA) ◆ Searches for second charge mortgages on broker platforms rose 14% year-on-year compared to 2022, indicating rising consumer interest.

(Source: Knowledge Bank)

2024

Shaping the future

◆ January saw market growth of 29% compared to January 2023. Lending grew 17% year-on-year in H1, making second charge the fastest-growing segment of the secured loans market. (Source: Pepper Money) ◆ Across the year, growth in the seconds market surpassed the previous year’s performance by 25%; the value of new second charge lending hit £130m, up 35% year-on-year. (Source: Bank of England, FLA) ◆ £3.2bn was accessed via second charge mortgages from Q1 2022 to Q2 2024, 27% higher than pre-pandemic levels. (Source: Pepper Money)

2025 ◆ Around 40,000 households are expected to use homeowner loans in 2025. (Source: Pepper Money) ◆ In March 2025, new business volumes rose 18% yearon-year; in the 12 months to March, there were were 37,053 new agreements (£1.82bn) – a 19% increase in volume and 27% increase in value compared to the 12

p 10

The Intermediary | May 2025

months to March 2024. (Source: FLA)

S E C O N D C H A RG E In focus

Jannels observes that any future developments must keep the customer’s needs and demands front of mind: “By actively listening to customer feedback, OMS continually develops tools that cater to underserved segments, particularly borrowers facing complex lending scenarios.”

Mobile apps, chatbots and biometric ID verification are all part of the tapestry of enhancing borrower experience. Stern reports that these have boosted same-day completions for Masthaven already.

Norton’s digital ID tools, meanwhile, resonate with the expectations of the next generation of clients, who expect seamless digital experiences that mirror the experience already being provided in other industries.

Lau notes: “Where digital ID verification tools are used by Norton, the speed and reliability of borrower onboarding has significantly improved.

By allowing applicants to verify their identity

securely from any device, often using facial recognition or document scanning, borrowers no longer need to post physical documents or attend face-to-face meetings.

“This has been a huge win for younger homeowners and the self-employed, who want speed and convenience.”

OMS’ mobile interfaces and webchat are also part of the work being done to support accessibility moving forward.

Jannels explains: “Technologies like digital identity verification, webchat functionality and mobile-friendly applications play a crucial role in streamlining the application process, reducing manual intervention and supporting faster decision-making.

“Uptake has been especially strong among younger homeowners and the self-employed, who tend to be more tech-savvy and value speed and accessibility.

“I haven’t had this much free time in years!”

S E C O N D C H A RG E In focus

Strong and secure Real progress has been made in the second charge market to streamline and improve the borrower experience.

Vaughan says: “One of the biggest changes has been the introduction of advanced ID verification.

Customers can now confirm who they are quickly and securely, without uploading documents or waiting for manual checks. We also adopted DocuSign early on, so there’s no need for paper forms or back-and-forths in the post.”

Tech-driven lenders push others to innovate, increasing competition and strengthening the market in the long run. Through all of this, though, cybersecurity is critical.

Lau says: “At Norton, maintaining borrower trust is not only a compliance obligation – it’s a core part of the company’s ethos.

“With technical safeguards, regulatory compliance and secure partnerships, we’re building a digital environment where borrowers can engage with confidence.”

OMS also takes cybersecurity and data privacy extremely seriously, being ISO 27001 certified, with a multi-layered security framework, continuous monitoring and penetration testing every six months.

For what has been a lesser known product, ensuring watertight compliance and security is key to building trust and reliability among borrowers and brokers.

Vaughan says: “Being a digital-first lender means security and privacy are essential. We’ve built robust protections into our tech stack, including encryption, multi-factor authentication and access controls.

“We also have clear policies in place for GDPR, covering everything from data consent to how long we retain customer information.”

Jannels adds: “In a climate where cyber threats are evolving, a proactive approach to security ensures that both borrower data and business operations remain protected – reinforcing confidence in the digital mortgage process.”

Human expertise Robust cybersecurity and compliance, as well as streamlined applications and decision-making, set a high standardin this market, but challenges do persist.

Lau explains: “The challenge is keeping up with regulatory changes whilst pushing for innovation, but our tech gives us the flexibility to adapt quickly.”

Vaughan adds: “As we continue to refine our platform, we’re sticking to a secure-by-design approach, making sure every tool we launch is built with privacy and compliance in mind.”

FROM PAPERWORK TO PORTALS FIONA HOYLE IS DIRECTOR OF CONSUMER AND MORTGAGE FINANCE AND INCLUSION AT THE FLA

The past five years have seen the use of

technology reshaping how the second change mortgage market operates and supports its growth.

New portals are making case tracking simpler and more collaborative, and the use of API-powered property valuations have improved efficiency.

Digital ID checks – incorporating AI to verify documents – and the extensive use of electronic signatures are improving the customer experience.

Borrowers increasingly want to interact with lenders and brokers in ways that suit their preferences – whether that’s through apps, websites or via a phone call.

The sector has a strong focus on using technology to deliver good customer outcomes.

There is clearly a confidence in tech among those in the second charge market, but there is little evidence that this will become an automated market any time soon.

In fact, much of the tech advancement available in seconds centres on freeing up time to tackle the elements that need a human touch.

Vaughan says: “Brokers can quote and submit cases to Selina without ever leaving their existing systems. It’s about fitting into the broker’s day-today, not the other way round.”

Stern says: “While technology helps streamline the journey, we know it can’t answer everything.

Lending isn’t one-size-fits-all – especially for selfemployed clients, or those with complex credit histories. The tech is there to speed things up.

The people are there to get it done right.”

With attention so strongly focused on highlevel technological developments in every corner of the property finance market, from handling client information to making brokers’ lives easier, there is little doubt that the second charge mortgage market is poised for significant growth.

●

S E C O N D C H A RG E In focus

Second charge BTL – a little known solution

I

magine this: one of your customers, a landlord with a large portfolio, is looking to raise the finances needed to bring a property up to Energy Performance Certificate (EPC) standard. What product do you recommend to them?

The go-to for many brokers might be a standard remortgage, but there’s a lesser-known alternative that could serve this customer be er: a second charge buy-to-let (BTL) mortgage.

Second charge BTL loans are not offered by all lenders, and so are o en overlooked. However, they present a compelling option for landlords looking to unlock equity in their existing properties without disturbing the terms of their current mortgage.

For clients who have favourable interest rates or terms on their first charge, a second charge allows them to retain those benefits while securing the funds they need.

In a challenging and ever-changing market, landlords are navigating increasing regulation, rising taxation, tighter profit margins, and unpredictable interest rates. Yet many are not retreating – they are evolving.

Research we conducted revealed that, although around one in 10 landlords are planning to reduce the size of their portfolios this year, nearly 30% are actively planning to expand or diversify. This shows that the appetite for growth remains strong, even amid market pressures. For landlords with ambitions to grow or diversify their portfolios, traditional financing methods don’t always provide the flexibility or speed required.

Second charge BTL mortgages are increasingly filling that gap, offering a solution that aligns with the evolving needs of property investors.

Whether it’s funding refurbishments,

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The Intermediary | May 2025

upgrading properties to meet new regulations, or consolidating debt to ease cashflow, these loans provide landlords with the agility they need to act quickly and strategically.

Bespoke and agile One of the key advantages of second charge BTL mortgages is the speed at which they can o en be processed.

Compared to remortgaging, second charge applications o en move faster due to more responsive underwriting and fewer hurdles.

They also offer flexibility and can be purpose-built to meet a wide range of financial objectives – from property improvements and EPC upgrades to business expansion, debt consolidation, or even providing a deposit for the purchase of additional properties.

They are particularly valuable when the funds are to be used for specific improvements, such as bringing a property up to EPC standards – a requirement that’s becoming more critical as legislation tightens.

The flexibility of repayment terms, whether short-term or longterm, also makes them accessible to landlords at various stages of their property journey.

Those newer to the market, who may be facing cashflow constraints or are reluctant to refinance their main mortgage, can still access the finance they need without affecting their existing financing arrangements.

Moving on opportunity At Together, we have already seen many customers finding success through the product. We recently helped a landlord unlock equity across their portfolio with a £879,000 second charge BTL mortgage, secured against 26 properties in a £3.5m portfolio. This

MICHELLE WALSH is head of intermediaries at Together

enabled them to move swi ly on a new opportunity that arose, without affecting their existing loans or refinance each property individually.

Some lenders, like Together, also offer cross-charging, where one loan can be secured against multiple properties, providing even greater flexibility for portfolio landlords.

Despite these benefits, awareness of second charge BTL mortgages remains limited. Many landlords simply don’t know they exist or understand how they can be used. This is where brokers play a vital role; it’s up to industry professionals to guide their clients through the available options, bringing alternative lending solutions to their a ention and ensuring customers have the right information to make informed decisions.

As demand for flexible financing continues to grow, brokers who understand and champion second charge BTL will be positioned to thrive. These brokers are not just facilitating transactions, they’re building long-term relationships, solving complex challenges, and enabling clients to achieve their goals with greater confidence and speed.

Second charge BTL mortgages are no longer the niche product they used to be – they are a strategic financial tool.

As landlords navigate the evershi ing market, brokers have the opportunity to lead with knowledge and solutions that go beyond the conventional.

Awareness, education and access to specialist lenders can make the world of difference in achieving the right outcomes for your customers. ●

S E C O N D C H A RG E In focus

Are we getting fixated on speed?

J

ust how important is speed in terms of the quality of service we offer? A first reaction might be that it is of paramount importance, and overshadows other considerations. However, I would argue that speed is interpreted in different ways by all of us – whether as customer, adviser, or lender – and that we need to take this into account in the advice process.

As lenders and advisers, we tend to think that it is all about the time taken to complete the mortgage process, but that represents only one interpretation – although a large one, admi edly.

Another factor to remember is that the longer the production line, the greater the chance of delays. While first charge lenders in particular are under pressure currently because of the property purchase miniboom, local authority, valuation and conveyancing backlogs are also adding to the problem. It is easy to see how the house purchase market can stall, but where does that leave homeowners who want to raise capital?

who follow the guidelines of informing customers that a second charge mortgage can provide an alternative to a remortgage.

I am not going to list the many examples of where a second charge mortgage is a more appropriate choice for capital raisers, but instead just concentrate on meeting a customer’s need for a fast resolution.

The main issue that needs assessing is exactly how pressed the customer is to receive the capital required.

In other words, is the deadline realistic for them and for the lender?

Next, whatever the funding solution being considered, does it come with conditions which increase cost unnecessarily?

Swift resolutions With the welcome news of increasing volumes of second charge mortgages last month – as the market recorded the highest annual total since 2009 – and that every month of 2024 had shown an increase in business volumes the highest monthly level of new business since the start of the lockdown, it is worth considering how much influence the need for fast resolutions has had on those numbers?

With first charge mortgage providers struggling to cope, it is reasonable to suggest that advisers relying on fast remortgages are likely to be disappointed at present.

Therefore, what I want to do is connect with open-minded advisers

Hidden costs A good example here would be the choice of a remortgage which involves an early repayment charge (ERC) to be paid. Are the customers prepared to pay that price just to get the money they require, or could they wait for the ERC period to end and put off the transaction until then? If the la er, and the answer is no, then if they do not want to pay the ERC along with the costs of remortgaging, a second charge mortgage should be a serious consideration.

It is worth mentioning that under Consumer Duty, the regulator is more likely to question decisions where there is ambiguity over the

LAURA THOMAS is regional sales manager at Equifinance

It is reasonable to suggest that advisers relying on fast remortgages are likely to be disappointed” recommendation of a remortgage, and advisers need to be sure that they have clear evidence that clients are be er off having a remortgage recommended over a second charge.

Speed must be interpreted on different levels. How quickly must the customer have the money? Can the lender meet that deadline? Then, must the customer pay a financial penalty for taking a particular course of action?

In the cases referenced above there were be er choices, especially if the capital was needed immediately.

However, if the customers had been in a position to wait for the ERC to end, then the need for speed was not really the issue it seemed to be, and both a remortgage and a second charge loan are valid alternatives.

Perhaps cases like this serve as a reminder that there is no such thing as a ‘one case fits all’ lending scenario when offering advice. So, the need for speed must be properly understood and applied to the path recommended to the customer. ● May 2025 | The Intermediary

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Ask Masthaven Your Lending Questions, Answered by Our Experts

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For Intermediaries Only Masthaven Finance, 3 Theobald Court, Theobald Street, Borehamwood, WD6 4RN. Masthaven Finance is a trading name of Masthaven Finance Group Ltd (14088677), Masthaven Finance Ltd (03709012), SF11 Ltd (07731478), SF13 Ltd (08273729), SF22 Ltd (14588596), SF24 Ltd (15589627), and Masthaven Finance M1 Ltd (14111987) all of which are registered in England and whose registered office is 3 Theobald Court, Theobald Street, Borehamwood WD6 4RN. Masthaven Finance Ltd is authorised and regulated by the Financial Conduct Authority. Firm reference number 300606.

With decades of experience, our team understands what brokers like you value most: certainty, flexibility, and personalised service as standard.

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Join Shelley and Paul for second charge & specialist remortgages (including unencumbered), Claire and Jim for bridging, and Claire with EJ for development finance - all offering real-time support on even your most complex client scenarios.

Webinar Dates: Re-mortgage or Secured Loan?

The Great Debate Date: Wednesday 2nd July 2025 | Time: 12pm

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S E C O N D C H A RG E In focus

EVOLVING CUSTOMER AND PRODUCT

T

he second charge mortgage market has evolved dramatically in recent years. Once considered a niche lending solution, it is increasingly becoming a mainstream option for a growing number of homeowners – and crucially, a more diverse range of borrowers.

Traditionally, second charge mortgages were favoured by homeowners aged 40 and above – typically with well-established careers and significant equity in their properties. These borrowers used second charges primarily for home improvements, debt consolidation, or major one-off expenses like funding school fees or buying a second property. Today, that landscape is changing – and fast.

A shifting demographic The cost-of-living crisis, rising property values, and a broader cultural shi in financial a itudes have combined to bring a new generation of borrowers into the second charge space.

According to the Finance & Leasing Association (FLA), total second charge lending over the last 12 months reached nearly £1.784bn across 36,519 agreements.

In fact, March this year was the second biggest month in second charge lending since the Credit Crunch, which evidences the buoyancy in the market and lender appetite to support customers.

Notably, around 68% of lending was for debt consolidation, 24% for home improvements, and 8% for other purposes, including tax bills, education, or starting a business.

The average loan size stands at around £48,000 – up only slightly from previous years – suggesting that while borrower demographics are changing, responsible lending

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The Intermediary | May 2025

remains a priority. Around 50% of loans remain under 70% loan-tovalue (LTV), with only around 26% exceeding 80% LTV, indicating a continued emphasis on sensible, equity-based lending decisions.

Drivers of change So, what’s behind the surge in younger and more varied applicants?

1. Increased financial awareness Millennials and Gen Z are showing a greater awareness of financial tools and products. Armed with knowledge from digital platforms, they’re seeking out flexible, cost-effective borrowing solutions – and second charges increasingly fit the bill.

2. Changing attitudes towards debt There has been a cultural shi in how younger generations view debt.

It’s no longer simply a burden; it’s a strategic tool. With second charge products o en offering lower rates than unsecured credit, many are using them to consolidate debt efficiently and take control of their finances.

3. Greater diversity in homeownership The profile of the UK homeowner is no longer uniform. More culturally and socioeconomically diverse than ever, today’s borrowers expect tailored, flexible lending solutions.

Second charge products, with their adaptability and evolving underwriting criteria, are beginning to reflect this demand.

4. Economic pressures and lifestyle goals The cost-of-living crisis, stagnant wage growth, and rising interest rates

CAROLINE MIRAKIAN is sales and marketing director – mortgages at United Trust Bank

have driven homeowners to seek alternative forms of finance. Whether it’s to fund energy-efficient upgrades, cover unexpected expenses, or start a business, second charges are offering a quick and flexible finance option.

Set for growth While it would be premature to suggest we’re heading back to the peak lending volumes of 2008, the signs are encouraging. The second charge market has shown steady growth over the past couple of years, and this upward trend looks set to continue – particularly as younger homeowners become more comfortable with using home equity to reach their goals.

Looking ahead, several factors could continue to support market expansion: Increased homeownership among younger adults, offering a broader base for second charge lending.

Growing demand for financial flexibility, especially as consumers seek alternatives to unsecured debt.

Rising property values, giving homeowners more equity to tap into.

More progressive a itudes toward borrowing, especially for personal investment purposes like education or entrepreneurship.

S E C O N D C H A RG E In focus

DEMOGRAPHICS INNOVATIONS Favourable economic conditions, including stable employment and improving tech-enabled access to credit.

Keeping pace To remain competitive – and relevant – lenders are responding with meaningful product innovations that reflect the changing face of their customer base.

1. Digitally-driven application journeys Modern borrowers expect speed and convenience. Digital portals and automated decisioning are now standard among many lenders, streamlining the process and improving both the broker and borrower experience.

2. Flexible loan structures From variable terms to overpayment allowances, lenders are increasingly offering flexible repayment solutions that cater for the needs of borrowers with fluctuating incomes or nontraditional financial backgrounds.

3. Smarter underwriting and pricing models Many lenders are looking beyond standard credit scoring, adopting more holistic approaches that consider individual borrower circumstances – helping those with complex income streams or thin credit files access appropriate funding.

4. Green financing options As eco-consciousness grows, several lenders have launched products that incentivise green home improvements. Lower interest rates for energy-efficient

upgrades are appealing to younger, environmentally aware homeowners and align with broader environmental, social and corporate governance (ESG) goals across the industry.

Final thoughts The second charge mortgage market is in the midst of a transformation.

No longer confined to older, equity-rich borrowers, it’s rapidly opening up to younger, more diverse homeowners with a broader range of financial goals.

As lenders continue to innovate and respond to evolving borrower needs, the future for second charges looks bright.

For brokers, this presents a significant opportunity.

Understanding the nuances of this

The second charge mortgage market is [...] rapidly opening up to younger, more diverse homeowners” shi ing demographic – and staying informed about the latest product developments – will be key to supporting clients effectively and unlocking the full potential of the second charge market. ● May 2025 | The Intermediary

19

Q&A

Equifinance

The Intermediary speaks with Laura Thomas, regional sales manager for the North at Equifinance, about communication, market demand, and regional second charge trends

Please can you introduce yourself for the readers?

I have 30 years in financial services – often not believed, but I started at the Bank of Scotland at the grand age of 15! I have seen the many ups and downs of the lending and broking rollercoaster over these years, having worked in the commercial, secured and unsecured sectors. However, secured lending has always been my favourite!

Having started with Equifinance in 2019, the business has grown and drastically in the past six years. Proudly an independent lender, Equifinance has gone from being a small lender in the secured lending sector to a prominent player.

It has been an exciting and rewarding journey that shows no signs of slowing down!

Can you walk us through the typical application process, highlighting any unique aspects?

Equifinance has always worked on a business-tobusiness (B2B) model, so all business is introduced via our broker partners. This allows the broker to do what they do best and allows us focus on the underwriting and servicing, which we do best.

Equifinance is proud to have always been well known for its flexibility, ‘can-do’ approach and applying common sense to lending decisions. We have a name in the market for applying a ‘manual’ underwriting approach, taking into consideration client’s circumstances, as we are well aware one size does not fit all.

Some may find this approach old fashioned, as it is far from a digital perspective; however, we see this as going the extra mile to understand clients’ circumstances. This sets us apart from other lenders in the market, it is often one of the biggest positives our brokers provide feedback to us on.

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The Intermediary | May 2025

What are your typical second charge loan terms? Are there any notable exclusions or restrictions?

As the name suggests, Equifinance can only apply second charge on an owner-occupied residential property. Our loan must follow a regulated first charge lender and any other charge on the land registry must be cleared, with the exception of boilers or solar panels. Equifinance can consider differing income and employment types, various credit profiles and offer an array of loan amounts, loan-to-values (LTVs) and rates to cover as many client circumstances as possible.

How does Equifinance ensure smooth case progression and relevant products?

We are well-known for our service level agreements (SLAs), as they have always been our biggest unique selling point (USP) over the years, when perhaps our rates were not as competitive as they are now. We have been careful to never allow this USP to slip as we’ve grown.

Lenders are trusted by brokers to take their cases from submission to completion as smoothly and efficiently as they can. We believe it is our responsibility to provide the best possible service and communication throughout the process so that brokers can provide customers an efficient and smooth journey with constant updates.

Equifinance is constantly appraising and reviewing its second charge offering. Internally, product development is a team effort with risk, finance, underwriting and sales all involved in the creation and updating of products.

Essential to this work is the feedback our brokers partners provide, so that we not only

Q&A

remain competitive in the market but also offer products and terms that will be a good fit for their clients.

What emerging trends do you foresee in the second charge mortgage market?

The balance of power between broker and lender goes up and down and always has done – this makes for a healthy market.

With interest rate changes, twinned with the cost-of-living crisis over the past few years, I have never seen the margin on rates so close between the first and second charge market.

For that reason, the market is buoyant, and with new entries into the lender market, including high street names like Admiral, along with Consumer Duty obligations, second charge loans are becoming more and more recommended and utilised, when this was an industry that was often seen as the ‘poor relation’ to firsts.

What do you consider the most important factors in building strong relationships with brokers?

Brokers are my customers, so my relationship with them is of paramount importance. I feel lucky to have broker relationships that have evolved into personal friendships, but that’s often how it goes as a remote sales manager – you can spend more time at brokers’ offices than your own, so relationships flourish.

Brokers rely on me to be honest, transparent and to add value to their business. I do this through providing trustworthy support, always being on hand to help and always, always answering my phone! I’m renowned for always answering or calling straight back. Such a simple habit to adopt, but it means a great deal to brokers.

How do you tailor your approach to meet the unique needs and challenges of brokers in the North?

I love working in the North! The warmth and banter in the brokers’ offices I visit mean I never have a dull – or quiet! – day. I would take working from a broker’s office to working from home any day of the week. The biggest challenge is adapting what I call a ‘bread roll’ around the regions; this can be a contentious subject!

Are there trends or opportunities specific to the second charge mortgage space in the North?

The North boasts a number of second charge brokers, all with vast experience in the market.

What is helpful is that most brokers and lenders know each other in the North, and there is genuine respect in the market for each other – broker to broker, lender to lender and everyone else in between.

What key market movements or changes within the business are you looking forward to this year?

On a personal level, Equifinance has invested heavily in a new broker portal which will revolutionise the way we work.

I cannot wait to launch this into the market as it will implement a number of efficiencies for their teams.

On a wider level, following a successful securitisation last year, I am excited about Equifinance continuing to build its loan book and work towards the next securitisation.

The plans for Equifinance are always positive, with a commitment to achieving goals as a team. I feel very lucky to be a part of their journey. ●

LAURA THOMAS

S E C O N D C H A RG E In focus

Waking the sleeping giant

T

he second charge mortgage industry is a sleeping giant. A large number of mortgage advisers are missing a trick by ignoring its considerable merits. In doing so, they are not only doing themselves a disservice, but more importantly, their clients.

I’ve been directly involved in second charge mortgages for over 25 years. I’ve seen good and bad times, brokers and lenders come and go, and a number of challenges brought and overcome. As such, I feel well placed to use that experience to draw some conclusions on where the industry finds itself today.

Data published by the Finance & Leasing Association (FLA) shows that the industry continues to grow.

Comparing March 2024 to March 2025 shows an increase in wri en agreements from 2,894 to 3,428, an 18% increase. A decent percentage, but when I look back 20 years, I was working for Loans.co.uk when we regularly wrote 2,000 second charge mortgages a month. That was just our company. I suspect the industry wrote five-times the business it writes today.

So why is this? Well, 20 years ago, second charge brokers got their business directly from their own advertising; direct mail, TV, and the internet were the main channels. Today, while some business is generated online, a lot more is generated through referrals from mortgage brokers who specialise in first charge mortgages.

Unfortunately, far too many choose to ignore or dismiss second charge products. This is despite them claiming to cover the whole of the market, of which the second charge mortgage is actually a crucial part.

Helping hand There are many reasons why I suspect mortgage brokers discount second

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The Intermediary | May 2025

charge mortgages. These include ignorance, a misconception of associated fees and charges, of rates, and of process. Some don’t take the time to understand the benefits to their clients. Some don’t understand the focus on Consumer Duty and compliance that lives within our business, that we are as qualified as they are, and that our passion for ensuring correct customer outcomes runs as deep as theirs.

Yet second charge mortgages can provide great solution to a customer’s capital raising needs.

Just like two high street lenders might have different ways of compliantly assessing affordability, the second charge industry focuses more on actual affordability and less on an arbitrary loan-to-income (LTI) calculation. This can mean that a customer may pass affordability calculations on a second charge, where they may not on a first charge.

Some second charge lenders may be more comfortable with a near prime application, or one with multiple and complex income, or where debt consolidation is the primary purpose of borrowing.

Customers need help. As their mortgage adviser, if you are not able to provide it, their need doesn’t go away. So, your customer may go online and find a second charge mortgage broker through an aggregator website or suchlike, and just like that, you’ve lost them. They’ve gone to someone who has taken time to understand the market and provide a solution. You’ve lost income from this transaction, and potentially future ones as well if they don’t come back to you.

Building up The recent entry of two major lenders into the second charge mortgage market is a clear indication of the sector’s growing significance within the broader mortgage landscape.

Their arrival not only demonstrates

JOE DEFRIES is managing director at The Loan Partnership

increasing confidence in the stability and profitability of second charge lending, but also signals that this onceniche area is becoming a mainstream financial solution for borrowers.

As more homeowners look for flexible ways to access equity without remortgaging, the presence of these heavyweight lenders confirms that the second charge market is not only expanding, but firmly establishing itself as a permanent fixture in the mortgage world.

Given the Financial Conduct Authority’s (FCA) regulation of second charge mortgages, and the second charge mortgage industry’s positive embracing of that regulation, it is important to take the time to educate yourself around how, in the right circumstances, a second charge mortgage could be a great solution for your customer.

At The Loan Partnership, we are proud of the education we have delivered to hundreds of mortgage advisers through our partnerships with clubs and networks, and our outreach to the directly authorised (DA) market. If you’d like to learn more, or have a customer who you think might benefit, why not give me a call? I’d be delighted to be able to tell you if a second charge mortgage could be an option for your client.

In time, I live in hope that if first charge mortgage brokers who call themselves ‘whole of market’ do not consider a second charge alongside the first charge option – and select the right one for their customer – the regulator will intervene to make sure customers do indeed get the right outcome each and every time. Only then will we truly see the awakening of the sleeping giant. ●

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S E C O N D C H A RG E In focus

Why is the second essential to

I

’ve seen this headline written by second charge brokers many, many times – so why is this different? The answer is simple, the market is different. The landscape for mortgage brokers, the need to use second charges, and the increased use of product transfers have all changed the game.

The fact is, secured loans are becoming increasingly vital for the modern mortgage broker. That’s why Loans Warehouse’s services are more in demand by brokers than ever.

Sustained growth In February 2025, second charge new business reached £156m – up 20% year-on-year. Over the three months to February, lending totalled £431m – a 27% annual increase. Across the 12 months to February 2025, the market hit £1.78bn – up 26% on the previous year. Looking ahead, lending volumes are confidently predicted to exceed £2bn in 2025.

New lenders with strong brand recognition have entered the market, and major acquisitions are reshaping the landscape. ClearScore has acquired Aro, while TotallyMoney was recently

purchased by Intelligent Lending Group – the parent company of second charge broker Ocean Finance.

These deals are expected to boost the mainstream visibility of secured loans, with potential TV advertising campaigns on the horizon. This added exposure will help educate consumers about their options, and is likely to drive demand even higher.

Mortgage landscape According to UK Finance forecasts, product transfers are set to increase by 13% this year, totalling £254bn.

Given the average UK mortgage size of £206,384, this equates to around 1.23 million customers refinancing – many of whom won’t be raising additional funds through traditional remortgaging.

With higher interest rates and tighter affordability criteria, many borrowers are reluctant to disturb competitive first charge rates secured during the historically low interest period.

Instead, they turn to second charge loans to raise capital without affecting their existing mortgage terms. This shift is transforming second charge lending from a niche

MATT TRISTRAM is MD at Loans Warehouse

product into a mainstream financial solution. Secured loans will become an essential solution for these clients.

If brokers and networks don’t offer them, customers will naturally seek alternatives through comparison sites like MoneySuperMarket and Money.co.uk, losing out on potential revenue and creating competition for themselves.

Accelerating demand A combination of economic pressures and consumer needs is driving this increased demand:

£1.78bn £156m

Second charge new business as of February 2025

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The Intermediary | February 2025

£431m

Lending total over the three months to February 2025

Market total in the 12 months to February 2025

S E C O N D C H A RG E In focus

charge market all brokers?

Cost-of-living pressures: Rising household costs are pushing homeowners to consolidate unsecured debts into a single, lower-rate secured loan, freeing up monthly cashflow.

Home improvement boom: With moving costs remaining high and housing stock limited, more homeowners are borrowing to improve rather than relocate.

The second charge market has seen notable increases in loans for home renovations, extensions, and energy efficiency upgrades.

Self-employed and complex borrowers: Traditional remortgage routes are often closed to selfemployed clients or those with complex incomes. Second charge lenders offer more flexible underwriting, opening crucial doors for these customers.

Interest rate environment: Many homeowners are still on historically lower fixed rates; remortgaging means sacrificing these deals, making second charge loans the preferable option for additional borrowing.

According to the Finance & Leasing Association (FLA), around 60% of second charge loans are used for debt consolidation, while 25% fund

£2bn+ Lending volumes projection for 2025

home improvements — evidence of the product’s relevance across diverse financial needs.

Seconds success Loans Warehouse has positioned itself as one of the UK’s leading second charge brokers, consistently outperforming market growth.

In 2024, the business reported a 35% increase in second charge completions, outpacing the overall market rise of 26%.

Notably, Loans Warehouse has developed strong partnerships with key lenders, providing brokers with access to exclusive rates and faster processing times.

Digital innovation has also been central to second charge lending success. Investment in streamlined technology platforms has reduced average application times by 20%, while maintaining industry-leading customer satisfaction scores, which currently stand at five out of five on Trustpilot.

In fact, Loans Warehouse was recently awarded ‘Best Quality Packager’ at the National Mortgage Awards – Second Charge, testament to its reputation for service excellence.

Another major driver has been the broker support proposition. Loans Warehouse provides bespoke training and marketing support to networks and directly authorised (DA) firms, ensuring brokers are not only aware of second charge opportunities, but confident in advising on them.

A clear message The biggest networks and brokers are aware the second charge market is no longer an optional extra for brokers – it’s an essential part of the advice process. Brokers who fail to engage with this market risk falling behind as competitors and direct-to-consumer platforms step in to fill the gap.

By partnering with a specialist like Loans Warehouse, brokers can meet their clients’ needs across the full mortgage journey: from initial purchase to remortgage, second charge, and beyond.

With demand set to grow even further in 2025 and beyond, there has never been a better time for brokers to embrace the opportunity. ●

£254bn Product transfer total after the projected increase of 13% in 2025

February 2025 | The Intermediary

11

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S E C O N D C H A RG E In focus

Expertise is crucial in the growing seconds market

U

ncertain economic conditions and a higher interest rate environment have significantly increased demand for second charges over the past few years.

Affordability challenges, combined with access to cheaper long-term fixedrate products, have been key drivers, as borrowers explore alternative ways to raise capital without remortgaging.

The Finance & Leasing Association (FLA) found in March 2025 that new business volumes in this sector grew by an impressive 18%, continuing the upward trend observed throughout most of the previous year. As we move further into 2025, demand is expected to remain robust.

This surge in demand was celebrated at the National Mortgage Awards – Second Charges, hosted by The Intermediary back in November.

It was fantastic to see the importance of second charges within the industry taking centre stage.

In the spotlight Debt consolidation remains the most common reason borrowers turn to second charge mortgages.

According to FLA data, 58% of transactions in March 2025 were used for this, followed by a combination of debt consolidation and home improvements (22.6%). Nevertheless, second charge mortgages are incredibly versatile. Borrowers also use these products to fund home extensions, purchase additional properties, provide financial assistance to family members, or even expand their businesses.

This flexibility makes second charge mortgages a valuable tool for brokers working with clients seeking tailored financial solutions.

One of the standout features is the speed at which funds can be released.

The process is o en completed within a week or two, making it an a ractive option for borrowers who need fast access to funds.

Clients with time-sensitive financial needs can benefit greatly from the swi turnaround times, and brokers can provide efficient solutions without the lengthy processes o en associated with traditional remortgaging.

Expert solutions Obtaining a quick and accurate valuation report is a crucial part of the second charge process. This is important in the specialist lending market, where borrowers o en have complex financial arrangements or a history of adverse credit.

Working with an experienced provider can make all the difference – a deep understanding of the valuation process and a panel of qualified valuers who can deliver reliable reports within tight deadlines. This expertise helps brokers secure the information required to move transactions forward without unnecessary delays.

An experienced provider does more than just source valuers. They can check access details, liaise with applicants, and follow up at every stage of the application process to ensure deadlines are met.

In cases where post-valuation queries arise, they act as intermediaries between the broker, lender, and valuer, ensuring that issues are resolved promptly. This can make a significant difference in meeting clients’ expectations and closing deals on time.

By handling the complexities of the second charge process, providers can allow brokers to focus on

JAMES GILLAM is managing director at Pure Panel Management

generating new business in areas where they excel. By delivering a seamless experience, brokers can enhance client retention and satisfaction, strengthening long-term relationships.

For brokers unfamiliar with the second charge market, partnering with experts can also save valuable time and resources. Providers can help navigate the intricacies of the sector, offering guidance on how to best position these products for clients and unlocking new earning opportunities.

Ramping up In the current economic climate, it is crucial for brokers to stay informed about the advantages of second charge mortgages. Understanding the product’s versatility, speed, and flexibility can help brokers be er meet the needs of borrowers seeking alternative solutions.

As demand continues to rise, brokers have a unique opportunity to capitalise on this growth.

Whether it’s helping clients consolidate debt, fund home improvements, or raise capital for other purposes, second charge mortgages are an invaluable tool in today’s financial landscape.

By staying informed, partnering with experienced providers, and delivering tailored solutions, brokers can not only meet their clients’ needs, but also position themselves for success in a dynamic and expanding sector.

In 2025, second charge mortgages are set to remain a key player in the specialist lending market, and brokers who embrace this trend will be wellplaced to thrive. ● May 2025 | The Intermediary

27

Meet The BDM

Central Trust

The Intermediary speaks with Liam Billings, business development manager (BDM) at Central Trust How and why did you become a BDM? My journey into the financial services industry began many years ago, when I started working as a mortgage broker. I built strong relationships within the sector and gained invaluable experience helping clients navigate the complexities of mortgage lending. However, I had never worked for a lender before, and I saw becoming a BDM as the perfect opportunity to take on a new challenge while remaining within the industry I love.

I have always enjoyed a role that involves direct interaction with people, and the transition allowed me to continue working closely 28

The Intermediary | May 2025

with brokers while expanding my expertise from a different perspective. The ability to support brokers in finding solutions for their clients, while also contributing to the strategic growth of a lender, was incredibly appealing. Being a BDM enables me to merge my technical knowledge with relationshipbuilding skills, making the role both dynamic and rewarding.

What brought you to Central Trust?

When I made the decision to transition into a BDM role, I wanted to join a company that would offer me the right support. From my very first interactions with Central Trust,

I knew this was the right place for me. During the application process, I had the pleasure of speaking with Andrew Turner, group chairman, and Debbie Burton, chief executive, both of whom left a lasting impression. Their enthusiasm for the company reassured me that Central Trust would provide a great working environment.

Since joining, it has become even more apparent how driven and forward-thinking the company is.

Central Trust has a clear vision for the future and a focus on teamwork, which creates a supportive and collaborative culture. Everyone here works towards a common goal – ensuring that we provide brokers and their clients with the best possible products and service.

MEET THE BDM

What makes Central Trust stand out?

One thing is our commitment to continuous improvement. We are always looking for ways to enhance our products and services to better serve brokers and their clients. Our dedication to putting the customer first is at the heart of everything we do, ensuring that we always operate with integrity and go the extra mile.

Another standout factor is our longevity and resilience. Central Trust has been lending since 1988, and during that time, we have remained steadfast. While many lenders have withdrawn from the market during uncertain times, we have maintained our commitment to providing lending solutions, offering stability to brokers and borrowers alike.

What are the challenges facing BDMs right now?

The financial landscape is always evolving, and one of the biggest challenges is the competitive nature of the market. High street lenders are broadening their offerings and expanding their criteria, making it more difficult for specialist lenders to differentiate themselves.

A crucial part of my role is demonstrating where we can add value. This means ensuring brokers fully understand our unique selling points (USPs), such as our flexible lending criteria. Helping brokers to identify the right opportunities for their clients is an ongoing challenge, but also a rewarding part of the job.

What are the opportunities for BDMs? One of the most rewarding aspects of the role is the ability to build strong, lasting relationships with brokers across the country. Every day presents a new opportunity to meet new people, understand their

challenges, and work together to find solutions that help their clients secure the right financial products.

Beyond relationship-building, the role also provides the opportunity to contribute to the company’s growth by feeding back insights from brokers. By identifying gaps in the market and areas for improvement, I can play a part in shaping the future of our lending propositions. This not only benefits the business, but also strengthens our offering, creating a positive cycle of development and improvement.

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

Collaboration is key to ensuring the best outcomes for borrowers.

I make it a priority to be available to brokers, offering guidance and support whenever they need it. This includes helping brokers understand our criteria and working with our underwriting team to ensure a smooth process.

One of the most valuable things I can do is help brokers package their cases correctly from the outset.

By ensuring that all necessary information is provided upfront, we can speed up the decision-making process and improve customer experiences. I also keep brokers informed about any changes to our products so that they can offer their clients the most up-to-date advice.

By providing a high level of service and maintaining strong communication, I help brokers deliver the best possible outcomes for their clients.

What advice would you give to potential borrowers?

The mortgage market is more complex than ever, and my biggest piece of advice for potential borrowers is to seek professional

advice from an experienced mortgage adviser. With interest rates fluctuating and lenders regularly updating their criteria, it is essential to have someone who can navigate the options and help borrowers make informed decisions.

Finally, I would encourage borrowers to think long-term. While short-term affordability is crucial, considering future financial stability is just as important. Ensuring that mortgage payments remain manageable in the long run can provide peace of mind and prevent financial difficulties further down the line.

What is something outside of work that people might like to know about you?

When I was younger, I entered a competition run by Manchester City football club to name their new mascot. My brother and I submitted ideas. He went with ‘Cheater Chester’, and I – with the help of my dad – suggested ‘Moonchester’.

My suggestion was chosen and remains the official mascot to this day, which is my claim to fame.

Although people don’t believe me at first, I am always happy to pull out the proof! ●

Central Trust

Established in 1988 Products First and Second Charges for: ◆ Residential mortgages ◆ Consumer buy-to-let ◆ Family let ◆ Let-to-buy Contact details Liam.Billings@centraltrust.co.uk

May 2025 | The Intermediary

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The Interview.

Interbridge Mortgages

Jessica O’Connor speaks with Jonny Jones, CEO at Interbridge Mortgages, about record-breaking growth, tech-led innovation, and why automation should never come at the expense of a human interaction

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hen The Intermediary first sat down with Jonny Jones in 2024, Interbridge Mortgages was the newest name in second charge lending, promising to bring a fresh, streamlined approach to the market. Just launched and brimming with ambition, the lender was positioning itself as a responsive, tech-forward partner to intermediaries – aiming to cut through complexity with clarity and flexibility.

Over 12 months later, Interbridge has not only lived up to that early vision, but helped redefine expectations in the rapidly evolving second charge sector.

With a paperless application journey and a product range tailored for borrower needs,

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Interbridge has made a significant impact on the second charge space.

This success has not happened in isolation.

The wider second charge mortgage market has seen remarkable growth, as the second half of 2024 marked a 17% rise in total lending value, according the Finance & Leasing Association (FLA), with volumes not seen since before the Global Financial Crisis in 2008.

As more consumers seek alternatives to traditional remortgaging – driven by rate sensitivity and a need for flexibility – second charge loans have become one of the fastestgrowing sectors of the UK mortgage market. In that context, Interbridge’s entry could hardly have been better timed.

In this special follow-up, The Intermediary reconnects with Jones to reflect on Interbridge’s first year, unpack how the business has navigated opportunity and challenge alike, and explore what is next – both for the lender and the second charge market it now helps to shape.

Exceeding expectations

Interbridge Mortgages has completed its first year in the market with momentum. From day one, the goal was clear: bring quality products, top-tier service, and a smoother journey to the second charge mortgage market – and the reception has been overwhelmingly positive.

Jones says: “We’ve been received extremely well by brokers.

“We’ve got a very experienced team, and many people had established relationships with brokers already.

“Brokers knew that when we came to market, we would bring a high level of service and very high-quality products to their customers.”

That trust has translated into real business.

In just 12 months, Interbridge Mortgages has originated over £260m in loans – a figure that comfortably outpaced expectations, both internal and external.

Nevertheless, volume is not its only marker of success. For Interbridge, service has been just as important as scale, and arguably even more central to its identity.

“It’s relatively easy for a lender to deliver volumes and do that in a shabby or loose way,” Jones notes.

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“But we believe that our service is, if not the best, then close to the best in the market.”

Since launch, Interbridge has received more than 375 Trustpilot reviews, averaging a nearperfect 4.9 rating.

Jones says: “None of our customers have given us a one- or two-star rating, which again is a real testament to the quality of the team that we have.”

He also points to the company’s broader ambition to improve the second charge journey itself, making the process less clunky, less frustrating, and crucially, more modern.

“When we set the business up, one of the things that we said we wanted to do was to modernise the second charge journey and make it much less unpleasant to take out a mortgage,” he says. “I think [there is] evidence that we’ve delivered on that.”

Delivering speed

Speed has been another standout feature of Interbridge’s approach – one that has made a tangible difference for borrowers. From the outset, the lender has prioritised efficiency in the second charge journey, stripping out delays and pushing the boundaries of what fast service can really look like.

Jones explains: “Fairly quickly after launch we managed to do something that, if you’d asked me two years ago, I would have said was completely impossible – which is same-day payouts. A customer that applies for a loan on a Monday and gets the money on a Monday.

That’s now becoming increasingly common.”

In a market where first charge mortgages can still take months to complete, Interbridge’s ability to cut turnaround time has been a key differentiator. This is the result of a deliberate focus on making the customer journey more efficient from start to finish.

Jones says: “The steps that we’ve taken to make the journey more efficient mean that customers can get their money very, very quickly.”

Since launch, Interbridge has averaged a cycle time of around three weeks from application to completion – a significant improvement on industry standards just a few years ago.

Jones says: “I’m hugely pleased with our cycle times since launch, something that is dramatically shorter than the industry average a couple of years back.

“It’s probably come down from about five weeks to about three weeks now.”

Jones is quick to acknowledge that Interbridge is not alone in chasing faster

processing times, and in fact, sees this as a positive sign for seconds more broadly.

He notes: “I think in some ways we’ve been a catalyst for that change. This is a great time to be a second charge mortgage customer because you’ve got a few lenders who are competing on quality of service with very fast turnaround times and a very efficient process.”

Fresh perspective

It is clear that Interbridge did not just enter the second charge market – it set out to positively disrupt it. From launch, the lender aimed to bring a fresh perspective to a sector often bogged down by outdated processes.

Jones notes: “We came in with a lot of stuff that was best in class.

“We did redesign some elements of the journey to make it more efficient.”

Efficiency was not just a buzzword; it translates into practical changes that have removed friction from the borrower experience. One of the most notable innovations is a shift in how applications were handled.

Jones explains: “Something that sounds like a small innovation, but was actually quite important to the customer journey, is that we got rid of written application forms.

“Instead, we replaced that with a declaration where the customer verified if things were correct at the end of the journey rather than the beginning.”

What might seem like a small tweak had a major impact. Previously, customers often filled out multiple versions of application forms as they adjusted their needs or changed their minds, thus leading to confusion and delays.

By consolidating this into a single, streamlined declaration at the end, Interbridge made the process more straightforward.

The introduction of e-signatures also played a crucial role. While Interbridge was not the first to bring them to market, their adoption shaved off significant time from the mortgage process. More importantly, it aimed to tackle a common and frustrating pain point in traditional lending: the logistics of signing documents in person.

Jones continues: “If you’re trying to apply for a mortgage the traditional way, by signing a piece of paper, the mortgage deed has to be witnessed, and you can’t get a family member to witness it.

“Now, put yourself in the position of somebody trying to sort their mortgage over the weekend. You’re around your family, who can’t witness the signature. → May 2025 | The Intermediary

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“You think, ‘I’ll take it into work on Monday’ – then you forget. Tuesday, you’re working from home again. Before you know it, a week has elapsed just because you’re trying to find a witness.”

By moving that step online, and allowing witnesses to sign digitally via email, Interbridge removed a seemingly small hurdle that too often caused major delays. It is this kind of practical innovation that, according to Jones, “makes a huge difference.”

Adopting technology

If Interbridge set out to make the second charge journey less laborious, it has done so not by reinventing the wheel, but by quietly, and effectively, tightening the individual bolts that make up the process. As Jones says: “None of this was groundbreaking, but it’s about incremental improvements.”

From increased automation and e-signatures to smarter modelling and automated valuations, Interbridge has taken small steps toward one big goal: making the second charge process faster and more tech-based.

“We’ve really been looking at 1,000 ways to improve the process,” he explains. “You get rid of each of those little things and then you make quite a substantial change. That’s how we then get to the reductions in the times.”

Much of the magic lies behind the scenes, in back-end systems designed to discreetly support the mortgage journey.

Jones explains: “It’s about increasing the ways in which our systems interact with broker systems to reduce manual entry and delays and errors in that area.

“Tech is really important. Brokers want quick responses, and they get a quick response most easily when it is a system talking to a system.”

This integration has become vital in a sector where intermediaries are increasingly tech-savvy, Jones adds: “Many second charge intermediaries are quite large and quite sophisticated.

“Rather than doing the old-fashioned thing of manually finding out whether their customer will be accepted by different lenders, their systems all talk automatically through [application programming interfaces (APIs)] and inquire directly.”

Jones continues: “A broker will gather information and submit it to us simply by pressing a button on their own system. We’ll go away and do an automated valuation, we’ll do a credit search, we’ll do fraud checks – we assess all of that and bring it together to give an individual price for each customer.”

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Striking the balance

However, while technology may be at the heart of Interbridge’s streamlined second charge journey, it has never been a case of automation at the expense of human service. In fact, maintaining a personal touch has been just as important as building smart systems. Jones is clear that the two must go hand in hand.

He says: “What we’ve been really careful to do is to make sure that we’re not the kind of business where we do our automated systems and you can’t get hold of a human, where you try and speak to someone and you get an [artificial intelligence (AI)] chatbot that thinks you’re asking about the price of butter.”

It is a scenario all too familiar to anyone who has found themselves stuck in an endless loop of automated prompts.

Interbridge, in contrast, has made human responsiveness a pillar of its proposition.

“We always answer the phone, and we always answer the phone in a few seconds,” Jones says. “We look at our phone statistics very carefully. You just don’t have any meaningful queues for either customers or brokers when they want to get hold of us.”

That accessibility becomes particularly important when cases fall outside the standard mould, which, in the case of second charge lending, is all too often.

Jones explains: “We know that not all cases are identical. Sometimes brokers will be looking at cases where maybe the income is a little bit complex, or they can’t quite see how different types of income might fit within our packaging guides.

“There’s always someone who will answer the phone straight away and give guidance.

“It’s all about that interaction of a rapid human response with a really thought-through way of getting rid of the pain points in the automated journey.”

While AI is a hot topic across industries around the world, Jones believes that when it comes to mortgages, balance is key.

“In the mortgage market people actually want to deal with humans,” he says.

“So, what we want to do is use AI solutions in places where brokers and customers don’t, need to interact with it, focusing on back-end changes rather than front-end changes.”

Market trends

While the human touch remains a key differentiator, the pace of technological change, and the need to keep up with it, is shaping the second charge market just as profoundly. For Interbridge, that means staying

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on the front foot as both opportunity and competition accelerate.

“The market is growing really fast,” says Jones. “If you look across all lenders, including ones that aren’t members of the trade association, in quarter one this year it’s about 30% up on quarter one last year, and about 50% up on quarter one two years ago.”

It is a trajectory of consistent growth – one with several forces behind it.

Jones explains: “The speed at which customers can access money from this product has improved, and there’s no doubt that’s driving completions.

“The pricing has also significantly improved in the market. There’s been increased competition. We’ve come into the market and shaken things up a little bit – that has caused a degree of price tension.”

But the real shift, according to Jones, has come deeper in the system: “One thing that’s really notable is that capital markets have really recognised second charge mortgages.

“Last year there were five residential mortgage-backed securitisations (RMBS) trades in second charges.

“I’m not sure there had ever been more than two in a year before that.”

With greater investor confidence, thanks to “exceptional arrears performance and almost no losses,” has come greater liquidity and falling funding costs.

Jones adds: “We’ve seen interest rates for customers come down quite considerably.

“It’s a combination of lower funding costs and increased competition. That again has also increased the attractiveness of the product.”

For brokers, this has created a more dynamic environment, according to Jones.

He says: “They’re able to see a customer who might be suitable for a second charge can get a better rate than they’ve ever had before – and get their money quicker than they’ve ever seen before.

“What tends to happen is when you’ve got shorter turnaround times and lower pricing, then brokers see higher rates of conversion, so each lead becomes worth more. And that means brokers then go and seek more leads, because lead sources that previously might not have been profitable then become profitable.”

Still, with so much momentum in the sector, the challenge for lenders is keeping up.

“If you stand still, you go backwards, because everyone else is innovating around you,” Jones says.

“If you don’t keep on innovating, then you might be the best one year, but then you’re no

longer the best the following year – and you’re obviously outdated two years later.”

Ongoing innovations

Just as Interbridge has prioritised smart tech in its customer journey, the next wave of innovation is likely to focus on consumer protection and fraud.

Jones warns: “We’re in a world now where customers receive documents electronically, but most people, given a reasonable level of IT skills, could edit and tamper with documents like payslips. They could also procure fraudulent documents online.”

According to Jones, this is precisely where AI will start to make its mark, quietly improving outcomes and security.

He notes: “Identifying changes in font, spotting that something is a couple of pixels out of alignment, or detecting from the metadata that the document wasn’t produced by the correct PDF creator, this is where the industry is introducing AI solutions that can do the technical checks humans are looking for.”

Looking ahead, however, Jones does not foresee a dramatic reinvention of the second charge sector, but rather a steady march of practical enhancements.

He explains: “I don’t think the market is going to change in a huge way over the next few years. It’s a well-established market. I’ve been in it since 2005 myself, and fundamentally the customers are largely the same kinds of people as they always have been – and they want the same things they have always wanted.”

That core driver – customers looking to consolidate debt or refinance expensive unsecured borrowing will remain – but the experience will continue to evolve.

“There will continue to be incremental improvements which will take away the need for customers to provide paperwork,” he says.

“That’s what customers really want. Tell someone to go find their P60 or their last Council Tax bill – they’ll struggle. At the time they threw it in the bin or deleted it from their inbox, it never occurred to them they’d need it six weeks later.”

For Interbridge, small gains add up, Jones concludes: “The way we see it is lots of small improvements which, when they add up, make a big difference in total.

“The removal of a verification check here, of a document requirement there, an automated step there – all of that together will continue to drive down cycle times and let customers focus more on what they need from a product, rather than what they’re able to get.” ● May 2025 | The Intermediary

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RESIDENTIAL Opinion

A critical remortgage window

A

fter a relatively subdued year for refinancing in 2024, the remortgage market continues to show strong signs of recovery in 2025. According to UK Finance, 1.8 million fixed-rate mortgage deals are due to expire this year, up from 1.4 million in 2024. Off the back of this, the trade body expects a significant uplift in refinancing activity. With affordability gradually improving, total remortgaging is forecast to grow by 30% to reach £76bn in 2025. Product transfer (PT) volumes are also set to rise, though at a more modest pace, up 13% to £254bn.

Data from CACI backs up this outlook. Between July and December 2025, residential mortgage deals worth £147bn are expected to mature, a 49.3% increase compared to the same period last year. This volume of maturing business not only points to clear growth potential, but also

highlights the ongoing importance of client management.

The trend is already filtering through in adviser behaviour. Figures from Twenty7tec show a 13.8% rise in remortgage searches in March 2025 compared with the previous month. Residential remortgage search volumes climbed by over 15%, and buy-to-let (BTL) searches rose by nearly 13%. In contrast, residential purchase search activity fell by 2.23% over the same period.

The message is clear: the remortgage pipeline is bigger than it’s been in years. But volume alone won’t convert into business. Intermediary firms must act early, engage meaningfully, and plan their outreach properly to make the most of the current window.

It’s vital to remember that, despite the amount of information now available, remortgaging still isn’t well understood by many customers. That lack of clarity leads to inaction and missed savings. Intermediaries are

Intermediaries must act, engage and plan to make the most of the product transfer window

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LEE CHISWELL is head of mortgages at Barclays UK

well placed to change this. A sharper, more consistent approach to client engagement could not only deliver better outcomes for borrowers, but also strengthen retention and build loyalty at a time when competition is high and margins are tight.

Some simple steps to consider: o Start with your own client bank.

Too many clients fall onto a standard variable rate (SVR) because nobody checked in. Look for those already on SVRs or approaching the end of their deal. The data is there; the value comes from how it’s used. o Be proactive, not reactive. Position the review as a practical, holistic check-up, not a sales pitch. o Build a retention strategy that works. This doesn’t mean rolling out a new system. A simple schedule of reminders and timely contact points can be enough, provided it’s consistent and maintained. o Think relevance, not volume. Not every customer needs to hear from you all the time. Segment your audience. Focus your efforts on the clients who are ready or nearing a decision point. o Keep your message clear. Less noise, more clarity. One well-aimed, useful message will always land better than five that aren’t joined up. Make every touchpoint count.

None of these suggestions are complex. That’s the point. The remortgage opportunity is real and immediate. What matters now is execution: tightening up the basics, refining your approach, and getting closer to your client base.

Do that well, and you’ll deliver stronger outcomes for your customers, and generate a more resilient pipeline for your business. ●

RESIDENTIAL Opinion

A beautiful friendship

I

n the bustling heart of Covent Garden, the red carpet was ceremoniously rolled out and the road fittingly closed – this may or may not have coincided with a star-studded musical premier – as Santander welcomed a number, but by no means an exhaustive list, of ‘who’s whos’ from across the intermediary industry. The event: an opportunity to break bread together, hosted by our new head of homes, David Morris.

David spoke passionately about his vision and strategy for Santander.

He wanted the attendees to know that, since joining Santander for Intermediaries (SFI) a short six months ago, he’s listened to the voices of the ones doing the doing in this industry. This feedback – good, bad and ugly – has helped shape the strategy for 2025, and is genuinely priceless!

The bar was set earlier this year as Santander’s Broker Pledges were released to market: o We won’t dual price. Period.

o We will give at least 24 hours’ notice on product withdrawals. Always. o We will improve our product transfer (PT) proposition.

Consistently.

We took the evening as an opportunity to further pledge that we would continue to be loud, proud and disruptive, not simply follow the pack. It’s not just talk; we’ve proven ways in which we will walk the walk already in Q1 by being the first lender to introduce a sub-4% rate and take decisive, swift action on the Financial Conduct Authority’s (FCA) clarity around affordability rates.

The subtext: Santander is the broker’s friend – we care, we are listening and we’re back with a vengeance! David also vowed that the strategic approach will see a sustained and strong drip of positive change with consistent enhancements that help our brokers help their clients.

Actions speak louder than pledges, and what was evident from feedback was that this is being felt by the market. The topics raised on the

AIMEE-JO SHUTT is key account manager at Santander

night ranged from ways we can work together to shape the future of mortgage regulation, upcoming FCA consultations, and the benefits of the new affordability calculations. We heard some expected questions around procuration fees, as well as clubs and networks, and discussed the more unexpected topics of shark attacks and viral YouTube sensations – and that was just on my table! I know I don’t just speak for myself when I say the evening felt less like a networking event and more like a reunion of old friends and a creation of new ones.

To end on a quote, handsomely borrowed from Casablanca – they don’t make them like that anymore – our host David said: “This is the start of a beautiful friendship.” How true!

A friendship that is demonstrated by trust, communication, consistency and collaboration. ●

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RESIDENTIAL Opinion

Supporting borrowers on the road to recovery

S

everal years of economic upheaval and cost pressures have led to a shift in the housing market, most notably in the needs and circumstances of the average buyer.

The sudden rise in interest rates, energy prices and inflation, coupled with changes in legislation, have all left their mark.

Any of these factors alone could have been enough to push someone into the red. We’ve all heard of cases where mortgage repayments practically doubled overnight. Add to that the impact of a global pandemic, during which many lost their jobs or businesses, and it’s no surprise that the market has suffered.

As it often does during times of crisis, the industry has pulled together to keep things moving. While much of the focus has been on helping people buy a home, there’s also been a strong effort to prevent homeowners from losing the one they’ve got.

Although it feels like the initial storm has passed, nothing is guaranteed. The threat of economic uncertainty, both globally and at home, continues to loom.

With one eye on the future and a focus on protecting borrowers in the long-term, we also need to make

sure we’re supporting today’s buyers, many of whom are still living with the impact of recent years.

Brokers are increasingly working with borrowers who have had to take extreme measures to make ends meet. Some have simply been unable to do so. If we look at arrears and possessions data from UK Finance, for example, we’ll see that while mortgage arrears are now trending downwards, there were still 104,780 people in arrears in 2024, and 107,260 in 2023.

This is significantly higher than the pre-pandemic figure of 80,857 in 2019.

At the same time, 1.8 million fixed rate mortgages are due to expire this year. Brokers can therefore expect to meet clients who have missed repayments on their mortgage, and possibly on other secured or unsecured loans as well.

Even if they are now in a more stable position, the legacy of that financial strain could follow them for years.

But it shouldn’t have to be that way. So how can brokers help clients rebuild their credit profile?

Reviving and restoring Over the past year, we’ve seen a rise in applications from those with impaired credit. Debt consolidation is now the most common reason for mortgage capital raising.

CLAIRE ASKHAM is head of mortgage sales at Buckinghamshire Building Society

We know people have relied on secured and unsecured borrowing to pay the bills. Some have struggled to keep up repayments, leading to missed payments, mortgage arrears or debt management plans. But pushing borrowers down a specialist route, or shutting the door altogether, risks making things worse.

That’s why a core part of our revised offering is about helping borrowers recover. We’ve looked at how to make it easier for those with a less-thanperfect credit history to move forward.

That might mean supporting financially stable individuals with a couple of historic missed payments. It could also mean helping those whose borrowing options are limited due to past financial setbacks, such as bereavement or a marriage breakdown.

We’ve responded by increasing loanto-values (LTVs), raising maximum loan values, and updating our credit matrix to be more inclusive of those with credit issues.

Helping brokers Today’s buyers are presenting more complex cases, so we need to adapt our offer to reflect that.

We want brokers to know that just because someone has a lessthan-perfect credit history, it doesn’t mean they have to rely on alternative lending.

There are options available. With our manual underwriting approach and case-by-case assessment, we’ll do what we can to help people move on from the setbacks of recent years. ●

RESIDENTIAL Opinion

Prioritise lenders with inclusive selfemployed criteria

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he workforce is changing fast, and mortgage lenders are having to accommodate that change. The selfemployed now account for around 12% of the labour market, with more than four million people working for themselves. Nevertheless, many mortgage lenders continue to apply rigid, outdated criteria that fails to reflect the diversity and reality of self-employed incomes.

Twenty7Tec recently reported a record of more than one million adviser searches for self-employed mortgages last year, up 7.5% annually.

However, despite modestly rising business confidence according to Federation of Small Business (FSB) data, just 50% of those who applied for credit of any kind had their applications approved.

The message that small business owners are an under-served market is not new. But the idea that advisers who can connect self-employed clients to lenders offering genuinely flexible criteria could rapidly expand their businesses might be.

Taking back control The increase in demand for selfemployed mortgages reflects a wider societal shift towards flexible, entrepreneurial working patterns. In a post-pandemic world, individuals are increasingly starting their own businesses, or opting for freelance, contract, or consultancy roles.

However, many mainstream lenders continue to apply lending criteria that remains out of step with these employment models.

Common barriers faced by selfemployed borrowers include the requirement to provide two or three years’ worth of full accounts

or SA302s, and restrictive income assessments that often ignore dividends, retained profits, or contract earnings.

Some lenders also continue to rely on automated credit scoring systems that leave little room for understanding a client’s complex financial circumstances.

This approach excludes many credit-worthy borrowers, simply because their income does not fit into the traditional, salaried mould.

Many successful consultants, IT contractors, or small business owners have fluctuating incomes that, despite variability, easily support mortgage affordability.

Expert support It’s critical to take a nuanced approach to self-employed borrowers. The cornerstone of our offering, for example, is manual underwriting, ensuring each application is assessed individually by people who understand business performance, income dynamics, and entrepreneurial realities.

We accept one year’s accounts and, in certain circumstances, even accountant projections. This flexibility ensures the newly selfemployed, new business owners or those experiencing rapid growth are not unfairly penalised.

Advisers should continue to choose lenders that consider a wide range of income sources during the underwriting process, including dividends, contract rates, bonuses, overtime, investment income, and net profits.

The business case Our approach ensures our adviser partners can serve a wider variety of clients with tailored mortgage

LAURA SNEDDON is head of mortgage sales and distribution at Hinckley & Rugby for Intermediaries

solutions. This is important, because we’re acutely aware that successfully securing mortgages for self-employed clients leads to higher client satisfaction and loyalty. These clients are often highly networked and willing to refer others.

Differentiating your business by confidently placing complex selfemployed cases also creates a stronger brand in a competitive marketplace.

As the self-employed sector expands, advisers who understand and embrace this segment will be positioned to capture a larger share of future mortgage business.

It also drives repeat business, as once you successfully assist a self-employed client with a mortgage, they are likely to return for future borrowing needs.

These clients are not square pegs who need to be forced into round holes. The lenders that work for this group of professionals offer manual case handling, underwriting, and the expertise to recognise strong financial profiles that simply do not conform to outdated assessment models.

We offer advisers access to our credit committee for trickier cases, and strive to return a same-day decision.

In each case, we aim to answer ‘yes’ rather than defaulting to ‘no’.

The future market will be shaped by inclusivity, flexibility, and a better understanding of diverse income streams. The growing self-employed sector is a vital part of that future.

Advisers who adapt now, prioritising lenders that champion manual underwriting and personalised service, will not only meet today’s needs but thrive in tomorrow’s mortgage environment. ● May 2025 | The Intermediary

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RESIDENTIAL Opinion

Is it time for a change?

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arlier this year, a House of Lords committee delivered a damning verdict on the Financial Conduct Authority’s (FCA) much debated ‘naming and shaming’ plans.

Consultation on the regulator’s proposed policy to publish the names of companies under investigation was called an ‘abject failure’ by the House of Lords Financial Services Regulation Committee, which advised that the plan be dropped until ‘poor engagement’ over the issue was addressed.

The committee noted that the average duration of FCA investigations was around three to four years, with no further action taken in 56% of cases, observing that if the regulator pressed ahead with its proposals, half of the firms it investigates – and the people involved – could have their reputations unnecessarily and unfairly damaged. This, it said, was not acceptable.

The Lords report followed last November’s FCA announcement of plans to explore new areas of compliance. FCA chief operating officer Emily Shepperd put the industry on notice that – together with the Prudential Regulation Authority (PRA) – the regulator wanted to move into ‘non-financial compliance’, to include diversity,

equity and inclusion (DEI) goals such as ‘healthy organisational cultures’, by bearing down on ‘toxic behaviour’ and meeting targets.

Many are relieved that in the past few weeks – and in response to considerable industry pushback – the FCA has backtracked on both these initiatives. It has cancelled its ‘naming and shaming’ plans and shelved its DEI moves, citing in both cases a lack of consensus.

Despite this apparent course correction, however, some say such initiatives highlight a broader issue: that of bureaucratic overreach.

Broader horizons Since its inception, the FCA’s direction of travel seems to have involved a steady widening of its remit to cover ever more areas of compliance. If it is willing to consider such frameworks based on unsatisfactory consultation, who is to say that this may not occur again in the future? Some note, ominously, that the FCA intends to publish a policy statement on ‘nonfinancial misconduct’ later this year.

Their worry is shared by Kemi Baddenoch, leader of the Tory Party, who while in Government said that the benefits of probing non-financial compliance claimed by the FCA were “speculative” and such objectives “were a distraction holding back regulated firms from priorities such

Many are relieved that the regulator shelved its ‘naming and shaming’ plans

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DAVID WYLIE is commercial director at LendingMetrics

as delivering economic growth and improving services to consumers.”

She went on to warn that such plans could hamper any Government’s efforts to prioritise growth in the sector, one of the few in which the UK has international leadership.

It can’t have escaped her notice that oversight comes at an increasing heavy cost to the industry in the form of fees and fines. The FCA’s annual funding requirement jumped by almost £100m between 2021/22 and 2022/23, from £587.5m to £684.2m.

Baddenoch, along with everyone else, will be aware that the chief competitor of UK financial services, the US, is embarking on a new era of lighter-touch regulation. A recent Trump Executive Order has even banned the mandating of DEI by federal institutions.

Would the regulator’s resources not be better focused on creating frameworks that foster growth in the financial services sector, rather than those set to load additional compliance costs on firms?

What about reducing application decision times that can currently be up to one year for more complex cases?

Perhaps, provide more assistance with the complicated application process.

This might be helpful, considering the operating license rejection rate seems to be rising – to one in four applications in 2022/23 from one in five in 2021/22.

Given that boosting economic growth is Labour’s claimed primary goal, we can only hope City Minister Emma Reynolds encourages the regulator to focus more on allowing the industry freedom to realise its full potential, while at the same time ensuring that consumer interests are safeguarded. ●

RESIDENTIAL Opinion

Mutual openness and empathy can help us all thrive

I

t’s good to talk. As the world gets more complex, that old chestnut becomes ever truer.

Every broker knows that the best outcomes are achieved when a borrower is as open and detailed as possible about their mortgage needs from the start, and a lender is clear and candid about what they can offer. If it’s a no, it needs to be a quick no. When it’s a yes, the criteria need to be simply laid out and understood by all parties.

The more layers there are to a case, the more important the details are.

As lenders, we need to know all the borrower’s ‘measurements’ so we can tailor a mortgage that best fits their needs.

Mutual building societies have spent hundreds of years listening to their local communities and working with borrowers and savers to meet their needs. So, we have plenty of experience in honest communication and working with others for the collective good.

More recently, some of us have used these skills to build mutually rewarding alliances with the broker community, and extend our offerings to meet more specialist needs that call for extra attention and understanding.

At Market Harborough, for example, we have been partnering with brokers to provide bridging solutions and cater for borrowers with multiple complexities for almost 10 years.

A decade is a small fraction of our 155-year history, but it has been a period of rapid change, which we believe signposts the broader direction of travel. Our culture is caring and empathic, and we have long aimed to help each member with their individual requirements in a highly personalised way.

As a building society and local employer, we have a unique opportunity to help young people understand finances and make better decisions” For centuries, mutuals have adopted this mindset with members of their local communities with relatively straightforward borrowing needs, but it is an approach which lends itself well to complicated and unusual cases, which are becoming more common in an ever more complex world. That empathic approach also helps build healthy lender-broker relationships, especially when it comes to those specialist or complex cases which need particularly open and honest two-way communication.

This is why our mortgage teams, including underwriters, proactively pick up the phone to brokers and encourage them to call us whenever needed, discuss cases in fine detail and provide a service they know they can trust. The aim is to create virtuous relationship circles which help borrowers take the next step of their property journey, however complex, and help broker businesses to prosper and allow mutual building society communities to thrive.

Support structures For anyone to thrive, they need a supportive framework. For mortgage borrowers and brokers, that means regular communication so they know where a case is progressing, as well as

IAIN KIRKPATRICK is CEO at Market Harborough Building Society

the knowledge that lenders will treat them fairly. For brokers, that extends to promises like the commitment to a minimum 24-hour product withdrawal period, which was led by the mutual building societies.

In fact, many building societies are committed to helping their communities – made up of colleagues, broker partners, members and local communities – to thrive, in numerous ways. For example, to mark 250 years of mutuality, this year we have earmarked £250,000 to give back to our local community.

A significant portion of this donation will be directed towards our groundbreaking new programme, ‘Thrive! Forward’, which aims to support young people in the areas of mental health, financial capability and resilience, careers planning, and employability skills.

As a building society and local employer, we have a unique opportunity to help young people understand finances and make better decisions. By sharing our knowledge and skills, we can empower the next generation with the financial literacy needed to navigate life’s challenges.

Empathy and openness may not be the predominant qualities associated with mortgage lending. However, all lenders are people businesses, and the mortgage industry is rightly renowned for prizing the importance of relationships. Those relationships involve brokers, borrowers, lenders and – at least for building societies – local communities.

Relationships flourish on honest communication, and we can all thrive when relationships flourish. ● May 2025 | The Intermediary

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RESIDENTIAL Opinion

The industry needs

T

he UK Government’s ambitious plan to deliver 1.5 million new homes during this Parliament will mean that understanding the evolving nature of new-build risk will be more important than ever.

The location, tenure, build type and density will pose different challenges of lenders who will be keen to manage their exposures carefully. The issues are, in some respects, standalone, but how they interact and impact each other will also be crucial. It’s why we have invested so much in the data, systems and bespoke team that make up our new-build proposition.

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The Intermediary | May 2025

The direction of travel is clear enough. In March, Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner announced a £2bn injection of Government investment into funding the building of up to 18,000 new social and affordable homes by 2030.

The majority of this funding will fall in 2026/27, but a ‘tail of funding’ will cover completions of homes after this. All projects funded through this £2bn will need to start by March 2027, and finish by June 2029.

While there are practical challenges in the delivery of these policy initiatives, lenders are rightly hugely supportive of the objectives established under Labour.

Charlie Nunn, chief executive at Lloyds Banking Group, Britain’s biggest mortgage lender, stood behind them publicly, saying he welcomed the

STEVE GOODALL is managing director at e.surv

boost to building “much-needed social and affordable homes.”

Another change worth bearing in mind comes in the form of updated wording in the National Planning Policy Framework, which stipulates that any green-belt development must include the provision that 50% of homes are affordable.

There are also build density viability requirements, which may well have the unintended consequence of incentivising the construction of smaller homes.

RESIDENTIAL Opinion

new-build to work Site viability assessment consultancy s106 Management rightly calls the plans “a high bar, particularly in areas which were not previously subject to affordable housing requirements.” Most important, they note, is that the requirements now apply to all major development proposals for housing in the green-belt in any form. Thus, any scheme over 10 units.

The viability density requirements also favour the development of larger sites which, given the stretched resources, will likely detrimentally impact the ambitions of those developing smaller sites. While larger more dense housing can offer benefits like preventing sprawl, improving infrastructure, and promoting sustainable travel, they also raise concerns about community satisfaction and access to services.

For the country’s largest lenders, being on top of the proportion of affordable housing on their balance sheets will be key. Smaller lenders, too, will need access to broader market data to ensure their own risk exposures are proportionate, both on a tenure and geographical concentration basis.

But volume is only part of the challenge. Quality control is paramount. The combination of high pressure to deliver new homes at volume, the limited availability of

skilled workers, and the higher cost of raw materials, is shaving profit margins which has raised concern that standards may be slipping in some quarters.

This makes warranties absolutely critical for lenders’ risk management.

Not all warranties are created equal, however, making whole of market data analytics a very useful tool for benchmarking potential structural risks associated with new-build.

Climate risks The risk that climate change presents to the UK’s housing stock are well known, but many lenders have still not fully quantified their own exposure. Understanding what data gaps exist in their own loan books is one area that many are now focused on remedying. The prospect of how lending against new-build affects this type of risk exposure is front of mind, particularly in light of the Government’s relaxation of planning policy and desire to encourage the development of green-belt, brownfield and so-called ‘grey-belt’ land. Access and previous use are all issues that arise when land is repurposed.

Lenders are already cognisant of climate risk, with particular focus on its effect on access, geological impacts and propensity to flooding. These risks are present in all tenures, but there is a high awareness for homeowners living in newer properties.

Research published in Autumn last year by the insurer Aviva found that 56% of new-build homeowners believe their home is at risk from flooding.

This found that owners of newer homes are more likely to be worried about the impacts of climate change, with 45% of new-build homeowners

Understanding the evolving nature of newbuild risk will be more important than ever”

concerned about damage in the next year, compared with a third of all UK residents.

Furthermore, 58% of owners of newly built properties told Aviva their home had been affected by a weather-related event during the previous five years, compared to 40% of all residents. One in three said their new-build home has suffered from wind or storm damage, while 22% said their home has flooded – versus 12% of homeowners in all types of homes.

Between April 2020 and April 2022, around 7% of new homes were built in Zone 3 floodplain areas, where they are at the highest risk of flooding, according to the Climate Change Committee’s most recent progress report. At this rate, that is the equivalent of 105,000 of the planned 1.5 million homes due for completion by the end of this decade.

Of course, knowing about the issues is one thing, addressing them cost effectively is quite another. My observations here are not exhaustive, but should give you an insight into the issues lenders are facing.

Our New Build proposition addresses exposure risk and concentration risk across 16,000 UK sites, and it has been instrumental in assisting more than 45,000 transactions. This is growing daily.

The appropriate solution will vary by lender, and will need to be nuanced. What all lenders need, though, is a solution that includes more data than sits on their own balance sheet, and a team of experts who can flex as issues arise. ● May 2025 | The Intermediary

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RESIDENTIAL Opinion

Housing market: The member outlook

ALISTAIR NIMMO is director of marketing at the Family Building Society

help any family members financially over the past six months.

Even so, some 65% are happy with their current financial situation.

Housing supply

O

82% of people do not believe the Government will achieve its housing goals

ur latest six-monthly survey of members’ financial wellbeing, conducted in the spring of 2025, revealed some very interesting results, as has been the case in our previous surveys. More than 2,600 Family Building Society members responded to this survey, and the main findings included some eye-catching views reflecting a general mood of pessimism for the UK and global economies.

Indeed, it is probably the most pessimistic our members have felt in the five financial wellbeing surveys we have carried out to date.

Global concerns The threatened introduction by the US of trade tariffs this spring only added to the uncertainty facing everyone, particularly the personal finances of younger family relatives of our members.

Some three-quarters of our members expect the economy to slow down over the next six months, fuelled not only by trade tariffs, but also worldwide political instability

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The Intermediary | May 2025

and the ongoing cost-of-living crisis.

Just over 90% see trade tariffs – announced by Donald Trump in early April, although somewhat fluid as negotiations with trading partners develop – as negative, with threequarters believing this will force the Bank of England to cut interest rates.

The reduction of 0.25% in interest rates announced on 8th May is an indication, I believe, of the Bank of England’s concern.

The recent trade deal announced between the UK and the US may have alleviated concerns, though, and it will be interesting to see if our survey in the Autumn confirms this.

Personal picture Our survey also revealed that 40% think their personal financial situation will worsen, with nearly a third expecting their pension and investment incomes to be negatively affected, and two-thirds seeing that as a threat to their financial wellbeing.

Another 40% think their children and grandchildren are feeling pessimistic about their financial wellbeing over the next six months, although the majority have not had to

On the housing crisis and getting more people into their own homes, more than 82% of people who responded to the survey did not believe the Government will achieve its target of building 1.5 million new homes during the course of the current Parliament.

While reinstating a Help to Buy scheme was advocated by 27% of respondents, reforming the planning system was seen as a greater priority, with 41% in favour of reform.

In our members’ minds, the house building target is just not achievable through the current policy mix.

However, they make some valid suggestions around what measures the Government could take to help provide additional homes – developing brownfield sites and incentivising landlords to repurpose existing and empty commercial property for residential use, for example.

Increasing the infrastructure levy to support local communities is another.

It is also clear that they feel that ending the Stamp Duty holiday and the subsequent reinstatement of the lower thresholds – which came into force on 1st April – was a mistake.

It is interesting to note that most of our members favour scrapping Stamp Duty for older would-be downsizers, for whom it is viewed as a major disincentive to move. In turn, this could free up more properties for growing families. ●

RESIDENTIAL Opinion

BDMs: The hidden heroes of homebuying

F

or many homebuyers, and especially those stepping onto the property ladder for the first time, the mortgage process can feel extremely confusing. For those of us working in the mortgage industry, the necessary steps of the application might be second nature, but for the vast majority of people, buying a home is one of the most stressful rites of passage they will face.

We are lucky to have around 25,000 mortgage advisers in the UK, who are helping people to secure a home of their own. They offer invaluable advice to home buyers, and are there to guide them through every step of the process.

But the buck shouldn’t stop solely with brokers. Lenders are responsible for putting homeownership within reach of more people, and working closely with their intermediary partners to help them to say ‘yes’ to more borrowers.

Mortgage brokers will receive calls from clients who are overwhelmed and confused by the mortgage process, and who are looking for a lending solution to allow them to achieve one of the most important milestones in their lives – owning their own home.

It’s at this point that brokers turn to lenders to help them find a suitable product that can help their client realise their homeownership dreams.

It’s widely understood that communication is integral to good relationships, whether that be between broker and client, or lender and intermediary partner. As lenders, we must be transparent with our intermediary partners, to allow them to offer the same great service to their clients, the buyers who are keeping the mortgage industry busy.

This is why we consider our business development managers (BDMs) the lifeblood of our lending team. Their support at every step of the client’s journey is so valuable, and the work they do behind the scenes is what allows brokers to secure deals for the homebuyer.

Brokers often utilise the support of a lender’s business development team once an application is underway, but a smaller minority are making the most of them in the early stages of an enquiry. BDMs can give brokers a quick indication of whether a case is likely to be approved, the simple steps a homebuyer can take to improve their chances of having an application accepted, and BDMs can often make suggestions of other lenders who can support if their team can’t help.

Help at hand Keeping partners informed as cases progress reduces incoming enquiries and frees up more time for teams to focus on the task at hand, and add value in other ways.

Brokers and lenders can work together to remove uncertainty by increasing communication throughout the process and educating borrowers. Every mortgage applicant should have easy access to find out where their loan application stands, how long the current step should take, what the next stage looks like, and any actions they need to take to progress towards completion.

That could mean educating borrowers on understanding their credit score, or using tools to improve their eligibility. Leeds Building Society was the first UK mortgage provider to partner with Experian and connect to its free Experian Boost service, meaning that regular debit payments, such as council tax and subscriptions

MARTESE CARTON is director of mortgage distribution at Leeds Building Society

It’s widely understood that communication is integral to good relationships, whether that be between broker and client, or lender and intermediary partner” to digital entertainment services like Netflix or Spotify, can contribute to credit scores and be factored into mortgage applications.

As part of our ongoing core platform transformation project, colleagues have more access to technology which allows them to track the progress of mortgage cases.

This is already improving the service our intermediary partners receive and is one of the reasons our application to offer period to is amongst the best in the market.

Following feedback from our partners, we have recently made changes to rate switch service to allow for more flexibility from brokers and borrowers alike, and improve the experience for existing members.

Navigating the intricacies of mortgage rates, product options, and application processes can be daunting for home buyers, and brokers are offering an invaluable service to their clients as they bring homeownership within closer reach and help them to put down roots in their communities. ● May 2025 | The Intermediary

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B U Y - TO - L E T Opinion

Time to take the of the buy-to-let

T

he countdown to net zero has seemingly been pushed into the media background as US trade tariffs, Russia, China, and European relations dominate the international agenda.

Nevertheless, it is very much still on, and for Britain the first very tangible deadlines are now looming.

Under former Prime Minister Theresa May, the UK pledged to cut net carbon emissions by 100% by 2050 in England, Wales and Northern Ireland, and by 2045 in Scotland. As it stands, this deadline is enshrined in law.

To reach it will require ‘near complete’ decarbonisation of the country’s housing stock. In 2023, residential buildings accounted for 12% of UK emissions, according to Government’s advisory body the Climate Change Commi ee, making domestic buildings the second highest emi ing sector in the UK economy.

Private rented stress The new-build sector, and the coldest homes in the private rented sector (PRS), are already subject to Minimum Energy Efficiency Standards (MEES).

The private rented sector is next in line for significant change.

A er several years of ‘to and fro’ on deadlines, the current Government has confirmed that that all private rented homes must achieve at least an Energy Performance Certificate (EPC) rating of Band C from 2030 onwards. The higher standard will apply to new tenancies from 2028. Failure to comply will mean

landlords receive a £30,000 fine per property.

For landlords, the process of retrofi ing properties to ensure they comply is proving a headache – particularly where leasehold terms, construction types and cost mean works are not feasible. Of course, some homes may be more challenging – for example due to construction type or lack of third-party consent, but the cost cap is higher and has raised the bar for exemptions.

There is also the effect the regulations have for lenders. There is an inherent risk si ing on backbooks where properties fail to comply with the rules. There is also the complication that not all new tenancy agreements coincide with new mortgage deal terms. This creates the potential for interrupted cashflows, with a direct consequence for mortgage payments.

Added to this is the fact that not all of the incoming regulation is agreed yet.

MARK BLACKWELL is COO at Cotality

B U Y - TO - L E T Opinion

temperature market The rules above rely on EPC ratings, yet the definition of what constitutes an EPC rating is still under consultation with the Government, which has promised an improved, more detailed Home Energy Model to assess a home’s Minimum Energy Efficiency Standard.

The plans include introducing a new, more comprehensive set of metrics for EPCs to evaluate the energy performance of buildings based on fabric performance, smart readiness, and the efficiency and emissions from the heating system.

The final rules, though, are still to come – the consultation only closed in early May, yet the Government has commi ed to implementing them alongside the Future Homes Standard in 2026.

Lenders are facing a tricky balance of having to prepare without knowing quite where the boundaries will be.

We have been engaged in a number of projects with lenders, largely on buyto-let (BTL) lending, though with some crossover into residential mortgages, to identify what the potential risks are, the scale of those risks and how to start to manage them.

In doing so, we are seeing a number of challenges that are common across the

market. There are also commercial opportunities, with some parts of the market more inclined to explore these sooner rather than later. Yet there is also reticence in some lenders to invest heavily in change before it’s known what change is needed.

Comprehensive data Given our own commitment to supporting lenders with this and other valuation risks they may be increasingly exposed to, we have commissioned an independent research project to assess where the market is on this topic.

The results, still being compiled, offer compelling insights into the range of approaches lenders are taking. The research has initially covered the private rented sector and buy-to-let lenders, given the imminence of net zero compliance deadlines. Having spoken to a wide range of stakeholders, C-suite executives and credit and climate risk specialists within building societies, banks and non-bank lenders, we are expecting to be able to share the final report with interested parties at an in-person event we are holding in early June.

As many of you will no doubt have spo ed, the timing is fortuitous.

Along with our parent company in the US, CoreLogic has just undergone a major rebrand. We are now Cotality, a name that reflects our commitment to collaboration and connectivity both internally and with our partners and clients.

The business is focused on delivering comprehensive data and insights across the entire property ecosystem, based on intelligent and responsive analysis coupled with the expertise of our team.

Clients can expect the same great service, but with greater clarity on the

Lenders are facing a tricky balance of having to prepare without knowing quite where the boundaries will be.

We have been engaged in a number of projects with lenders, largely on buy-to-let lending, though with some crossover into residential mortgages, to identify what the potential risks are”

potential of property data, solutions and services across their sector and the wider property ecosystem, as well as developing new thinking in line with the rapidly changing demands on those operating in the various sectors that make up our market.

As such, we’re looking forward to June’s event, the first in a series designed to stimulate thinking, sharing experience and insights from across the market to support a be er future for us all. ● May 2025 | The Intermediary

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B U Y - TO - L E T Opinion

12-year countdown: The dominance of limited companies

B

uy-to-let (BTL) lending to landlords via limited companies, once a backwater of the UK private rented sector (PRS), is becoming the dominant form of lending in the sector. Our data predicts its almost total dominance of BTL by 2037.

When Landbay began lending, our first loans were all to individual landlords – not a single limited company. Nevertheless, we pride ourselves on our ability to provide diverse and competitive range, and by 2018, about 55% of our total live gross loan amount was via limited company loans.

There are good reasons why these loans weren’t flying off the shelves 10 years ago when we were founded. Se ing up and running a limited company involved additional expenses, including accounting costs, and annual filing requirements with Companies House. The administrative burden felt unnecessary for smallerscale landlords.

There was also limited availability.

Few lenders offered limited company BTL mortgages. High street banks focused on individual borrowers, leaving limited company options as niche products with specialist lenders, o en with higher fees and interest rates – 0.5% to 1.0% above individual rates.

Even by Q1 2018, 57% of lenders weren’t offering limited company products at all, according to the MFB BTL index. We weren’t alone in focusing on lending to individuals.

Tax efficiency was also not a priority at that time. Before 2016, individual landlords could offset 100% of their mortgage interest against rental income for tax purposes, regardless of their tax bracket.

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The Intermediary | May 2025

This made individual ownership simpler and more cost-effective.

Finally, many landlords, especially non-professionals with small portfolios, were unaware of the limited company option or its potential benefits, viewing it as a tool for large-scale investors or businesses.

All change Then, in July 2015, George Osborne announced the phased reduction of mortgage interest tax relief in the Summer Budget, effective from April 2017, with full implementation by April 2020. This sparked interest in limited company structures – it was the single biggest catalyst for driving incorporation, saving higher-rate taxpayers thousands annually.

At 19%, Corporation Tax also remained more favourable than personal income tax rates – up to 45%.

And post-2017, Prudential Regulation Authority (PRA) rules professionalised the sector, making limited company setups a logical fit for landlords adapting to stricter affordability and risk assessments.

Lenders evolved to meet demand.

Increased competition from 2017 onwards reduced limited company mortgage rates and fees, closing the cost gap with individual loans.

The popularity of limited company loans is highlighted by new business registrations. In 2024, a record number of new companies were set up to hold buy-to-let property.

According to Hamptons, more than 60,000 limited companies were set up last year, a 23% increase on 2023. The estate agent estimates that up to 75% of new buy-to-let purchases now go into a company structure.

In the first quarter of 2018, there were 1,466 BTL products on the market, according to the MFB BTL

ROB STANTON is sales and distribution director at Landbay

index. Only 367 of those were limited company products, meaning 75% of products were for individual landlords. By Q2 2022, there were 1,320 limited company BTL products, out of a total of 2,570 BTL products, meaning fewer than 50% were for individual landlords. By Q3 2019, only 37% of lenders weren’t offering limited company products.

By 2022, only around 25% of our total live gross loan amount was to individual landlords. Landbay still offers a range of fixed rate and tracker products, but now just 15% of our total live gross loan amount is to individuals.

This means that, were the current trend to continue unchanged, loans to limited companies will dominate the market within 12 years, probably sooner.

While we still lend to individuals, and we expect there will always be a place for them in the market, by 2037, the trend that changed this country’s relationship with property – the humble BTL mortgage to an individual landlord – and revolutionised the private rented sector, will be over.

Landbay’s journey mirrors a seismic shi in the buy-to-let landscape, from a market overshadowed by individual landlords to one embracing limited company structures.

Tax reforms, lender evolution, and the professionalisation of the sector all flipped the script, slashing individual lending. The limited company BTL loan is set to command the market by 2037 – proof, if nothing else, that the mortgage industry is as agile as ever. ●

89

%

of landlords plan to stay in the industry.

Cities in focus 2025: Commercial property insights.

Discover regional insights across Buy to Let, Office space and Retail sectors to support your clients.

View the report hub

B U Y - TO - L E T Opinion

Holiday lets: Overcoming taxing times

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ust as the weather starts to brighten, the UK’s holiday let market is showing its staying power in the face of economic headwinds and policy change.

March research from Sykes Holiday Co ages showed that popular rural hotspots, including the Cotswolds and Cumbria, continue to deliver robust returns for landlords, with average incomes climbing year-on-year.

Holiday let owners across the UK earned an average of £24,700 in 2024, marginally up on 2023, with highperforming areas like Grasmere in the Lake District generating over £40,000 annually.

However, the abolition of the longestablished Furnished Holiday Le ings (FHL) tax regime at the start of April is giving this buoyant market plenty to consider as it enters a period of transition. Many landlords will need guidance on what’s changing, how it affects their income, and how to adapt.

It’s important to remember that, while not everyone is qualified to offer specialist tax advice, you could benefit from partnering with a tax adviser who is. The taxation of property investment is becoming increasingly complex, and providing access to specialist tax advice could be a valuable additional service for your clients.

Why change course?

Announced in the Spring Budget 2024, the removal of FHL tax benefits is part of the Government’s strategy to tackle the long-term rental shortage in tourist-heavy regions.

Previously, furnished holiday lets benefited from mortgage interest tax relief, capital allowances, Capital Gains Tax (CGT) rollover relief, and other favorable tax positions.

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The Intermediary | May 2025

The Government estimates this new regime will generate an additional £300m in annual tax revenue. But the change has also triggered concern among holiday let owners – especially those already feeling the strain from rising running costs and Council Tax hikes in certain areas.

The same March survey from Sykes found that 33% of owners expect to be affected by the FHL tax change, while 45% say they have already been impacted by other regulatory measures, such as local Council Tax upli s or new minimum le ing thresholds in Wales. Almost threequarters (74%) think these changes could even harm local economies that depend on tourism.

Offering guidance The higher costs associated with an increased tax and regulatory burden are likely to give investors a sharper focus on their other outgoings – not least their finance arrangements.

This is an area where you can support your clients.

Remortgaging a holiday let to benefit from more favorable terms and monthly repayments is one such way to support your clients. There are still competitive and cost-effective choices available, so it’s worth shopping around to see whether you can reduce their cost of borrowing. At The Cumberland, for example, we offer a remortgage product with a fee of £299 for customers who qualify for your core holiday let range.

Another way for investors to improve returns is by investing in renovations that either boost rental income or make their property more appealing than others in the same bracket.

Upgrading interiors or adding amenities such as hot tubs or saunas

LISA HODGSON is senior sales manager at The Cumberland

The abolition of the FHL tax regime [...] is giving this buoyant market plenty to consider” can improve the guest experience and a ract higher nightly rates.

Investors can potentially raise the additional capital they need to fund these improvements when they remortgage. At The Cumberland, we’re always happy to lend for refurbishment, as long as the equity released sits within the agreed loan-tovalue (LTV) limit.

Some landlords may also be able to extend their borrowing potential through top-slicing. For those earning over £50,000, we can factor in personal income alongside the rental return in the affordability assessment.

A kinder approach The abolition of the FHL regime is a big hurdle for holiday let investors, but it’s also a real opportunity for you to demonstrate your value. The sector still has plenty of potential, and by partnering with a lender that understands this part of the market, you can help your clients make the most of it.

At The Cumberland, as we celebrate our 175th birthday, we continue to champion a people-first, communityfocused approach to lending.

Our holiday let mortgages are designed to support not just landlords, but the local communities they operate in, too. ●

B U Y - TO - L E T Opinion

Preparation, as much as opportunity

I

t’s been a particularly active time in the buy-to-let (BTL) market, with momentum building across late 2024 and into this year. According to UK Finance, landlord loans totalled £9.6bn across 52,648 cases in the final three months of last year — that’s a jump of 47.2% by value and 39.2% by case compared to Q4 2023.

But where are landlords focusing?

As our own Q1 2025 Rental Barometer shows, they are still responding to strong tenant demand, particularly in areas with a ractive yields.

Yields themselves, though, are showing signs of stabilisation, albeit at high levels. While the North East leads with 9.2%, followed by 8.4% in the North West, the yearly upli across England and Wales was just 0.3%.

That’s a far cry from the average spikes we saw in 2023, but let’s point out that the average ‘England and Wales’ yield is a construct, and there are clearly higher yields to be had.

The quest for yield is a continuous process for landlords, and it’s not going to stop now, particularly when the cost of owning investment property continues to rise, along with regulatory and taxation responsibilities that must be endured.

It’s no surprise, therefore, to see landlords constantly exploring how to improve the performance of their portfolios. For many, that points toward houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), which have the potential to deliver higher rental yields and stronger income security.

That shi is already visible in our data and market conversations. But as more investors consider HMOs for the first time, there’s a need to support them with guidance – not just on yield potential, but on the technicalities of

licencing, planning and finance that underpin this more complex area of the market.

That’s why we’ve recently launched ‘A Guide to HMOs: Licencing, Planning & Article 4’, to give advisers and their clients the knowledge and confidence to navigate this space.

Understanding the details The guide covers a wide range of key issues. First, there’s licencing, outlining the differences between mandatory, additional and selective licencing schemes. A five-bedroom property in one borough may require only a mandatory licence, while a similar four-bedroom house in another may fall under an additional or selective scheme.

Then there’s planning. The guide explains the distinction between C3, C4 and Sui Generis use classes, and how these affect the ability to convert a property into an HMO. Most notably, it explains how Article 4 Directions restrict permi ed development rights (PDR). A landlord may assume they can switch from C3 to C4 without issue, but if the property lies within an Article 4 area, full planning consent is required — even for smaller HMOs. The guide also covers how to evidence pre-existing HMO use before Article 4 was introduced. Without the right documentation, landlords risk needing retrospective planning approval. This could derail mortgage finance or cause complications during the conveyancing process.

There’s also technical detail on lesser-known classifications like Section 257 HMOs – converted blocks of flats that fail to meet current building regs and where less than two-thirds of the units are owneroccupied. These fall under additional

WES REGIS is national account manager at Fleet Mortgages

licencing in some councils and are increasingly on lenders’ radars.

Importantly, the guide also outlines our own lending approach. For example, we’ll o en place smaller HMO-type properties – say, fourbedroom houses with locks on bedroom doors and multiple Assured Shorthold Tenancies (ASTs) – on our standard product range if they don’t need a licence. That means landlords can access lower rates and, in many cases, free or discounted valuations.

Where a full HMO product is needed, we offer lending up to 75% LTV, with properties assessed on a room-by-room rental basis.

As yields se le into a tighter range, landlords must be more proactive in shaping their portfolios. HMOs and MUFBs aren’t suitable for every client, but for many, they offer a compelling blend of yield potential in order to meet the still-high tenant demand we are witnessing in many areas. That’s especially true in areas with a strong young professional demographic, student population or affordability constraints.

But success in this sector is as much about preparation as it is about opportunity. Advisers who understand the planning rules, licencing schemes and lender appetite are in the best position to help landlords unlock value without stumbling into unexpected costs or compliance challenges. Our guide helps you do exactly that – by giving you the tools to talk with authority, ask the right questions, and guide clients through what can otherwise be a daunting leap into a more complex, but rewarding, area of investment. ● May 2025 | The Intermediary

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

T

he first few months of 2025 have seen strong levels of activity across the mortgage market. However, affordability pressures, attitudes to risk, stricter criteria, and evolving landlord legislation mean many borrowers are still finding mainstream lending routes less accessible.

This climate is keeping demand high for specialist finance. Whether it’s short-term solutions like bridging finance, or medium to longerterm funding options through second charge loans, development finance or commercial mortgages, intermediaries and trusted specialist packaging partners are playing a crucial role in helping an array of clients secure deals that fit their circumstances.

largest actually offered. In total, more than £436m in bridging loans were made available on the platform.

Fixed rate availability also remains high, with 78% of lenders offering fixed pricing, helping to support clients seeking certainty in uncertain times.

DONNA FRANCIS is managing director at Envelop

space, supporting investor confidence despite economic pressures.

Development finance DIPs rose by 28% during the quarter.

Development finance

Bridging finance DIPs rose by 112% in Q1 2025.

Bridging activity Bridging loan searches rose by 44.2% in Q1 2025, according to the latest Brickflow Marketwatch report. The same report outlined a 112% jump in decisions in principle (DIPs) submitted during the quarter.

Across the board, funding appetite remains strong. The largest loan available via Brickflow stood at £150m, with over £107m being the

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In the development finance space, lending appetite remained robust, with the number of DIPs rising by 28% compared to the previous quarter.

However, fixed rate options remain scarce. Only 26% of lenders offered fixed pricing in Q1, with the remaining 74% sticking with variable terms.

These figures show a healthy level of demand, though affordability and exit strategy requirements continue to be key areas for intermediary support.

Commercial growth Sticking with the Brickflow data, commercial mortgage volumes rose by 23.8% in Q1 2025. DIP activity also reflected this upward trend, with a 75.8% increase. Fixed rates were available from 68% of lenders in the

Commercial finance DIPs saw a 75.8% increase.

However, landlords with commercial portfolios are not without their fair share of challenges.

Analysis by Vail Williams of the Government’s latest Energy Performance Certificate (EPC) data shows that 25% of non-domestic buildings are still rated below Band C. These landlords have until April 2027 to bring properties up to

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

scratch or risk facing penalties under new MEES rules. With the clock ticking, advisers may see an uptick in commercial borrowers needing finance to upgrade their stock.

new agreements in total, an 18% rise compared to the previous year.

The consistent rise in both value and volume highlights steady borrower demand. With debt consolidation, home improvements and capital raising for tax or investment purposes being the key drivers.

Across the [specialist] sectors, demand remains evident as a growing number of borrowers look for alternative funding options”

Commercial mortgage volumes rose by 23.8% in Q1 2025.

BTL changes loom March saw record levels of buy-tolet (BTL) mortgage search activity.

According to Twenty7tec, 18th March 2025 saw the platform log its busiest ever day for BTL searches.

This surge was part of one of the busiest weeks ever recorded, as landlords rushed to act ahead of key regulatory changes.

These include the upcoming Renters’ Rights Bill – set to end fixedterm tenancies and scrap Section 21 ‘no fault’ evictions, and changes to Stamp Duty thresholds.

Across the bridging, development finance, commercial, second charge and BTL sectors, demand remains evident as a growing number of

JAN

Moving onto the second charge lending arena, the latest Finance & Leasing Association (FLA) figures revealed robust growth in both the value and volume of second charge agreements in the UK, with doubledigit year-on-year increases recorded across the board.

In February alone, the value of new business reached £156m, up 20% compared to the same month last year.

Over the three months to February 2025, the total value rose to £431m, marking a 27% year-on-year increase.

For the 12-month period to February 2025, the value of new business stood at £1.78bn, up 26% from the previous year.

The number of new agreements also showed solid growth. In February 2025, 3,071 new agreements were recorded, an increase of 9% year-onyear. Over the latest three-month period, the number rose to 8,483 agreements, up 16%. For the 12 months to February, there were 36,519

DEC

Seconds climbing

NOV

Bridging loan searches rose by 44.2% in Q1 2025.

Over the three months to February 2025, the total value of second charge loans rose to £431m, marking a 27% year-onyear increase.

borrowers look for alternative funding options.

With economic uncertainty and regulatory change still shaping the landscape, specialist lenders, intermediaries and trusted specialist packaging partners will all continue to play a key role in helping borrowers to secure the right solutions quickly and with confidence. ● May 2025 | The Intermediary

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

Refurbishment is back on the radar

T

here was a time when refurbishment lending sat firmly in the background, quietly ticking along behind the headline-grabbing world of development finance. But that’s beginning to change.

As confidence creeps back into the market, a growing number of landlords and investors are returning to familiar ground. Rather than looking for the next big acquisition, many are turning their a ention to what they already have.

The focus, increasingly, is on upgrading stock, improving energy efficiency and adapting spaces to suit shi ing demand. Refurbishment, in other words, is firmly back on the agenda.

Non-regulated finance The majority of these cases are not large-scale transformations. They are measured, manageable projects that require structure, speed and a clear exit.

Many of these deals fall into the non-regulated space. They are o en limited company purchases, with no intention for the borrower to live in the property. The funding needed is short-term and time sensitive. It is here, in this corner of the market, that non-regulated refurbishment finance comes into its own.

It’s a trend some lenders are quietly leaning into. A er a period of focusing on regulated residential bridging, we are among those now actively supporting a broader set of refurbishment cases once again.

Timing matters more now The appeal is straightforward.

Refurbishment finance can help unlock value in properties that are underused or outdated. It allows investors to reconfigure layouts, improve Energy Performance Certificate (EPC) ratings or bring

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semi-commercial buildings back into residential use. For brokers, it offers a route to keep deals moving when mainstream products fall short.

The speed of funding is key.

According to Bridging Trends data released in February, the average completion time for bridging loans decreased by 23% year-on-year, dropping from 58 days in 2023 to 47 days in 2024.

Deals are moving faster, and so are expectations. A client looking to complete a purchase and begin work within weeks cannot afford delays.

That urgency is being felt across the sector.

Rising stakes At the same time, project costs are continuing to rise. Figures published by the Building Cost Information Service in April suggest that construction costs are expected to increase by 12% by 2030, with labour costs climbing by 18%. Any delay to a refurbishment project can quickly start to eat into margin.

Not every deal is complex, but most still need to move quickly.

One of our recent cases involved a limited company whose directors were looking to purchase a residential property in Harrogate for £210,000.

The works were modest: a singlestorey rear extension, a roof dormer and a full refurbishment, all to be funded by the borrower using permi ed development rights (PDR).

ROZ CAWOOD is MD property finance at StreamBank

The timeline was tight, with a three to four-month window and a buyto-let remortgage already lined up as the exit. No additional funding was required beyond the purchase. It was the sort of project that demonstrates how short-term finance can support experienced landlords without unnecessary complications.

Worth watching Cases like this reflect a shi in emphasis. There is growing demand for straightforward, non-regulated refurbishment finance. These deals do not always require creative structuring. What they need is clarity and consistency. When done well, they work.

Some brokers will already know this part of the market well. Others may have stepped away from it in recent years. But as lender appetite returns, so too does the opportunity.

This is not about chasing higher risk development. It is about responding to a steady stream of demand from clients who are looking to improve, adapt and exit on a clear plan.

Refurbishment may not dominate the headlines, but for many investors, it is the foundation of their strategy, and the kind of activity that keeps the market moving in quieter times. ●

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

Why specialist lending matters for foreign nationals

F

or many foreign nationals moving to the UK, se ling into a new life o en includes the dream of owning a home.

However, while that goal is shared by countless individuals and families, the path to achieving it can be far more complicated for those whose circumstances don’t fit traditional lending models.

From visa status to international credit histories and non-standard employment arrangements, the challenges can quickly add up. As a result, too many people are told ‘no’ before they’ve even had a chance to access the market.

At No ingham Building Society, we believe access to homeownership shouldn’t be limited by the complexity of a customer’s background.

In recent years, we’ve made it a priority to be er understand those whose circumstances fall outside the mainstream, including foreign nationals and returning expats, and ensure they are fully supported.

As a mutual founded over 175 years ago, our purpose has always been to serve our members – and that means adapting to meet real needs, not just following industry norms.

Reflecting reality Our Foreign National mortgage range is one example of how we’re pu ing that philosophy into action.

In late 2024, we made a number of key updates to our lending criteria to support a broader group of customers.

This included expanding our visa acceptance to cover Global Talent, UK Ancestry, British National Overseas (BNO), Pre-Se lement, Skilled Worker, Health and Care Worker, Tier 2 (pre-December 2020), and dependant visas for joint applicants.

We’re also proud to be piloting a dedicated programme aimed at improving mortgage accessibility for foreign national healthcare workers, recognising their critical contribution to UK communities and the economy. The pilot applies to a broad range of NHS and private sector roles, including clinical professionals, carers, porters, administrators, and support staff. The initiative is designed to make it easier for individuals on agency, contract or zero-hour arrangements to access mortgage lending – income types that typically fall outside traditional lender criteria.

All the changes we’re making are designed to reflect the reality of who is living and working in the UK today, and to offer more people a pathway to homeownership, regardless of their background.

Since launching this specialist proposition a year ago, we’ve seen significant interest – with more than 1,500 customers demonstrating interest in 12 months.

This growing demand reflects a significant need in the market, and the potential to support more people into homeownership with thoughtful, tailored solutions, where they may have previously slipped through the cracks. This is high on our agenda, and something we intend to grow and develop in the years to come.

A human approach Specialist lending is about more than just numbers and checklists. It requires a human-centric approach, one that looks at the full picture, not just a credit score or a set of criteria.

Our human approach to underwriting and consideration of overseas credit histories allow us to evaluate each application on its own merits.

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

Behind every application is someone looking to put down roots, create stability, and feel like part of a community” To complement that human touch, we’ve commi ed to innovation, building up our technology and data capabilities to make this proposition possible, and to scale it with mutual fintech partnerships to access overseas credit bureau data to support customers from day one in the UK. Our goal is to understand people’s stories and support them in building a future – because behind every application is someone looking to put down roots, create stability, and feel like part of a community.

Looking ahead We plan to build on this foundation throughout 2025. The UK’s housing market is evolving, and so too must the ways we support those looking to make a home here.

Owning a home is about more than just property, it’s about belonging. As more people from around the world make the UK their home, financial services have a responsibility to evolve and respond.

At No ingham Building Society, we’re commi ed to helping more people turn the ambition of homeownership into a reality, one mortgage at a time. ● May 2025 | The Intermediary

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Meet The BDM

Bluestone Mortgages

The Intermediary speaks with Carly Wiggins, business development manager (BDM) for Wales & the South West at Bluestone Mortgages How and why did you become a BDM?

What brought you to Bluestone?

Every time I’m asked how I ended up working in finance, I imagine Alice falling down the rabbit hole into Wonderland. What started as a summer job – taking customer service calls for Woolwich Mortgages – has become a near 15-year career.

During this time, I’ve had many roles. The hardest one was being a broker. It was this that inspired me to become a BDM in the first place, helping to make brokers’ lives easier, while also sharing valuable information such as market trends, innovation in the market and broker feedback with lenders.

I was drawn to Bluestone because of my love for complex credit. When I looked at the niches in specialist finance, I knew straight away a lender known for helping customers with complex credit was where I wanted to be.

Working with a smaller specialist lender is fast-paced and allows me to be more involved in decision-making. Bluestone takes a compassionate but also practical approach to lending, acting as a bridge to mainstream lenders for individuals who have had a credit blip.

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The Intermediary | May 2025

What makes Bluestone stand out from the crowd?

While our criteria upon completion is incredibly valuable to our customers, what truly sets us apart is our team, with its diversity of experience and thought. I’m a real people person, and so for me this makes all the difference.

Being a close, fun team fosters an environment where I’m not afraid to ask questions, which ultimately means I can confidently deliver my service to brokers! While I might be the face of Bluestone in my region, I have an incredible team behind me

MEET THE BDM

I try to be a safe and memorable place for brokers to come for advice – there’s no such thing as a stupid question. I always encourage brokers to talk to me about any case they’re struggling with, even if it’s not an obvious fit for Bluestone” working hard to help brokers place typically tricky cases!

What are the challenges facing BDMs right now?

One of the key challenges for BDMs is managing broker expectations around lending decisions. While meeting criteria is important, we also have a responsibility to ensure that lending is genuinely in the customer’s best interest. There are times when, even if a customer meets policy, their financial situation means that additional borrowing may not be the right solution for them.

My approach is simple: review the bank statements and credit report, assess the client’s financial conduct, and consider the impact the mortgage will have on their overall financial health. If you’re unsure, reach out – that’s what I’m here for!

What are the opportunities for BDMs? The role of a broker has never been more critical, and because of that, the value of a good BDM has never been greater. As straightforward cases become increasingly rare

and we see a growing number of customers with non-vanilla profiles, BDMs have a unique opportunity to educate and motivate brokers.

Not only does this mean sharing information about the products available to their clients, but informing them on how lenders are innovating, improving criteria and processes, and using technology to streamline the application journey.

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

I try to be a safe and memorable place for brokers to come for advice – there’s no such thing as a stupid question. I always encourage brokers to talk to me about any case they’re struggling with, even if it’s not an obvious fit for Bluestone.

After nearly 20 years in the industry, I’ve usually come across similar scenarios before, and if I haven’t, I’ve got a strong network of industry professionals I can turn to for help.I find that getting the basics right is what really makes a difference. I encourage brokers to text or WhatsApp me for quick responses, and I always look beyond just the criteria – thinking about what else could impact an application further down the line. I’ll always be upfront – if it’s not one for us, I’ll say so.

Being part of the Shawbrook family gives us the backing of a wellestablished, credible lender, which means brokers and their clients get the best of both worlds – specialist lending expertise with the certainty of funding and strength of a larger bank behind us.

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

Use a mortgage broker, and start that conversation early. A mortgage broker can tell you everything you

need to apply for a mortgage and give tips on achieving your goals.

Prepare your paperwork, repay debts if needed, and get your ducks in a row!

The market has seen a lot of innovation in the past year, particularly for first-time buyers. A good mortgage broker does more than just find you a good deal.

They can also provide valuable information and support throughout the homeownership journey, and help you realise your financial goals.

What is something people might like to know about you outside of work?

Outside of work, life is busy! I have two boys, a dog and a VW T5 campervan named Minty. We spend as much time as possible outdoors – whether it’s getting sandy at the beach or muddy in the woods, that’s my happy place. I’m also a big fan of live music and love spending summer weekends at festivals. I’m still holding out hope for Glastonbury tickets – 11 years and counting!

I live in Cardiff and speak fluent Welsh, and love anything that gets me moving – from Hyrox gym sessions to the occasional ride on my horse India when the sun’s out. ●

Bluestone Mortgages Established in 2000 Products ◆ Home mover ◆ First-time buyer ◆ Deposit unlock ◆ Remortgage ◆ Right to Buy Contact details Carly.Wiggins@shawbrook.co.uk May 2025 | The Intermediary

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

Innovation is more important than ever

T

he rental market is at a turning point. The Renters’ Rights Bill doesn’t just introduce change. It accelerates it. For landlords, this moment is about more than adapting to new legislation. It is about rethinking how portfolios are structured, managed and financed.

While the sector has evolved through years of reform, these new proposals are different. The shi in tenancy standards, property conditions and eviction rules will fundamentally reshape how landlords operate.

Understandably, many are taking stock. What worked reliably five years ago may no longer feel robust.

For brokers, this is a key moment to step in. Clients need more than funding. They need structure, clarity and a lender that understands what is changing and how to plan for it.

Looking at portfolios Some landlords will stay the course.

Others will reshape their holdings, adjust their asset mix or explore exits.

For those with multiple properties, these choices can be difficult to execute. Existing funding arrangements o en act as a brake on progress.

Early repayment charges (ERCs), rigid affordability models and inflexible product structures can all make it harder to act. In a more complex portfolio, where assets may be at different stages of tenancy, refurbishment or sale, those constraints add up.

What should be a strategic repositioning can quickly become a tactical compromise.

A structured approach This is exactly where Portfolio Edge comes into play. It was created for professional landlords who need a more intelligent structure to manage

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change, without sacrificing liquidity or control.

Rather than designing something new from scratch, we combined two products we already know work.

The result is a cross-collateralised facility made up of a 2-year fixed-term mortgage and a bridging loan.

The term loan covers assets the landlord intends to retain. The bridging facility supports properties due for sale.

The structure aims to provide certainty on what is being kept and flexibility on what is being released.

There are no exit fees on the bridge, so landlords can sell when the time is right without losing value in the process. Once those sales complete, there is a clear path back to traditional leverage with a more appropriate debt profile.

Portfolio Edge allows landlords to act with control and avoid rushed timelines. It is not about speed. It is about pu ing a plan in place that supports longer-term outcomes.

One size never fits all This structure is not designed for every scenario. That is precisely the point. It was built to support landlords who are actively managing large, diverse portfolios and need funding that reflects that reality.

Where some properties are being refurbished, others are mid-tenancy, and decisions around retention or sale are still being shaped. A standard term loan may not provide enough flexibility.

This is where brokers are invaluable: identifying when a case needs something more bespoke.

Working with lenders who can adapt the structure to fit the strategy.

Staying close to the case right through to completion.

It is rarely just about the rate.

The real value lies in building a facility that supports the investor’s overall goal.

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

Created in collaboration Portfolio Edge was not built in isolation. It was shaped through detailed conversations with brokers who understand the changing needs of portfolio landlords. Their feedback, drawn from real cases and real constraints, guided every element of the structure.

They told us about the challenges they were facing – refinancing issues, affordability mismatches, unnecessary costs, inflexible exit routes – and helped us design something that removed those barriers. The end result is a facility that reflects what they asked for.

A structure that brings clarity, not complexity.

Keeping pace The Renters’ Rights Bill may have accelerated the conversation, but the trend has been building for some time. Landlords are already moving towards more professional, more tenant-conscious and increasingly sustainability-minded portfolios. HTB has long supported that evolution.

This is not about reacting. It is about anticipating what landlords will need as their portfolios become more sophisticated. That means building products that support transitions, not just transactions. It means backing brokers who are helping their clients think ahead and plan for the future, not just solving the challenge in front of them.

For us, this is about long-term support, not one-off funding.

At a time when landlords need structure and brokers need reliable lending partners, this shows what that support can look like in practice. ●

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

Complex cases rise as bridging demand evolves

A

s reported recently in trade news, the bridging finance landscape is changing, and brokers are increasingly faced with more complex client scenarios.

Greenfield Bridging has also seen a noticeable rise in cases involving buy-to-let (BTL) restructuring, impaired credit, and time-sensitive opportunities that fall outside traditional lending criteria.

It all points to what we already know – that the mainstream is not meeting clients’ needs.

Built for today Bridging has always been a space for solutions, but recent months have shown how essential it has become to help brokers manage the growing pressure to place challenging deals.

Many clients no longer fit within the narrow frameworks set by mainstream lenders, including portfolio landlords needing to release equity mid-refurbishment, or borrowers with historical credit issues who have strong security and a clear repayment plan.

Then there’s the fact that most of the process takes too damn long for the average human, let alone a client that is profit-orientated.

Lending landscape The complexity isn’t limited to any single type of borrower. Shi s in tax policy, tighter regulation, and the lasting effects of rate volatility have all contributed to a fragmented and sometimes unpredictable lending landscape.

As a result, brokers must think more laterally and lean more heavily on relationships with lenders that can

approach cases quickly and flexibly, such as bridging finance providers.

Bridging has also evolved in terms of professionalism, competitive rates, regulation, and approach to clients over the last decade, making it a viable alternative to mainstream lending.

In many cases, Bridging is for those who don’t always tick boxes on paper, but it may be suitable for lending when looking at the wider financial circumstances, such as exit strategies.

Though providers vary, brokers are adept at quickly ge ing a feel for what each lender is like to do business with, from the initial helpfulness and knowledge of the business development manager (BDM) – especially if they’re trained underwriters – to the criteria and appetite for risk for each client’s circumstances.

A er all, the client will come back to a broker again and again if they fix the situation quickly and recommend a lender that is fast, affordable for their circumstances, and has excellent customer service.

Backing broker ingenuity Bridging finance remains a powerful tool for creating liquidity and seizing opportunity, especially when conventional routes are too slow or restrictive. In this environment, the ability to assess each case on its own merits, without forcing it into a fixed template, is critical.

For brokers, having access to bridging lenders that take a pragmatic, experience-led view can be the difference between a deal completing or falling away.

Bridging lenders, like all finance providers, have varying criteria and different appetites for risk, requiring the right fit between the client and the lender. However, bridging by nature is

RICHARD KEEN is national sales manager at Greenfield Bridging

Bridging finance remains a powerful tool for creating liquidity and seizing opportunity, especially when conventional routes are too slow or restrictive” different, and there is an expectation that bridging is considered due to circumstances that the broker knows won’t work with mainstream lenders.

What has shi ed is the extent of those circumstances, the demand, and the flexibility of bridging to meet them.

Built for brokers Bridging lenders must listen intently to brokers to understand what they must achieve for their clients as the lending landscape changes.

Bridging providers that can respond quickly, make considered decisions, and remain consistent even as market conditions shi , will become preferred partners for brokers.

As complex scenarios become more common, the value of bridging lies in the product and the people delivering it. For brokers, that means choosing lending partners that understand the nuances, ask the right questions, and help them find workable answers, no ma er how intricate the case. ● May 2025 | The Intermediary

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Q&A

London’s Surveyors and Valuers

Jessica O’Connor speaks with Tony Bunting, commercial director at London’s Surveyors and Valuers, about the changing valuations market

advice in a way that’s both technically robust and commercially relevant.

Second, the speed of the specialist lending space has carried over into how we operate as a firm. Lenders in the market expect clear, fast, nononsense advice and that’s shaped our culture and delivery. We aim to be responsive, solution-driven and to add value beyond just a figure on a page.

Third, it has deepened our understanding of non-asset classes and complex deal structures has deepened.

My experience with short-term bridging and development drawdowns mean we’re confident advising on unusual cases.

Finally, it’s built a strong network of relationships formed with lenders, brokers, lawyers and other stakeholders in the finance market, often evolving into long-term instruction streams or strategic opportunities.

Can you tell us a bit about your career, and how you entered the surveying market?

Having originally come from a lending background, I developed a strong understanding of how credit decisions are made, how risk is assessed, and the internal pressures lenders face, particularly around speed, regulatory compliance and deal structure.

This foundation gave me a valuable insight into the mechanics of funding, pricing and portfolio management.

Transitioning into the specialist market and broking space – noting that I hold CeMAP – allowed me to apply that knowledge from the other side of the table. I was able to bring a lender’s mindset to brokered deals, structuring cases in a way that pre-empts underwriting concerns. It also meant I could build stronger relationships with lenders, speaking their language and aligning our cases with their appetite.

In specialist lending markets, every deal is different, often time sensitive, asset driven or creatively structured, so you need to think laterally and move quickly. That pace and complexity have shaped how I operate. I am always looking to add value beyond the immediate transaction.

How has your previous experience impacted your current role?

First, it has sharpened my commercial awareness, understanding how lenders think and how decisions are made in niche lending environments like bridging, development and commercial, gives me a clear advantage when discussing quotes.

I know what underwriters, credit committees and investment teams are really looking for, which allows London’s to present valuation 58

The Intermediary | May 2025

TONY BUNTING

How has the surveying market changed over the past few years?

Virtual inspections and desktop valuations became more common during the pandemic; however, some lenders have continued to use these where appropriate.

The post-pandemic market uncertainty, especially in the retail and office space, led to more cautious valuations. Greater emphasis on due diligence and detailed assessments have become the norm.

Residential property saw a boom during and after the pandemic due to changing living preferences, such as a desire for more space and flexibility for remote working.

Commercial property saw mixed fortunes, logistics and industrial sectors grew, while high street and office demand declined or shifted.

Lenders became more conservative during the height of the pandemic and have gradually readjusted their position since.

Q&A

Surveying instructions often now involve more detailed pre-valuation questioning to mitigate risk early on – something we are encountering more.

Market fragmentation and regional focus has seen a push towards regional expertise, with lenders preferring local knowledge to inform decisions, especially in uncertain, volatile markets.

How does London’s Surveyors differentiate its services from other surveying firms operating in the market at the moment?

Communication and collaboration: We take a tailored approach recognising that every instruction has its own nuances, whether it’s a short-term bridging loan, development appraisal, commercial investment or a prime Central London property.

Lender-led understanding: With a background in specialist lending, we know how to present risk and value in a way that credit teams, underwriters and investment committees understand.

Our reports are more than just compliant – they are useful.

Speed without sacrificing quality: We deliver at pace, without compromising on diligence. Our clients trust us because we are consistent and responsive, especially on time sensitive deals.

Local expertise: We combine granular market knowledge across London and the South East ensuring accuracy and scale.

Clarity over complexity: Our reports are clear and commercially aware. We don’t hide behind jargon, we explain the ‘why’ behind our conclusions, allowing clients to make informed decisions. Our surveyors are always available to discuss the reports that they have issued.

What are the main challenges facing surveyors and valuers in 2025?

As of 2025, chartered surveyors and valuers face several challenges, shaped by economic shifts, regulation and changing client expectations.

Market uncertainty, economic pressures, and high interest rates continue to suppress transaction volumes in residential and commercial investment sectors. There is also reduced development viability, due to increased build costs and falling gross development values (GDVs).

The sector is seeing valuation volatility, particularly in commercial real estate, with

yield shifts making accurate valuations and risk analysis more complex. There’s increasing scrutiny from lenders and regulators, with a push for greater transparency and audit trails.

Professional indemnity premiums remain high, with some insurers limiting cover or exiting the market altogether.

There is a talent and skills shortage, and a declining pipeline of newly qualified chartered surveyors, with the Royal Institution of Chartered Surveyors (RICS) reporting fewer Assessment of Professional Competence (APC) candidates year-on-year. There’s an ageing workforce in some areas, and a difficulty in attracting younger talent.

Many buyers believe lender valuations offer protection to applicants, when this is not necessarily the position. A valuation report is primarily for the lender’s benefit. Survey reports provide detailed advice to purchasers as direct clients, not mortgage applicants. Mortgage brokers are in a unique position to influence how buyers approach property transactions.

Looking forward, what can we expect from London’s Surveyors?

As the London and South East market continues to evolve, so too does the role of surveyors and valuers. Looking forward, this year ahead promises both change and opportunity across several key areas.

There will be an increased focus on sustainability and environmental social and corporate governance (ESG) compliance. Lenders, investors and developers are ramping up their focus on environmental performance.

Surveyors will see growing demand for valuation which takes into account retrofit potential – especially as legislation tightens around minimum energy standards, with an eye on immediate compliance and long term asset resilience.

Expect more integration of proptech platforms, artificial intelligence (AI) assisted valuation models and automated data analysis tools. These are already starting to help surveyors deliver faster, more accurate reports.

RICS has rolled out further updates to Red Book Global Standards, particularly around valuation methodology and independence. Staying sharp on compliance will be key for anyone involved in secured lending valuations.

Projecting the year ahead at London’s Surveyors and Valuers, we are committed to helping clients navigate these shifts with clarity and confidence, combining rigorous market insight, local expertise and a proactive approach to changing standards. ● May 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

Navigating rate volatility in later life lending

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nterest rates always fluctuate, but 2025 is shaping up to be a year defined by extremes. On one April day alone, gilt yields moved from their lowest point of the year to the third highest within hours.

For advisers in the later life lending sector, this kind of market volatility may present a more acute challenge, and certainly needs to be factored into client conversations and product recommendations. The core dilemma for many is no longer just about finding the cheapest rate at the time of application. It’s about building plans that can adapt.

As expectations rise around Consumer Duty and the regulator places more emphasis on affordability and suitability, advisers are being encouraged to take a more nuanced view – not just of products, but of how those products fit a client’s evolving financial picture.

Interest reward One development making this easier in the later life space is the emergence of Interest Reward discount models.

These options offer rate reductions for clients who are able and willing to pay all or some of the monthly interest, creating an incentive for borrowers to reduce long-term costs.

In some cases, these discounts are applied dynamically, reflecting both the payment level and duration, while others offer a more structured approach tied to defined terms and repayment commitments.

Price has rarely been the sole determining factor in lifetime mortgage advice. Traditionally, features like early repayment charges (ERCs), inheritance protection, drawdown flexibility, and medical underwriting have carried more

weight. However, with an increasing focus on affordability and more clients opting to make interest payments, pricing is becoming a more critical element in the recommendation process.

The challenge for advisers is that these rates are now more sensitive and may only be available for a short time.

This means advisers must stay alert to rate movements and act quickly to secure appropriate deals for clients before they’re withdrawn or repriced.

What makes this model especially useful is its ability to inject some personalisation into what can otherwise feel like a reactive advice process. Where interest rates can change quickly, locking in a bespoke discount based on client-specific affordability helps advisers offer something more resilient and tailored, and in many cases, more defensible in terms of long-term value.

It also offers a subtle shi in client mindset. Rather than treating lifetime mortgage rates as fixed and unavoidable, advisers can show clients that their actions can shape the overall cost of the loan.

Bespoke brokers The push toward personalisation isn’t just happening on the borrower side. Advisers are increasingly being offered more bespoke experiences when it comes to lender interaction.

In this context, our lending service models are evolving in parallel.

We have recently enhanced ours to include tools providing early-stage case triage, such as pre-valuation reviews or indicative underwriting checks. These enable advisers to gauge the likely success of a case before commi ing to a full application With a dedicated support framework, particularly for more

DAVE HARRIS is CEO at more2life

complex or affordability-driven cases, advisers have more options to align our expertise with their client’s needs.

This adds up to a more agile later life lending market, one in which advisers can begin to assemble not just a product recommendation, but a holistic strategy that boosts retention.

In a Consumer Duty context, this is vital. Showing that all viable options have been considered, that affordability has been assessed, and that the long-term implications of a decision have been clearly outlined, is becoming standard, not exceptional.

Not forge ing the benefits to be accrued in terms of income by being fully active in this space.

Of course, there’s still a place for fixed-rate, roll-up lifetime mortgages, especially for clients with limited income or complex priorities. But for those with the ability to make interest payments, the growing range of affordability-linked options opens up new opportunities.

Understanding the mechanics of personalised pricing and the service propositions behind them will be essential. So, too, will be the ability to communicate the benefits and risks to clients in a clear way.

As the later life lending market matures, so too does its complexity.

But with that complexity comes choice and opportunity for advisers.

In a year in which there is more volatility, there’s something reassuring about being able to offer a solution built around a client’s personal situation, rather than the pace of the market. Personalised pricing and bespoke adviser support might not eliminate change, but they certainly help put advisers back in control. ● May 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

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his year, L&G Home Finance celebrates a decade since its entry into the lifetime mortgage market.

During this time, L&G has helped more than 100,000 customers release over £6.5bn of equity from their properties. Over this period, the later life lending sector has evolved significantly, in large part due to the rapidly evolving needs of customers across the country.

With people living longer and property values continuing to hold or increase their value, a itudes to property wealth continue to change.

Looking holistically at retirement income options, including any value tied up in bricks and mortar, is likely to become more the norm.

As later life lenders and intermediaries alike look for opportunities to innovate to best meet the needs of customers, there are certain trends that are set to either emerge or accelerate in the years to come.

Diversity of product Ensuring customers have sufficient choice is a cornerstone to achieving be er customer outcomes. If customers can choose from a range of varied and meaningfully differentiated products, they can, with expert help, opt for the product that best suits their individual needs. This fact has not been lost on the later life lending sector.

According to the Equity Release Council’s (ERC) most recent Q1 2025 data, advisers could choose from more than 1,200 products and plans. This compares to the almost 300 product options recorded in 2019.

It’s this same customer-centric spirit that has driven L&G Home Finance

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to keep innovating. In 2018, L&G launched the first interest-servicing lifetime mortgage. The Optional Payment Lifetime Mortgage (OPLM) allowed customers to pay some, or all, of the monthly interest, but also to stop paying at any time.

In 2023, we introduced the Payment Term Lifetime Mortgage (PTLM), a first-of-its-kind product designed to give additional choice to borrowers at the slightly younger age of 50, whose needs o en fell between existing options.

These are just some of the ways L&G has continued to evolve Home Finance over the past decade – launching new products, se ing up in-house financial advice in 2019, and developing strategic partnerships with several major banks to bring housing equity into residential mortgage conversations.

A mainstream source The ERC’s Q1 2025 data demonstrated a growth in total lending for a fourth consecutive quarter, suggesting that equity release remains a popular way for people to boost their retirement income by tapping into their property wealth.

As people live longer, the pressure is on to ensure that their pension pots can keep up, with every penny of retirement income required to stretch that bit further. It’s no surprise that ever more people will be looking at the wealth built up in their homes to see if it can help provide the rewarding retirement that they had envisioned.

This is also driven by the ongoing increase in the value of property which, according to L&G analysis of Office for National Statistics (ONS) data, has seen house prices in England and Wales increase by 20% over the past five years.

LORNA SHAH is managing director, retail retirement at L&G

L&G’s analysis suggests homeowners could nearly double the amount of money they have on hand for retirement by using their property wealth, as the amount the average homeowner could access from lifetime mortgages was comparable to the average pension pot at the point of retirement.

Value of advice Financial advice will continue to play an essential role in ensuring that customers get the retirement outcomes that best match their circumstances. As more advisers look to generate the best outcomes for clients, the value of property wealth will increasingly be up for consideration.

Equity release may not be right for every client, and even if it is right for them, it’s critical that they are guided through the many product variations to ensure that they opt for the solution that best allows them to achieve their retirement goals.

Later life laurels Over the past 10 years, the industry has come a long way – product choices are more meaningfully diverse, the

L AT E R L I F E L E N D I NG Opinion

Financial advice will continue to play an essential role in ensuring that customers get the retirement outcomes that best match their circumstances”

space is more competitive, and the value of property more apparent than ever to the average homeowner approaching retirement.

While it’s important to take stock of the positive developments over the past decade, there is still work to be done. As an industry, we need to ensure that both prospective and existing equity release customers are empowered to make the most suitable decisions for their circumstances.

Having a rich bank of resources available – in the form of guides, helplines, applications and support services, is great – but the value is only added when customers feel empowered to take advantage of them.

Accessing property wealth can still feel inaccessible and overwhelming for the average retiree, and so providers and intermediaries must work together to ensure that customers feel supported. If they are supported, the impact can be life-changing, as people use the money to improve their homes, travel freely and pursue their passions, all while staying in the home they know and love. ● May 2025 | The Intermediary

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B RO K E R B U S I N E S S Case clinic

Case Clinic Want to gain insight into one of your own cases in the next issue?

Get in touch with details at editorial@theintermediary.co.uk

CASE ONE Self-employed applicant with fluctuating income

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self-employed person earning between £40,000 and £70,000 over the past three years is looking to purchase a £320,000 home with a 15% deposit. Their income dropped slightly during the first year of Covid-19, but has since recovered. Despite solid recent trading, the inconsistent income has raised concerns with some lenders, namely those that averaged income over the full period. The client also has several business expenses that have reduced their net profit on paper, which has affected affordability calculations, even though they retained surplus funds in the business account.

UNITED TRUST BANK

UTB requires evidence of the last two years’ profit history by way of an accountant’s certificate or full accounts for limited company directors, or the supply of the last two years’ SA302s and tax overviews for sole traders. Salary drawn and net profits will be considered to support affordability for limited company directors or the net profit stated on the SA302 for a sole trader.

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UTB always looks to use the latest year’s income to support an application. If the applicant’s business has recovered from reduced performance during Covid-19, a suitable explanation provided with the application will be sense-checked by our underwriting team. If in any doubt, UTB is happy to review the income evidence prior to any submitted application and provide guidance on useable income for the application.

HARPENDEN BS

We always work from the latest year’s figures and are able to discount the Covid-19 period. If the latest years income figures are showing a reduced net profit or even a loss due to expenses that are a one-off, we can work around these and use the previous year’s income figures – providing they are within 18 months old – and/or the retained profit within the company.

TOGETHER

Together would be able to use the most recent year’s net income. Additionally, we could use an accountant’s projection letter to assess the expected income for the coming tax.

We could explore using the higher figure on the projection form if needed if the applicant was failing affordability on their latest year’s income, with confirmation from a qualified accountant holding a professional certificate.

As long as they are six months into their new tax year, we can use this projection. Although we

B RO K E R B U S I N E S S Case clinic

couldn’t offer to 85% or greater LTV, we could accept 75% if the property is of standard build.

BUCKINGHAMSHIRE BS

We would need to understand the reason for the inconsistency. As the society would look to use an average over the last two years, they would need to demonstrate the last two years have improved and have been quite consistent.

CASE TWO Residential mortgage, new employment

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single applicant earning £42,000 annually recently changed careers. They are still within their probation, having been in the role for two months at the time of their mortgage application for a £220,000 flat with a 10% deposit.

Although their overall employment history is stable, lenders have been hesitant due to the recent career switch and the short time in the role.

TOGETHER

We accept applications from individuals in a probationary period and within their first two months of a new role. We would check that they have 12 months’ continuous employment, and with this we could proceed with an application.

Although Together could not stretch to 90% LTV, if the applicant had a larger deposit, we could consider 75% LTV.

UNITED TRUST BANK

At UTB we require applicants to be in their new employment for a minimum of three months, as long as they can demonstrate 12 months of continuous employment and are out of any probationary period. We will consider an application where this requirement would be satisfied soon, if we receive the necessary evidence before the mortgage offer stage.

If an applicant does not have 12 months’ continuous employment history, they must have spent six months in their current role and not still be on probation.

HARPENDEN BS

We can consider an applicant within their probation period, but only when they are in the

same job or industry. As this client has changed careers, we will need to wait until they have completed their probation before we can consider.

Also, please note our maximum LTV is 85%.

BUCKINGHAMSHIRE BS

The society can consider this case, but would not be able to complete until the probationary period has been completed and passed. Partly the reason for this is that there is a change to not just the job but the role, and a mortgage indemnity guarantee (MIG) would be required with it being 90%.

The case can proceed through to offer, but a condition of the offer would be that it cannot be completed until evidence is provided to confirm that the probationary period has passed.

CASE THREE Recently incorporated limited company

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wo business partners earning £50,000 and £46,000 through their own employment want to purchase a £400,000 buy-to-let (BTL) property through a newly formed limited company. Although they have experience as individual landlords, the limited company is only three months old at the time of application.

They set up the company to take advantage of tax efficiencies, but the lack of trading history means most mainstream lenders are unwilling to consider the application. Furthermore, one of the partners has a minor default from four years ago, which has created additional lender hesitancy when paired with the new company structure.

While the deposit of 25% is readily available, the corporate ownership and short history of the company have proven to be sticking points.

UNITED TRUST BANK

The limited company would need to be a special purpose vehicle (SPV) with the relevant standard industrial classification (SIC) codes relating to property, as we will not lend to a general trading company for BTL. If this is met, then we would gladly consider an application subject to affordability, ignoring the minor default.

We only consider defaults or County Court Judgements (CCJs) over £300 that have occurred in the last two years, and these may impact an application. → May 2025 | The Intermediary

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KEYSTONE PROPERTY FINANCE

Keystone could accept this case as we don’t require a minimum incorporation period for SPVs, and would welcome the fact they had other buyto-lets in the background in their own names.

Trading limited companies would also be welcome as long as they’ve been trading for at least two years with positive figures.

The partner’s minor default wouldn’t be an issue either, due to the time that has passed, as long as it had been satisfied prior to application.

TOGETHER

Together can certainly consider this deal; we have flexible criteria on first-time buyers and first-time landlords. The company set-up is considered to be an SPV, and although it has minimum trading time, Together would be able to take it on, subject to valuations and affordability against the income credit report. The default from four years ago will not have a negative impact as it’s over 12 months old. As long as the property is of standard build, we may be able to offer up to 75% LTV.

BUCKINGHAMSHIRE BS

The society can consider day one SPV for BTL limited company, but further details would need to be provided for the default to ensure that it still fits the standard credit matrix. The applicants would need to be homeowners and would not be able to be portfolio landlords.

CASE FOUR BTL mortgage for a recently naturalised citizen

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client earning £68,000 annually has been living in the UK for five years and was recently granted British citizenship.

They want to invest in a £300,000 BTL with a 25% deposit, but have limited UK credit history due to previously holding overseas accounts. Although the client has no adverse credit, lenders are cautious due to the short UK credit profile and lack of mortgage history. The property is a small house in multiple occupation (HMO).

UNITED TRUST BANK

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The Intermediary | May 2025

a mortgage application. In addition, for a BTL mortgage they would also need to already own another residential or BTL property in the UK. Because the intended purchase is an HMO, the applicant would need to demonstrate at least 12 months’ letting experience.

If other lenders are cautious due to short UK credit profiles, we would always recommend a pre-submission referral for us to review the circumstances and provide an in-principle lending decision.

HARPENDEN BS

We do not lend on HMOs. However, to answer the other questions, we would accept a client that has recently received British Citizenship or indefinite leave to remain (ILR). We would require proof that the deposit monies have been in the UK for at least six months, if they came in from abroad. The client needs to have an income of £30,000 per annum, excluding the rental income from the subject property. They do not need to be a homeowner. We lend to first-time buyer and first-time landlords, providing it is professionally managed.

KEYSTONE PROPERTY FINANCE

Keystone would happily assist with this case.

We don’t require applicants to have held British citizenship for a minimum amount of time, but instead look for an active UK credit footprint and at least three years of address history.

If the applicant is a first-time landlord, and providing they are a homeowner with a minimum annual income of £25,000, we can provide lending on a small HMO with up to six occupants for firsttime landlords. We also accept foreign national applicants without indefinite leave, given that they have held a valid visa and have been a legal UK resident for the past three years.

TOGETHER

Even though this applicant doesn’t have UK citizenship or residence, Together could still help. We lend to foreign nationals and expats as standard, and with the property being an HMO it would be within our standard lending criteria offering 75% LTV. This would of course be subject to the usual checks on affordability and valuations.

BUCKINGHAMSHIRE BS

The society would be able to consider the applicant’s credit status and lack of mortgage history, as we do consider cases on an individual basis; however, if the applicant is looking for lending on a HMO, then we could not, as we don’t lend on HMOs. ●

B RO K E R B U S I N E S S Opinion

Breaking the silence, one step at a time

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he mortgage industry isn’t o en associated with hiking boots, water bo les, and canal towpaths – but that’s exactly what’s helped bring a growing number of industry professionals together to tackle one of our sector’s most pressing but

Over six days, a determined group of circa 50 industry professionals laced up our boots to walk the Grand Union Canal from Birmingham to London”

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overlooked issues: mental health.

The Walk & Talk initiative, founded under the umbrella of the Mortgage Industry Mental Health Charter (MIMHC), is a simple concept with a powerful purpose. Over six days, a determined group of circa 50 industry professionals laced up our boots to walk the Grand Union Canal from Birmingham to London, covering over 140 miles to raise awareness around mental health and to encourage open conversations across our sector.

JASON BERRY is co-founder of the Mortgage Industry Mental Health Charter

Why walking?

There’s something disarming about side-by-side movement that encourages conversation. Without the intensity of face-to-face dialogue, and with the rhythm of footsteps, people feel more comfortable opening up.

During these walks, I’ve seen competitors become confidantes, colleagues check in with each other in new ways, and meaningful chats unfold, all of which would never have happened in an office or on a Zoom call. We’ve heard time and again from brokers, lenders, and support staff that, while the mortgage world is fast-paced and rewarding, it can also be lonely, high-pressured, and allconsuming.

Through initiatives like Walk & Talk, we’re not just promoting physical wellbeing – we’re creating psychologically safe spaces that foster connection, resilience, and support.

What’s especially heartening is the variety of people ge ing involved.

From CEOs and network directors to admin staff and compliance teams, the canal path has proven to be a great leveller. You don’t need to be an experienced walker or in peak fitness.

You just need to be willing to show up, put one foot in front of the other, and be open to conversation.

In the moment Throughout the journey we also stopped to capture photos – not just

Competitors to confidantes: Bringing the industry together

to document the miles travelled, but to reflect the genuine spirit of the initiative: people smiling, talking, occasionally ge ing soaked by spring showers, and crucially, connecting.

These images, some here, and others shared on The Intermediary’s online coverage, speak volumes about the power of community.

Stronger together I’d like to thank every individual and organisations that supported the event – whether by joining the walk, sponsoring a team, or simply sharing their story. Your involvement helps demonstrate that in our industry mental health ma ers – and we are stronger when we walk together, talk together, and look out for one another.

If you missed this year’s walk, don’t worry – the path doesn’t end here.

We’ll be back with more events, and we invite everyone to join us.

Because sometimes the most important step you take isn’t towards a client or deadline – it’s towards a conversation that could change a life. ● May 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

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he mortgage industry has seen some big changes over the past few years, thanks to the rise of artificial intelligence (AI).

This innovative technology has made its way into many different areas of the mortgage journey, from the application process to supporting compliance for brokers and lenders.

By adopting AI, mortgage professionals can do more for their customers, which in turn helps elevate their brand in the industry. However, being able to harness this technology doesn’t always come naturally, especially for an industry that has relied on manual processes for so long.

Day-to-day tasks Integrating AI into your daily workflow can dramatically increase efficiency, freeing you to focus more on client interactions and strategic tasks. One of the most popular and versatile AI tools today is ChatGPT. More specifically, custom GPT models that can be tailored explicitly to mortgage brokering.

These custom tools can significantly improve your effectiveness when integrated correctly.

Custom GPT models, such as those built specifically around mortgage lending language and scenarios, offer substantial benefits over generalpurpose AI tools. They understand industry-specific terminology, market nuances, and client needs more accurately.

This means faster responses, be er-cra ed emails, and improved internal communications.

Alternatives to ChatGPT ChatGPT isn’t your only option when it comes to making the most out of AI. There are alternatives like Claude and Gemini that are equally

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robust, and in some cases, more suitable than ChatGPT. Claude excels in providing detailed, thoughtful content, while Google’s Gemini offers easy integration with existing Google Workspace tools, making it highly accessible for day-to-day tasks such as dra ing emails, client updates, or concise internal memos.

Google’s AI tools, available directly within Google Docs and Gmail, provide excellent, simple starting points for AI novices. They are intuitive and easily accessible, requiring virtually no training, which means you can immediately begin experiencing efficiency improvements in your daily operations.

These tools are quite limited, though, so once you’ve got a good handle on these tools it’s advisable to move towards something more advanced.

Website optimisation With the rise of online interactions, it’s no surprise that your website is an important point of contact for potential clients. AI is useful in this realm, too, as it can help optimise your web pages to improve several areas.

These AI tools can significantly improve your website’s content, user experience, and search engine visibility, ensuring you consistently a ract and retain clients.

AI-powered content tools like Jasper or Writesonic can rapidly create engaging, SEO-optimised blog posts and articles, keeping your website fresh and relevant.

They can generate tailored content that specifically targets key client segments, enhancing your search rankings and positioning you as an industry thought leader.

Client interactions Beyond content creation, AI-driven chatbots offer immediate benefits

IFTHIKAR MOHAMED is director at WIS Mortgages and Insurance Services

for client interactions. These sophisticated tools can answer client questions in real-time, guide users through the mortgage application process, and capture valuable lead information effortlessly.

Providers like Dri or Intercom specialise in AI chatbot solutions, designed specifically to nurture client journeys seamlessly from initial inquiry through final application.

Beyond this, AI analytics tools, such as Google Analytics integrated with AI platforms, provide powerful insights into visitor behaviour. This can be incredibly useful, as it will help you refine your website continuously.

These insights enable you to adjust marketing strategies dynamically, improving user experience,

Integrating AI into your daily workflow can dramatically increase efficiency, freeing you to focus more on client interactions”

B RO K E R B U S I N E S S Opinion

optimisisng your content effectively, and ultimately converting more site visitors into loyal clients.

Compliance support Regulatory compliance, particularly with organisations such as the Financial Conduct Authority (FCA), is always going to be a major component of mortgage brokering.

Ensuring all your communications – including blogs and social media posts – meet compliance standards is important, but can be timeconsuming.

This is made more difficult by potential regulatory changes that you will need to adapt to. It is here that AI tools can offer some truly remarkable support.

Making your own tools Using ChatGPT, you can develop your own practical AI tool that is tailormade for your mortgage compliance

checks. By using a custom AI solution of your own design, you can make sure every important aspect is covered.

Whether that’s quickly verifying the compliance of blogs, social media posts or your marketing materials, AI does a great job of making sure your content is compliant. It can assess the content against the latest FCA guidelines, which helps your brand stay risk-free when it comes to compliance concerns.

These AI tools operate practically in real-time, scanning text for potential compliance breaches, flagging risky statements, and suggesting compliant alternatives. Rather than dealing with lengthy manual checks or prolonged reviews, you get immediate, actionable insights. This then allows for quicker, safer publication of marketing content.

Its ease of use and immediate practicality make it particularly appealing for brokers who need quick,

reliable compliance checks without extensive IT infrastructure changes or lengthy implementations.

This solution effectively reduces risk, boosts your marketing agility, and ensures that your communication consistently meets regulatory standards.

Making AI work for you Incorporating custom mortgage AI tools into your daily routine doesn’t have to be complicated or daunting.

From optimising your internal operations with specialised AI tools to improving your online presence with AI-driven content and analytics, the benefits are immediate and tangible.

Begin by identifying the AI tools that address your most pressing needs – whether enhancing client communications, improving online visibility, or ensuring seamless compliance checks. The accessibility and practicality of these tools mean you can quickly integrate them into your workflow, gaining competitive advantages right away.

Outpace the competition The mortgage industry landscape is currently experiencing a radical change thanks to the advent of AI. If you’re looking to find true success in this industry today, ge ing on board with these tools is incredibly important.

AI will help optimise how you work, how your customers find and interact with you, and so much more.

By creating your own, customised AI tools, they will work exactly as you need them to.

Ultimately, this innovative tool could enhance almost every aspect of your work as a broker or lender, so don’t overlook the potential of these powerful AI tools. ● May 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Stop all the clocks

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ears ago, I worked with AOL on an experiment at HQ in London. They stopped all the clocks, meaning employees would have no easy access to clocks for the day.

We wanted to discover: what effect will this have on their perception of time? How will they feel? How will it change the way the work gets done?

What will it do for stress?

Consider the impact of time. Most adults have watches, computers and phones continually measuring the day.

All our lives we have been surrounded by a time structure: four-hour feeds, sleeping through the night, school days, lessons in 40-minute periods, work from nine to five. Time has been minced up and spoon-fed to us.

Our bodies naturally follow cycles, and it’s hard to change the fundamental forces upon us. Whether we consider ourselves owls or larks, experiments have established that we are all more alert and accurate in the morning, with performance falling off as the day progresses. By evening, though we may get a second wind, we will not perform at our peak.

Although the importance of time is not new, over recent years the speed of life has changed dramatically.

Our expectations – and those of employers – have become increasingly unrealistic. Widespread job insecurity has led to pressure on the employee to work longer and longer hours, leaving insufficient time for all the other demands and joys of life.

In addition, until the pandemic struck, the average Brit travelled six-times as far every day as they did in the 1950s. You can understand a reluctance to go back to a five-day commute. Is our hurry-sick behaviour actually productive, or should watching the clock be replaced by listening to our own senses?

Research by Management Today shows that only a third of British

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managers feel they have the time to enjoy the money they earn. Five out of six feel stressed at work. Half do not have time for relationships Pulling off a difficult proposal or project within ridiculous time restraints can be exhilarating, especially if you then head off to celebrate with your colleagues.

Nevertheless, if every minute of every day is lived like this, the effects can be isolating and motivation reducing.

Time for innovation Worse still, when people are under intense time pressure of their own or others’ making, they cease to be creative, and they fail to spot opportunities. Today, the only factor likely to put you ahead of your competitor is innovation.

A time-obsessed team overlooks the fact that quantity is easy to calculate – quality and creativity are much harder to measure.

Time can be elastic. When you take a long weekend, it can feel like you have been away for a week. Every day is made up of so many different parts.

We seem to be able to fit so much in.

It must be about the freshness and

AVERIL LEIMON is co-founder of White Water Group

the novelty and the relaxation that accompanies it. Sometimes we are just weary of the ‘same old same old’.

Time and life is precious – so, survey where it is being wasted in your life and change what you can to buy it back. Cut out tedious and unnecessary activities.

Quentin Crisp, in The Naked Civil Servant, talked about deciding to stop dusting his apartment.

“A er the first four years,” he said, “It doesn’t get any worse.” As no one was coming to see him, cleaning became a redundant waste of time. Be radical — change your a itudes as well as your habits.

If you were given the gi of another four hours every day, what would you actually do with it?

The very novelty of stopping the clocks at AOL caused a buzz of fun and enthusiasm, and a rethinking of old habits. Stop watching the clock and start living life to the full. ●

Hurry-sick: Widespread job insecurity means greater pressure to make the most of working time

B RO K E R B U S I N E S S Opinion

Customer feedback: Your most powerful marketing tool

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or mortgage brokers and financial advisers, reviews can’t be seen as a ‘nice to have’. They’re an essential business tool that drives visibility, credibility, and growth.

The trust factor Customer reviews are today’s word of mouth. Research consistently shows that consumers place as much trust in online reviews as they do in personal recommendations.

For professionals in financial services, this trust is invaluable.

Buying a home or securing a loan are major decisions; prospective clients want reassurance from others who’ve gone through the same process.

When clients take the time to write about their experience, it offers a genuine reflection of the company’s values and service quality.

What’s more, reviews are permanently accessible and searchable. A glowing testimonial isn’t fleeting – it becomes a lasting asset that can continuously influence potential customers.

Strategic advantage Beyond building trust, reviews play a critical role in digital visibility. Search engines like Google factor review volume and sentiment into their ranking algorithms. This means firms with a steady flow of positive reviews are more likely to appear prominently in search results.

Platforms like Google Business Profile, Trustpilot, and Feefo not only showcase reviews but also contribute to local SEO – making it easier for local clients to find you. A strong review presence can be the difference

between showing up on the first page or being buried in the digital abyss.

For brokers, this visibility isn’t just about a racting new clients – it’s about standing out in an increasingly crowded market. By encouraging and managing online reviews, advisers can improve their discoverability and a ract more inbound inquiries.

Customer reviews reveal how a business is truly perceived and offer rich qualitative data. They highlight what clients value – be it clear communication, swi service, or personalised advice. They also reveal areas for improvement.

Proactive companies use this feedback to refine their services.

Pa erns in reviews can inform training, reveal service gaps, and inspire innovation.

Even negative feedback, when handled professionally, offers a chance to demonstrate accountability and commitment to improvement.

This learning loop – listen, adapt, improve – is key to sustaining longterm success.

Building a review culture Despite their value, reviews o en remain underutilised. Many brokers forget or feel awkward asking for them. Yet, as highlighted by industry professionals, the best time to ask is at the point of peak satisfaction – typically a er a successful mortgage completion or product switch.

To normalise the review process, companies should integrate it into their client journey. Automated follow-ups and even friendly reminders can increase response rates.

More importantly, the request should feel personal. Clients are more likely to respond when they

JESS TRUEMAN is head of business development at Smart Money People

understand that their feedback ma ers – not just to the business, but to other clients navigating similar financial decisions.

Humanising the brand When clients write in their own words about how they were supported, reassured, or helped through complex processes, it adds a deeply human dimension to your brand.

These stories resonate more than polished marketing copy. They convey authenticity, empathy, and real-world impact. Sharing client testimonials on your website, social media, and marketing materials helps put faces and feelings behind your brand promise.

This storytelling isn’t just about marketing – it’s about legacy. Over time, a bank of client stories becomes a testament to the values, resilience, and dedication of your team.

Review-driven future In a sector where trust, transparency, and reputation are paramount, online reviews are a cornerstone of success. They influence buying decisions, shape digital visibility, offer operational insights, and enable emotional connections.

Financial services professionals who actively embrace reviews – not just as marketing collateral, but as a core part of their business strategy – will be best positioned for growth in an increasingly customer-centric world.

If you’re not already prioritising reviews, now’s the time to start.

Because in the eyes of today’s consumers, what others say about you may ma er more than what you say about yourself. ● May 2025 | The Intermediary

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Income protection should be part of every conversation

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ntermediaries know all too well how quickly things move in this market – interest rates, product availability, criteria shi s, not to mention regulatory requirements.

Given all of these moving parts, being a general practitioner adviser covering all aspects of the mortgage market is becoming even more challenging. Intermediaries have a lot to contend with.

In addition, every customer is different, with individual ambitions, personal circumstances and financial needs. With Consumer Duty now in play, intermediaries should be thinking foremost about whether they will achieve a good outcome having taken the advice on offer.

In today’s market there are some firms that may not have the capacity or expertise to give advice beyond the mortgage. Nevertheless, protecting clients’ incomes from future financial shocks is now more important than ever – particularly when you consider the regulatory perspective.

At the peak the Covid-19 pandemic, furlough was a reality that hit more than a quarter of the UK’s workforce.

The word ‘furlough’ – which originated from 17th Century German and was used to describe paid leave granted to soldiers – was suddenly thrust into the mainstream, talked about in the news, among friends, and in everyday conversation. If you think about it, though, furlough isn’t that different to income protection (IP).

There is evidence that consumers are ready to listen, too.

In the Association of Mortgage Intermediaries’ (AMI) Protection Viewpoint, 53% of consumers answered that income protection is important, but only 7% said they actually had a policy in place.

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Noticeably, among younger people, the percentages that consider it important are larger. 65% of Gen Z and 70% of Millennials responded that having such protection in place is important to them, compared to 48% of Gen X and 39% of Boomers.

Younger people are more aware of the fragility of their circumstances, perhaps. There is plenty of evidence to underline why. The Income Protection Task Force’s ‘7 families’ campaign illustrates as well as anything the huge case for income protection. People’s circumstances are incredibly unique and demand be er protection.

Evolving attitudes It is surely logical, too. A mortgage is a loan that needs repayment, but that is secured on the property. The property piece has evolved, and so should our a itude to protecting people, their families and the income they depend upon.

Now there are much greater protections in place for consumers.

Lenders more frequently offer borrowers whose incomes hit a troubled patch the opportunity to bring payments down via a term extension, payment holiday or switching from repayment to part and part or just interest-only. Each of these options is clearly preferrable to losing the property, but that does not negate the fact that each option also adds to the cost of the mortgage longer term, as interest is paid for longer.

This is just one reason why advisers need to focus on educating clients about the value of income protection – it will take away the immense stress of dealing with a sudden or unexpected change in financial circumstances, relating to short or long-term illness or injury. There is a reasonably foreseeable possibility that anyone

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

taking a mortgage, employed or self-employed, could be forced to stop working due to illness or injury. No one is invincible.

Not raising this with clients is not just failing them, it’s also not going to cut it from a regulatory perspective either. This is true even where advisers lack the permissions to advise on protection – the potential that a client could find themselves in a situation where they may not be able to meet their mortgage payments is still something that’s materially relevant to the mortgage advice.

Where advisers don’t have protection advice permissions themselves, it’s not just past time to get a formal and robust referral structure in place to plug that gap – it’s now a duty.

Supporting clients It’s also a no-brainer when it comes to running a business. Diversifying your income streams doesn’t only protect your client, it protects your business from fluctuations in the housing market. When app volumes are abundant, the case for upping your focus on income protection advice should also be up – not down.

Doing right by clients means showing them how big a commitment a mortgage is, and helping them minimise the risks they’re taking on as a result. A er all, it’s that which will keep them in their homes.

Everybody wants a mortgage when buying a home, but when things go wrong, the mortgage becomes a debt and very quickly becomes a source of stress and anxiety. This is why income protection is so important. ●

P RO T E C T I O N Opinion

The dependability of advisers in a changing market

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wful April’ has seen UK consumers face price rises across multiple utilities, with global economic headwinds continuing to prolong and exacerbate the cost-ofliving crisis.

The insurance market has also experienced some substantial price adjustments in the past few years.

This can largely be a ributed to the increase in costs of goods and services.

Recent macroeconomic events, like the imposition of tariffs and fluctuating interest rates, as well as a continually deteriorating climate, have continued to put upward pressure on the price of premiums.

It means clients continue to keep a close eye on their monthly outgoings in a bid to keep costs down. Recent research that Barclays conducted in April underlines this: 37% of UK adults said they were trying to reduce their outgoings in anticipation of rising household bills.

So, while home insurance premiums remain in flux, there remains a growing number of challenges for advisers to contend with when speaking to their clients.

This isn’t news to anyone reading this. Nor is the fact that an adviser’s most powerful tool remains their knowledge of the market.

The market complexity that creates consumer confusion is exactly where adviser expertise is most valuable. These challenges aren’t insurmountable. Instead, they should be seen as opportunities to demonstrate value and to develop those deeper client relationships that will endure long a er economic pressures ease. By helping clients understand exactly what they’re

paying for, and how it protects their most valuable assets, advisers create value beyond premium comparisons.

We’d always recommend beginning conversations by se ing out to understand any specific needs from the client, as well as any concerns, up front. Explain how appropriate coverage addresses these concerns and highlight real, anonymised case studies where proper coverage prevented financial hardship down the line. We know how much advisers value this, and several can be found on the Paymentshield website.

Understanding value Focus on offering peace of mind that comes from a client knowing exactly where they are, and aren’t, protected.

There’s a huge number of first-time buyers and inexperienced buyers on the market, all of whom need the advice, guidance and support that only advisers can offer.

For instance, resources such as Defaqto Compare, integrated into Paymentshield’s Adviser Hub, can help advisers identify the quality of an existing product. It outlines specific strengths and drawbacks of different policies. It can be easily used to demonstrate to clients how features and benefits vary between available policy options.

The critical thing for advisers to get correct is to engage customers in conversation about their current insurance situation – delivering advice clearly and effectively will always be where advisers can go above and beyond their competitors. In doing so, advisers can quickly form a picture of what’s important to the customer and what additional protections might be required.

However, this picture is constantly changing. So, making sure that you’re

EMMA GREEN is distribution director at Paymentshield

The critical thing for advisers [...] is to engage customers in conversation about their current insurance situation” frequently and proactively checking in with clients is critical. We’ve developed a number of resources to simplify these conversations, and to make the general insurance (GI) process as straightforward as possible.

We’re commi ed to providing support that makes a difference to your processes. Whether it’s working with our sales team to create your own bespoke GI sales process, using our Continued Professional Development (CPD)-accredited GI academy to brush up on your general insurance skills, or referring to us, we want to make it as easy as possible to ensure all clients are being enabled to have an advised conversation when they’re purchasing a new policy.

The current economic landscape presents a number of challenges, but it also reinforces the crucial role that advice plays in protecting the financial wellbeing of your clients.

In this environment, helping clients navigate financial uncertainty with confidence is as valuable as a policy itself. We’re here to help simplify this process for you, to protect your clients’ most valuable investments. ● May 2025 | The Intermediary

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In Profile.

Q&A

Jessica Bird speaks with Phil Jeynes, head of individual protection, UK at MetLife, about product innovation and the road ahead for the business

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hil Jeynes started his career as a mortgage and protection broker, qualifying as an independent financial adviser (IFA) in the early 2000s. His career moved through various roles, including at Direct Life & Pensions, Vitality, UnderwriteMe and Reassured.

Running throughout his career, Jeynes notes, there has been a seam of innovation and progress, in one form or another. For example, Direct Life was “very innovative around automation of applications, and taking the burden away from IFAs of what – at the time – had only just stopped being paper application forms for life insurance.”

From this, and then the early stages of Vitality’s launch into the UK, Jeynes’ career has followed a similar pattern, with businesses bringing fresh perspectives and new solutions.

He says: “When I look back at my CV it’s all about being as close to the cutting edge of the protection industry as possible. I’m always attracted by customer-centric innovation – businesses and propositions that are doing something new in the market.”

In March 2025, Jeynes took over as head of individual protection, UK at MetLife, with a view to bringing this experience to bear.

He says: “My experience as an IFA shapes everything – I’ve always got an eye on the end customer, but also the distributor in the middle and that end user, I want to make applications as painless as possible, because I remember having to navigate all the ways of interacting with insurers.

“It’s about simplicity, transparency, and a real partnership. When we communicate with our customers, we’re communicating with our distributors’ customers as well – we’ve got to be on the same page. A partner, rather than a supplier.”

Innovation in the market

While Jeynes has always had an eye on innovation, he explains that this market has some nuance to it, 74

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PHIL JEYNES

whereby progress for the sake of it is not the end goal. For example, life insurance is a product that is easy to understand and resonates with many customers, meeting a genuine need, and that has “been the case for a couple of centuries.”

Some might argue that it is not worth fixing what is not broken, but Jeynes sees it differently: “What my experience has taught me is that this is a brilliant, resilient market – whether it’s Covid-19 or financial incidents, the life insurance market always endures and serves its customers really well. Nevertheless, it’s ripe for innovation. It’s a little bit old fashioned still. We’ve moved from paper to digital, but there’s nothing super innovative.”

This translates into the products themselves. These have improved over the years, but do not differ much from those seen in the early 2000s when Jeynes was starting out in the market – they have been “augmented and tweaked rather than reimagined.”

This, he adds, leaves room for innovators to come in and – while respecting the things the market does well – make some interesting changes to ensure it is fit for purpose for the modern customer, and the modern broker.

Jeynes says: “That’s what excites me – we’ve got a brilliant market that serves its customers well, but there’s still massive opportunity.”

While the market “doesn’t need to be ripped up and started again,” Jeynes points to growing segments of society that are not being served.

For example, with a fifth of the UK workforce not born in this country, the different needs of an increasingly diverse customer base have to be accounted for.

“We can be a little fresher in our thinking, and a little bit more innovative in our products and how we deliver them,” says Jeynes.

For example, he notes that traditional life insurance policies tend to focus on catastrophic life events, but there is a gap that MetLife is looking to fill, which caters for customers’ everyday needs as well. There is inspiration to be

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taken from other markets in this pursuit, which for Jeynes is one of the benefits of working for a company with global scale.

He says: “Hearing from colleagues across Europe, or the Middle East – and how they’re solving problems in their markets, or addressing product design – does really get the creative juices flowing. We’ve got huge strength in terms of having that global outlook that we can then bring back and apply locally, which is something I’ll be looking to do in my role.”

Protection gap persists

Despite the sense that people are more aware of the importance of these products, particularly following Covid-19, there is still a notable protection gap in the UK. A significant proportion only consider protection when it is too late, and many have the wrong cover for their needs.

“We’re not, as an industry, front of mind with our potential consumer base,” Jeynes says. “However, these are products that have a tangible, daily benefit to consumers.”

For example, with a rising cohort of selfemployed people in the UK, it is increasingly important to understand the everyday protection products that could fill an income gap following a minor injury.

Jeynes feels that there are various factors – the pressure on the NHS, increasing awareness of issues around health and financial vulnerability, to name a few – that pave the way for a conversation around protection. However, the industry has not grown to the extent that might have been expected in a post-Covid world.

“As an industry, we haven’t been able to grow,” Jeynes says. “The onus is on us as distributors and insurers, to address that.

“We need to design products that resonate better with customers – which we are doing at MetLife – and have those conversations more regularly and more confidently with customers, when they talk to us about any financial product, be it a mortgage, investment or anything else.”

To this end, Jeynes points to key initiatives within the industry, from the work being done by the Income Protection Task Force, through to a plethora of training and information sources working to raise awareness.

He says: “If, as an industry, we put real focus on a real need, and a product set that serves that need, and provide distributors and IFAs with lots of good information and opportunities [...] that will see protection sales go up significantly.”

MetLife is doing its bit – via research directly with customers to better understand their everyday needs and concerns – to inform its own product development and ensure it has practical

applications, rather than “building products that just mimic the existing ones in the market.”

MetLife culture

In his new role, Jeynes’ focus is broadly going to be on supporting the firm’s next global five-year strategy, which aims to accelerate growth while delivering strong returns.

He says: “It’s great to join a business that’s been a huge, global success over many decades, and that has a culture that looks back and uses its success to roll forward.”

This long-term view can be seen, he adds, within the culture at MetLife, with many team members having been with the business for most of their careers. In terms of the strategy for the next five years, the firm plans to continue growth, with a “keen eye on consumer outcomes.”

At a practical level, Jeynes says MetLife’s approach to bringing practical, real-life solutions to its customers has been proven with the launch of its ChildShield product – a standalone protection product for children up to the age of 23, for everyday illnesses and injuries, that does not need parents to hold another product in order to help them meet extra financial burdens.

Jeynes says: “We are looking at where we next innovate around products. What products might meet another need, similar to the one ChildShield has met?”

In doing so, MetLife looks to meet the existing diversity of needs within the customer base, by bringing a corresponding diversity of product into the market.

The challenge now, Jeynes says, is to expand MetLife’s reach to “support every distributor in the country,” as well as – longer term – look at further product innovation. This is particularly important when it comes to those everyday concerns, that while not so catastrophic as the life events normally covered by protection, are all-important at a time when the cost-of-living crisis is impacting so many.

“There’s a massive opportunity for us in the short- to medium-term, because that’s exactly where our products sit,” Jeynes explains.

“It’s just about getting that in front of as many distributors as possible and making customers aware of those products.”

Moving forward, MetLife will continue its work to build products that “resonate with the modern consumer, and have a tangible benefit, rather than something that just sits in a dusty drawer and may never be used.”

The years ahead will also herald some major partnerships for the firm, as well as growth with the consumer in mind, keeping “partnerships, growth and innovation” at the forefront. ● May 2025 | The Intermediary

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T E C H NO L O GY Opinion

Brokers understand the value of lender technology

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hey might not say it openly all that o en, but brokers rely on good technology all the time, and very o en that technology belongs to lenders. From the moment a decision in principle (DIP) is submi ed, to the moment an application completes and goes onto a core banking system, the role of the lender in supporting a broker’s business is significant, to say the least.

Brokers have a lot to contend with, aside from the evolving shape of the mortgage market. The US’ unpredictable foreign policy and sweeping trade tariffs, for example, have brought worldwide disruption to supply chains, volatility to global markets and thrown another layer of economic uncertainty into the mix for central banks deciding domestic monetary policy.

Escalating tensions The ripple effect of all this change for consumer price inflation (CPI) is likely to be material. In mid-April, around 240 container ships were waiting for berths across China, more than double the number waiting off the US West Coast. The backlog and subsequent delays in the delivery of goods worldwide affects global supply chains and pushes up shipping costs.

This is not a temporary stressor, either. Industry experts suggest the situation may persist for the next few months. A trade war is escalating, further straining relations.

UK CPI figures for March showed a drop in the rate of annual inflation with prices rising 2.6%, down from 2.8% in the 12 months to February. On a monthly basis, CPI rose by 0.3% in March 2025, compared with a rise of 0.6% in March 2024.

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This has given the Bank of England breathing space, and indeed it held the base rate in April at 4.5%.

There is speculation that further cuts could come this year given the fall in inflation back almost to its 2% target. Yet the global trade standoff has prompted analysts to warn that tariffs could push prices higher, quite quickly, in the UK. The Bank of England is mulling over its stance on interest rates as a result.

Brokers and lenders know that mortgage rates are not immune to all this. However, it goes far beyond pricing and the ability to turn around products quickly. Operational efficiency is regularly impacted when market and rate changes are swi , and older technology simply cannot deliver. This becomes magnified, too, when consumers apply pressure a er seeing other parts of the industry appear to effortlessly cope.

For brokers, ensuring that they are serving their clients to the best of their abilities takes all their efforts.

Sourcing the most appropriate product at a moment in time is just the very tip of the tip of the iceberg for most cases.

Clients need constant communication and depending on the length of the transaction, ongoing product options are a factor for consideration. It is not the client’s responsibility to ensure that the advice they received on day one is still the right advice on day 60 – especially when the world economic situation has changed radically in that timeframe – it is the adviser’s.

In this world and that operating context, lenders must consider how best to support brokers who are juggling this for multiple clients across many different caseloads.

What really ma ers for them is to make the process of providing the best

JERRY MULLE is UK managing director at Ohpen

possible advice as simple and efficient as possible.

Controlling the amount of inefficient administration they are forced to contend with on top of this might sound straightforward, but more o en than not it’s the haybale that breaks the camel’s back.

Common sense changes Lender systems have always been a factor in the choices brokers make when advising their clients on the most appropriate product – and crucially, the most suitable option for their needs.

Particularly where timing is key, processing efficiency is as important as rate – arguably more so. For brokers, this means minimising the amount of rekeying and number of manual product searches they’re forced to do.

Networks are acutely aware that they need to support their members in this. It’s pushing change among lenders that offer more niche mortgage criteria, cater to customers with more complex income streams and where property risk assessments require a modicum of common sense.

The market is seeing an increasing appetite to take-up more flexible cloud-based technology platforms – but that leaves lenders who are still relying on legacy systems at a growing disadvantage.

In those businesses, IT departments must make the business case to invest.

Brokers are already making these decisions on behalf of their clients.

Lenders that want to stay in an increasingly unpredictable game need to consider whether they have the tools to keep playing and if not – get in touch! ●

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Unlocking the future of homebuying

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he UK property market has long been hindered by inefficiencies, a lack of transparency, and outdated processes that make homebuying a stressful and uncertain experience.

With Government backing for greater digitisation and new research revealing a significant gap in consumer perception versus reality, now is the time to act.

Our latest research at the Open Property Data Association (OPDA) highlights a striking disconnect: 64% of consumers believe that at least 21% of property information is already available digitally, but in reality, less than 1% of this data is truly accessible in a usable digital format.

This misalignment isn’t just an inconvenience, it’s a fundamental barrier to progress. It contributes to delays, unnecessary costs, and a lack of trust in the homebuying process.

The question is: what does modernisation actually look like, and how can the property industry bridge this gap?

Digital Property Packs Consumers are ready for change.

Our research shows that 82% of homebuyers and sellers believe Digital Property Packs are a good idea, and 77% would actively use them if available.

These packs would provide a secure, comprehensive, and instantly accessible gateway to essential property information, allowing buyers, sellers, and professionals to verify and share critical data from the outset.

This simple yet transformative solution would streamline transactions, reduce fall-through rates, and build trust in the process.

The concept isn’t new – in other industries, digitisation has already revolutionised consumer experiences.

The financial sector, for example,

Our research shows that 82% of homebuyers and sellers believe Digital Property Packs are a good idea” has embraced Open Banking, making transactions faster, safer, and more transparent. We now have the opportunity to apply the same principles to property.

Smarter, more efficient The recent commitment from the Ministry of Housing, Communities and Local Government (MHCLG) to smart property data underscores the need for industry-wide collaboration.

To fully realise the benefits of digital property transactions, stakeholders, including conveyancers, estate agents, mortgage lenders, and regulators, must work together to create a clear, trusted framework for data sharing.

Phil Spencer, property expert and founder of property advice website Move iQ, said: “This highlights what many of us in the property industry have known for years – the data we rely on just isn’t easily accessible, and too o en, it’s in formats that are outdated, unreliable, or difficult to share safely.

“This initiative with clearer protocols for property data could be a game-changer for the way we buy and sell homes in the future. There’s still a lot of work to be done, but these steps mark a real shi in how the industry and government work together to improve the process.”

At OPDA, we believe that by embracing digital solutions, the property industry can reduce friction, enhance transparency, and ultimately improve consumer outcomes.

MARIA HARRIS is chair of the Open Property Data Association

But success depends on a regulatory environment that fosters innovation while ensuring consumer protection.

Our research found that 15% of consumers see clear guidance from Government and regulators as a key factor in increasing confidence in digital property data.

Without this, adoption will be slow, and the market will continue to lag behind other sectors.

The blueprint Open Banking provides a powerful precedent for what is possible. Marion King, chair and trustee at Open Banking Limited, highlights how secure, consent-driven data sharing has transformed financial services: “By enabling greater transparency, efficiency, and competition, Open Banking has set the blueprint for what could be possible in other sectors, including property.”

The time for incremental change is over. With consumer demand, Government recognition, and industry momentum building, we must seize this moment to modernise homebuying in the UK. Digital Property Packs are the logical next step, but they must be part of a broader effort to create a seamless, data-driven ecosystem that benefits all market participants.

The future of property transactions is digital. By working together, we can ensure that homebuyers and sellers have the safe, trusted, and accessible information they need at their fingertips. The industry must act now to bridge the gap and deliver the modern, efficient property market that consumers deserve. ● May 2025 | The Intermediary

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T E C H NO L O GY Opinion

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here’s a lot of talk about when it comes to how technology can improve your business.

Efficiency. Profitability.

Flexibility. All these benefits are undoubtedly on offer with the right tools, employed in the right way.

But what does this actually mean in practice? Adding ever more technology platforms to your business can have the opposite effect, if not properly planned.

The investment in new tech is substantial, the time it takes to train staff to use it effectively and its integration with existing systems and processes can present a stronger case to give it a wide berth, rather than encouraging you to take the plunge.

The cultural change that comes with new technology should never be underestimated. Many a good system has withered as users have found workarounds to the first problem they encounter!

As a directly authorised (DA) firm, ascertaining where to invest to get the best bang for your buck takes considerable time – and more o en than not it’s time that is already being spent dealing with the dayto-day of compliance, functionality and security.

Yet the world is increasingly demanding of firms: data has been important for more than a decade.

Using it wisely to identify risk exposure, performance trends and compliance weaknesses and strengths is the name of the game.

The case for ge ing the right technology in place is strong. Here’s just a brief summary of what you should be thinking about as a DA firm.

Keeping clients safe Data security is critical; fraud is now the most common crime commi ed

ROB MCCOY is senior product and business manager at TMA

in England and Wales, according to the Office for National Statistics (ONS), rising by 19% to almost four million cases between September 2023 and 2024.

The National Crime Agency believes that fraud is largely under-reported, with the Crime Survey of England and Wales estimating that just 13% of cases are reported to Action Fraud or the police by victims. Four-fi hs of reported fraud are cyber-enabled, according to the National Fraud Intelligence Bureau.

Selecting and evidencing The majority of mortgage intermediaries are signed up to offering clients protection, be it life cover, term assurance, critical illness cover or income protection. For those who do, it won’t have escaped your

T E C H NO L O GY Opinion

notice that the Financial Conduct Authority (FCA) is currently doing a market review into the suitability of advice in this market.

Under the Consumer Duty, fair value, ongoing suitability and good consumer outcomes are paramount.

For 99% of advisers, this is how they’ve always conducted business – now it’s about providing detailed management information and data to evidence it.

Technology is absolutely fundamental to managing this efficiently, to minimise admin, control compliance risk and keep professional indemnity insurance premiums down.

Protection is currently under the spotlight, but you can be confident that mortgage advice will be in line for a similar review soon.

Covering all bases Despite lenders across the market investing heavily in be er, slicker systems to allow brokers to search products and criteria quickly and easily, it’s not always quick and easy to do that on an individual lender basis – particularly at a time in a market where there are 90-plus lenders.

Rates may grab headlines, but for clients who do not fit the mainstream, single income source affordability model, criteria is key. Detail ma ers.

‘Streamlining process’ sounds like management speak – and to be fair, it is. But let’s remember that

management speak is sort of like many clichés. It has become overused for a good reason.

Get the process right, get it automated and integrated, and it’s a total gamechanger for your business.

It’s clear that digital has to work hard to improve intermediaries’ businesses. It isn’t just about digitising current practices; it is about improving the way firms can choose to do business, whether through

Rates may grab headlines, but for clients who do not fit the mainstream, single income source affordability model, criteria is key.

Detail matters.” referrals, be er client management, access to new markets.

The good news is, we’re here to take the hardest work out of si ing through the hundreds of offerings out there. We offer solutions tailored for your business and at preferential rates, while also catering to the increasingly prescribed formats required by both lenders and the regulator.

For most firms, it really is the best of both worlds. ●

T E C H NO L O GY Opinion

First-time buyers, friction points, and the future

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he UK housing market has always had its ups and downs, but thankfully there have been far more ups than downs. As a business, we have the benefit – and responsibility – of seeing the market from a truly national perspective.

From Scotland to the South Coast, we’re seeing the same themes emerge.

Home aspirations remain prominent, demand is returning, technology is catching up, and yet fundamental issues like affordability and delivery continue to weigh down progress.

During our latest webinar, we polled more than 250 property professionals about where they see the strongest opportunities in 2025.

The answer was clear: first-time buyers. More than half of respondents (50%) chose this group as their highest-confidence segment, far surpassing new-build (18%), later life lending (13%) and buy-to-let (3%).

Why the confidence?

Despite some negative headlines, people still have clear homeownership goals. The next generation are arming themselves with information, ge ing educated, and making sensible decisions. They understand that buying a home in 2025 is about timing and preparation, not just hope.

But let’s not sugar-coat it. Our poll also demonstrates industry concern.

38% cited affordability as the most urgent issue needing a ention this year. Interest rates, support for landlords, and the absence of Help to Buy alternatives all came up too, but the core message was unmistakable.

It’s ge ing harder for people to get on the ladder, and all components within the homebuying chain

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need to support these aspirations, where possible.

The pandemic years forced our industry to innovate quickly.

Now, we’re seeing firms across the market move from tech-curious to tech-confident. Automation and artificial intelligence (AI) are no longer theoretical, they’re becoming standard. Data centralisation is the next major milestone, and it’s one we’re fully behind.

At Countrywide, we don’t view this shi as a way to replace human input, but to enhance it. When used well, data doesn’t diminish the role of professionals – it magnifies their value. Our surveyors, for instance, are spending less time on admin and more time on-site where their insight truly ma ers. That’s a win for accuracy, customer confidence, and efficiency.

Building the future We’re already seeing lenders gravitate toward centralised data platforms.

With clearer data, decisions come quicker and with greater consistency.

The opportunity now is to harness this momentum to improve the entire property transaction, not just one or two steps in the chain.

The mortgage journey is still far more painful than it needs to be.

Innovation sparks brighter future for the market

MATTHEW CUMBER is managing director at Countrywide Surveying Services

People still have clear homeownership goals.

The next generation are arming themselves with information” Ask any broker, buyer, or lender and they’ll tell you the same thing: the process is disjointed. One of our core aims is to eliminate those friction points, whether that’s delays in valuation, gaps in data, or inconsistent experiences from region to region.

While technology is a powerful enabler, the real change will come from how we connect the dots between systems, between people, and between insight and action. That’s where our a ention is focused: building a future where the property journey is faster, smarter, and still grounded in trusted human expertise.

The next five years won’t necessarily be defined by who has the best tech.

They’ll be defined by who can marry innovation with insight. Who can move fast without losing sight of what really ma ers, and who can deliver value not just to lenders and brokers, but to the people at the end of the chain making life-changing decisions.

We’re certainly up for that challenge, and from what we’ve seen in recent months – from rising firsttime buyer confidence to growing appetite for innovation – so is the industry. ●

T E C H NO L O GY Opinion

Surveyor capacity: How tech can bridge the gap

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he surveying industry currently faces a profound demographic challenge that threatens the smooth operation of the property market.

Despite the introduction of the AssocRICS qualification, which has brought new blood into the industry, the workforce is ageing inexorably.

We are witnessing the re-emergence of a structural shortage that will soon begin to affect the transaction chain – from initial valuations all the way through to final sales.

If le unchecked, pressure on existing professionals could lead to extended waiting times for valuations as firms a empt to do more with less human resource.

According to the Royal Institution of Chartered Surveyors (RICS), the average surveyor in the UK is approximately 55, with a significant portion approaching pension age within the next five to 10 years.

As a result, the summer could be a long one.

For borrowers and lenders, who rely on timely and accurate property assessments, the consequences have already become tangible in recent years. Industry insiders report valuation delays extending in high-demand areas across the country. These bo lenecks threaten the entire lending process and can derail property transactions at crucial moments.

The right tools Fortunately, technology offers an answer to the skills crisis. These tools can boost productivity significantly, allowing fewer surveyors to handle more cases without compromising the quality that clients expect – and that regulations demand.

Digital transformation represents the most viable path forward.

Technology, particularly in the form of tablet-based reporting systems for on-site inspections, is already delivering remarkable efficiency gains for early adopters.These modern reporting systems have reduced report preparation time compared with traditional methods, enabling surveyors to complete more valuations each day.

We already know how powerful innovation can be in the sector: the industry has already seen it with automated valuation models (AVMs), which have streamlined property valuation by processing vast datasets quickly and accurately. Lenders continue to explore options that mean less reliance on physical valuations, but there will always be a need for them somewhere.

Hometrack’s pioneering AVM was introduced in the early 2000s.

Since those early days, accuracy has improved substantially as property databases have grown more comprehensive.This has allowed surveyors to focus their expertise where it adds the most value.

Modern technology may also address some of the physical demands historically faced by more ‘mature’ surveyors. Surveying tends to involve extensive manual measurements and physical activity, which can become increasingly taxing with age.

Drone technology and laser scanning tools now enable remote data collection with unprecedented accuracy and reduce the need for multiple site visits.

Improving the industry Technology could support surveyors who might not have 40 years of experience under their belts, too.

RICHARD SEXTON is commercial director at HouzeCheck

For example, not only is aritificial intelligence (AI) helping our surveyors be more productive, it may also improve the surveying process.

Our tech prompts surveyors to report accurately and consistently – and offers suggestions linked to their inputs.

We’re also developing AI that will act as a professional guardrail – if a surveyor mentions a crack near the front door of a property, the AI will prompt them to check the roof, too.

These contextual suggestions linked to surveyor inputs reduce the chance of human error.

Technology like this also speeds up the valuation process. Indeed, the average time it takes HouzeCheck to deliver a report is about 2.75 days – not bad considering a building survey takes a day to complete.

For the mortgage industry, the advantages of technological adoption are particularly significant. Faster valuations enable quicker mortgage approvals and improved customer satisfaction.

Numerous surveying firms struggle with legacy systems that hinder effective technology integration and data utilisation. This technological gap creates opportunities for property technology disruptors like us to enter the market with a fresh approach.

By embracing digital transformation, the surveying and mortgage valuation profession can continue to serve the market effectively.

Through digitisation, the industry can not only address the skills shortage but pave the way for a more efficient and sustainable future. ● May 2025 | The Intermediary

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L O C A L FO C U S Leicester

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

Leicester

A

s 2025 continues at pace, Leicester’s housing and mortgage market reflects both local resilience and the broader national uncertainty plaguing the UK’s housing sector.

Following a period of intense activity – partially influenced by shifting tax incentives and economic recalibrations – the market now appears to be entering a phase of cautious stabilisation.

Mortgage rates have begun to ease, with many lenders reintroducing more competitive fixed-rate products, some dipping below 4% in anticipation of further rate cuts later this year.

In Leicester, where affordability remains more favourable than in many southern regions, demand remains steady, particularly among first-time buyers and investors seeking relative value.

This month, The Intermediary set about examining the current state of Leicester’s housing market in 2025 – tracking mortgage trends, buyer behaviour, and the external economic forces influencing property decisions across the region.

Property values The Leicester postcode area has seen a modest market correction over the past year. The average property price now stands at £297,000, with a median value of £260,000.

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Over the past 12 months, average prices have declined by approximately £4,300 (1%), reflecting a broader cooling trend seen across much of the UK. Established properties are averaging £295,000, while new-builds command a premium, with an average price of £357,000.

A total of 10,400 property transactions were recorded, marking a 16.9% decline – down by 2,300 sales year-on-year – pointing to a more subdued market environment.

Most activity occurred in the £200,000 to £250,000 price bracket, which accounted for 23% of all sales, followed by the £250,000 to £300,000 range at 18.8%.

On a more granular level, price disparities remain stark within the region: the most affordable area is LE1 3, where average prices are just £83,200, while LE15 8 ranks as the most expensive at £598,000.

By property type, detached homes average £428,000, semi-detached £260,000, terraced houses £219,000, and flats £145,000.

Heightened activity Following the recent period of price moderation, current housing and mortgage trends in Leicester suggest a renewed sense of momentum and confidence among both buyers and lenders.

Ravneet Sokhi, senior new-build mortgage and protection specialist at Just Mortgages, says: “We seem to be

in a really positive place, with interest rates heading downwards slowly but surely. Clients seem confident with buying and, as interest rates lower, affordability improves.”

This sentiment is echoed by brokers across the city, many of whom report a marked increase in activity as affordability begins to improve and borrowing capacity expands.

Sokhi adds: “The last few months have been my busiest yet. [...] I imagine we will continue with this busy period as confidence with clients strengthens, affordability loosens, and interest rates reduce.”

This positive shift is being supported by tangible movements in the mortgage space. Lenders are

re-entering the higher loan-to-value (LTV) brackets, and there is growing expectation that 95% LTV products will become more widely available.

“We have already seen lenders join the higher LTV brackets for newbuilds and I’m sure we’ll see more lenders offering incentives to purchase new-build due to their energy efficiency,” Sokhi observes.

Anil Mistry, director and mortgage and protection broker at RNR Mortgage Solutions Ltd, describes the local market as decidedly “buoyant,” particularly in Leicester’s eastern and south-eastern neighbourhoods.

He notes that, while many buyers initially delayed decisions amid rate uncertainty, “now that the base rate has started to decline steadily, we’ve seen a noticeable uptick in enquiries and more clients looking to move forward after having offers accepted.”

This seasonal upswing is not unexpected, Mistry says, but it has clearly been accelerated by improved rate expectations.

There has been a shift in product preferences too, as Mistry reports more clients opting for shorterterm fixed-rate products, “with the intention of reviewing their mortgage in a couple of years in the hope that rates will continue to fall.”

However, he cautions: “Future rate movements are never guaranteed, so it’s important borrowers go in with their eyes open.”

Dale Townsend, director and mortgage and protection adviser at Mortgage Bridge, adds further evidence of strong demand: “Prices are rising, but at a steadier pace than in other parts of the country.

“Clients are definitely more rate-aware, especially with all the headlines around potential base rate reductions.

“Lenders have been a bit more competitive – not just with rates, but

New-build opportunities

B

RAVNEET SOKHI senior new-build mortgage and protection specialist at Just Mortgages

usiness has been extremely busy in the past few months as expected with the changes in Stamp Duty – lots of clients were looking for a very quick turnaround on their purchase.

More developers are offering Shared Ownership or their own equity loan schemes to assist in affordability. We also saw the introduction of the Own New scheme to aid with higher interest rates and monthly mortgage repayments.

We are seeing more clients with low deposits wanting to get onto the property ladder, but feeling that it isn’t possible. This is where Shared Ownership can help for those with low deposits and low affordability.

For clients with low deposits and higher affordability, we are seeing a lot of builders offering contributions towards their buyer’s deposit to enable them to proceed.

The last few months have been my busiest yet, although I do feel like a broken record saying this every year! I imagine we will continue with this busy period as confidence with clients strengthens, affordability loosens, and interest rates reduce.

With interest rates coming down, we are seeing an improvement in affordability and borrowing capacity. We have already seen lenders join the higher LTV brackets for new-builds.

I’m sure we’ll see more lenders offering incentives to purchase new-builds due to their energy efficiency.

with tweaking criteria, especially to attract clients like foreign nationals at higher LTVs.”

Pricing trends With years of economic upheaval fresh in the mind, buyer behaviour in Leicester has shifted notably toward greater price sensitivity.

Mistry explains: “One clear trend is that buyers are now offering much closer to the asking price, and often below it.”

This tends to lead to longer listing times in some areas. In contrast to the post-pandemic surge – when homes could attract a dozen offers and sell for

£20,000 to £30,000 over asking – bidding wars have largely disappeared.

The market has also become more balanced, with buyers taking a measured approach and sellers needing to adjust expectations accordingly. As Mistry puts it: “The days of properties selling within hours or days of going live are, for the moment, behind us.”

Prevailing demographics

→

Leicester’s housing market is underpinned by a dynamic and diverse buyer base, reflecting both long-term population growth and shifting socioeconomic patterns. → May 2025 | The Intermediary

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L O C A L FO C U S Leicester

As of 2022, the Leicester postcode area was home to 1.1 million residents, with an average age of 39.9 years and a population density of 521 people per square kilometre.

Since 2002, the population has grown by 22.0%, and the average age has increased by 1.9 years, indicating a steady influx of both young professionals and growing families.

Sokhi says: “We are seeing more and more clients with low deposits wanting to get onto the property ladder, but feeling that it isn’t possible.

“This is where Shared Ownership can help for those with low deposits and low affordability.”

She also notes that for those with higher income but limited savings, “a lot of builders [are] offering contributions towards their buyer’s deposit to enable them to proceed.”

Sokhi adds: “It seems to be so much more often that the builder is needing to contribute in comparison to previous years.”

Hybrid working has also influenced demographics in the area. With Leicester within a relatively short commuting distance to London by

train, brokers report an increase in the number of professionals relocating to the postcode.

Sokhi says: “The commuters that work in London seem to be moving further north with the new norm being hybrid working.

“Leicester seems to be more appealing for clients relocating to get more for their money while still only a short commute to their office in London.”

Mistry echoes this, noting that his “core client base has remained largely consistent over the past year.”

The majority of his clients are of South East Asian origin and come from a wide range of employment backgrounds, from working in small local businesses to large corporate firms.

He says: “While we do specialise in helping company directors and business owners secure mortgages, the bulk of our clientele is still made up of employed individuals.”

Townsend highlights similar patterns from his experience: “We mostly work with first-time buyers, remortgages – especially those

Buyer confidence

P

ANIL MISTRY director and mortgage and protection broker at RNR Mortgage Solutions Ltd

roperty prices have stayed relatively steady over the first few months of the year, and demand for mortgages has held firm, although many buyers have clearly been sitting tight, waiting to see what happens with the Bank of England base rate.

Now that the base rate has started to decline steadily, we’ve seen a noticeable uptick in enquiries and more clients looking to move forward after having offers accepted. Traditionally, this time of year tends to be busier anyway, but the recent movement in interest rates has clearly given buyers more confidence, especially in terms of what their monthly repayments might look like.

Interestingly, more clients are now opting for 2-year fixed products, with the intention of reviewing their mortgage in a couple of years in the hope that rates will continue to fall.

Overall, buyer sentiment has improved, and the appetite for residential mortgages is building once again, helped along by a slightly more stable economic outlook and future base rates cuts expected.

The market feels more balanced, with buyers being far more pricesensitive and taking their time.

Sellers need to be more realistic, and agents are having to work harder to manage expectations. The days of properties selling within hours or days of going live are, for the moment, behind us.

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looking to consolidate debt – and home movers.”

He also points to an increase in international borrowers and more complex cases, in light of wider affordability pressures.

He adds: “There’s been a real increase in foreign nationals on visas, and we’re seeing more recent adverse credit cases too – which we handle a lot of at Mortgage Bridge.”

Favoured lenders High street lenders continue to dominate Leicester’s mortgage landscape, proving especially popular among first-time buyers and those with more straightforward financial profiles.

In particular, Townsend notes that “Halifax, Nationwide, Leeds and NatWest are popular with firsttime buyers around here,” offering accessible products and reliable service that appeal to those taking their first steps onto the property ladder.

These well-established names remain top choices thanks to their strong brand recognition and broad product ranges.

A handful of more niche options have also established themselves as consistent favourites among both brokers and borrowers – largely due to their flexible criteria and competitive offerings.

Townsend says: “We regularly work with Barclays, Skipton, Principality, and Nottingham Building Society – especially for foreign national clients.”

Mistry says that, while lender choice is often shaped by a client’s individual financial position, there remain some generally popular options.

He says: “Two of the most consistent lenders we’ve worked with recently have been Barclays and Nationwide, especially where clients have a clean credit profile.”

He highlights Nationwide’s Helping Hand range in particular, saying it has been “particularly useful for eligible borrowers, allowing them to access higher loan amounts based on income multiples, which has made a real difference in the current climate.”

Upcoming developments The area is undergoing a notable surge in new-build developments, aimed at easing housing demand. One of the most prominent developments

L O C A L FO C U S Leicester

Foreign national demand DALE TOWNSEND director and mortgage and protection adviser at Mortgage Bridge

T

he market in Leicester is definitely buoyant. We’re seeing strong interest from first-time buyers, including a growing number of foreign nationals keen to get started. Prices are rising, but at a steadier pace than in other parts of the country, and properties are shifting pretty quickly.

It’s been busy – particularly with first-time buyers. We’ve seen a strong appetite from clients on visas and also from those who’ve had credit issues in the past. At Mortgage Bridge, that’s our sweet-spot – helping people who’ve been knocked back elsewhere.

Clients are definitely more rate-aware, especially with all the headlines around potential base rate reductions. Lenders have been a bit more competitive – not just with rates, but with tweaking criteria, especially to attract clients like foreign nationals at higher LTVs. We mostly work with first-time buyers, remortgages – especially those looking to consolidate debt – and homemovers. There’s been a real increase in foreign nationals on visas, and we’re seeing more recent adverse credit cases too – which we handle a lot of at Mortgage Bridge. is Ashton Green, a major mixed-use scheme just north of the city.

Mistry notes that the “large mixeduse development with plans for up to 3,000 new homes, along with schools, shops, and community facilities,” is set to become “a key residential hub that will help ease pressure on the local housing market.”

Indeed, such is the demand for new housing, that new-build properties are commanding a premium in the area, with the average price now at £357,000 – up by £10,100 (3%) over the past year – compared to £295,000 for established homes.

From March 2024 to May 2025, there were 425 new-build sales, most commonly within the £300,000 to £400,000 price range.

In parallel with rising prices, the wider financial landscape around newbuilds is becoming more attractive.

Sokhi notes: “We’ve also seen lenders begin to offer higher lending and even cashback where the purchase property has an A or B Energy Performance Certificate (EPC) rating. This feels like just another reason for clients to opt for new-builds.”

Rental recovery While still recovering from the regulatory shake-ups and uncertainty that followed the pandemic, Leicester’s

buy-to-let (BTL) market is showing clear signs of renewed momentum.

With 20.5% of housing stock in the private rental sector (PRS) – slightly below the national average of 23.6% – the city remains a solid, if slightly underweight, location for rental investment.

Mistry notes: “Following Covid-19 and the subsequent regulatory changes, we saw a significant drop in buy-to-let enquiries. However, over the past year, there’s been a steady resurgence — although the nature of those enquiries has changed.”

Today, landlords are approaching the market with greater financial literacy and strategic intent.

Mistry says: “Clients are now coming in far more informed and asking specifically about lenders who’ll allow the property to be held in a limited company special purpose vehicle (SPV) structure. Landlords tend to be more financially savvy and aware of the tax efficiencies that come with structuring their portfolios.”

He adds that most personal name BTL cases now involve “clients converting their current home, usually because they’re moving into a new residential property.”

He adds: “Otherwise, limited company purchases are very much the preferred route.”

Leicester Residents

1.1m Average age

39.9

Residents per household

2.52

Leicester postcode area. Source: www.plumplot.co.uk

Townsend echoes this resurgence, pointing out that “buy-to-let’s started to pick up again. Landlords seem more active this year.”

He also highlights growing investor interest in the student accommodation sector, driven by new purpose-built developments in key university areas. This is a market segment that is “drawing interest from portfolio landlords and investors.”

Resilient market While affordability challenges and regulatory changes have reshaped both the residential and investment landscapes, Leicester remains an attractive and resilient market.

First-time buyers, foreign nationals, and savvy investors alike are navigating a landscape shaped by falling interest rates, growing newbuild opportunities, and a sharper focus on affordability.

Lenders are adapting, developers are innovating, and buyers are no longer just taking what is available – they are asking the right questions and choosing wisely.

Whether it is a Shared Ownership home in a leafy suburb, a student flat near the university, or a family home in one of the city’s commuter sweet-spots, the market is anything but sleepy.

As Mistry neatly sums it up: “There’s still a healthy appetite for property, especially in well-connected and family-friendly areas, and while buyers have been cautious, the underlying demand hasn’t gone away.” ● May 2025 | The Intermediary

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On the move...

Building Societies Association elects Haines as chair

Movera appoints director of professional standards

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overa has appointed Glen Walker as director of professional standards, who has experience in across financial institutions and specialist firms. Since joining, Walker has already introduced a risk management framework, deployed a modern risk management platform, and begun a full restructuring of the professional standards team to align with Movera’s growth ambitions.

Walker said: “Movera is a business that’s genuinely open to change and improvement, which

was one of the main reasons I joined.

The culture here is collaborative, fastpaced and ready to embrace new ways of thinking.

"Professional standards is about more than compliance – it’s about se ing the tone for how a business operates and supports its people and clients. We’re building a structure that’s fit for the future: clear roles, strong governance, smart use of technology, and a team that can scale with the business.

"I’m excited about what we can deliver [...] helping the business perform at its best.”

J

GLEN WALKER

MAB appoints regional sales director for later life

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ortgage Advice Bureau (MAB) has appointed Sanjay Gadhia as regional sales director – later life.

Gadhia will work with lenders to help develop later life lending options for customers and promote these to advisers in the network, reporting to Steve Humphries, proposition director – mortgages.

Gadhia brings over 18 years’ experience in financial services, having previously worked at Standard Life Home Finance as head of sales, and at more2life as business development manager.

Gadhia said: “The strength of MAB’s proposition is exceptional, and I firmly believe it will a ract even

more broker talent to join our network.

Our digital-first strategy, combined with the comprehensive support we offer to our advisers, mean we’re uniquely positioned to help even more people achieve their financial goals.”

Gareth Herbert, distribution director at Mortgage Advice Bureau, said: “Sanjay is a fantastic addition to our Sales team, and we’re confident that his expertise and experience stand him in excellent stead to enhance our later life lending proposition.

“With connections across the broker industry, his appointment is also an exciting opportunity for our distribution, helping us to recruit and retain more brokers to our network.”

ulie-Ann Haines, CEO of Principality Building Society, has been elected as chair of the Building Societies Association (BSA).

Haines has been deputy chair since May 2023, and takes over from Rob Pheasey, CEO of Marsden Building Society.

Haines said: “I am very much looking forward to continuing the great work carried out by Rob Pheasey [...] This is such a special time to be in this role, as our sector celebrates its 250th anniversary and the wonderful heritage on which our member organisations were founded. Today our purpose and vision continue to be the same as it was in 1775 – customerowned organisations, set up by communities, to support the people in those communities.”

Haines added: “It’s also an exciting time as we have a new UK Government commitment to double the size of the mutual and co-operative sector […]

I’m looking forward to playing my part in ensuring our voices and messages are heard."

JULIE-ANN HAINES

Lloyds appoints head of strategic and technology partnerships

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loyds Banking Group has appointed Frances Cassidy as head of strategic and technology partnerships, following the departure of Claire Cherrington in March.

She joins from Barclays, having driven the national accounts strategy and led the national account teams across both the Barclays and Kensington brands. She has 20 years’ experience in financial

services, starting her career with Chelsea Building Society before moving into leadership roles with Principality, Countrywide and Kensington Mortgages.

Cassidy said: “It’s an exciting opportunity to drive

innovation and collaborate with our strategic partners to deliver exceptional experiences for our mortgage customers and intermediaries.

“To be joining such an experienced and respected team is a privilege, and I look forward to contributing to the group’s ambitious vision for the future.”

FRANCES CASSIDY

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