The Intermediary – September 2025

BUY-TO-LET FOCUS ISSUE

INTERVIEW The Mortgage Works on giving landlords a voice in a changing market

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

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BUY-TO-LET FOCUS ISSUE

INTERVIEW ⬛ The Mortgage Works on giving landlords a voice in a changing market

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

Intermediary.

The

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AT A CROSSROADS Navigating the future of green buy-to-let

DIG I TA L E DI T ION

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From the editor...

H

aving had to force my way across London Bridge recently in the face of gale force winds, watching tourists struggle to keep their phones alo and bike deliveries risk being blown into the Thames, I’m struggling to stop myself from turning this editor’s comment into yet another weather metaphor.

You’ll forgive me for seeing the parallels, considering that at the same time as the clouds roll in and the atmosphere becomes unpredictable, we’re turning our Special Focus eye once again to the buy-to-let market, and the brokers, landlords and lenders working to keep it steady.

While casting about for something more interesting with which to compare – or send up – the ever-present market turbulence, my mind kept alighting on things like global conflict, antiimmigration protests, political instability, and of course, the universal reality of our nervous anticipation around the announcement of the next Bachelore e.

Perhaps a er all we should, like good Brits, avoid all the other unpleasantness and stick to the weather.

The biggest rumblings for this market, of course, have arisen around the subject of National Insurance being applied to rental income. It’s not even confirmed yet, and this already has the market in a tailspin.

Meanwhile, we’re waiting for the Building Safety Act, Minimum Energy Efficiency

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Standards and Energy Performance Certificate rules, the Renters’ Rights Bill and more to cause their own upset in the months to come.

In a market where brokers are relied upon to provide clear answers to borrowers in increasingly complex circumstances, there’s a concerning amount of ‘ask again later’ coming up on market’s the Magic 8 Ball. No wonder experts are seeing a stalling of confidence among property investors as we wait for the Budget, the regulator, the Government, and anyone else lined up to take a shot at the buy-to-let market.

It’s important to remember, though, that stalling is temporary. Landlords may be more wary around making new investments, and rightly so, but despite all this the buy-tolet lending sector perseveres. This includes adapting products, introducing new processes, and growing the lending market in line with the increased professionalism of the borrower cohort.

Landlords face rising costs and heavy compliance demands, but tenant demand is not going anywhere, and the private rented sector remains essential to the UK, from its contribution to the economy to its support for renters and prospective first-time buyers.

While the market may still be in the Government’s crosshairs as we head towards the end of the year, there are plenty of opportunities to be found within our pages. ●

Jessica Bird @jess_jbird

@IntermediaryUK

Contributors

The Team

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BUY-TO-LET FOCUS ISSUE

INTERVIEW ⬛ The Mortgage Works on giving landlords a voice in a changing market

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

Intermediary.

The

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AT A CROSSROADS Navigating the future of green buy-to-let

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INTERVIEWS & PROFILES

Contents BUY-TO-LET SPECIAL FOCUS ISSUE

Feature 8 AT A CROS S ROA D S

Natalie Thomas explores a market waiting for change

Opinion 16 The latest on buy-to-let from Together, Molo Finance, Foundation Home Loans, GB Bank, Landbay and more

The Interview 42 T HE MORTG AG E WORKS

Daniel Clinton discusses giving lenders a voice in the future of buy-to-let

In Profile 60 TA B

Nick Robinson discusses funding, confidence and ambitions for growth in the specialist market

REGULARS

Broker business 82

A look at the practical realities of being a broker, from personal business tools to the monthly case clinic

Q&As 24, 32 Q UA N T U M

Harsha Dahyea on innovation, relationships and the challenges for property investors

Local focus 94

TA RG E T

On the Move 98

Meet the Broker 88

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

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

SECTORS AT-A-GLANCE

Residential 46 Specialist Finance 62 Second Charge 68 Later Life Lending 70 Protection 76 Technology 90

Melanie Spencer talks about the trends in limited company buy-to-let

METIC FINANCIAL

Ursene Mouanda outlines the move from football to advice, and his vision for the future

Meet the BDM T H E W E S T B RO M

Stephen Harrison discusses the challenges and opportunities for BDMs

The Intermediary | February 2023

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B U Y - TO - L E T In focus

AT THE CROSSROADS LANDLORDS, LENDERS AND THE FUTURE OF GREEN BUY-TO-LET Natalie Thomas for The Intermediary In its recent Minimum Energy Efficiency Standards (MEES) consultation, the Government outlined plans for all new rental tenancies to meet an Energy Performance Certificate (EPC) rating of Band C from 2028, with existing tenancies following by 2030 – up from the current E requirement.

Estimates suggest that just above 1.8 million privately rented homes in England currently sit below Band C. This presents a clear opportunity for lenders and mortgage brokers to help landlords finance the improvements needed.

Yet, while some landlords are pushing ahead with upgrades, others are holding off for clarity on the proposed MEES regulations – perhaps wary due to previous Government U-turns.

For landlords looking to upgrade the energy efficiency of their rental properties, there are mortgage products available to help. With an estimated 350 green buy-to-let (BTL) deals available, the choice is there – but is the appetite?

For those pressing ahead – whether driven by regulation, the desire to cut energy bills, or broader sustainability goals, how well do the current products support them?

The green carrot Not all buy-to-let lenders currently offer dedicated green products, but those that do generally fall into two camps. The first rewards landlords for purchasing or remortgaging

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The Intermediary | September 2025

properties that are already energy efficient, with an EPC rating of Band A to C. Louisa Sedgwick, managing director of mortgages at Paragon Bank, believes this approach is working well.

She says: “Since being one of the first lenders to launch green BTL mortgages aimed at incentivising landlords to purchase energyefficient properties, we’ve seen a growing number of customers taking advantage of the preferential rates available for homes with EPC ratings of A to C. Last year, these loans made up £795.3m of our total lending, accounting for 53.4% of completions, up from 49.9% the previous year.”

The second type of product is designed to incentivise landlords to retrofit lower-performing properties and lift them into Band C or above.

This is the approach taken by Fleet Mortgages.

Steve Cox, chief commercial officer at Fleet Mortgages, says: “What has proved popular is the way we combine rate incentives with practical financial support.

“Our Green Cashback feature provides landlords with a £1,000 cashback payment if they improve the property’s EPC to a C or above during the initial fixed-rate period.

“Alongside this, our house in multiple occupation [HMO] and multi-unit freehold block [MUFB] products also include £1,000 cashback at completion, helping to offset the significant upfront costs that typically come with these property types.”

B U Y - TO - L E T In focus

One of the still-to-be-confirmed aspects of the MEES consultation is the spending cap landlords will face. The Government has floated a £15,000 per property limit, with a possible lower affordability cap of £10,000 for certain properties. The Government’s own modelling suggests most properties will need between £6,100 and £6,800 of investment to meet the allimportant C standard.

Given these potential costs, the remortgage market would seem the obvious choice for all but the most cash-rich landlords looking to fund the necessary upgrades.

Grant Hendry, director of sales at Foundation Home Loans, says: “We’ve seen demand for green BTL products grow steadily, and it’s clear that both landlords and brokers are now really engaging with them.” This offers free EPC assessments alongside cashback for upgrades.

“When we first launched our green range, it took a while to build traction – landlords weren’t always sure what it meant for them, and brokers were still getting to grips with how to position the products,” he adds.

“Fast forward to today and over 20% of our mortgage applications are green products.”

Green limitations In the absence of large-scale Government funding to help landlords make the upgrades, there are limits as to how much green BTL mortgages can actually incentivise landlords to

carry out the necessary changes. The question also arises as to whether it should be the responsibility of lenders to fill the gap left by a lack of Government support.

Howard Levy, director at mortgage broker SPF Private Clients, says: “Green mortgages mainly fit on new-build properties rather than older stock, and even then the relatively small difference in rate is not a very large incentive for landlords to aim for when it can cost tens of thousands to get properties to the standard required.

“If lenders and the Government are serious about pushing landlords to spend money on getting their properties to a ‘green’ level, then more help is required.

"Cost is a real challenge – the proposed cap of £15,000 seems high. The Government may want to consider a tax break for landlords who have improved energy efficiency.”

Levy believes the sector needs more creative solutions, adding: “There are more innovative ‘green’ products in the residential space, with the BTL sector playing catch-up.

“A minor reduction in rate is not much of an incentive for clients. They would be better served by a green product that offers funds to improve a property which is added to the mortgage. This will mean that work can be done to achieve the improved property, hopefully also increasing its value. The other option would be something like a mortgage holiday for a few months while works are done to improve a property.”

p

"Technically that spider plant offsets 0.0002% of our emissions" September 2025 | The Intermediary

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B U Y - TO - L E T In focus

"Hi, I'm Dave and I'm three weeks into a solar panel quote"

Given the financial pressures landlords already face, he believes further innovation is needed.

“Landlords have been squeezed over the past few years with taxation, legislation, licensing and higher interest rates – adding the requirement to improve their properties as well might be the breaking point for some,” he warns.

The waiting game Even among those landlords that have the money to carry out upgrades, it is perhaps unsurprising that many are waiting until the proposed regulations are confirmed. The consultation closed in May, and while details are expected soon, many are in limbo in the meantime.

Adding to the uncertainty are planned changes to the EPC system next year, which could further move the goalposts for current and future property ratings.

Chris Norris, chief policy officer at the National Residential Landlords Association (NRLA), says: “It is very difficult for any business in the private rental sector to know how to go about improving their stock as the Government is yet to confirm exactly what its ambitions are. Landlords are struggling to understand what they need to

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The Intermediary | September 2025

do, by when, and the best way to secure funding.

“There remains a lack of certainty over what these standards will be, meaning that landlords would be ill-advised to take on significant additional debt until they know how to ensure compliance.”

Whatever the outcome for EPCs, Norris would like to see broader financial support from the Government to help drive uptake of retrofitting, rather than leaving this at the feet of the property finance market.

“Green mortgages are potentially a good way of encouraging the implementation of energy efficiency measures, but they need to be designed and positioned in such a way as to be competitive and offer recognisable savings,” he says.

“Unfortunately, the limits imposed on landlords’ ability to deduct finance costs for tax purposes makes it more difficult to justify extensive borrowing to fund retrofits.”

Added to this are the complexities of the market, says Cox: “A core challenge is the diversity of the landlord market itself.

“Some operate large portfolios and can see the economies of scale in upgrading multiple properties. Others are smaller landlords who have to really consider the cost of funding EPC

B U Y - TO - L E T In focus

improvements, and where they secure that money from, especially when margins are already tight.”

Dan Clinton, head of BTL at The Mortgage Works, adds: “Improving the energy efficiency of private rented homes is important, and there can be long-term gain for landlords through increased property value and improved rental yields.

“However, there are significant logistical and financial challenges when it comes to upgrading properties, which is why we are seeing low demand for green mortgage products amongst landlords.

“It’s important for the Government to provide landlords with clear guidance, adequate support and sufficient time to make their properties greener. Once the market has that clarity, we expect demand and activity to ramp up.”

KEY FACTS Improving standards and sustainability in PRS properties – Paragon ◆ 44% of landlords prefer to purchase properties in need of improvement. ◆ When improving energy efficiency, 49% cited a desire to increase rental yields, with 41% looking to increase the capital value of their investments.

Tenant-led change In light of this ongoing uncertainty, sitting tight might seem like the sensible option. However, it could leave landlords with only a small window of opportunity if the regulations confirm that EPC requirements will need to be implemented by 2028. With labour and supply shortages on top, waiting may well cause a serious backlog that results in many being unable to complete the necessary changes in time. But beyond just meeting regulatory requirements, there are plenty of reasons for landlords to be looking towards green buy-to-let and energy efficient property as forming the future of their portfolios.

One of the most fundamental reasons, of course, is tenant demand, as both the cost of living and sustainability awareness grow.This also goes beyond energy efficiency within the home, and branches out into other environmentallyfriendly elements, such as providing the capacity for electric vehicle (EV) charging.

“Tenant demand has always been strong for warmer, cheaper-to-run homes,” says Norris. But he questions whether tenants are motivated by environmental concerns or lower bills.

“Lots of landlords are deeply committed to ensuring their properties are as efficient as possible, but it is certainly the case that regulation has driven the adoption of specific measures and imposed particular timetables over recent years,” he adds.

Even when there is demand from tenants, the investment must still make financial sense.

“In some areas, for example, there is growing demand for EV-ready parking and charging, which landlords have been keen to capitalise on where possible,” Norris says.

“The difficulty, as always, is how to fund these kinds of retrofits or installations

p

◆ In 2013, 23% of PRS properties had an EPC of A to C. By 2023, this had more than doubled to 48%. ◆ 83% of landlords have at least one property that meets the MEES proposed by Government.

Private rented sector report summer 2025 – The Mortgage Works ◆ 62% of landlords are unaware that an EPC is a legal requirement. ◆ 67% of landlords are unaware that the Government’s proposed minimum energy efficiency rating is EPC Band C. ◆ 73% of landlords do not know the proposed start dates for the new minimum energy efficiency ratings to come into force. ◆ 39% of landlords are mindful of the impact that energy efficiency improvements will have on tenants.

B U Y - TO - L E T In focus

TECH AND THE GREEN EVOLUTION MELANIE SPENCER IS GROWTH DIRECTOR AT TARGET GROUP

As regulatory pressures mount – particularly around Energy Performance Certificate ratings and landlord responsibilities – technology is becoming an essential ally for brokers and lenders.

With proposals to raise the minimum EPC rating to B and C by 2028, landlords face significant compliance costs and operational challenges.

Digital platforms now offer real-time EPC tracking, automated alerts, and AI-driven upgrade assessments, enabling brokers to proactively guide clients through regulatory changes.

Green mortgage products and sustainability-linked loans are also gaining traction, supported by tech that matches clients to suitable financing options based on property data.

Moreover, compliance dashboards and smart underwriting tools help lenders mitigate risk while enhancing client engagement. In this evolving landscape, tech isn’t just a support tool – it’s a strategic asset for intermediaries navigating the future of property finance.

and whether they are likely to provide a decent return on investment.”

He goes on to explain: “Where grants have been available – for instance to install EV chargers – or where a tax efficient case can be made for works, there is a distinct business case.

But entirely self-funded improvements are not guaranteed to yield sufficient increased demand to cover their cost in the short-term.”

Nigel Davey, head of BTL at NatWest Group, also believes that tenants are increasingly aware that energy efficient homes reduce the cost of their utilities.

“We observe our landlord borrowers remain attentive and responsive to tenant preferences,” he says.

“In this context, NatWest is keen to support landlords who are looking to rebalance their portfolios or enter the market ahead of the EPC

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The Intermediary | September 2025

changes impacting the private rental sector. We offer a Green Mortgage product with a reduced borrowing rate for properties with an A or B EPC rating."

Davey says the bank is further challenging itself to see how it might expand the scope of this in a “very price competitive marketplace.”

The clock is ticking For the cohort of landlords who are waiting for the regulations to be finalised, the timeline may be tighter than it appears.

“While the formal EPC deadline for achieving C is still some years away, in the context of taking out a 5-year mortgage now, it is already pressing,” explains Cox. “A landlord who takes out a 5-year fixed rate today may find themselves beyond the compliance horizon when that deal ends, which means they need to be planning now.”

He believes that the market will start to see a lot more activity in terms of trying to incentivise landlords to upgrade their properties.

Marie Grundy, managing director, mortgages at West One, shares this view. Grundy says while it is seeing demand for its own green products for higher rated properties, there is scope for the market to introduce more innovative products, and to offer greater incentives to landlords with lower EPC ratings.

“To support intermediaries and landlords, lenders will need to think about developing a broader range of green mortgage solutions to meet the changing needs of landlords,” she adds.

In the meantime, she recommends brokers start the conversation with their clients now, if they have not already, adding: “It is important that brokers alert their clients, who may be unaware of the impact of the upcoming regulations, about the need to improve their EPC rating today.

"The main benefits are compliance and costsavings down the road when these standards become mandatory.”

For all the best efforts of the lenders in the market, the green BTL mortgage market still remains at a crossroads. While regulatory uncertainty continues to create reluctance among some landlords, even when the regulations are finalised, the challenge will lie in developing products that can genuinely drive energy efficiency improvements, rather than simply rewarding existing high-performing properties.

Green mortgages can only do so much, and without deep pockets, the same might be said for landlords. 

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08/09/2025 08/09/2025 11:29 11:29

B U Y - TO - L E T In focus

Portfolio landlords: Not just surviving, thriving

I

f there’s one thing I’ve learned from my many years in the industry, and talking to brokers and landlords up and down the country, it’s that the buy-to-let (BTL) sector never stands still. The rules may change, certain costs escalate, landlord demands intensify and tenant needs evolve – sometimes all at once – and yet, the private rented sector (PRS) keeps moving forward with purpose, passion and prominence.

For the vast majority of portfolio landlords, 2025 hasn’t been about sitting tight and waiting for calmer waters. It’s been about making smarter moves, trimming what no longer works, doubling down on high-performing properties, and venturing into asset types they may never have considered before. In other words: using this period to sharpen their game.

The numbers The latest Pegasus Insight Landlord Trends Report, produced in conjunction with Foundation Home Loans, confirms what I’ve been hearing. Yes, the pressures are real – from regulation to affordability, and regarding the general economic climate – but the fundamentals of profitability, yields and resilience are still very much intact.

For those prepared to adapt, there’s every reason to remain optimistic.

Almost nine in 10 (87%) landlords are still making a profit from their lettings activity, a figure that has barely shifted in five years, and is just 1% shy of the five-year peak in Q4 2020 (88%).

More than one in five (21%) consider those profits to be ‘large’, while only 5% are operating at a loss. It’s worth noting that unencumbered landlords

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The Intermediary | September 2025

still lead the way (92% in profit), but even those with funding requirements are reporting healthy numbers at 82%, meaning that well-run portfolios with a long-term vision can still deliver, even in tougher times.

Yields are also holding up nicely.

The national average sits at 6.5%, matching the 10-year high reached in Q3 2024, with the North West (7.4%), North East and East Midlands (both 7.3%) out in front.

Confidence in the UK economy may be languishing at a record low of just 2%, but optimism in landlords’ own lettings businesses is a different story.

More than a third (35%) feel positive about their operations, and it’s clear that profitability plays a role, with 70% of those who are making a ‘large’ profit confident about the future, compared with just 13% of those breaking even or in the red.

One trend I’m seeing first-hand is landlords reassessing the make-up of their portfolios. While vanilla BTLs remain a staple, there’s definite movement into higher yielding, more complex assets like larger houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).

This isn’t just about chasing yield, it’s about diversifying income streams and strengthening resilience.

These aren’t always straightforward purchases, but that’s where specialist lenders come in.

Finding solutions Refinancing is another big story.

The Pegasus data shows that 40% of leveraged landlords plan to refinance in the next year, well above the 30% norm we saw before the 2023 rate rises. For portfolio landlords, that number jumps to 53%, with an average of three loans up for renewal across 9.8-property portfolios.

GRANT HENDRY is director of sales at Foundation Home Loans

The expiry of fixed rates is the main driver. While two-thirds will stay with their current lender, a quarter are switching, rising to 37% for those with 11-plus properties. More than a third are hitting challenges at the end of their fixed term, from rate shocks to valuation issues.

That’s where brokers can make a real difference, by stepping in early, smoothing the process, and finding solutions that keep portfolios performing optimally.

Two-thirds of landlords used a broker for their most recent deal, but those opting for a simple product transfer were far more likely to go direct. For me, that’s a missed opportunity, because the best advice isn’t just about rate-hunting, it’s about strategic thinking.

As I see it, the brokers adding the most value in the current market are the ones helping landlords see the bigger picture in terms of restructuring for efficiency, planning for tax, and exploring specialist property types that could transform returns.

With the right finance partner, portfolio landlords are proving they can adapt, diversify, and thrive. For brokers, this is the moment to be more than a facilitator; it’s the time to be a trusted guide, helping clients make the right moves at the right time. That’s how the most successful landlord-broker partnerships will not only survive this market, but thrive. ●

B U Y - TO - L E T In focus

Supporting holiday let owners to grow

I

n the early days of the holiday let boom, the conversation was often about a single cottage on the coast or a converted barn in the countryside. Many owners saw these properties as lifestyle investments, a way to supplement income, or just to enjoy for the occasional personal use.

Moving forward to today, and the market has certainly changed. Holiday lets are increasingly being treated as structured portfolios, with investors holding multiple properties across different regions. What began as a sideline has, for many, become a professional investment class.

If you look at the figures, it’s easy to understand why there has been a change in mindset. Tourism has held up well in 2025. VisitBritain, in forecasts published in January, expects 43.4 million overseas visits this year, generating £33.7bn of spending in the UK economy.

Domestic tourism also remains strong. VisitEngland’s Great Britain Tourism Survey, published in March 2025, reported that residents took 106 million overnight trips in 2024, spending £32.9bn, despite a 10% fall in trip numbers compared with 2023.

Looking ahead, a survey reported

by MoneyWeek in July 2025 suggests 63% of adults intend to take a UK holiday this year, with a third making it their main trip. The same research found that the typical family is expected to spend £1,292, up 17% on last year, which could add £24bn to the summer economy.

The short-term rental sector shows a similar sentiment. VisitBritain’s accommodation performance report, released in July 2025, highlighted that supply in June was up 6% yearon-year, with almost half a million properties available. Occupancy slipped to 43%, down four percentage points on the previous June, but average daily rates rose 20% to £311 and average revenue per property

increased by 15% to £3,409. The figures highlight the importance of scale, pricing discipline, and careful management for owners seeking consistent returns.

LISA HODGSON is senior sales manager at The Cumberland Building Society

Changing shape Regulation and tax are also heavily reshaping the sector. In England, the Department for Levelling Up, Housing and Communities has confirmed that a new planning use class and national register for short-term lets will be introduced. The Welsh Government is pressing ahead with a visitor levy and registration system, while Scotland continues to operate its short-term let licensing regime, which was reviewed in early 2025.

At national level, the Government abolished the Furnished Holiday Lettings regime in April 2025, removing mortgage interest relief and other longstanding tax benefits. These changes mean holiday lets are now subject to the same scrutiny as other property investments.

In the past, borrowers often had to stitch together several different loans to expand a holiday let business. That made growth more complicated, with multiple lenders’ terms and conditions to manage.

At Cumberland for Intermediaries, we offer finance for up to six properties within a portfolio, and Cumberland for Commercial offers finance for up to 20 properties.

For borrowers, that means scale without fragmentation. For brokers, it simplifies the advice process and allows them to plan around a single set of criteria rather than several competing ones.

This matters, because having your portfolio lending with one lender gives investors that strong relationship with a provider who knows and understands their strategy. It also allows the lender to assess the portfolio as a whole, taking into account cashflow, seasonality and location

Holiday lets are increasingly being treated as structured portfolios, with investors holding multiple properties” mix. We believe that approach fits the way holiday lets have moved within the market.

We are also seeing this trend play out directly in the cases brought to us. Our process is based on manual underwriting, which allows us to understand the story behind each portfolio. For some borrowers, that might be a family adding to a cluster of cottages. For others, it could be a professional landlord aiming to grow.

In each case, our aim is to support growth one property at a time, in a way that works for owners and the communities where these homes sit.

The message for brokers is transparent. Demand remains solid, but sustainable returns may depend on a professional approach. Rules are tighter, so planning is essential.

Lending options are often changing, opening up new opportunities when they do. Guidance from brokers and lenders has never been more valuable in helping clients manage complexity and grow responsibly. ● September 2025 | The Intermediary

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B U Y - TO - L E T In focus

NI on rental income risks worsening the supply crisis

F

rom the removal of mortgage interest relief and the 3% Stamp Duty surcharge, to the Renters’ Rights Bill and now a potential National Insurance (NI) levy on rental income, the buy-to-let (BTL) sector has spent the past decade navigating a near constant stream of fiscal and regulatory changes.

The impact has already been significant, with landlord numbers falling, rental supply shrinking, and rents climbing as a result. Adding another layer of taxation risks compounding these problems further.

At Octane Capital, our own research has shown that the landlord exodus has, so far, been overstated, with just 7% of landlords stating they had sold up in the last year.

However, with a new wave of legislative penalties and restrictions on the horizon, it remains a very real risk, and 21% are considering reducing their portfolio size this year.

Taxing times This risk is echoed by the National Residential Landlords Association (NRLA), whose survey of former landlords found that around half cited recent tax changes as the main reason for exiting the sector. It underlines just how detrimental a further tax hit could be, should National Insurance be applied to rental incomes, potentially accelerating the pace of landlord exits and compounding the shortage of rental supply.

Hamptons’ research shows that returns for landlords have already been squeezed, with tax changes eroding profitability and leaving many questioning whether to remain in the market. Those with just one or two properties are particularly exposed,

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The Intermediary | September 2025

A shrinking and less diverse landlord base will mean reduced choice, higher rents, and greater housing instability” raising the risk of a shi towards a rental market dominated by large institutional operators.

In fact, our previous research found that smaller ‘amateur’ landlords, who typically hold just one or two properties, are the most likely to sell up. If these landlords exit en masse, the private rented sector (PRS) could shrink substantially, with our analysis suggesting the value of lost stock could exceed £220bn.

It is also important to remember that landlords already contribute significantly to Treasury revenues.

HMRC data shows that rental income is far from untaxed, with landlords paying Income Tax, Capital Gains Tax and Stamp Duty Land Tax, while also shouldering higher operating costs as interest rates and service charges rise.

Meanwhile, tenants are already shouldering greater financial pressure. The Office for National Statistics (ONS) reports that the proportion of household income spent on rent has risen to 36.3% in England, climbing to 41.6% in London.

Zoopla’s latest rental market report shows that rents have risen 21% over the past three years, far outpacing the 4% increase in house prices. Despite some moderation in annual growth, tenant demand remains elevated while the supply of homes to rent continues to lag behind, leaving imbalance as

JONATHAN SAMUELS is CEO of Octane Capital

the defining feature of today’s private rental sector.

Applying National Insurance to rental income would almost certainly exacerbate this problem, discouraging further investment and pushing more landlords towards the exit.

Long-term risks For lenders, brokers and intermediaries, the picture is one of polarisation. Smaller landlords are more likely to scale back, reducing demand for buy-to-let finance in that segment, while larger, more resilient investors may take advantage of opportunities to consolidate.

Recognising this divergence will be critical for the mortgage industry in adapting its strategy.

The risk for the Government is that by pursuing short-term revenue through additional National Insurance contributions, it undermines the longterm health of the rental market.

The private rented sector remains essential to housing millions across the UK, from young professionals to families and those unable to access social housing. A shrinking and less diverse landlord base will mean reduced choice, higher rents, and greater housing instability.

Rather than penalising landlords further, the Government should focus on policies that encourage investment, simplify compliance, and support a rental sector that remains diverse, flexible and able to meet the needs of tenants. Anything else risks tipping an already imbalanced market further out of whack. ●

F C re N

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B U Y - TO - L E T In focus

Surviving the Gover

W

ith the next Budget fast approaching this November, uncertainty continues to ripple through the property sector.

Landlords and investors are left navigating a landscape reshaped by a series of Government curveballs over the past 18 months.

Rising interest rates, tighter regulations, and shifting tenant expectations have left many landlords questioning the viability of their portfolios. On top of this, rumours are swirling of what is to come next.

What will the Budget hold?

There is speculation that the Government could scrap Stamp Duty in the next Budget in favour of a property tax. This could result in homes valued at over £500,000 facing an annual levy of 0.54% on the portion above that threshold. The move would mean a £650,000 property would incur £810 annually, compared to a one-off £22,500 Stamp Duty payment.

While second homes and buy-tolet properties may remain under the current Stamp Duty regime, other reforms such as Council Tax restructuring and a possible ‘mansion tax’ are also being discussed.

At the same time, landlords could face new costs if National Insurance

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The Intermediary | September 2025

contributions are applied to rental income, with rates mirroring those on earned income; 8% up to £50,270 and 2% above. This move, aimed at aligning tax treatment of earned and unearned income, could raise billions, but risks discouraging investment and reducing rental supply.

Additionally, the Government is considering removing Capital Gains Tax exemptions for primary residences over £1.5m, potentially affecting thousands of homeowners, particularly in London and the South East. This could make downsizing less attractive for older homeowners in large, expensive houses, causing a slowing of the property market.

Regulatory reform is also on the horizon for landlords, with the proposed Renters’ Rights Bill set to remove Section 21 evictions and introduce stricter possession rules, requiring landlords to be more proactive in tenancy management.

Although immediate changes to Energy Performance Certificate (EPC) requirements have been paused, the long-term goal of improving energy efficiency by 2030 remains a key consideration for property owners.

These add further problems to an already troubled market. Relatively high interest rates continue to drive up borrowing costs and complicate refinancing, especially for those with larger portfolios or short-term

MICHELLE WALSH is intermediary sales director at Together

finance. Tax pressures remain a concern, as Section 24 has limited mortgage interest relief over the past few years, and recent changes to Capital Gains Tax and Stamp Duty further impact profitability.

How can brokers help?

For brokers, this presents both a challenge and an opportunity: to provide informed, strategic guidance that helps clients adapt and remain resilient. In this environment, they play a vital role in not just sourcing finance, but in helping landlords make informed decisions.

Portfolio diversification can be a useful strategy. Traditional single-let properties may no longer offer the returns landlords need, especially in

B U Y - TO - L E T In focus

nment’s war on BTL high-cost areas such as London and the South East.

Brokers can help clients explore alternative asset types such as houses in multiple occupation (HMOs), student accommodation, serviced apartments, or even social housing. These sectors often come with higher yields but may require specialist finance, particularly if the properties are non-standard or require refurbishment.

One area of growing interest is incorporation. Operating through a limited company can offer tax advantages, particularly for higherrate taxpayers, and many landlords are exploring this route. Brokers can support this transition by explaining the implications and identifying lenders that are comfortable with such company structures.

This is where specialist lenders like Together can be particularly useful.

Known for flexible underwriting and willingness to consider complex cases, we offer solutions for landlords who fall outside mainstream criteria.

Whether it’s a first-time landlord, an expat, or someone purchasing a property at auction, brokers can utilise these lenders to find solutions to complex deals that might otherwise be declined by a high street bank.

Beyond finance, brokers can also support landlords in navigating regulatory change. This might

involve helping clients understand the implications of the Renters’ Rights Bill, advising on tenancy agreements, or signposting to legal and property management services.

Similarly, with energy efficiency becoming a long-term priority, brokers can encourage landlords to plan ahead for EPC upgrades and explore finance options for green improvements.”

Operating through a limited company can offer tax advantages, particularly for higherrate taxpayers” The new broker Ultimately, the role of the broker is evolving. In a more complex and regulated market, landlords need more than just access to funding, they need insight, strategy, and support.

By staying informed about market trends, understanding the full range of lending options, and building strong relationships with specialist providers, brokers can position themselves as indispensable partners to their BTL clients.

While lenders like Together offer valuable tools, the broker’s strength lies in their ability to tailor solutions to each landlord’s unique circumstances.

Whether it’s restructuring a portfolio, navigating tax changes, or planning for future regulation, brokers can help landlord customers adapt and succeed in a changing market. ●

September 2025 | The Intermediary

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B U Y - TO - L E T In focus

AI and automation: Unlocking a new era for lettings

T

he le ings market has long carried a reputation for inefficiency. Tenants face slow response times, landlords endure void periods, and agency staff are stretched thin.

At its core, the sector is still highly fragmented, with processes that vary wildly from one agent to the next.

This lack of consistency not only frustrates tenants and landlords, but also drives up costs and reduces margins for operators.

Technology has always promised to make things be er, yet until recently its role in le ings was limited to digitising paperwork or moving listings online. These were important steps, but they didn’t fundamentally change the experience.

Artificial intelligence (AI) and automation offer the potential to streamline operations, cut delays, and deliver a more professional service to all sides of the market.

The impact is already measurable.

Le ing a property, which might once have taken weeks of manual ve ing and follow-up calls, can now be handled with far greater speed and accuracy. AI-led processes are enabling some operators to reduce le ing times by around a third, largely by automating checks, validating offers, and matching tenants more effectively to the right homes. The outcome is fewer or shorter void periods for landlords and faster access to properties for tenants.

Maintenance – historically one of the most painful parts of renting – is another area where AI is proving transformative. Industry-wide, it is not uncommon for maintenance requests to stretch on for weeks, with the average resolution time si ing at

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The Intermediary | September 2025

more than a month. Automation and AI-driven triage are changing this.

Early adopters are seeing resolution times cut by almost a third, and the ambition is to bring them down from an average of 50 days to closer to 10.

By routing requests intelligently, tracking contractors in real time, and predicting common faults before they occur, technology is helping to create a smoother, more transparent process for tenants and landlords alike.

Just as importantly, automation is reducing the stress around compliance. AI can ensure that critical requirements such as gas safety, electrical checks, and tenancy renewals are tracked and actioned automatically.

There are also operational advantages. In a traditional agency setup, a manager might comfortably handle around 100 units before the workload becomes unmanageable.

By automating repetitive tasks and allowing AI to shoulder process-heavy work, a single manager can oversee closer to 500 units, while actually improving the quality of service. That opens the door to greater scale without eroding customer experience.

The wider effects of these shi s are important. For landlords, faster lets mean stronger yields and reduced risk of costly voids. For tenants, quicker responses and a more reliable application process translate to be er living standards. For agency staff, it frees them to focus on building relationships, supporting tenants, and advising landlords. AI is enabling people to do what they do best.

Marked improvement These operational efficiencies are already reshaping market dynamics.

By leveraging automation, operators can integrate multiple businesses

SAM HUMPHREYS is head of M&A at Dwelly

under one platform, achieving consistency at scale. The result is likely to be a more consolidated le ings landscape, with tech-led firms taking a growing share of the market.

AI and automation open the possibility of creating a fully transactional rental marketplace, one where the journey – from viewing through to tenancy management – can be conducted seamlessly on a single platform. The le ings industry could start to resemble the best aspects of both property portals and major agencies, delivering convenience, efficiency, and trust at every stage.

Of course, challenges remain.

Data protection, tenant privacy, and the ethical use of AI must be taken seriously. Trust is central, and operators must ensure that tech enhances rather than undermines it. There is also the question of accessibility. Human oversight and support will remain vital. The future will be AI working hand-in-hand with skilled professionals.

For intermediaries, investors, and the wider property market, AI is no longer theoretical. It is here, it is working, and it is already shi ing the economics of the sector. Those who embrace it stand to build stronger, more scalable businesses. Those who ignore it risk being le behind.

By tackling inefficiencies headon, AI and automation are not just streamlining operations; they are reshaping the entire experience.

The opportunity is clear: to move beyond fragmented, inconsistent service towards a rental market that is more professional, transparent, and fit for the future. ●

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Q&A

Quantum Mortgages

Marvin Onumonu speaks with Harsha Dahyea, chief commercial officer (CCO) at Quantum Mortgages, about buy-to-let milestones, innovation and the changing market

Quantum Mortgages recently completed its second securitisation in under a year. What does this milestone mean to you?

Completing our second securitisation this year was a huge milestone for us. Despite the ups and downs in pricing, we managed to achieve excellent pricing across the board and came out with even better pricing than our first securitisation, which was already a landmark for us and our investors.

This really instilled even more confidence – not just in Quantum, but in the buy-to-let (BTL) market. People were already confident in what we do, but being able to deliver such strong results really made a stamp in the investment arena and built even more trust among our partners and stakeholders.

What are your expectations for the BTL market ahead of the Autumn Budget?

There’s a lot of talk about the Renters’ Reform Bill and new legislation, but honestly, whenever someone tells me the BTL market is dead, I just smile. The proof is in the numbers – we’ve had record-breaking months, month after month, and we’re already ahead of our budgets and business plan. Even in August, which is usually a slower month, our volumes didn’t slow down; if anything, they increased.

We’re also seeing more brokers getting involved – there are now around 35,000 brokers in the UK, up from 16,000 just four years ago.

More brokers are leaning into specialist BTL, and as landlords get more creative, the intermediary 24

The Intermediary | September 2025

community is seeing this as a real opportunity.

So, the market is resilient and well-positioned, regardless of what the autumn Budget brings.

What is next for Quantum Mortgages in terms of innovation?

We’re always looking for ways to innovate and meet the evolving needs of landlords and brokers.

Recently, we launched a bridging product that offers a seamless in-house exit, which means clients can use their own solicitors – making transactions much smoother. We don’t restrict them to a panel, so they have the freedom to work with who they trust.

We’ve also replicated our BTL criteria for bridging, so anything you bridge with us, you could exit in-house, and in some cases, you can use the same valuation reports.

We’re constantly reviewing the market and holding focus groups to get broker feedback, we don’t have heavy credit committees or layered structures, which allows us to implement changes quickly. This aspect and our nimble structure allow us to keep up with demand and stay ahead of the competition.

What role do focus groups play in your ongoing relationship with brokers and landlords?

Focus groups are a big part of how we operate.

From the beginning, I wanted to really understand the end user’s journey and the challenges they face. We regularly bring brokers and landlords together to get their feedback on our products, criteria, and service. If you don’t listen to both your brokers and end users, you can’t evolve with the market. We hold these focus groups every

Q&A

quarter and are always listening and adapting based on what we hear. This helps us stay creative, provide better solutions, and deliver the service our clients need.

What challenges do you foresee in the next couple of months?

The main challenge on the horizon is the Renters’ Reform Bill, but I see it as more of an opportunity than a threat. While the details haven’t been enforced yet, I believe professional landlords will lean in and adapt.

The Bill is a chance for landlords to build better relationships with their tenants and to raise property standards, making sure homes are habitable and well-maintained. It will also give tenants more security, like ending no-fault evictions. In addition, we are also focusing on the Support Living sector, where we’re known for being innovative and supportive. Our ability to adjust and evolve quickly with the market puts us at the forefront, and I’m confident we’ll turn these challenges into opportunities.

How is Quantum Mortgages approaching green BTL lending and supporting sustainable investment?

Sustainability has always been important to us. We’ve had a green product range since we launched, and we offer extra leverage on loan-tovalue (LTV) to help landlords improve the Energy Performance Certificate (EPC) ratings of their properties. We want to support landlords who are renovating to higher energy standards and becoming more efficient. We’re strong supporters of the green agenda and are committed to giving real solutions to landlords who want to make their properties more sustainable.

We’ve replicated our BTL criteria for bridging, so anything you bridge with us, you could exit in-house, and in some cases, you can use the same valuation reports”

Are you seeing any shifts in terms of new types of property investors or landlord profiles?

Absolutely. The increased regulation has made some inexperienced or accidental landlords reconsider their involvement, and many are exiting the market. On the other hand, professional landlords – those who do this full-time HARSHA – are taking the opportunity to expand DAHYEA their portfolios and get more creative, like converting single units into houses in multiple occupation (HMOs) to maximise yields.

We’re also seeing a new wave of younger, firsttime landlords entering the market, which is why we’ve introduced products specifically for them.

We want to help them get started and become serious investors if that’s their goal.

How is Quantum Mortgages adapting its product range and criteria to help BTL landlords?

We’ve developed our QML Pro range to cover everything that doesn’t fit into the standard product set, so we can get creative with property types, complex company structures, and even foreign investors.

Our goal is to provide good solutions for serious landlords, whether they’re looking to expand, refinance, or purchase more properties.

For example, if a landlord buys a property at auction under market value, we can remortgage using open market value within 24 hours, so they can realise that value immediately.

We want to be the go-to lender for specialist and professional landlords, offering flexibility and tailored solutions.

Do you have a final message for landlord borrowers navigating the current market?

I’d encourage them to look into Quantum Mortgages. The more creative you are, the more solutions you’ll find with us. Our brokers are talented and know our criteria inside out, and our support team is always there to help. Whether you’re exploring the vulnerable tenant space, looking at HMOs, restructuring, or remortgaging at open market value, we have solutions. ● September 2025 | The Intermediary

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B U Y - TO - L E T In focus

Assessing yield in today’s market

F

or many investors, yield is the primary datapoint that indicates whether or not a property investment makes sense.

For brokers, it remains a central reference point, and for investors, it often tips a decision.

Yet the path to calculating yield is rarely straightforward. Interest rates may have settled, but at a higher level, and this continues to interact with slower rental growth and persistent cost pressures.

Understanding how these elements work together is paramount.

Historical valuations Many investors still rely on assumptions formed in a different economic climate. It is not uncommon to hear someone argue that a property worth £1m three years ago should be worth more today.

However, when the value is determined by income, the calculation depends not only on the rent but also on the return an investor expects.

When base rates were near zero, a gross yield of 5% might have been sufficient. Now, investors are more likely to seek 8% or more. The same rental income supports a lower capital value, and without significant rental growth to bridge the gap, the end valuation may fall short.

Complicated picture On new lets, Zoopla reports rents rising by just 2.8% in the 12 months to April, with the average new let at £1,287 per month. Rightmove’s Q2 index shows the average advertised rent outside London at £1,365, a 3.9% annual rise, and the slowest since 2020. In July, Hamptons recorded a 0.2% year-on-year fall in new let rents, the first decline in five years, with London down by around 3%.

By contrast, the Office for National Statistics (ONS) measure, which tracks all tenancies rather than just

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The Intermediary | September 2025

new lets, reports an increase of 6.7% over the same period.

Together, these datasets tell a more nuanced story. While rents across the whole stock have risen, the income achievable from a fresh letting may not match past growth rates. This distinction matters.

Benchmarks reveal A sound benchmark provides essential context. According to Global Property Guide, the UK’s average gross rental yield stood at 7.03% in Q2 2025, up from 6.73% in Q4 2024.

The regional variations are considerable. MoneyWeek identifies Cardiff ’s CF24 postcode with yields of 8.9% and Plymouth’s PL4 postcode at 10.2% – both well above the national average.

These figures offer useful reference points, yet they still mask the differences between individual properties. A well-located house in multiple occupation (HMO) in a strong rental area may comfortably outperform the average, while a poorly executed conversion could fall short, even in a high-yielding region.

Complex strategies This pursuit of higher yields has encouraged some investors to move into more complex strategies. Serviced accommodation schemes, assisted living projects, and large-scale multiunit conversions or HMOs are now more common. In certain cases, prelet agreements with local authorities or housing associations are in place, offering an apparent level of security.

Even so, the viability often depends on the operator’s ability to manage them effectively. For those without relevant experience, the operational demands can be substantial. This risk must be considered alongside returns.

Costs and timelines are also factors that connect directly to yield. Skilled labour shortages and high materials prices continue to influence project

GAVIN DIAMOND is CEO at Inspired Lending

delivery, and the BCIS forecasts that construction costs will rise by around 14% over the next five years. These pressures can erode margins and delay the point at which stabilisation is achieved.

Criteria flexibility These complexities underline the value of a flexible approach. At Inspired Lending, our parameters are deliberately kept broad, allowing for the consideration of cases that fall outside rigid, standardised criteria.

Where the loan-to-value (LTV) is low and the exit plan is clear, it is sometimes possible to proceed on the basis of a desktop valuation supported by a site visit, cutting down the time between application and completion.

On occasion, we have stepped in where other lenders were unable to accommodate specific exit structures or works requirements, and in doing so, seen deals progress that might otherwise have stalled.

Yield in perspective In the end, yield is not a static measure. It moves with borrowing costs, investor sentiment, rental performance, project delivery, and operational capability.

Brokers who take all of these elements into account – and who explain their implications clearly to clients – can help ensure that investment decisions are made with a realistic understanding of the likely outcomes. That, in turn, supports not just successful funding, but sustainable returns in a market where small changes in the numbers can have a significant effect on the result. ●

B U Y - TO - L E T In focus

Stagnation, redemption or evolution

T

he buy-to-let (BTL) sector has been through a rollercoaster few years, but I feel confident enough to say that we may be entering a phase of greater stability.

For this to not evaporate in an instant, there must be industry-wide support and collaboration.

Conversations I’ve had across the intermediary market have been remarkably positive and general activity seems to be on an upwards trajectory. This is perhaps unsurprising, given the interest rate cuts made by the Bank of England reducing the cost of borrowing and benefitting many homeowners.

This has sparked increased competition among lenders, with the majority of the top 10 offering a headline residential fixed-rate deal below 4%. Data from Twenty7tec found that mortgage searches jumped 4.4% on the day of the recent base rate cut, compared to the average the week before.

This feeling of optimism isn’t isolated to one segment of the market, and has undoubtedly permeated into the BTL sector, demonstrated by a lending surge in the first quarter of the year, with 58,347 new loans worth £10.5bn up 38.6% by volume and 46.8% by value year-on-year, marking a possible end to the so-called ‘big landlord sell-off ’.

This feeling of optimism among brokers is starting to spread among landlords as well, driven by improved yields, lower interest rates, and rising rental income. BTL mortgage rates have also become much more competitive and in some cases even cheaper than residential deals.

In short, the outlook for landlords is looking increasingly positive, and

CHARLES MORLEY is director of mortgage distribution at Metro Bank

there’s no reason to suspect this won’t continue, as long as the economic conditions remain and the right support is given.

Complex strategies Buy-to-Let strategies for landlords are also becoming more sophisticated.

Over the past five years, we have seen growing interest in limited company BTL. Research from Hamptons found that, in 2024, a record 61,517 new limited companies were established for buy-to-let purposes, marking a 23% increase on the previous year.

The number of companies holding BTL properties across the UK passed the 400,000 level in February for the first time. This growing trend among landlords to incorporate could suggest that tax efficiency is becoming a growing priority for many, In response to this shift, lenders have also evolved, offering greater flexibility on ownership structures, more competitive rates, and streamlined underwriting.

The human touch remains critical in navigating complexity in what is becoming a competitive BTL lending environment. At Metro Bank, we’re seeing real demand for buy-to-let products, and we’re expanding our offering to support private landlords, recently entering the house in multiple occupation (HMO) and multi-unit freehold block (MUFB) sectors, where we see potential for growth.

Strong decision-making Advisers and accountants each play a unique role in helping landlords make informed and financially sustainable decisions. A joined-up approach should start at the first conversation.

Advisers should encourage their customers to engage an accountant

early – particularly when incorporation is being considered. Tax implications like Capital Gains Tax and dividend taxation, among other elements, are critical to understanding the full picture.

While limited company BTL cases can be complex, that doesn’t mean they have to be confusing. Brokers can add real value by breaking down ownership structures, financials and borrowing plans into clear, lenderfriendly narratives.

Collaborating with lenders can often be central to success, so my advice would be to prioritise building those lender relationships. Having a good BDM contact, particularly at a specialist BTL lender which has flexible criteria, allows brokers to discuss cases early and avoid surprises.

The HMO and MUFB market is expected to continue to grow over the next five years due to yield output, especially with the introduction of tech platforms simplifying special purpose vehicle (SPV) set-up and lending processes.

Brokers who upskill in this space, and who understand portfolio structuring and layering solutions, will unlock long-term and often very loyal relationships.

The journey ahead won’t be without challenge. Close collaboration between lenders, mortgage intermediaries, the regulator and the Government will be needed to ensure the important role of the private rental sector within the UK housing market continues to be recognised. ● September 2025 | The Intermediary

27

B U Y - TO - L E T In focus

The buy-to-let mark

T

he buy-to-let (BTL) market in 2025 is showing signs of steadier ground.

Interest rates have begun to settle, and regional yields remain competitive.

All the while, continued demand from overseas buyers is adding further momentum and giving landlords and brokers more scope to plan beyond short-term fixes.

Bank of England lowers the base rate to 4% in August Even so, the market is evolving.

Regulatory changes, shifting tenant preferences and new approaches to structuring investments are influencing how landlords plan for the future. Brokers who can interpret these developments early will be well placed to offer clients valuable guidance.

Lenders are introducing more competitive products under 3% 28

The Intermediary | September 2025

Trends and conditions

Interest rates have finally stabilised after a turbulent period, with the Bank of England lowering the base rate to 4% in August. In response, lenders have started to introduce more competitive products under 3% – Molo included.

For landlords, the question centres around whether to act now or wait.

Locking in at today’s rates could secure stability after years of volatility.

If, however, inflation continues to ease, there is a possibility of further cuts. That makes timing a strategic decision, particularly for investors with remortgages due in the next 12 months. From a lender perspective, a sustained period of rate stability would likely encourage more innovation in product design – from flexible terms to targeted products for

Average gross yields: 9.2% in the North East, 8.4% in the North West, 8.1% in Yorkshire & Humberside

MARTIN SIMS is distribution director at Molo

data, with average gross yields of 9.2% in the North East, 8.4% in the North West and 8.1% in Yorkshire & Humberside. More affordable property prices and strong rental demand are driving factors. Cities like Manchester, Leeds and Liverpool remain attractive due to consistent demand and healthy yields.

For landlords based in higherpriced areas such as the South East or London, these regions can offer a way to diversify portfolios and improve overall returns. However, buying further afield can bring added management costs and complexities, so investors should weigh up the extra yield against the practicalities of longdistance ownership.

Houses in multiple occupation are providing specific property types, as competition heats up for both new purchases and refinancing. average gross Regional shifts yields of Returns continue to vary across regions. Northern areas are leading the way, according to Lendlord around 10%

B U Y - TO - L E T In focus

k et so far in 2025 US and Canadian buyers now make up 16% of international enquiries Landlords adapting Changing tenant expectations are shifting the types of properties landlords look to invest in. Houses in multiple occupation (HMOs) continue to perform strongly, with average gross yields around 10% , and often higher in regions like the North East.

Brokers may see more landlords seeking finance for HMO conversions, particularly in high-demand areas where shared housing can outperform standard rentals.

Suburban and semi-rural locations are also gaining traction, driven by ongoing demand for space and greenery linked to hybrid working lifestyles. In some commuter towns, demand is pushing prices up, and investors will need to assess whether projected rents can still justify higher entry costs.

Investors from the Middle East account for 14%

Overseas investors

International interest in UK property remains strong. Buyers from North America and the Middle East remain a key part of the market. US and Canadian buyers now make up 16% of international enquiries, while investors from the Middle East account for 14%, often motivated by long-term relocation plans.

US investors made up 6.9% of purchases in early 2025 Liverpool and Manchester are drawing particular attention from overseas buyers, who are looking for value and yield. A weaker pound also increases affordability for foreign buyers. This is especially true if UK interest rates fall further.

It means areas like Prime Central London could be on the map – it already remains popular with US investors, who made up 6.9% of purchases in early 2025.

Regulatory changes The proposed Renters’ Rights Bill, which includes plans to scrap Section 21, continues to shape landlord behaviour. Some may choose to exit the market if they feel tenant management will become too restrictive, potentially creating opportunities for those who stay.

Energy efficiency is also top of mind. As new Energy Performance Certificate (EPC) regulations come into effect, landlords who act now to upgrade properties could avoid future cost spikes and position themselves more competitively. Brokers can guide clients on both compliance and

For landlords, the question centres around whether to act now or wait. Locking in at today’s rates could secure stability after years of volatility” opportunity, helping them navigate the changes with confidence.

A shift A growing number of landlords are choosing to invest through limited companies, with more than 400,000 property companies now registered in the UK. While the tax advantages – such as 100% mortgage interest relief and lower corporation tax – remain attractive, policy shifts could alter the benefits.

More than 400,000 property companies are now registered in the UK Brokers should consider raising the option with all landlord clients, weighing up the potential savings against setup costs and the possibility of future legislative change. The trend reflects a wider professionalisation of the sector, making informed advice more valuable than ever. ● September 2025 | The Intermediary

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B U Y - TO - L E T In focus

Taking complexity out of refinancing a portfolio

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n a market characterised by subdued transaction volumes and cautious sentiment, refinancing presents one of the most powerful – and underutilised – tools for landlords looking to drive portfolio growth. For brokers, it offers a clear opportunity to support clients with forward-thinking strategies that go beyond rate-hunting and deliver lasting value.

Landlords with existing property portfolios are increasingly recognising that refinancing is not simply about improving cost-efficiency. It’s about unlocking the liquidity needed to take advantage of a quieter market, where pricing is more favourable and competition for assets is markedly lower. It’s also about simplifying debt structures and creating a foundation for further diversification.

A shift One of the more significant trends we’re seeing at GB Bank is the rise of landlords expanding into semi-commercial and commercial property. Whether driven by a desire for stronger yields, broader tenant profiles, or longer lease terms, diversification is now a core component of many landlords’ longterm strategies.

This shift demands more from lenders. A significant number of landlords now hold portfolios that span traditional buy-to-let (BTL), houses in multiple occupation (HMOs), multi-unit freehold blocks (MUFBs), semi-commercial properties, and even fully commercial assets. Lenders must be equipped to assess and support this complexity, not shy away from it.

At GB Bank, we’re able to finance entire portfolios across these asset

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The Intermediary | September 2025

classes under a single facility. This not only simplifies management for borrowers, but also provides brokers with a compelling proposition. Where the value or income on the residential element of a semi-commercial property accounts for more than 55%, we’re able to apply BTL pricing, giving landlords greater flexibility without sacrificing affordability.

Now is the time to revisit those landlord clients [...] refinancing could help them achieve more, from capital release to portfolio simplification and strategic diversification” Beyond tick-box Refinancing a mixed-development portfolio is rarely a straightforward process. It requires a lender with the ability to take a nuanced, case-by-case approach, particularly when layered ownership structures, Special Purpose Vehicle (SPVs) or trust arrangements are involved. That’s where we think we stand out at GB Bank – we bring together the robustness of a regulated bank with the agility of a specialist lender providing non-regulated loans. We work in partnership with intermediaries to make complex cases work.

This is especially valuable for clients with fragmented lending across multiple institutions. Consolidating

MIKE SAYS is CEO at GB Bank

those loans into one coherent facility can unlock capital, reduce administrative friction, and deliver far greater financial clarity.

A strategic opportunity For intermediaries, refinancing presents more than just a product conversation. By identifying landlords with untapped capital or inefficient debt structures, brokers can proactively shape investment strategies, build loyalty, and deepen client relationships.

Those intermediaries who can articulate the strategic benefits of refinancing a portfolio as a whole will stand out, and with larger loan sizes often associated with property portfolios, the commercial benefits, both for client and intermediaries, can be significant.

Now is the time to revisit those landlord clients. Evaluate their borrowing landscape, understand their longer-term ambitions, and explore how refinancing could help them achieve more, from capital release to portfolio simplification and strategic diversification.

At GB Bank, we’re committed to enabling this kind of forwardthinking proposition. Whether the portfolio is residential, commercial, or a blend of both, we offer the flexibility and expertise to support it, helping both clients and intermediaries unlock potential where others see complexity. ●

Three ways we’re helping brokers and landlords grow with confidence From smarter criteria, expert support and cashback rewards, we’re helping landlords go further

Property secured on a loan may be repossessed if repayments are not maintained.

All information correct at 5/9/25. Visit our website for further information and full terms and conditions. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales under company registration no. 09872265 at Suite 101, The Nexus Building, Broadway, Letchworth Garden City, Hertfordshire, SG6 3TA.

Q&A

Target Group

The Intermediary speaks with Melanie Spencer, growth director at Target Group, about technology, evolution, and complex buy-to-let

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What’s driving the rise in limited company BTL?

How is Target supporting lenders to process complex cases?

The surge in landlords opting for limited company structures is driven by tax efficiency, portfolio scalability, and regulatory pressures.

Since the removal of mortgage interest relief for individual landlords, incorporation offers a more favourable tax position, particularly for higher-rate taxpayers. Limited companies also enable reinvestment of profits and smoother succession planning.

With tailored mortgage products and growing investor confidence, the trend appears sustainable – especially among professional landlords with long-term growth ambitions.

However, setup costs and higher mortgage rates mean it’s not a one-size-fits-all solution.

The surge has reshaped the mortgage landscape, presenting both opportunities and challenges for lenders. While tax efficiencies and regulatory advantages drive landlord interest, lenders face increasing complexity in underwriting and due diligence. Underwriting now demands dual scrutiny – not just of the company but also of its directors, often requiring personal guarantees. Affordability assessments shift toward rental income, but creditworthiness of individuals remains crucial, especially for newly formed special purpose vehicles (SPVs).

Due diligence is more intensive, involving verification of company structures, SIC codes, and tax implications. Cases with layered ownership or offshore entities require enhanced checks, adding time and risk.

Case complexity is rising, particularly with portfolio landlords, multi-unit properties, and intricate company hierarchies. Specialist lenders and tailored underwriting are becoming essential to manage risk and maintain service standards.

As limited company BTL continues to grow, intermediaries play a vital role in guiding clients through the evolving requirements and helping lenders navigate this sophisticated market.

Target Group is addressing this head-on by embedding automation and intelligent workflow technology into the heart of mortgage servicing.

Our platform supports the full loan lifecycle through configurable workflows and data-driven servicing tools. This is especially valuable for limited company BTL cases, which often involve layered ownership structures and complex financial arrangements.

By automating routine servicing tasks such as payment processing, document management, and arrears handling, Target enables lenders to reduce operational costs, improve compliance, and deliver a seamless customer experience.

Intelligent workflows guide servicing teams through nuanced scenarios, ensuring consistency and reducing training overhead. For intermediaries, this means greater confidence that their clients’ portfolios are being managed with precision and care – especially when loans become non-performing. With scalable servicing solutions and embedded expertise, Target Group is helping lenders stay ahead in a market that demands both agility and depth.

As property portfolios grow in scale and complexity, lenders face increasing challenges in servicing landlords operating through multiple limited companies or managing extensive holdings. Target Group’s portfolio management tools offer a robust solution, enabling lenders to navigate this landscape with confidence.

Our scalable loan servicing platform supports diverse ownership structures, while lifecycle management ensures consistency from origination to repayment. For landlords with underperforming assets, our special servicing capabilities provide tailored recovery strategies.

Advanced analytics help lenders assess risk across varied portfolios, and our multi-product software allows for customisation without compromising efficiency. With white-label

The Intermediary | September 2025

Q&A

servicing options, lenders can maintain brand integrity while delivering seamless support.

How does the tech improve risk management and compliance?

Technology is no longer just a tool for efficiency – it’s a strategic asset for managing risk and ensuring regulatory compliance. From artificial intelligence (AI)-powered automation to predictive analytics, digital innovation is helping firms stay ahead of regulatory shifts while improving borrower outcomes.

AI and machine learning are now central to identifying early signs of borrower distress, enabling proactive interventions that reduce defaults. Meanwhile, compliance platforms automatically track and adapt to evolving regulations.

Tech is enabling hyper-personalised messaging, while maintaining strict adherence to advertising and privacy laws. Large Language Models (LLMs) are even being used to analyse borrower conversations, flagging potential compliance risks and sentiment shifts in real time.

The result? A smarter, more responsive servicing model that balances customer care with regulatory rigour – transforming risk management from a reactive function into a proactive advantage.

Where do you see the biggest opportunities in the BTL sector?

The BTL sector is evolving through tech, sustainability, and new investment models.

Key opportunities include smart property management, green retrofitting, and tailored tenant strategies. Target is supporting this by enhancing its mortgage servicing capabilities – using data-driven insights, digital tools, and sustainability to help landlords and lenders adapt and thrive.

It’s important for lenders, banks and building societies to think about the future of changing product lines and having a diverse target operating model to cater for complex lending as specialist finance goes beyond BTL. At Target Group we have the capability to service many types of lending, including bridging, commercial,

MELANIE SPENCER

structured finance, development finance and asset finance.

Specialist finance is increasingly becoming a permanent fixture in UK lending, especially in BTL. As high street lenders tighten criteria and retreat from complex cases, specialist lenders are stepping in with flexible, tailored solutions.

While some growth is cyclical, the overall trend suggests a structural transformation in the market. Specialist finance is likely to remain a key player in UK lending long-term.

Rising interest rates and tighter affordability are driving more borrowers away from mainstream lenders and into the specialist market, which is seeing rapid growth in areas like shared ownership, retiree lending, and selfbuild mortgages. These borrowers often require flexible and tailored lending solutions.

In response, tech providers like Target Group are helping lenders adapt, manage risk, streamline operations, and deliver better customer experiences in a more demanding and regulated environment.

Scaling successfully requires embedding compliance into every aspect of operations, using tech to automate and manage risk, and offering strategic outsourcing to accelerate growth without compromising control. Our modular, scalable servicing solutions support a wide range of asset classes, while our emphasis on speed and agility enables lenders to enter the market quickly and confidently. By combining deep regulatory expertise with flexible platforms, we ensure lenders grow efficiently while maintaining robust governance and risk management.

After more than a year in the role, what is on the horizon?

Over the past year, I’ve been proud to lead initiatives that have accelerated Target’s growth trajectory and strengthened our market position. Key achievements include deepening strategic partnerships, expanding our presence, and driving innovation across our digital servicing platforms. We’ve also made significant strides in aligning our commercial strategy with evolving client needs.

Looking ahead, my focus is on scaling our capabilities in datadriven decisioning, enhancing our proposition for lenders, and continuing to foster a culture of collaboration and agility to meet the demands of a rapidly changing financial landscape. ● September 2025 | The Intermediary

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B U Y - TO - L E T In focus

Landlords are supporting the UK’s key sectors

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ontrary to common stereotypes, today’s landlords are not passive rent collectors.

Instead, they’re active investors who strategically shape their portfolios to meet local housing needs while supporting economic growth.

The most seasoned landlords draw on their experience, and newer entrants to the market can become shrewd investors by utilising the wealth of education and advice available via brokers, lenders and industry commentators.

This knowledge means that they purchase with purpose, o en focusing on locations that provide a combination of a need for flexible housing, affordable property, and long-term rental income and capital appreciation potential. That brief is o en met in postcodes near universities, hospitals and major employers – places where consistent demand underpins stable returns.

Popular postcodes Cardiff ’s CF24 postcode, which topped our latest buy-to-let (BTL) hotspot list, offers a prime example. With 42% of properties privately rented and yields approaching 9%, the area is a magnet for investors.

Perhaps even more telling is the tenant profile, with around a quarter (27%) of residents being students, and nearby hospitals including the University Hospital of Wales and Cardiff Royal Infirmary making it home to a significant key worker population. Landlords in the Welsh capital aren’t just chasing yields; they’re enabling healthcare professionals and students to access quality, affordable housing near to their places of study and work.

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The Intermediary | September 2025

This strategic focus is mirrored in Plymouth’s PL4 postcode. Home to three universities and Mount Gould Hospital, the area combines relatively affordable property with some of the UK’s highest rental yields, averaging 10.2% annually. It’s no surprise, then, that PL4 now ranks as the second most popular investment location in our analysis. Similarly, Loughborough’s LE11 is proving popular for its university-led demand and strong tenant profile, with yields averaging 8.0%.

With Plymouth leading the charge, a ractive returns can be seen across the South West more broadly, with landlords in the region achieving the UK’s highest year-on-year rental yield growth, up 0.79 percentage points to 8.06% as of the end of June this year.

Zooming out to look at England, Scotland and Wales, our lending data shows how rental yields have been robust over the past year, averaging near record highs at 7.11%.

This demonstrates how, in a market shaped by rising costs and regulation, landlords are adapting, pivoting towards areas where the numbers stack up and demand is consistently strong. And they’re doing so strategically, by buying into communities that need and benefit from good-quality rental housing.

Additionally, when we view all our top-performing postcodes through a different lens, one thing that sticks out is the dominance of terraced houses. These properties are not only affordable for investors but also adaptable. Many can be converted into houses in multiple occupation (HMOs), supporting multi-tenancy arrangements and boosting yields, while still serving as comfortable family homes when needed. They offer flexibility for both landlords and

LOUISA SEDGWICK is managing director of mortgages at Paragon Bank

tenants, which is a vital and o enoverlooked trait in a changing market.

This strategic focus doesn’t mean landlords are abandoning other types of property and turning their backs on the rest of the UK; it’s a case of their acquisitions reflecting local demand.

While terraced homes dominate in the Midlands and North, in London flats form a significant part of portfolios, which are geared towards markets that are more prominent in the capital compared to other parts of the UK – young professionals being an example that springs to mind.

According to research carried out

by Pegasus Insight on our behalf, six in 10 landlords operate in London and the South of England, and 56% only let property in the area where they personally live. While this is likely influenced by the benefits of an in-depth understanding of local markets and being on hand to address any issues, the research reveals that a notable 28% are active in other regions, too. This is a sign of an increasingly mobile landlord cohort that is willing to look beyond their own borders for the best propositions.

While this type of considered investment helps to strengthen portfolios, it also supports vital parts of the UK economy. Students, NHS workers, and employees in logistics, tech, and education rely on the flexibility and availability of the private rented sector. Landlords, supported by buy-to-let finance, are helping meet that need. ●

B U Y - TO - L E T In focus

Barking up the wrong money tree

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s night follows day ahead of the Budget on 26th November, we now have the latest rumours of yet more tax hikes on the rental market. Whether reports of plans to charge National Insurance (NI) on rental income are serious or not, we will have to wait and see.

If the Chancellor really is considering taking this step, it will be renters who pay the price.

That the Government is in a financial pickle is not disputed.

According to some estimates, the Treasury faces a £40bn black hole in the public finances.

The question is whether slapping NI on rental income should be part of the solution to tackle this deficit. Based on what we have heard, the answer to that is no for several reasons.

Unfair figures First, the numbers simply do not stack up. According to the reports in The Times, the most common property income bracket is £50,000 to £70,000.

The validity of this claim is highly questionable, given the Government’s latest English Private Landlord Survey shows that average gross rental income for landlords is £19,200 a year.

The net figure is much less.

The proposal seems to be predicated on the age-old and somewhat lazy assumption that landlords are one homogeneous mass of wealthy individuals. In reality, 93% of landlords are individuals – 45% own just one rental property, and 38% own between two and four. These are not the deep-pocketed property magnates that some imagine.

Second, the reported proposals fail the test of fairness. It will be tenants who pay the price. As the former head of the Institute for Fiscal Studies, Paul Johnson, has made crystal clear: “The more harshly that landlords are taxed, the higher rents will be.”

It is not immediately clear how that can be fair to tenants.

Indeed, as Professor David Miles, now a member of the Budget Responsibility Commi ee at the Office for Budget Responsibility, has noted, making investment in rental housing less a ractive will only push up rents, making it harder still for young people to save for a home of their own.

The NI proposal also fails the test of fairness in other ways. Some 42% of landlords cite a contribution to a pension as the reason for renting property out, meaning the rumoured changes would amount to an extra tax on pensions, at odds with the treatment afforded to other sorts of retirement provision, and in contradiction to the general encouragement to prepare for our later years.

Another 42% of landlords choose to invest in property instead of other assets such as shares or bonds. Yet NI is not paid on any other savings or investment. This would, therefore, amount to a selective tax raid on property-based savings.

Third, applying National Insurance on rental income will do nothing to support the Government’s ambitions to secure economic growth.

A support sector The private rented sector (PRS) plays a vital role in supporting swi access for many to new educational and work opportunities. A report for the NRLA by the former Treasury official and Head of Housing at Policy Exchange, Chris Walker, hights that the PRS “supports the efficient use of the housing stock for workers in proximity to places of work and, in so doing, could be supporting opportunity, career progression and productivity.”

Further data from the accountancy firm PwC also suggests that small and medium-sized (SME) landlords support almost 400,000 jobs across

BEN BEADLE is chief executive at the National Residential Landlords Association

the UK, including those in the construction and building maintenance industries. According to Aldermore bank, landlords spend an average of just over £6,000 a year on local services.

Applying National Insurance on rental income risks further slowing investment in the sector, undermining efforts to meet the demand for up to one million new homes to rent by 2031, as projected by Savills.

The Chancellor has a choice: hike taxes still further on the rental market that will only serve to hurt tenants, or take a more strategic and long-term approach. Rather than yet another piecemeal tax grab, she could reform the tax system to encourage much-needed investment in energy efficiency and supply.

She could adopt the welcome calls by the Commi ee on Fuel Poverty, among others, for the tax system to actively support and encourage the investments in energy efficiency improvements the Government wants to see in rented housing.

She could look at how Capital Gains Tax allowances could be be er used to encourage long-term investment in new, decent quality rented housing, as opposed to short-term speculative investments.

And she could consider how Stamp Duty could be reformed to encourage and support landlords to bring back into use some of the more than quarter of a million long-term empty homes in England.

The choice for the Government is stark. Back investment in the homes renters need now, or find rents hiked further in the future. ● September 2025 | The Intermediary

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B U Y - TO - L E T In focus

From challenge to opportunity

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ffordability remains one of the toughest challenges in the buy-to-let (BTL) market. Rising costs, regulatory pressures and shi ing tenant expectations are forcing landlords to think differently about how they fund and manage their portfolios.

For brokers, that means finding lenders that can adapt quickly to change and provide solutions that reflect the realities of today’s market.

I have seen first-hand how landlord needs have evolved. Most landlords we work with aren’t just chasing the lowest rate. Although costs are key, they want to know how much capital they can raise to reinvest in their next opportunity. The ability to access more leverage is o en the difference between standing still and growing a portfolio.

That’s why Redwood’s recent changes to affordability assessments have been very well received by brokers and customers, particularly in the South East where affordability and yields have been more challenging.

Lenders have a role to play in reviewing how they assess affordability regularly. Traditional approaches can hold landlords back.

If lenders look more closely at rental income and strip out unnecessary deductions, as Redwood has done, that can unlock higher loan amounts and allow landlords to release more equity, and in turn be er investment opportunities.

More lenders are reviewing their fee structures, terms and challenging stress rates alongside their credit risk modelling to help landlords meet affordability hurdles while remaining prudent.

As an example, differing fee structures such as a higher fee for a lower interest-rate product can help landlords pass stress tests more comfortably, unlocking more capital.

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The Intermediary | September 2025

For brokers, keeping pace with these changes is essential. Clients are increasingly expecting their advisers to know which lenders are most flexible on affordability and which can offer streamlined processes and quicker decisions back with certainty.

Speed and simplicity are critical, which is why Redwood has reduced the amount of information required to complete an approved application in another positive step.

A broker doesn’t want to spend time pulling together documents that a lender doesn’t actually need. If lenders can simplify applications and carry out more effective checks up front, it gives everyone greater certainty and saves time.

Refreshingly flexible I recall a case where a landlord was refinancing two semi-commercial properties with retail units below and residential conversions above.

Under older affordability models, the loan would have been capped at a lower level due to the debt service cover requirements. Redwood’s refreshed proposition, aimed at boosting affordability, meant it was able to increase the loan by around 16%, enabling the landlord to not only refinance the cost of the refurbishments undertaken, but to purchase another investment property on the same street. That shows the importance of lenders listening to brokers and being willing to adjust policy when the market demands it, and continue to do so.

One of the strongest trends I have observed is diversification.

Landlords who once focused purely on residential buy-to-let are now exploring semi-commercial and commercial property.

This diversification isn’t just about returns. It is also about spreading risk. With interest rates higher than landlords have been used to, and Government measures aimed at

MARK DOBSON is head of business development (South and London) at Redwood Bank

improving tenant protections, many investors are seeking to invest in assets that offer stability and reduced tenancy turnover.

A property let on a long lease, for example to a housing association or care provider, can deliver more predictable income than a series of short assured shorthold tenancies (ASTs). That long-term certainty is appealing at a time when costs are more unpredictable and regulations are tightening.

The future of the sector will depend on how landlords respond to further changes in tax and regulation, such as the Renters’ Rights Bill. Talk of National Insurance (NI) being applied to rental income is already on the horizon, adding another layer of cost to consider. We have seen a lot more focus and a ention from landlords on energy efficiency and Energy Performance Certificate (EPC) requirements, with more customers now qualifying for cashback under Redwood’s Green Reward cashback product.

Lenders must stay agile. We always encourage landlords to factor in the true costs of running their portfolio – whether that’s management charges, maintenance and repairs or potential tax changes. The best lenders are those who evolve their affordability models in step with the market, not years behind it.

For brokers, the message is clear.

In a tougher environment, lender choice ma ers more than ever. Those that can demonstrate flexibility on affordability and deliver smoother processes will be the ones who help landlords keep moving forward. ●

B U Y - TO - L E T In focus

Shockwaves fade as landlords get set to expand

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here is always some who have a pessimistic view of the buy-to-let (BTL) market, ready to bemoan its challenges – despite the fact it has continued to bounce back from adversity. While the obstacles are well documented, latest data from UK Finance shows that opportunities still exist and ambitious landlords continue to seize them.

In its recent buy-to-let market update, UK Finance revealed that in Q1 2025, the market saw a 38% increase in loans by quantity, and a 46% increase by value compared to Q1 2024. Alongside an increase in average rental yields, positive movement by lenders saw average interest rates drop by 10bps on the previous quarter.

Average interest coverage ratios (ICRs) are up on last year too, pointing towards greater breathing space when stress testing.

It certainly mirrors what we are seeing at Landbay, with strong levels of new applications, as well as increasing take up of our product transfer options for those looking to refinance efficiently. Some of the affordability pressures of the past few years are beginning to ease, as rates and conditions improve and lenders innovate in their products and criteria.

We are seeing less need among landlords to buy down their interest rate with higher product fee options.

While they proved valuable for brokers to help increase the borrowing potential of their clients and remain part of our range, we are moving away from 6% or 7% as the preferred choice, to where 2% is the fee of choice.

All this is hugely positive for the BTL market, the private rented sector (PRS) and the housing market, which is heavily reliant on landlords

providing great quality rental accommodation. Best of all, it’s all following the surprise jump in Stamp Duty announced in last year’s Autumn Budget – a move that was supposedly the death knell for BTL. This couldn’t be further from the truth. According our latest survey, 52% of landlords intend to buy properties in the coming 12 months.

This is a big jump from just 27% in the previous survey, which took place days a er the Autumn Budget. Now nearly two-thirds of those planning to buy say that they will just factor the tax increase into their negotiations. We also see the trend of those exploring properties further afield, in the likes of the Midlands or the North.

Perhaps anticipating what is to come when the Government eventually stops kicking the can, more than half of landlords plan to buy properties that require li le modification to meet future Energy Performance Certificate (EPC) deadlines.

Horizon scanning It’s a good example of one of the obstacles that landlords could face in the coming 12 months or more – alongside the implementation of the Renters’ Rights Bill, which still looks set to change the way landlords operate their properties.

On top of that, we are hearing of another potential tax raid by the Chancellor. This time, she could target landlords again by imposing National Insurance (NI) on rental income – which could actually put more pressure on lower rate taxpayers and impact amateur landlords.

If true, could this further expedite the professionalisation of the sector and the growing movement towards limited company or special purpose vehicle (SPV) structures?

ROB STANTON is sales and distribution director at Landbay

Nevertheless, the encouraging thing is that landlords remain commi ed to the PRS. In our most recent survey, nearly 60% of landlords told us that they had no intention to sell any of their properties in the next 12 months.

Once again, this is a clear jump from the previous survey in the wake of the Autumn Budget, and shows how far confidence has rebounded.

Of course, this isn’t the full story – some are looking to dispose of properties, either as a natural part of developing a successful portfolio or because they do intend to scale back. The sector has a role to play in supporting these landlords and giving them the confidence to not just to carry on, but to expand and succeed. We aim to play our part by giving our broker partners the tools and competitive rates to facilitate this, whether it’s those set to refinance or landlords looking to scale.

Perhaps it is that ‘bouncebackability’ and sheer resilience shown by landlords and the sector that has made it a target of the Chancellor and subsequent Governments – along with the continued anti-landlord rhetoric we hear and read in the mainstream media that undermines the hard work, dedication and significant investment of landlords.

For politicians, it’s a case of ‘abuse this at your peril’. We don’t want it to be that the vital role that landlords and rented accommodation plays in the UK’s housing mix is finally appreciated when it’s too late. For now, the signs and the data are good, and the sector remains commi ed to supporting landlords and the brokers that work so closely with them. ● September 2025 | The Intermediary

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B U Y - TO - L E T In focus

Preparing for change means working together

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he proposed Renters’ Rights Bill, which returned to the House of Commons on 8th September for its final stage before Royal Assent turns it into law, marks the biggest change to the private rental sector (PRS) in a generation. It’s an opportunity to level up the sector, but such sweeping change means we all need to work together to get the best from the new normal that the Bill will introduce.

more than 3.4 million households who don’t know what impact the Renters’ Rights Bill will have on them.

The proposed Bill’s impact will be widespread. Among the headline changes are the abolition of Section 21 – so-called ‘no fault’ – evictions, and the replacement of fixed-term assured tenancies with periodic or ‘rolling’ tenancies.

This seeks to give tenants greater stability, which it will do, but it also impacts how and when they must give notice when they wish to move. The

GRAHAM HAYWARD is managing director at Housing Hand

Again, Housing Hand’s research sheds light on the issue. We asked private renters about how they felt when renting their first home. A first rental home should be the exciting start of a new life phase. However, the renters we surveyed reported feeling overwhelmed (25%), uncertain (22%), anxious (21%) and scared (9%) when first looking for a home to rent. Just 5% reported feeling confident and 2% felt knowledgeable.

Working together

Only a collaborative effort will ensure that the Renters’ Rights Bill is implemented successfully

First and foremost, we must ensure a common understanding among renters and accommodation providers of what will change once the Renters’ Rights Bill becomes law. Our research here at Housing Hand – summarised in the ‘Understanding Renters in 2025’ report published earlier this year – has highlighted how much work is needed here.

We surveyed more than 1,700 private renters and discovered that a shocking 69% were unaware of the proposed Renters’ Rights Bill, while 75% had no idea how the proposed Bill will impact them. If we apply these findings to England’s 4.6 million households who rent privately, that’s

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current proposals in the Bill also limit rent increases to once per year, give tenants new power to challenge rent rises at tribunal and ban rent-bidding – clearly all ma ers that both tenants and landlords need to be clear on, moving forward.

The UK’s housing shortage is well documented. The Centre for Policy Studies reports a UK shortage of 6.5 million homes when the country is compared to its European counterparts. The lack of housing, coupled with an exodus of landlords from the private rented sector in recent years, has led to spiralling rents and significantly increased competition for homes.

The figures throw stark light on how far we need to go to be er support a thriving, positive rental sector here in the UK. The Renters’ Rights Bill provides us with a chance to do so, but it will require a robust and coordinated approach to spreading the word on what the Bill means and what will change. The sector needs to work together on this, hand in hand, to ensure that accommodation providers and tenants develop a shared understanding of how renting in the UK will change when the Bill passes into law.

Only with a concerted effort to gain this shared understanding will we truly be able to make the most of the Bill’s potential. And we should be clear: that potential is huge. With the right approach to implementation, the Bill could deliver a rental sector that offers greater clarity and security, supporting a fair balance between renters and accommodation providers, to the benefit of all. That’s why the coming weeks and months are so crucial to embracing all that this once in a generation opportunity for change presents. ●

The Intermediary | September 2025

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10/09/2025 09:26

B U Y - TO - L E T In focus

Landlord borrowers are going it alone

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here’s always a lot of noise around the buyto-let (BTL) market – regulation, taxation, costs, the Renters’ Rights Bill, etcetera – but it is important to look beyond this, as advisers. Certainly, within our latest Pegasus Insight Landlord Trends research, there appears to be plenty to data to support a growing number of landlord borrower opportunities that can be acted on immediately.

For me, one statistic stands out above all others: more than a quarter of landlords with buy-to-let borrowing went direct to a lender for their most recent mortgage. 20% of them did this without any advice at all.

That’s not a marginal figure. In a market where margins ma er and rates are moving, this represents a substantial population of landlords who may not be on the most suitable deal, may be paying more than they need to, and may not have the right product structure for their long-term investment plans. For advisers, it’s an open invitation to start a conversation.

The timing could hardly be be er.

Product rates have been falling in recent months, with lenders competing harder for business and broadening their criteria. The choice of products is improving, too.

At Fleet, we’ve recently launched our 55% loan-to-value (LTV) range, complementing our established portfolio and limited company offerings, as well as mortgages for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), and we’ve made changes right across our range to provide more competitive rates and flexibility.

Seizing opportunity When you put the current product environment together with the behaviour we’re seeing in the landlord population, the opportunity for advisers is clear.

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Six in 10 leveraged landlords have had a fixed-rate end in the past two years. More than two-thirds of them stayed with their existing lender, and of those doing a product transfer, 43% went direct.

That means they were probably not presented with any alternative from what’s available across the market, certainly not by an advisers, and may not know what else could work be er for them.

Looking ahead, 40% of landlords with borrowing intend to refinance in the next 12 months, with an average of 2.4 loans each. Among portfolio landlords with four or more mortgages, that figure rises to 53%, refinancing an average of three loans.

That’s a significant pipeline of refinance business for those advisers who are proactive in identifying and engaging clients before they roll onto a reversionary rate or accept whatever their lender offers.

The research also shines a light on the limited company sector. One in five leveraged landlords already has a mortgage on a property held in a limited company, and 81% of landlords with at least one limited company property have borrowing.

Yet 72% of these landlords said they didn’t know which lenders were active in the limited company space. That lack of awareness is an opening for advisers to add value, particularly as 63% of those planning to buy in the next year intend to purchase via a limited company structure.

While the purchase market is more muted, with just 6% of landlords overall planning to buy, those that have such intentions are overwhelmingly reliant on mortgage funding, with 60% using a mortgage to at least part-fund the purchase.

For the right client, lower rates, greater choice, and targeted product innovation can make the numbers work for acquisitions that might have been shelved last year.

WES REGIS is national account manager at Fleet Mortgages

Time for conversation Another detail worth noting is the debt profile of today’s landlord. The average leveraged landlord owes £673,000, with an average LTV of around 49%.

Many are paying significant sums in annual mortgage interest – £22,000 on average, or £40,000 for portfolio landlords – which means even modest improvements in rate or structure can translate into substantial cashflow gains. That’s a compelling case for an advisory review and a conversation about refinancing, especially in a falling rate environment.

What’s also interesting is how landlords choose their lender when rate isn’t the deciding factor. Across the board, minimal fees, overpayment flexibility, and service quality and speed are top priorities.

This clearly plays to the strengths of advisers who can match clients to products that not only offer a competitive rate but also meet their operational needs, whether that’s freeing up cashflow, enabling earlier repayment, or ensuring fast execution on a purchase.

The buy-to-let market will always have its challenges, but right now, advisers are in a strong position to demonstrate their worth. Rates are be er, product choice is improving, and the data shows a high level of unadvised borrowing activity.

For every landlord who has gone direct in the past, there’s an opportunity to show them the benefits of full-market advice and tailored product selection.

If you’ve been looking for a positive in the current environment, this is it.

The unadvised landlord borrower is a significant growth opportunity, and the conditions are right to act now. ●

‘Flexible options for landlords?

My giddy aunt!’

WE’VE MADE SOME GREAT IMPROVEMENTS TO OUR BUY TO LET CRITERIA — Interest Coverage Ratio (ICR) requirement for all Limited Company BTL applications reduced to 125% — HMO and MUFB applications now accepted up to a maximum of 75% LTV — HMO applications now accepted for limited company and personal name BTLs and UK expats abroad.

WHETHER YOUR CLIENT NEEDS A STANDARD, EXPAT OR LTD CO. BUY TO LET MORTGAGE, SEE HOW WE CAN HELP No minimum income

Applications accepted to age 89

No stress test on background properties

No limit on number of properties in a SPV

Max LTVs for BTLs now 75%

Expat cases accepted from over 40 countries.

We do not require personal guarantees up to 65% LTV CONTACT OUR AWARD-WINNING TEAM OF BDMS TO FIND OUT MORE:

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

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

The Interview.

The Mortgage Works

Jessica Bird speaks with Daniel Clinton, head of buy-to-let mortgages at The Mortgage Works, about the future of buy-to-let

D

aniel Clinton joined Nationwide 18 years ago, working initially on the residential lending side.

Following the merger with the Portman Building Society in 2007, he sought a buyto-let (BTL) focused role at The Mortgage Works.

Now head of buy-to-let mortgages, Clinton was inspired by a business with a “very entrepreneurial spirit” and the ability to take an autonomous approach to the BTL proposition, while still being part of a large wider business.

The Intermediary sat down with Clinton to understand The Mortgage Works’ role and evolution within a market both beset by change and integral to the UK’s overall housing ecosystem.

An important voice

One of the roles that Clinton sees as coming under The Mortgage Works’ purview is to “give landlords a voice,” in a time when they are 42

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often subject to negative stereotypes. He says: “I’m very passionate about the [private rented sector (PRS)]. I feel a personal duty to bring some balance to that debate, and I recognise how important the PRS is to the UK – whether it’s economic growth, housing people on lower incomes, or providing a stepping stone into independence.

“Without the PRS the UK would be in a much worse position than it is today. I feel compelled to help the sector in its totality, and we use the mutual brand at Nationwide, and the voice that has, to lobby for the right sustainable change in the market.”

It is not just in the headlines that landlords have faced challenges, of course. In the years since then-Chancellor George Osborne’s changes to Stamp Duty and tax relief, announced in 2015, these challenges have seemed to come thick and fast.

In some ways, Clinton argues, the PRS was in need of moderating, its growth rate being too fast to be sustainable. Meanwhile, an increased professionalisation of the landlord cohort has had some positive effects. However, he says, taken in aggregate and without balancing support, the slew of reforms seen in the past decade have been “too much, too fast,” and risk widening the demand-supply imbalance.

The waters do not appear likely to get calmer any time soon, as Clinton points in particular to the upcoming Renters’ Rights Bill and Minimum Energy Efficiency Standards (MEES).

“This creates greater problems for the tenants in terms of their future aspirations to save for a deposit, for example,” he says.

“Reforms mean extra costs, and often a landlord has to pass that onto the tenant in order to maintain an acceptable yield.

“There’s also a risk of seeing these landlords exiting the market. We’re not seeing a mass exodus yet, but the wind has definitely changed.”

Bullish buy-to-let

While challenges persist for those trying to balance property ownership with rising regulatory restrictions, the buy-to-let lending sector is seemingly going strong.

“Gross BTL lending has grown by about 25% year-on-year over the last 12 months,” Clinton explains.

I N T E RV I E W

“Overall lending stands at £37bn in the 12 months to June, compared with £30bn in the previous year.”

This growth has been grounded in a gradual reduction of rates, as well as stronger yields, leading to the ability for landlord borrowers to leverage more – all of which has improved the flow of lending.

However, this is still lower than it was prior to the onset of the cost-of-living crisis.

Clinton also explains that there is more here than meets the eye. With fewer than two million BTL loans currently outstanding in the UK, but their value remaining static, he says that the presence of larger loans is masking an underlying change in the balance sheet.

“What’s left in the market is larger loans in lower numbers,” he explains.

“Why are those loans diminishing? Part of it is that loans from 25 years ago, when buy-tolet started to come into its own, are reaching their natural maturity now. Landlords will be considering exiting their loan, potentially selling or deleveraging.

“The other reason is higher mortgage costs – this is a good opportunity for landlords to rethink their debt. There is also evidence of more cash purchases going on in the market.

That’s helping to offset the reduction in supply of BTL homes in the PRS.” Other current trends in the BTL market include a growth in lending to limited company structures, up to roughly 25% of lending.

“That’s a relatively young sector in the context of the wider BTL market,” says Clinton.

The BTL market is also “shielded” by remortgages, which means it is less reliant on purchase transactions than owner-occupier lending.

Clinton says: “In some ways, there’s always an undercurrent of good supply coming through the remortgage market, which brokers can benefit from.”

Future market trends

While it is difficult to call, Clinton estimates that 2026 will see a similar level of activity to this year for the BTL lending market, and a continuation of the same trends.

Nevertheless, the end of 2025 and the path into 2026 are clouded by uncertainty, and there are various factors that will affect the future of BTL lending, and the PRS as a whole.

First, Clinton points to the upcoming Autumn Budget, which has the potential to have a “huge impact,” with signs already emerging that “the purchase market is cooling ahead of the Budget.”

“There’s lots of speculation around, for example, property taxes – will National Insurance be added onto rents?” Clinton says.

“The market will be wary until we have more certainty on these things.”

Then, of course, there is the upcoming Renters’ Rights Bill and MEES, both expected to conclude in the coming months. Clinton asks: “What does that implementation timeframe look like? What bearing will that have on demand and activity levels?”

He continues: “There’s a lot of factors to take into account there, and then you have the underlying economic factors such as the direction of base rate.

“There are signs that the purchase market is beginning to stall – there’s a definite pause for thought among many landlords.”

Nevertheless, he adds that, even with all these obligations making it more difficult for “amateur landlords” to participate, this will create more opportunities for more professional landlords willing to take advantage of a buyer’s market.

Clinton says: “As long as we have a market with a big under-supply of property, there is always going to be a good level of demand for the PRS and buy-to-let.”

Greening the sector

For many landlords, Energy Performance Certificates (EPCs) and MEES will be heavily on their minds, and the entire industry is due to be affected by upcoming changes, for better or worse.

Nevertheless, Clinton says, the green finance proposition across the BTL market is “minimalist at the moment,” not least as the market waits with bated breath to see what expectations – and deadlines – the Government finally lands on.

He feels that this will finally see “a change in the mood and appetite” around green finance, with landlords finally kicking into gear.

It is not as simple as getting clarity on the expectations, however. Clinton argues that the sector needs “more education overall” on the subject of net zero housing.

Some of the responsibility for that lies at the feet of the Government, although landlords have an obligation to ensure for themselves they have an awareness of legal changes that might affect them, and this is a “great opportunity for brokers to provide that education.”

While there are grants available from the Government, these are subject to a plethora of criteria restrictions and variations. → September 2025 | The Intermediary

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Funding aside, one of the biggest challenges for landlords looking to adhere to future regulations is the retrofit industry itself. With 2.5 million homes needing upgrades in England and Wales alone, and a shortage of the skills and resources to do it, the current proposed deadlines will be “incredibly difficult.”

The Mortgage Works is engaged with the Government, lobbying both for longer timeframes to give landlords time to catch up, and for more clarity on EPCs themselves. There are other moving parts, of course, including the need to boost relevant skills.

Clinton says: “Everything should be joined up. You can’t set a deadline without a clear vision of the practical means to get there. It’s good to have a vision, but it has to be done in the most practical way that recognises the demand placed on different parties, including the landlords themselves.”

In the meantime, he adds: “There’s a lot of ‘no regrets’ stuff that landlords can do in advance. There are things we know are going to help drive the energy efficiency of a property, and you don’t need to wait for the rules to be published. But there are other areas where it’s more nuanced, and people may be inclined to wait before digging deep in their pockets.”

Leading the way

The Mortgage Works’ approach to helping landlords navigate an increasingly complex market is to provide as comprehensive a range as possible, picking up on trends early. For example, the lender has served the limited company sector for nearly eight years, an area otherwise dominated by specialist lenders, although now seeing the entrance of other high street names. Its range also does not just cater for those with a ‘professionalised’ approach, but a broad spectrum of potential borrowers.

In order to keep a healthy and diverse cohort of landlords in the market, Clinton sees the importance of keeping The Mortgage Works’ customer base as broad as possible, within sensible risk boundaries.

“Ultimately, our affordability policy is guided by the underlying economics,” he continues.

“That backdrop has now allowed us the opportunity recently to reduce our lowest stress rates down to 4% below 65% loan-tovalue [LTV]. That will support opportunities for landlords – and their brokers – dealing with lower yields, such as in areas like London.”

While the range is “very comprehensive,” some limitations protect the strength of the lender’s books, such as the assertion that “rentals must stand on their own two feet,” 44

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meaning The Mortgage Works does not offer top-slicing. It also closely monitors future rent escalation and pay rate predictions, regularly revisiting cost assumptions, all of which has “helped feed through into a really strong credit performance on our book, where we have some of the lowest arrears rates in the industry. That supports confidence in the policy we set.”

In terms of its green proposition – another area of intense focus for many in the PRS – The Mortgage Works offers further advance options at a reduced rate for existing customers looking to make green improvements to properties, and has done so for some time. However, Clinton says at the moment, demand for these products is low across both BTL and residential, likely due to ongoing uncertainty around EPCs and energy efficiency.

Overall, Clinton says, The Mortgage Works approaches its proposition as a “very much intermediary-focused brand.”

He explains: “We have a large and expert sales team with national coverage, and we’ve been supporting brokers through thick and thin for the past 25 years, all the way back to the Credit Crunch when there was a massive exodus of lenders in the BTL space.

“We’ve been supporting brokers and their lender clients as a consistent presence, right the way through various credit cycles.”

Strong foundations

Clinton attributes some of this consistency to the lender’s access to retail deposits rather than being reliant on wholesale funding, as well as its strong foundations as a mutual.

Part of Nationwide’s ethos as a mutual is to “support all forms of housing tenure,” balancing all aspects and using its breadth of expertise to help enact positive and sustainable change.

This means that the BTL arm takes a prominent role in Nationwide’s overall business strategy, with the plan being to continue evolving the proposition in future as new trends, challenges and borrower needs emerge.

This evolution includes ongoing enhancements to its Limited Company proposition, including API integration with Companies House for a more seamless broker experience, and expanding its criteria, such as accepting inter-company loans and nondirector shareholders, and more.

Clinton concludes: “We’ve got more than 30 years of really good experience in the market, a really good handle on who we lend to, and doing so responsibly, and that has been a backbone for us, giving us the confidence to continue supporting this market.” 

RESIDENTIAL Opinion

Affordability challenges are here for the long-term

A

ffordability is a defining theme for the market at the moment, and there are no signs this will change for the foreseeable future. We are seeing previously tight ‘risk handcuffs’ being loosened by the regulator, which of course makes originating easier, those in charge of back-book activities such as arrears and special servicing are ensuring strategies and systems are fit for purpose.

The challenges for borrowers are real. To put today’s economic environment into perspective, UK inflation is forecast as high as 4% by the end of 2025, versus a 2% target.

The announced 2% rise in the energy price cap took many by surprise, and is a reminder that inflationary pressures remain unpredictable.

Combined with elevated food and other household costs, this makes affordability a long-term concern for lenders and consumers alike.

Payment shocks One of the biggest risks over the coming months is the ‘payment shock’ facing borrowers as they come off historically low fixed-rate deals.

From June 2025 to 2028 Q2, 41% of mortgage accounts (3.6 million) are expected to refinance onto higher rates, according to the Bank of England, which will undoubtedly put pressure on many borrowers’ wider financial resilience.

Today, while arrears remain relatively low, possessions have started to tick upwards, which could indicate that lenders are taking a firmer stance on arrears management and more importantly, book loss recovery.

The regulator and Government are

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watching this closely, but the message for lenders is clear: affordability risk is not just about who you lend to today, but how you support them throughout the life of the loan. This is within the parameters of relatively new legislation on treating customers fairly (TCF) and Consumer Duty, which were not in existence the last time lenders needed to seriously consider increased portfolio risk.

Caution without fear Some are drawing parallels between 2008 and now, but none of this is cause for alarmist predictions of a repeat of the Global Financial Crisis (GFC).

Today’s mortgage market is far better capitalised and better regulated, and overall, we have a much more stable financial system than existed 17 years ago. This is one reason why arrears have not risen sharply in recent quarters, despite some households feeling the strain.

But lenders would be right to approach the year ahead with caution.

Economic volatility, inflationary uncertainty, and the risk of rising possessions all underline the need for proactive risk management.

Role of automation Technology has a crucial role to play in this environment. As volumes of customer enquiries and contacts increase, manual servicing processes need to be avoided in a market where volumes could shift quickly and where regulatory expectations are still very high in terms of dealing with borrowers thoroughly and fairly.

Modern servicing platforms handle the routine aspects of case management automatically – from communications to workflow allocation – freeing human teams to focus on the cases that require

RICHARD PIKE is chief sales and marketing officer at Phoebus Software

Today, while arrears remain relatively low, possessions have started to tick upwards” judgment and empathy. The same applies across collections, where automation can ensure consistency, reduce error rates and deliver a fairer experience for customers.

For lenders, this means being able to scale quickly, adapt to changing market conditions and evidence robust processes to the regulator.

For borrowers, it means clearer communication, more consistent outcomes and the reassurance that they will be supported through financial difficulties.

Looking ahead Affordability pressures are not a shortterm shock but a structural reality of the current economic cycle. Interest rates may fall later than many had hoped until inflation is under control, but the legacy of higher borrowing costs, unpredictable inflation, and increased household vulnerability will be with us for some time, as it has in previous similar economic cycles.

Lenders cannot eliminate these pressures, but they can mitigate them by a combination of the right automated servicing technology combined with exceptional customer interaction and service. ●

RESIDENTIAL Opinion

Brokers back FCA reforms, lenders must step up

T

he mortgage market is at a crossroads.

Borrowers’ lives are more complex than ever, yet too many struggle to find products which address and support that complexity. The Financial Conduct Authority’s (FCA) Mortgage Rule Review has brought fresh energy to the debate about how the industry should evolve, and brokers are sending a clear message: reform and innovation cannot wait.

We recently surveyed 500 brokers across the UK, and the findings were striking. More than three-quarters (78%) support the FCA’s review, reflecting broad agreement that rules must catch up with the realities of modern borrowers.

Brokers are also calling for lenders to act: 61% want new products that better support a wider variety of borrower circumstances, while more than half (52%) believe lenders are simply too slow to innovate.

Changing landscape It’s easy to see why. The neat categories of employment and income that once underpinned underwriting have broken down. Today’s mortgage applicants are far more complex and include gig economy workers, freelancers, entrepreneurs juggling multiple income streams and households that don’t fit traditional structures. Yet what we hear from brokers is that too many underwriting models still rely too heavily on rigid definitions of income and affordability.

Brokers, who sit at the front line of these complexities, know how often customers with perfectly manageable finances are excluded because their circumstances don’t fit outdated

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boxes. That’s why they are pushing for more flexible lending, tailored support for complex or vulnerable borrowers and the use of technology to streamline mortgage applications.

These measures are seen as critical to modernising the sector and delivering better outcomes for all borrowers.

This isn’t about chasing trends or stretching risk appetite. It’s about recognising that the sector will struggle to support the homebuyers of tomorrow if it doesn’t adapt.

Brokers see this first-hand: customers being turned away not because they can’t afford a mortgage, but because the system isn’t built to accommodate them.

The role of the review The FCA’s consultation offers a timely opportunity to address these gaps. By encouraging a broader approach to affordability and promoting inclusive product innovation, the review could help reset expectations across the market. But regulation can only go so far. The real change has to come from lenders themselves.

That means designing products that serve people in non-standard employment. It means embracing underwriting processes that consider multiple income sources. It means using technology to simplify, not complicate, the mortgage journey.

And it means working hand in hand with brokers, whose expertise is essential to navigating complexity while maintaining consumer protections.

One point must be crystal clear: brokers are not just part of the system – they are critical to the process working successfully. As a 100% intermediary-led building society, we see daily how brokers bring clarity, trust and choice to customers in an

AARON SHINWELL is chief lending officer at Nottingham Building Society

Too many [lenders’] underwriting models still rely too heavily on rigid definitions of income” increasingly complex market. That’s why we oppose changes that fragment trust, confuse roles or dilute the role of advice. Brokers are critical to ensuring customers not only find the right product but also understand it.

Their role must remain protected in the long term.

Time to act Lenders now face a choice. They can treat the FCA’s review as a compliance exercise, tweaking processes while leaving product design largely unchanged. Or they can see it as an opportunity to reshape the market in ways that reflect the financial lives people increasingly lead.

At Nottingham Building Society, we are choosing the latter. For us, innovation doesn’t mean abandoning prudence; it means finding new ways to balance flexibility with responsibility. It means designing products that expand access without creating risk for borrowers or the wider system. It means partnering with brokers to ensure the solutions we develop genuinely meet customer needs.

If we are serious about supporting sustainable homeownership, we must innovate – responsibly, collaboratively and with brokers at the heart of the process. That is the only way to build a mortgage market that truly works for today’s borrowers. ●

RESIDENTIAL Opinion

T

he surveying profession finds itself at a critical juncture. On one side lies an unprecedented surge in regulatory scrutiny, safety expectations, and retrofit demand.

On the other, a chronic mismatch in workforce availability is threatening to stall progress. The popular narrative says we’re facing a surveyor shortage.

While there’s truth to that, it isn’t the whole story.

The Royal Institution of Chartered Surveyors (RICS) estimates that while the UK has around 100,000 chartered members, demand outstrips supply by roughly 20,000.

To focus solely on workforce numbers is to misdiagnose the problem. The real bottleneck isn’t people, it’s evidence. More precisely, the absence of evidenceready inspections and reports that can accelerate decision-making, streamline regulatory submissions, and reduce costly rework.

A shifting landscape The challenges facing the UK’s surveying and construction ecosystem are both structural and systemic.

According to recent RICS data, infrastructure may be the one relative bright spot in terms of projected growth, but across the wider market, project pipelines are being squeezed. Regulatory complexity, planning delays, and labour shortages continue to dominate conversations.

Digging deeper into the data, however,

reveals nuance. The often-cited decline in the number of surveyors, drawn from Office for National Statistics (ONS) business demography statistics, doesn’t directly measure qualified professionals, it measures enterprises.

When firms consolidate, merge, or evolve into multidisciplinary entities, it can look like the profession is shrinking, even if the boots on the ground haven’t changed.

If we conflate business consolidation with a talent exodus, we risk designing the wrong solutions.

What is undeniable, however, is the demographic challenge. The average UK surveyor is around 55, according to RICS, and many are approaching retirement. Without new entrants and digital enablement, the sector risks losing capacity faster than it can replace it.

RICS found that 47% of firms identified surveyors as the most acute skills gap across the built environment.

Even if the headcount holds steady, the nature of surveying work has transformed dramatically. The introduction of the Golden Thread, PAS 9980:2022 for fire risk appraisals,

SIÂN HEMMINGMETCALFE is operations director at Property Inspect

and PAS 2035:2023 for domestic retrofit, has ushered in a new era of evidence-based accountability.

Surveyors are now not only expected to provide expert judgement, but to do so backed by accessible, traceable, submission-ready data consistently and at scale.

The profession is now being asked to shape this shift formally: RICS has

RESIDENTIAL Opinion

launched consultations on both an updated Home Survey Standard and a potential home survey regulation scheme. These reviews seek clearer definitions of survey levels, better integration of sustainability, and digital-first reporting – all directly aligned with the evidence bottleneck being faced within the surveyor sector.

The regulatory logjam The pressures of compliance are tangible. The Building Safety Regulator, tasked with enforcing postGrenfell reforms, is overwhelmed.

Of the 2,108 Gateway applications submitted between October 2023 and March 2025, only 338 were approved – a success rate of just 16%. The average turnaround time has ballooned to 25 weeks, with some cases dragging on for over eight months.

This bottleneck is not just a bureaucratic inconvenience; it’s a tangible barrier to progress. London’s Q1 2025 housebuilding figures, the lowest in 16 years, tell a sobering story

of just 1,210 starts – a fraction of the proposed annual goal of 88,000. When approval workflows slow down, the housing crisis deepens, costs escalate, and investor confidence erodes.

The Construction Skills Network projects that the UK will need more than 225,000 additional workers across the built environment by 2027 (1,500 will be surveyors – CITB Breakdown), underlining that this is not just a planning or regulatory issue but a systemic capacity challenge.

but it would drastically cut down on the time spent repackaging reports for compliance purposes, time that could be spent doing more valueadded work.

At Property Inspect, we see this shift already underway. Surveyors who work with structured metadata, PAS-aligned templates, and integrated capture tools are delivering evidence, not just reports. These professionals aren’t just surveying; they’re building trust, compliance, and momentum.

Evidence-ready inspections

Reframing capacity

Here’s where we need to flip the script. The fastest way to increase surveying capacity isn’t just training more professionals – a long-term, expensive process. It’s ensuring that the professionals we do have are empowered to produce Golden Thread-compliant, submission-ready outputs from the moment they leave the site.

Imagine a world where inspections are templated, photographic evidence is geolocated, material data is tagged at source, and reporting tools are integrated across disciplines.

Not only would this reduce the risk of human error and revisits,

The term ‘surveying capacity’ needs redefining. It’s no longer just about how many surveyors we have. It’s about the volume of compliant, decision-ready information those professionals can produce. Capacity, in this sense, is a function of enablement.

It’s time for the industry to stop treating compliance as a bolton and start seeing it as built-in.

That means investing in digital workflows, standardising inspection methodologies, and embedding data integrity at the point of capture.

We need to empower our existing workforce with tools that scale their expertise and free them from repetitive, manual admin tasks.

The question isn’t whether we have enough surveyors. It’s whether those surveyors are equipped to deliver evidence at scale.

Until we close that gap, the profession will keep misdiagnosing a skills crisis, when what we really face is an evidence crisis. ●

Meet The BDM

West Brom Building Society

The Intermediary speaks with James O’Donnell, business development manager (BDM) at West Brom Building Society How and why did you become a BDM? I’ve been in financial services for quite a while now, starting in the industry at 21, so that’s 16 years of experience under my belt. My journey began at Santander, where I worked my way up through a variety of roles. By the time I left, I’d been both a relationship manager and a mortgage adviser.

It was during my time as a relationship manager that I realised how much I enjoyed working with people and building trust. Helping 52

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clients manage their finances and developing that deep level of trust gave me a real buzz.

Becoming a mortgage adviser took it a step further and I loved helping people into their first home or supporting them to move into their dream property. It was still about building relationships, but with a more tangible outcome: seeing someone get the keys to their new home. Moving into broking with Countrywide gave me a fresh perspective, exposure to the whole of market, different client backgrounds, and a chance to broaden my knowledge. I was also

able to put my studies in financial planning and mortgages to good use.

I really enjoyed brokering, but during Covid-19, balancing client demands with family life became difficult. I’m a ‘yes’ person by nature, and couldn’t say no to calls at 7pm.

That’s when I began to look more seriously at becoming a BDM. I’d met plenty of BDMs as a broker and thought I had the personality for it, since I like meeting people, learning about them, and, yes, I enjoy the sound of my own voice too!

I joined Metro Bank as a telephone BDM and spent over two years there.

It was a great experience. But I knew

MEET THE BDM

I wanted more face-to-face contact, because that’s where I really get my energy. That’s when the opportunity at West Brom came up, and it just felt like fate.

What brought you to West Brom?

Interestingly, it wasn’t a job advert that first caught my eye. I was speaking to a broker about a case involving a teacher whose income came from a bursary. The broker told me how West Brom’s policy worked brilliantly for those situations. And that really stuck with me.

Not long after, I saw the BDM role advertised and it felt like the right opportunity. My son was about to start school, freeing me up to get back out on the road. And, after learning more about the society and its policies, I knew it was the right next step.

What makes West Brom stand out?

For me, it’s the ethos. From the moment I walked into head office, I felt it. On my very first day, I spent 40 minutes chatting with someone I met in the lift, a complete stranger who just struck up a conversation.

That kind of friendliness is infectious, and it mirrors the way we present ourselves to brokers.

Of course, policy matters, but it’s our affordability approach that makes us stand out. And, ultimately, it’s the human touch that makes West Brom different. We genuinely take an interest in both the individual and their business, and that comes through in every interaction.

What are the challenges facing BDMs? The pace of the market is intense.

Lenders are making frequent changes to products and policies, sometimes weekly. If you’re not careful, you can quickly be overlooked in favour of a new competitor. The only way to stay front-of-mind is through

relationships. For me, that means being accessible and responsive. I’ve made it my personal rule to respond to every call or email the same day, even if it’s just to acknowledge the query. Brokers know they’ll hear from me, and that reliability builds trust, which makes a huge difference in such a fast-moving environment.

What about the opportunities for BDMs? I think we have a real chance to be difference-makers. It’s not just about driving business into the society, it’s about genuinely supporting brokers and helping their businesses grow.

If you take an interest in their wider business, you can become more than just a point of contact for cases; you can become a trusted partner. That helps builds loyalty, and when their business grows, so does yours. It’s a win-win.

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

For me, it’s about being quick, attentive, and honest. If a case doesn’t fit, I’ll tell the broker straight away. It might feel disappointing to hear ‘no’ quickly, but it’s far better than waiting three days for a rejection. That way, they can move on and place the case elsewhere without losing time. On the flip side, if there’s a way to make it work, I’ll dig in and rework the case to find a solution. Brokers have described me as someone who always goes the extra mile, and who takes a genuine interest in your business. That means a lot, because it sums up the approach I try to live by.

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

Simple: trust your broker. The mortgage market is more complex than ever, and it changes constantly.

Even as a BDM, I don’t claim to know everything, but a good broker does the research and has your best interests at heart.

Ask questions, absolutely, but remember that their advice is there to guide you through what could otherwise be an overwhelming process. Trying to go it alone in this market is a recipe for stress. A broker can remove barriers, explain things clearly, and help you reach your goal of owning a home.

What should people know about you outside of work?

First and foremost, I’m a family man. My wife and son are my world, and most of my free time is spent with them, having fun and enjoying life.

Beyond that, I’m a huge music fan, especially pop-punk and rock.

Festivals are my escape. There’s nothing better than spending a day immersed in live music. It’s the perfect way to recharge.

So, whether it’s at home with my family or in a muddy field at Download Festival, that’s where you’ll find the real me. 

Established 1849

Products ◆ Low deposit mortgages ◆ New-build and Shared Ownership ◆ Cashback mortgages ◆ Higher LTV lending Contact details 07968513308 james.odonnell@westbrom.co.uk September 2025 | The Intermediary

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RESIDENTIAL Opinion

Rayner’s fall exposes a system stuck in the past

A

ngela Rayner has had to resign a er admi ing she underpaid about £40,000 in Stamp Duty on an £800,000 apartment she bought in Hove.

She is said to have told tax authorities that her flat in Hove was her main place of residence. She took her name off the deeds of a property in her Greater Manchester constituency only weeks before purchasing the flat.

The deed changes supposedly allowed her to pay £30,000 in Stamp Duty instead of £70,000, which would have been applied if the Hove property was her second home.

Ultimately, she had to resign a er it became clear she had breached the ministerial code.

I am not going to excuse her because she was facing various personal complexities – although divorce is clearly a tricky time for anyone. But I am tempted to take a slightly more lenient view because I think this episode raises broader questions about tax complexity and the intricacies of the wider property market.

For most people, purchasing a property is the single biggest transaction of their lives. Yet in the UK, the system for doing so remains painfully archaic, riddled with delays, uncertainty and needless expense.

Compared with other developed western countries, our conveyancing process, for example, feels like a relic of a slower, more bureaucratic age.

The first problem is speed – or rather, the lack of it. In the UK, it takes around five months, on average, from making an offer to completion, although the entire process, from working out what you can afford, finding a place to ge ing the keys, can typically take six to 12 months.

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Chains of buyers and sellers o en collapse because one weak link pulls out a er months of waiting.

Compare that to countries such as Denmark, where digital land registries and standardised contracts allow transactions to be completed in as li le as two to four weeks.

Germany, meanwhile, benefits from the involvement of notaries who act as neutral arbiters, ensuring contracts are watertight and binding from the moment of signing.

Costs and efficiencies The process itself is also strikingly analogue. Much of UK conveyancing still involves posting documents, waiting for searches to come back from local councils, and manually checking title deeds. In Canada or the Netherlands, digitised systems allow title searches and land registry checks to be completed online within hours, not weeks.

No wonder the Open Property Data Association (OPDA) is trying to change the way people buy and sell houses by implementing open data standards and encouraging transparent data sharing across the property industry.

Then, there is the issue of uncertainty. In Britain, until ‘exchange of contracts’ happens – o en weeks a er an offer is accepted – either party can walk away without penalty. Gazumping and gazundering remain common frustrations. In France or Spain, once a buyer signs a preliminary contract, they usually pay a deposit of 5% to 10%. Pulling out without good reason means losing that money, so both parties are incentivised to see the deal through.

Costs are another sore point. British buyers pay solicitors for conveyancing, surveyors for inspections, and o en multiple rounds of fees if chains

RICHARD SEXTON is commercial director at HouzeCheck

Archaic, riddled with delays, uncertainty and needless expense” collapse – though of course, one of the benefits of buyers paying for a survey is that the sunk cost helps lock them into the deal. In the US, while costs can also be high, competition among title companies and widespread use of title insurance streamline the process and provide certainty for lenders and buyers alike.

Calls for reform in Britain are not new. The Land Registry has made strides towards digitisation. But the pace of change is pre y glacial.

For a nation that prides itself on being a global financial hub, the fact that buying a modest semi-detached house still involves navigating a Victorian paper trail is a bit embarrassing.

We are doing our part. The average time it takes HouzeCheck to get a report completed and delivered is between two and three days – not bad considering a building survey takes a day to complete. Recently, we completed a valuation on the same day it was ordered.

And that’s before we get to the tax code! Rayner’s downfall may have hinged on Stamp Duty, but the real lesson is how tangled and opaque the entire property system has become.

If even a senior politician struggles to navigate the rules, what chance does the average buyer have? The overlap of outdated conveyancing, byzantine tax codes and endless paperwork makes missteps almost inevitable. ●

YOUR SECRET INGREDIENT FOR MORTGAGE SERVICING www.targetgroup.com

RESIDENTIAL Opinion

The future is bright for the mortgage market

I

t’s shaping up to be another interesting year in the mortgage market. Stamp Duty incentives for first-time buyers were removed in March and interest rates haven’t come down as quickly as expected. Growth and inflation continue to prove challenging, and there is evidence of slowing housing transactions, with some reporting a slight dip in prices.

However, the sector consistently demonstrates great resilience, and I remain confident in the market’s ability to react, flex and thrive.

The fact is, despite some ongoing volatility, we’ve had a very good summer as an industry, and there’s a lot of positivity from brokers, who have adjusted to the new mortgage interest rate reality – including the realisation that a return to the 2% examples of the recent past is unlikely.

Brokers are helping borrowers understand that what we’re seeing today is likely to be the new norm, bringing more consistency and stability in place of the ‘sit-and-wait’ approach some were employing in the hope there would be further significant falls.

The bo om line is that people are still looking to buy homes. Product transfer and remortgage volumes have also remained strong, keeping brokers busy. The fla ening-out of rate volatility has brought fresh calm and reduced the need to keep reworking cases, allowing brokers to focus on deepening personal support and exploring new business opportunities.

Much of the optimism is also driven by the affordability changes we’ve seen this year, which lenders are starting to react to, such as the loan-to-income (LTI) limit review and the regulator’s clarification of its rules around affordability calculations.

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These have provided lenders with greater flexibility to lend, where previously they were restricted, for example, by LTI caps. This allows them to formulate their own risk appetites and lending strategies to help borrowers in the best way.

The clarity provided by the regulator also means that lenders can deploy the best possible interpretation of the rules. We’re now able to lend borrowers on average 15% (£37,000) more as a result of changes we’ve made in response to the updated guidance.

This, coupled with the LTI changes, unlocks the market for those who had perhaps given up trying to get onto the property ladder, believing they just couldn’t borrow enough.

Customer contact The feedback we’re receiving suggests there are people out there who still don’t realise what the recent changes could mean for them, and therefore it’s our responsibility – and that of our valued broker partners – to make them aware.

We can help brokers with this through content such as our Growth Series, which can support with customer contact strategies, and social media advice to target new audiences.

Business development teams can also help explain the actual difference this will make to clients.

All this is fantastic – but we can’t ignore the fact that by creating fresh demand for property, these changes could also start driving up house prices – especially if that demand exceeds supply. This would affect people at all stages of the housing cycle, and is why it’s so important for the Government to deliver on its house building promises in order to create fresh supply, as well as reviewing its policies on things like property taxation to

JEREMY DUNCOMBE is managing director of Accord Mortgages

encourage more people to move.

Those looking to downsize may be put off by the prospect of Stamp Duty, which is why we’ve lobbied for change in this space via our policy paper, ‘Home Improvements’. Having a strong voice from lenders is important to help to fix some of these challenges.

At Accord, we’ve always tried to ensure we’re at the forefront of product and service innovation, and we’ve had some great successes in the past six months – including being one of the first lenders to review our stress interest rate, and announce changes in response to the LTI review.

We hope that these things, alongside changes to our new-build proposition to lend up to 95%, and the introduction of parity pricing to remove the new-build premium across all our products, have made a genuine difference to borrowers’ prospects.

We’ve also provided support for underserved groups through our most recent change, which enhances criteria for those who do not have indefinite leave to remain, and changes our rules for the acceptance of Universal Credit.

But as ever, there’s more to do for all market participants – from the Government to regulators, lenders and brokers.

For us, this means constantly looking at how we can continue to support underserved borrowers, focusing on product innovation and lobbying for further industry change.

My hope is that the increased stability we’ve seen recently can be maintained, allowing the industry to keep the good work going. ●

RESIDENTIAL Opinion

Borrowers need pragmatism

L

ast month, we announced the very welcome partnership between The Beverley Building Society and TMA Mortgage Club. The society’s customer-focused approach is one that more people are needing every day.

With job security and a sense that companies are increasingly reticent about taking on older – and more expensive – staff into senior roles, it’s pushing many into self-employment.

That brings with it more complex income streams just at a time when borrowing past retirement age is becoming a necessity for ever more of us.

Generational support The environment for younger borrowers is no less complex – they too need access to mortgage finance that adapts to real-life circumstances, especially where they don’t fit the mould.

This is where Beverley’s range offers advisers another, very valuable, string to their bows. Their offering includes 100% mortgages using parental property as security, interestonly options with no minimum income threshold, and affordability assessments based solely on interestonly terms.

This pragmatic approach is increasingly common among organisations that offer manual underwriting. It means mutuals like the Beverley can consider 95% loanto-value (LTV) mortgages via credit search and have products tailored to self-employed borrowers, foster carers, contractors, multigenerational households and buyers of agerestricted retirement properties.

Applications are judged on individual merit rather than rigid criteria.

For borrowers facing purchase or refinance in a market dominated by the ‘big six’ high street lenders, it can

feel as though there are few to no options available to them if they don’t immediately fit bank criteria. Most people have a low awareness of smaller building societies, and regional societies in particular.

Yet with a tradition of helping their members become and stay homeowners that goes back hundreds of years, it’s these lenders that will take the time to understand customers to make that happen.

Many now offer mortgages designed to support borrowers who need a bit of help from loved ones to make their homeownership dream a reality. From family-assisted, shared mortgage arrangements, gi ed deposits and guarantor mortgages to joint mortgage, sole proprietor arrangements, mutuals can work with brokers to structure a deal that works for the borrower’s personal needs.

Traditional guarantors are also o en accepted and assessed for affordability in the same way as borrowers themselves by societies such as the Beverley.

Joint borrower, sole proprietor arrangements allow between two and four applicants on the mortgage with only the occupiers named on the title.

The non-occupier borrower must be able to individually afford at least 50% of the monthly payment at the affordability stress level. The primary borrower (occupier) needs to be able afford the remaining element.

Intergenerational support goes both ways, from parents and grandparents wanting to help younger family members, to adult children assisting their parents in ge ing a mortgage for their later years, where their pension income won’t quite stretch.

Manual underwriting can provide nuance in areas where other lenders may struggle.

Self-employment is also growing faster among older workers, especially those in their mid-60s and above, according to the Centre for Ageing

ROB MCCOY is senior product and business manager at TMA

Be er. More than half of people aged 70 and over who are still working are self-employed.

Flexible and pragmatic criteria can o en be the difference between people’s decision to even apply for a loan. The rise of the gig economy has been swi , with research from StandOutCV suggesting there are now around 1.7 million people in the UK with some form of income coming from a so-called gig. They found one in six adults in the UK currently works a gig job at least once a week. Almost half also have a full-time job and, for 72%, gig work makes up less than half of their income.

With such a radical shi in people’s income and affordability pa erns, lenders are increasingly split into two camps: those that want nothing to do with what they view as complex cases and those, o en mutuals like the Beverley, which are commi ed to considering applications on a case-bycase basis according to its merits.

Exceptional work It’s our job as a mortgage club to ensure brokers have access to all the solutions for clients who, let’s be honest, are very individual in their requirements.

Today’s mortgage market may feel very familiar but the context around it is very different in terms of the issues facing individuals.

This is why we are working hard to partner with as many lenders as we can to meet those growing, exceptional cases. ● September 2025 | The Intermediary

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In Profile.

Q&A

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Jessica Bird speaks with Nick Robinson, CFO at TAB

ick Robinson joined TAB in December 2024. His career has been “driven by curiosity,” and includes a decade as finance VP at Mastercard. He brings regulated CFO experience that has been invaluable in navigating TAB’s fundraising journey.

With experience in telecoms, airlines, payments and more, Robinson has a unique perspective on how the world works beyond financial services, and a vital ability to get under the hood of a new market, asking “Why do you do it that way?” rather than holding to the status quo.

The Intermediary caught up with Robinson as he nears a year in the job, to discuss TAB’s growth trajectory, his vision for the business, and the continued rise of specialist lending.

Executing the vision

When Robinson joined, TAB was wellestablished and ready to take the step into this next phase of growth under his guidance. He describes the feel of the business as “moving to change, full of energy.” In Q1 of this year, the firm went to market for funding and attracted responses from numerous institutions.

He says: “I was excited by TAB’s vision to become a mainstream lender supported by a tech-enabled, highly experienced team.

Mainstream means supporting brokers to serve all borrowers from low to high complexity.

Becoming mainstream requires access to material and flexible funding.

“Serial entrepreneurs Duncan Kreeger and Stephen Wasserman have successfully grown lending businesses, and I am confident in their ability to repeat that success.”

In September 2025, reinforcing this confidence and helping to hone its vision, TAB secured an impressive £500m facility from funds managed

by AB CarVal, marking its move to focus not just on bridging, but the wider specialist mortgage market. The facility is multi-year, funding both TAB Mortgage and TAB Bridge in a combined pool.

The transaction, as Robinson puts it, is “not just about alignment on vision and the attractive risk and reward opportunity for CarVal.” It included thorough due diligence across the firm’s people, processes, controls, and technology.

He continues: “CarVal met with our people, reviewed our policies, processes and controls, and explored our technology. The feedback has been 60

The Intermediary | September 2025

extremely complimentary and has given CarVal the confidence to invest in TAB. “TAB has lent over £650m to date, building and deploying proprietary, scalable technology that enables every part of the process that we undertake from first contact with a broker, powering each application through underwriting to completion, and servicing our loan book and borrowers thereafter. We are incredibly proud of the institutional validation of the TAB organisation and continue to invest to ensure we can effectively deploy funding from investors to borrowers that meets the needs of all.”

The choice of funder also took a lot of thought, Robinson says: “We chose to progress our core financing with CarVal based upon a combination of the flexibility of the funding, competitive pricing and the opportunity to build a long-term partnership with a joint vision.”

While there are further opportunities to work with several of the other investor options in the future, “further validating [its] capabilities and readiness to scale,” the partnership with CarVal will remain “at the heart of TAB.” In practice, this long-term funding structure will allow TAB to price its products competitively, provide a joined-up journey from bridge to mortgage, ensure “faster and smarter” loans throughout their lifecycle.

Robinson adds: “The structure supports TAB’s NICK ROBINSON private investors for whom we wish to continue to offer attractive investment propositions, either as participants in the institutionally backed facility, or through direct loan ownership.”

Deploying technology

One of the aspects of TAB’s proposition that held up well under scrutiny by CarVal was its approach to technology and artificial intelligence (AI), which is not only a key part of the proposition, but deeply shaped by the firm’s own values and expertise.

Robinson explains: “TAB has built its own platform with an in-house team that has a deep understanding of lending, and each component of the process that TAB goes through to support borrowers, brokers and investors.

“The experience of the entire team has been codified in our technology, and the TAB platform underpins all our activities and maintains a complete record of actions and associated documents.

I N P RO F I L E

“We continue to invest in automation to optimise our responsiveness to brokers and borrowers. The application of AI extends our ability to underwrite loans and deploy investors’ funds, intelligently balancing risk and reward.”

For brokers, this also lends itself to speed – which is of the utmost importance in the bridging market, in particular.

“We turn applications into terms within 24 hours,” Robinson continues. “We can then rapidly complete loans – however complex.

The technology enables expert underwriters to execute lending solutions that safely meet borrowers’ needs, and provide the risk-adjusted returns for investors that attracts them to deploy funds with TAB and in property-backed loans.”

While the future will likely see some loans become fully automated, Robinson is clear that human oversight is still core to TAB’s culture.

He says: “TAB will retain a human touch for all loans, be it oversight or the ‘sleeves rolled-up’ development of solutions for more complex cases.

A key part of the TAB culture is each member of the team being onsite, sharing experiences and learning journeys.”

Facing market challenges

For Robinson, now is the right time for TAB to scale, bring its solutions to an “increasingly wide set of borrowers,” and expand its proposition, due not just to business confidence, but market need, especially as mainstream lenders retreat from this type of lending.

He explains: “High street banks have been closing branches and reducing their high street presence for many years. Borrowers have become comfortable directly approaching specialist finance brokers rather than their bank manager for loans.

The gap is only going to continue to widen.”

The specialist sector is an increasingly important part of the puzzle, Robinson explains: “The market needs lenders that can bring funding at scale, with the resilience and longevity of institutional backing, at the right price and with the flexibility borrowers require.

“TAB has the right products, and by working closely with brokers and borrowers can structure deals that meet borrowers’ needs, with a quality of underwriting that robustly manages risks and rewards for all involved.”

This is not just about filling a gap left by other lenders, but helping to navigate the headwinds subduing the UK property market, which Robinson says is “currently a tough place to do business,” despite providing a “robust source of value” for investors that are able to access the right leverage.

In a “challenging property market, with pressure on asset valuations,” Robinson says that the all-

important UK entrepreneurial base is in particular need of support, among a wide range of borrowers.

He explains: “The mainstream banks typically limit lending to borrowers with established businesses. We can underwrite a variety of loans backed by a variety of properties. We are also able to act quickly for borrowers for whom funding is time critical.”

Meanwhile, there are other hurdles, such as improving energy efficiency and contributing to the march to net zero, all of which place specialist lenders like TAB firmly at the forefront.

While he himself is “excited to get out from behind the desk and fine-tune products,” Robinson says: “We’ve invested in our sales and underwriting teams so we can help borrowers structure deals that work for them.”

With funding structured to adapt to future trends, TAB is balancing its growth ambitions with market headwinds by leveraging technology, experience, and investor confidence.

Next on the agenda

TAB aims to be a one-stop shop for bridging and specialist mortgage lending. For brokers, this means competitive pricing, speed, and risk-based underwriting. For borrowers, Robinson cites a commitment to positive outcomes across the full loan lifecycle.

He says: “TAB has the diversity, flexibility and longevity of funding to serve borrowers throughout the lifecycle of their investments. We actively engage with borrowers from application to redemption to ensure positive outcomes.”

While there may be those that have yet to engage with TAB, as it expands into new markets and sets about working with a new cohort of brokers, the message is clear. This is “a peoplefirst business.” Robinson says: “We are more than happy to spend time with brokers to explain how we operate, and we want feedback from brokers as to how we can continue to develop and improve our products and service.”

To build this engagement, he adds, the firm is “at the start of a multifaceted campaign to bring TAB to everyone’s attention,” and encourage brokers to engage with social and digital media, get in touch, and find out more.

Robinson’s focus is now shifting to deploying that investment – and the confidence it demonstrates – as effectively as possible in a changing and often turbulent market.

He concludes: “This will mean listening to brokers and borrowers, directly and through TAB’s sales and underwriting teams, to understand what we need to develop and ensure we have the right products and funding available as our customer’s needs keep evolving.” ● September 2025 | The Intermediary

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

Unlock more property deals with bridging

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he UK property market rarely stands still, but right now, those moving parts are particularly dynamic.

Foreign ownership of UK property is on the rise, with the latest Benham & Reeves figures showing 189,793 homes now in overseas hands, a 2.6% increase in just a year. Hong Kong, Singapore, the United States and China remain the dominant players, with China posting the sharpest growth at +12.9%.

This isn’t a one-way street. UK investors are increasingly active overseas, seeking returns, lifestyle properties, or strategic diversification in markets from southern Europe to North America. These cross-border flows are shaping demand for fast, flexible finance and bridging can be a useful tool to get deals like these over the line.

In the UK, a slower market has le many property sellers in limbo – or forced to question their desired price and drop to a more realistic level.

The Bank of England cut interest rates from 4.25% to 4% in August. It is the fi h reduction within the last 12 months and takes rates back to where they were in March 2023. This will stir buyer activity, especially if further cuts come this year. But in the meantime, bridging has always been one way to unlock stalled transactions.

Specialist sectors are also in flux.

Since the post-pandemic holiday let boom market, holiday let licensing has seen some lenders exit the market, while others have tightened criteria. For borrowers who need to refinance, refurbish or purchase in this sector, bridging may be the solution where mainstream appetite has cooled. Meanwhile, the buy-tolet (BTL) market is quietly regaining

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momentum. With average rental yields now at 7% and mortgage rates down to 5.09% for new BTL loans, demand is particularly strong in cities like London, Bristol, and Glasgow.

The right opportunity This combination of market opportunity and constraint is fertile ground for bridging, particularly when a lender can look across asset types and respond quickly.

Recently, we supported a client who owned a commercial warehouse but wanted to raise capital to fund the development of four new flats in London. Traditional funding routes would have required either selling the warehouse or arranging longform development finance. Instead, we were able to take security over the commercial asset and advance £614,250 at 65% loan-to-value (LTV), releasing the funds in time for works to begin.

This ability to straddle commercial and residential purposes shows the breadth of options brokers can offer when they work with a lender with multi-asset expertise.

Bridging is also proving increasingly valuable for those aforementioned internationally minded investors. One experienced landlord recently sought to buy property abroad but needed to release funds quickly from an existing UK buy-to-let to secure the deal. By using an automated valuation model (AVM), we kept valuation costs low and advanced £650,000 at 65% LTV, secured solely against the UK property.

The refinancing was completed swi ly, enabling the overseas purchase and expanding the client’s portfolio beyond the UK. In a climate where UK investors are becoming more globally active, this kind of cross-border agility is only going to become more relevant.

ROZ CAWOOD is managing director of property finance at StreamBank

Work the deal What underpins each of these examples is the same set of strengths.

The ability to lend against residential, commercial, or mixed-security portfolios; the flexibility to use AVM, desktop or full valuations; and the consistency of competitive pricing.

The inclusion of title insurance also removes many of the common legal bo lenecks, meaning completions can happen in weeks, not months.

For brokers, this means more solutions to present to clients. For clients, it’s about certainty. That’s the certainty they can secure the property, release equity, or move their project forward on time.

Looking ahead, the interplay between domestic and international property investment is likely to intensify. The UK remains a ractive to foreign capital, with robust rental yields and a currency that still offers relative value to overseas buyers.

At the same time, British investors are continuing to look outward, particularly in response to domestic tax changes. If the Bank of England makes further rate cuts before year-end, we could see even greater transaction volumes, but speed and flexibility will remain at a premium.

Bridging is uniquely placed to deliver in this environment. It’s not just a stop-gap or a last-resort product.

It’s a strategic tool that can unlock opportunities and navigate market complexitiesb In a market where timing can make or break a deal, having the right tools for the job and the right partner to deploy them is essential. ●

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

Every bridge starts with the exit

B

ridging is no longer a fallback. It is now a core part of structured investment strategies, helping brokers reposition portfolios, fund refurbishments and act quickly on opportunities. This shi has opened the door to be er outcomes for clients and given brokers a bigger role in shaping those journeys.

One thing, however, has not changed: the importance of planning the exit from the very beginning.

Bridging is designed to be short-

Brokers tell me that the smoothest cases are always the ones where the exit has been discussed from day one.

It changes the whole dynamic of the deal, because everyone knows what the end goal looks like.

This is where bridging adds real value, and where lenders can support not just the first step, but the bigger picture.

Exit in mind Choosing the right lender is about more than headline pricing. The lenders who stand out are those who

Exits should be an integral part of bridging finance

term. It gives clients flexibility and access when they need it, but it only delivers its full potential when there is a clear plan for what comes next.

Whether the exit is via refinance or sale, that conversation needs to start at entry.

Getting strategic The brokers who stand out are the ones who start with the exit in mind.

Will the property be sold? Retained?

Will it need a specialist term product?

Mapping the transition before the bridge is agreed shapes everything from the works schedule to the valuation approach.

understand how deals evolve and who structure the bridge with the refinance in mind. That means knowing what a term lender will need for the exit to be possible and building that into the plan from the outset.

By anticipating these requirements, brokers can give their clients the comfort of knowing there is a credible route out of the bridge, whatever the scenario.

The bridging market is active, with new entrants arriving regularly.

Competition is healthy, but conversations with brokers always return to trust. They value lenders with experience and stability, but also

ANDREA GLASGOW is sales director – specialist mortgages and bridging at Hampshire Trust Bank

those who are upfront about what a term lender will expect. That honesty early on can save brokers from difficult conversations later.

Add value The clients who benefit most from bridging are those who see where it fits in their wider plans. Brokers lead that conversation, structuring for both now and next.

That might mean a light-touch refurbishment with a term refinance lined up, or a larger conversion where the exit will need a more specialist product.

Increasingly, brokers are also using bridging to help reposition portfolios where timing and criteria would otherwise block progress.

In every case, direct access, flexibility and consistency from lenders help keep projects on track.

In today’s market, the ability to support both the bridge and the exit is becoming an expectation.

Lenders with the right processes to make that transition straightforward will stand out in a crowded space.

An exit sign For bridging to deliver real value, the exit has to be more than an assumption. It must be part of the plan from day one.

Brokers who build the exit into every conversation give their clients real confidence and make the whole journey smoother. In a competitive market, that kind of joined-up thinking is what sets great brokers apart. ● September 2025 | The Intermediary

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

Why now could be a smart time for heavy refurbs

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uilding costs have dominated investor conversations in recent years, and rightly so. The sharp rise in construction and materials inflation following the pandemic created significant headwinds for those looking to add value through refurbishment. But that landscape is starting to look different.

The latest data from the Building Cost Information Service (BCIS) shows that building costs are forecast to rise by 14% between mid-2025 and mid-2030.

That might sound significant in isolation, but in real terms, it represents a relatively modest 2.66% compound annual increase – lower than general inflation, and a world away from the double-digit spikes seen at the height of supply chain disruption. There was even a brief fall in material prices earlier this year, before forecasts returned to a more gradual upward trend.

For experienced property investors, this more stable cost environment could mark the return of the heavy refurb. Projects that were previously shelved due to unpredictable materials inflation may now be worth revisiting.

This is particularly relevant where there’s an opportunity to create value through structural change, conversion under permi ed development rights, or enhancement of existing stock into higher-yielding formats such as houses in multiple occupation (HMOs) or multi-unit freehold blocks (MUFBs).

Timing ma ers. When cost inflation is high, the margin for error narrows and unexpected delays or budget overruns can quickly erode returns. But when inflation fla ens, even temporarily, investors are in

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a stronger position to plan with confidence, price more accurately, and build in realistic contingencies.

The broader market conditions are also worth considering. Rental growth has slowed significantly, with recent data showing annual rent inflation at its lowest point in over three years.

At the same time, supply is starting to increase. While demand for rental property remains strong, landlords are no longer operating in a market where steeply rising rents are a given.

Investors must focus on the quality and appeal of their assets to maintain occupancy and protect income.

That’s where refurbishment has a key role to play – not only in adding capital value, but also in a racting higher-calibre tenants, reducing void periods, and creating properties that stand out in a more competitive rental market.

For brokers, this opens up an opportunity for fresh conversations with investor clients.

Is now the right time to move forward with a project that was previously delayed? Do the current market conditions present an opportunity to lock in costs and improve the rental profile of a portfolio? And importantly — is

ANNA LEWIS is commercial director at Castle Trust Bank

the funding structure in place to support phased development over a longer timeframe?

One of the trends we’ve seen at Castle Trust Bank is the high demand for facilities that allow staged drawdowns, enabling borrowers to access funds when they’re needed during the build, rather than paying interest on the full amount from day one.

That kind of approach can be particularly useful on large or phased refurbishments, helping to preserve capital and reduce unnecessary costs.

In response to this demand, we built drawdowns into our Heavy Refurb proposition, and it’s proven to be one of the most popular elements of our proposition.

With building cost inflation slowing, rental market dynamics shi ing, and demand for high-spec rental properties rising, there’s a strong case for brokers to help clients reassess their pipeline.

The opportunity may not lie in waiting for the perfect moment, but in recognising when the conditions are good enough to move forward with confidence. ●

From derelict to decorated: The opportunity for heavy refurb is on the rise

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

Buying without planning

H

ow many small to medium (SME) developers say planning delays are their biggest barrier to growth? 93%, according to the most recent Home Builders Federation survey. We all know the story: delays, spiralling costs, and the kind of Ka aesque circus that makes you wonder how anything gets built at all.

They say the system is changing, but until then, developers must navigate it to get much-needed housing delivered.

So, the question remains – does your client buy a site with planning, or without?

The ‘oven-ready’ route Purchasing a consented site has obvious appeal. Your client knows the costs, gross development value (GDV), cashflow and funding from day one.

They can break ground quickly, avoiding months of waiting while interest accumulates.

But these sites come at a price.

Sellers capture the planning upli , o en with ambitious valuations, and competition is fierce. Margins get squeezed, and you may have to work within someone else’s vision for the scheme, making amendments where possible to unlock value.

Risk and reward Acquiring land without consent brings the headache of the planning system. Local authority processes vary wildly and holding costs stack up while interest accrues. In the worst case, you can be le with a site with li le or no development value.

That said, this is where much of the profit sits. As the saying goes: you make your money on day one.

Securing full planning upli can deliver outsized returns. Many developers of late have chosen not to build out at all, but instead to cash in on consent and bank the gain.

There’s also the upside of control – shaping the design, density and best use of the site to fit their strategy, not someone else’s.

WILL CALITO is sales executive at Magnet Capital

The middle ground Between the two extremes sit option agreements and conditional contracts.

These allow your client to agree on a price but only complete once planning is secured. They avoid an upfront outlay and reduce risk, although they may pay a premium for the flexibility.

Still, for many SMEs, this can be a smart way to build a pipeline and secure long-term value.

The bottom line Whether your client buys with or without planning depends on their capital, risk appetite, and financial strength. Overage agreements must also be watched carefully as they can eat into future upli s.

What is clear is that with the right team around you, good advice, and a clear plan mapped out, both approaches can work. ●

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September 2025 | The Intermediary

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

Back-to-school: Taking stock ahead of the new year

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s the industry returns from the summer lull, and the backto-school feel hits the country, it is an opportune moment to take stock of the residential development landscape.

A er a challenging period for developers, the need to assess lessons learned, recalibrate strategies, and prepare for what lies ahead has never been more important.

Our aim is to support developers [...] and seize opportunities even in the most testing market circumstances” Rising material costs, persistent inflationary pressures, and recent changes to employee national insurance have all compounded the pressures on developers. Construction wages increased by 4% in the year to June 2025, up from 3.8% in the 12 months to May, reflecting the reality of rising operational costs across the sector.

Output has slowed significantly.

Energy Performance Certificate (EPC)based tracking shows new home completions fell 9% compared with the previous 12 months, marking the lowest annual volume since September 2016. Sales completions have also so ened, reaching levels not seen since 2017 for transactions up until December 2024. The introduction of new Stamp Duty Land Tax (SDLT) rules in April 2025 adds further

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SEAN BROPHY is chief commercial officer, business finance at Triple Point

complexity, with early indicators pointing to continued caution among developers and buyers alike.

Regional performance Areas with lower price points and stronger affordability are experiencing healthier completion rates, while London and the South East continue to experience the most pronounced challenges. In these markets, higher sales values reduce flexibility to pursue alternative exit strategies such as build-to-rent (BTR) or private rented sector (PRS) developments.

Lower yields and refinancing constraints requiring significant equity input that further limit options. Yet experience shows that these regions are o en the first to rebound, with house price growth triggering a ripple effect across other regions following London’s lead, suggesting that the current slowdown may be temporary.

Buyer demand trends offer further insight into the decisions developers are having to make when they begin projects. Terraced and semi-detached homes continue to dominate transactions, followed closely by detached properties. Flats and maisone es have seen weaker activity, reflecting both the removal of Help to Buy and increasing mortgage affordability pressures for firsttime buyers.

These pa erns are consistent across our loan book and our broader market contacts, confirming the pressures developers face and reinforcing the need for careful, data-led decision-making.

This evolving environment has underscored the importance of adaptability and informed judgment when deciding which projects to take on or fund. Our approach combines

experienced lenders, portfolio managers, and credit specialists with the use of advanced data analysis and artificial intelligence (AI). This allows us to assess trends, anticipate risks, and structure deals that protect downside while enabling projects to progress. It is this focus on insight, flexibility, and collaboration that allows us to support developers effectively in challenging conditions.

We have had to adapt our offering to meet the realities of the current market. Our emphasis is on enabling developers wherever possible, identifying ways to structure transactions that work within prevailing constraints and help projects reach completion.

In an environment defined by complexity and uncertainty, the ability to adapt, anticipate shi s, and find inventive solutions is more important than ever. Our aim is to support developers in navigating these conditions, helping them to progress their projects confidently and seize opportunities even in the most testing market circumstances. ●

Shouldering lessons learned from a market in flux

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

To lend or not to lend, that is the question

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ven though the Bank of England lowered the interest rate recently, it hasn’t stopped the overwhelming evidence that the UK’s finances are far from ‘stable ground’.

Apart from the inevitable challenges surrounding mortgage funding in the medium to longer term, a more immediate issue comes into focus.

This concerns how lenders measure income considerations in the here and now for potential borrowers, as well as their future prospects for continued employment in the longer term.

With the economic outlook looking decidedly gloomy, and a property market very different from the post-lockdown boom period, many prospective buyers – struggling with cost of living rises – pose a different underwriting challenge to lenders.

Lenders must satisfy themselves that the customer not only has the ability to repay, but also the ongoing intent to do so.

Underwriting has always been a balancing act between the application of lending criteria, judging the customer’s circumstances and their past history, and how it all adds up to them being a ‘good payer’ over the mortgage term. In these days of lending by algorithm, it is refreshing to see more lenders across the lending spectrum no longer reliant on the ‘computer says no’ school of underwriting.

In the second charge sector particularly, underwriting generally remains a more human experience, with an emphasis on the client’s individual circumstances as much as slavishly following the criteria guide. Leaving aside the property being sound and valued correctly, underwriting still boils down to

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two main elements, ability to repay and looking at past and present creditworthiness.

Lenders have to consider normal affordability protocols, but how does that fit with the current circumstances of higher costs of living?

Inflationary pressures on the costs of basics like food, gas and electricity – allied to a job market that has stagnated with salary freezes becoming more common – does not give people much room for manoeuvre when budgeting.

Lenders see many cases where the customers can evidence affordability at the time of their application, but what about their ability to repay when household costs are increasing?

While economic downturns have been a fixture over the past 30 years or more, every lender needs to keep a weather eye on potential future issues that could affect the ability of customers to continue to maintain mortgage payments.

Provided the customer qualifies on today’s criteria, taking into account current surplus requirements and stress tests, then the lender is perfectly entitled to lend.

However, lenders need to be constantly aware of the allencompassing compliance oversight by the regulator under Consumer Duty. The likelihood of a challenge of their lending stance, even at a previous time, is an ever present concern.

While the regulator is currently working on removing some of the ‘blocks’ to lending put in place a er the Credit Crunch, there is no guarantee that will extend to the retrospective analysis of lenders’ underwriting.

Funding is not currently a problem in today’s market, and lenders and their funders are keen to lend.

LAURA THOMAS is regional sales manager at Equifinance

[In second charge], underwriting generally remains a more human experience, with an emphasis on the client’s individual circumstances” Underwriting, though, is key to making sure that ‘good’ lending is paramount, and that caution is at the forefront of lenders’ minds.

With the housing market cooling, the next challenge is almost upon us. If house prices drop – and some pundits have claimed that a drop of 10% is not beyond a reasonable estimate – it poses an added challenge on top of affordability and intent to repay.

It could be argued theoretically that this is a clear indication of potential financial stress with which lenders are going to have to contend – and all without the benefit of a crystal ball.

In the second charge market, and especially at Equifinance, our a itude is to take a common sense approach and rely on the experience and knowledge of our underwriters – backed up by the increasingly effective credit checking facilities available to us.

By not relying on affordability tests, we can still steer a more consistent course, through which advisers can feel that their clients are being assessed fairly, without compromising underwriting integrity, and still satisfy the regulator. ●

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

Understanding second charge customers

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s a second charge lender, we are commi ed to understanding who our customers are and how we can create solutions that meet their needs.

The second charge market has always played an important role in providing financial flexibility, yet it is o en misunderstood. For brokers, the real opportunity lies in recognising the types of customers who may benefit from a second charge mortgage and ensuring they are properly served.

What we see consistently is that second charge borrowers are not a single type of customer, but a collection of different profiles – each with their own motivations. By sharing some broad insights into these groups, we hope to help brokers spot the signs within their own client base.

Families seeking financial breathing room One clear group we see are customers who have steady incomes, but are weighed down by short-term debt, the payments on which are hampering their ability to meet their financial goals. For these families, a second charge mortgage can be a lifeline – helping them consolidate unsecured debts into a more manageable monthly repayment.

Middle-aged professionals with career stability Another common profile is established professionals in their forties and fi ies. Many in this group have built up significant equity in their homes, but their borrowing needs have shi ed. They may be looking to fund home improvements,

support children through higher education, or invest in additional property ventures. For these customers, a second charge mortgage can provide a straightforward way to access capital while leaving existing mortgage arrangements untouched.

Older households managing later-life expenses We also see demand from older households – o en ‘empty nesters’ or parents whose grown up children have returned home a er time away.

Many in this profile are financially comfortable, some even with higher household incomes, but they still want that flexibility.

Whether it’s to assist children onto the property ladder, help with family weddings, or make significant lifestyle upgrades, these customers value the ability to raise funds in a way that doesn’t disrupt long-term financial plans.

Single earners and young couples starting out At the other end of the spectrum, there are younger households – either single income earners or couples who have started on their property journeys. To build up significant savings, they may have aspirations that they would like to fund sooner rather than later.

For these customers, a second charge can provide the means to invest in their first renovations, help with the costs when starting a family, or consolidate debts.

Why this matters These are just a few of the customer profiles that benefit from second charge mortgages, but hopefully they illustrate that the customer is not the

CHRIS BENNETT is product manager at Interbridge Mortgages

‘last resort borrower’ stereotype. They are o en stable, aspirational, and creditworthy individuals with very specific needs that are underserved by the traditional market.

Identifying these profiles within your client base can unlock valuable opportunities – not only for business growth, but for delivering the right outcomes for your customers.

Meeting evolving needs At Interbridge Mortgages, we continuously review our products to ensure they reflect the realities of today’s households. We recognise that flexibility, speed, and transparency are crucial. But just as important, we are commi ed to developing solutions that can support a broad range of customer circumstances – whether that’s families wanting to reduce their monthly outgoings, professionals seeking investment, or older borrowers looking for more flexible options.

The second charge market is evolving, and brokers are at the heart of connecting customers with the right solutions. By understanding the different types of clients who may benefit, you can ensure that when the need arises, you’re ready to have the right conversation.

Second charge mortgages are not a niche solution; they are a versatile tool that, when used responsibly, can make a meaningful difference. As brokers, you have the unique ability to identify opportunities that others might overlook. Together, we can ensure that no customer segment remains underserved. ● September 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

Brokers need the full picture

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ater life lending has become one of the most talked-about areas of the mortgage market, but too o en it is still reduced to a single product category: equity release.

While equity release is an important solution for many, this narrow lens can confuse consumers, constrain brokers, and slow innovation.

Later life lending is a diverse and evolving market with multiple solutions designed for borrowers aged over 50, and education on the full range of options is key to helping brokers deliver the right outcomes to customers.

Looking beyond For years, the term ‘later life lending’ has been used interchangeably with equity release – also known as lifetime mortgages. Yet four out of the five loan types for over-50s are not equity release products. Options such as retirement interest-only (RIO), capital and interest repayment mortgages, and interest-only products are all available.

This ma ers, because when brokers and consumers think only of equity release, other flexible and costeffective solutions may be overlooked.

Equity release has its place, but it

should be considered alongside other tools to build advice that is tailored to individual needs.

The cost When education falls short, everyone misses out: Consumers may not be shown the most suitable product because they don’t know it exists.

Brokers risk narrowing their advice, sometimes inadvertently, to the products they are most familiar with.

Lenders face slower innovation if the market continues to be framed too narrowly.

The Financial Conduct Authority (FCA) already encourages advisers to consider a broad range of options, but without the right knowledge, sourcing systems, and confidence, those principles won’t translate into the best outcomes for clients.

Heart of advice Broker education is the linchpin of a stronger later life lending market. It should focus on three areas: 1. Clarity of definition – Advisers must understand that later life lending is an umbrella category covering all new borrowing in and beyond retirement, not just equity release.

A piece of the puzzle: Focusing on equity release risks missing the other solutions available

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LEON DIAMOND is founder and CEO at LiveMore

2. Holistic advice – Training should emphasise assessing the full financial picture: pensions, annuities, employment income, savings and family responsibilities.

This shi s the conversation from products to people.

3. Confidence with complexity – With an expanding suite of products and hybrid offerings, brokers need the tools to compare options transparently. Technology, such as LiveMore’s Mortgage Matcher®, can help brokers navigate this landscape quickly and compliantly, but education ensures they use these tools effectively.

Education matters The UK’s ageing population is financially diverse. Many older borrowers are still working, receiving mixed incomes, supporting younger family members, or looking to move later in life.

They need advice that reflects this complexity. If brokers aren’t equipped to offer it, consumers will continue to fall through the cracks.

Later life lending is not a niche; it is a rapidly growing and key element of the mortgage market. By equipping brokers with knowledge of the full suite of options, the industry can ensure advice is genuinely customer-centric and aligned with Consumer Duty.

The opportunity is clear, but it depends on brokers having the education and confidence to guide clients through the full spectrum of later life lending options.

Equity release remains a valuable part of that picture, but it is only one piece. The real priority is giving brokers the tools and training to see – and share – the whole picture. ●

L AT E R L I F E L E N D I NG Opinion

Lifetime mortgages: Secret weapon against IHT

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t first glance, Inheritance Tax (IHT) and lifetime mortgages may not appear to be inextricably linked, but in practice – and certainly as legislation changes – they are increasingly intertwined. For advisers, they are now a ‘must have’ in the client solution toolkit.

IHT is a big revenue generator for HM Treasury, with the most recent data from the Government showing it brought in £3.1bn between April and July this year. To put that into context, not only is it a record high, but it also represents an increase of £229m compared with the same period last year.

What’s more, IHT is only likely to become a bigger concern for clients.

And it’s now not just a concern for the obviously wealthy.

Last year’s Budget adapted the assets which are considered when assessing the value of an estate, bringing undrawn defined contribution (DC) pensions and death benefits into the calculation. Coupled with freezing the IHT thresholds, and the ongoing rate of house price growth, this means far more households are going to face IHT bills.

Analysis from the Office for Budget Responsibility (OBR), released through a Freedom of Information request, predicts that 150,000 households will face a bigger bill, while 30,000 estates will be liable for the tax, which otherwise would not have been the case.

The tinkering with the rules may not be finished either, with speculation in the national press recently of further changes to be announced in the upcoming Budget, potentially around gi allowances.

Inheritance Tax is already an incredibly unpopular levy, despite the fact that comparatively few estates actually pay it. The prospect of a larger bill, or even an IHT bill at all, will focus the minds of a growing number of homeowners who may want to find a way to mitigate the demands of the taxman. That’s where a lifetime mortgage can play a role.

Short and long-term Lifetime mortgages have long been utilised by homeowners in order to make the most of their housing wealth in the here and now. Unlocking equity can allow them to carry out home improvements to match their changing needs, or perhaps to supplement the pension they have built up during their working life.

As house prices have grown, and first-time buyers have faced a bigger challenge in accessing the market, some homeowners have opted to use the sums raised through the lifetime mortgage to pass on financial support to loved ones, giving them a helping hand onto the ladder.

This offers all of the potential benefits that could come from downsizing, but without the upheaval or the pressure to find the right property in the right location.

But it’s also becoming clear lifetime mortgages can support those who are also keen to mitigate their eventual Inheritance Tax bill.

Unlocking housing wealth not only opens up new opportunities in the present, but can reduce the size of the borrower’s estate so they face a lower IHT bill, and in some cases no bill at all.

Make partnerships count For advisers, this is therefore a prime moment to position themselves as

DAVE HARRIS is CEO at more2life

the go-to help with all elements of property, including estate planning.

Of course, whenever tax is a priority for clients, it’s important for advisers to have tax specialists with whom they can work. While advisers can signpost the benefits lifetime mortgages can offer, there needs to be a tax adviser involved when it comes to the actual calculations.

It’s a good example of how partnering with the right firms can ensure clients receive the best possible experience. For some advisers, lifetime mortgages themselves may feel a li le out of the ordinary, and again partnerships can provide the answer. Aligning with a later life specialist means you still have a quality option for older clients, without having to go through the required assessments and qualifications yourself.

Given the ageing population and the a ention of the regulator, advisers need to be able to present older clients with the full range of options open to them, and partnering with a specialist may be worth considering.

A er all, irrespective of what happens with IHT, older homeowners will continue to want help in utilising their housing wealth. Advisers do not want to miss out on that opportunity.

The sooner these conversations start, the more options clients will have and the more value advisers can deliver. ● September 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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systematic challenge is emerging within the financial advice industry, as further reports come to light about cracks in the advice process, leading to vulnerable customers slipping through the net and potentially resulting in serious consequences.

This year, the Financial Conduct Authority (FCA) reported that only 40% of vulnerable customers – who may be facing emotional, financial, health-related or other concerning challenges – disclose their personal circumstances to their financial adviser, and even fewer are encouraged to share them.

As a result, these customers report negative experiences within the industry, as opposed to non-vulnerable customers whose experiences of the market are significantly higher.

Early identification The growing gap in how firms identify

and support vulnerable customers is a rising concern, as vulnerability still gets treated as an exception, as opposed to being a core component to the customer process and experience.

Predominant factors contributing to this blind spot appear to be around systems for monitoring vulnerable segments, cross-company data sharing of vulnerability identifiers, misalignment of company policies against the FCA’s Consumer Duty and vulnerability guidance, inadequate consideration of vulnerability in equity release products, and insufficient training and tools for advisers, among others.

Further disparity has come from Schroders Adviser Pulse Survey this year, which revealed that an astonishing 95% of financial advisers believe that less than 25% of their customer base is vulnerable.

While our internal data aligns much closer with the broader reality of the Equity Release Council’s (ERC) reported industry average, it’s evident

MARK GREGORY is CEO and founder of Equity Release Group

that a proactive and continuous approach to identifying vulnerability throughout the customer journey is required.

Refining and improving This is a primary focus for us at Equity Release Group. Our latest data identified 46% of our customers as being vulnerable – a statistic we don’t shy away from.

L AT E R L I F E L E N D I NG Opinion

This all starts with the right culture, putting the customer front and centre” We encourage open, honest and proactive discussions around this, to ensure that our customer journey isn’t merely an exercise, but a core component of providing responsible financial advice throughout.

Delivering a good customer outcome for all, including those who find themselves in a vulnerable situation, has taken us time to craft, but we are relentless in our commitment to customer wellbeing, which extends beyond the call of Consumer Duty.

Bridging the gap The ERC has emphasised that protecting vulnerable customers is a key priority, and we too remain committed to setting the standard for customer care. We have designed robust and comprehensive systems, built to be fit for both current and future regulatory requirements, including the demands of Consumer Duty.

This all starts with the right culture, putting the customer front and centre, and providing good outcomes at all costs. Implementing the steps below, as we have done at Equity Release Group, will I believe result in heightened protection for vulnerable customers, as well as empowering every customer along the way. We need this consistency across the

industry so that the customer, now and always, takes priority. ɐ Extensive training: At Equity Release Group, we have a specialised in-house training academy to ensure that all new entrants to the business receive quality training, and continuously thereafter. This ensures advisers can recognise, help, and guide potentially vulnerable customers, or customers who find themselves in a vulnerable situation or time in their life. ɐ Monitor outcomes: A strong vulnerable customer policy that is reviewed annually, kept up-to-date and current is crucial. ɐ Client agreements: A document that encourages customers to tell the adviser if they want them to make any adjustments to the advice process. ɐ Accountability: Open questions, asking the customer if they have had any traumatic events in the past 12 months or if they would like the adviser to adapt the advice process. ɐ Intuitive fact-find: A fact-find that flags potential vulnerability or sign-posts potential vulnerability to advisers automatically. At ERG, we have an extensive vulnerability assessment that all advisers need to complete with every single customer. ɐ Quality control: All cases that trigger a potential vulnerable

customer are 100% pre-checked by quality control to ensure that the advice is correct. It also ensures that the customer’s voice is evident within the file explaining why they are happy to continue, as well as the adviser’s voice also explaining why they are happy to continue advising them. ɐ Responsibility and duty of care: All advisers must confirm that their customers have a very good, sound understanding of the plan they have recommended and there are no signs of coercion. ɐ Overall customer journey: Many of our online customer tools, such as smartER™, capture various elements of vulnerability before an adviser engages with them to further help and support the identification process.

Our rigorous systems and checks mean our process can take a little longer, but it allows us to proceed with caution and identify potential vulnerabilities that might otherwise be overlooked.

We know the financial advice industry is increasingly recognising that it has underestimated how many customers are – or can quickly become – vulnerable, and underestimated the effort required to support them properly. We now all need to move from recognition to robust, systemic inclusion. ●

September 2025 | The Intermediary

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L AT E R L I F E L E N D I NG Opinion

Make it easier for advisers with older clients

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uch of the mortgage market discussion centres on firsttime buyers.

Affordability, deposit hurdles and product innovation aimed at younger borrowers tend to dominate debates, yet there is an equally significant demographic whose needs cannot be overlooked: older homeowners.

The UK has an ageing population.

Many of those in later life still require access to finance, whether to refinance existing borrowing, manage intergenerational wealth, or release equity to support their retirement. Their demand for suitable products, and for quality advice, is not diminishing.

That represents a terrific opportunity for advisers, and also a challenge for networks. We need to step up to support advisers.

It’s encouraging to see the way lenders have recognised the need to improve their propositions in order to meet the needs of older borrowers.

The latest was Newcastle for Intermediaries, which removed its age cap entirely on standard mortgages – a recognition that the previous way of doing things was stunting options unnecessarily for older borrowers.

This trend is to be welcomed.

Lenders have begun to appreciate an evolving borrower profile, and are acting to ensure they are not arbitrarily excluded from the mainstream market.

Such innovation represents an important step forward, and should be viewed as part of a broader movement to make products more inclusive.

There is clearly a lot of work to be done, however. A recent mystery shopper exercise by the Family

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Building Society revealed a wariness among some lenders, particularly the high street giants, to work with borrowers who are more mature or even retired.

As an industry, we can’t bury our heads in the sand. Borrowers are ge ing older, and the sooner lenders of all sizes not only accept this reality but adapt their processes, then the be er we will all be.

Looking beyond Mainstream mortgages will not always provide the appropriate solution. For some clients, a specialist lifetime mortgage will be the be er route, allowing them to unlock some of the housing equity they have built up. That way, they get all the benefits of downsizing, without the upheaval such a move involves.

With the regulator keeping a watchful eye over the treatment of older clients, it’s more important than ever for advisers to have a clear plan for handling such cases. For some, that will mean securing the qualifications to advise directly on equity release.

For others, it will make sense to build referral arrangements with later life specialists.

There isn’t a ‘wrong’ option here, other than to not have a strategy in place at all. This isn’t something advisers can put off any longer.

Networks have a central role to play.

Advisers require both the skills and the confidence to engage with older borrowers, supported by practical training and a framework that enables them to diversify where necessary.

At Rosemount, we recently hosted a masterclass with Legal & General which supported advisers in gaining their equity release qualifications.

The day featured interactive tasks and exercises to help advisers

AHMED BAWA is CEO at Rosemount Financial Solutions (IFA)

be er understand the sector, as well as improve their chances of passing the Certificate in Regulated Equity Release.

The feedback, and the results, speak for themselves. Of the eight advisers who a ended, six have already passed the exam, while two more have dates booked in.

Initiatives of this nature provide tangible benefits, both for advisers in expanding their propositions and for clients in accessing highquality advice.

It’s a demonstration of how quality networks can open new doors for advisers, and help them not only reach their potential, but deliver a higher standard of service to their clients.

That only happens with the right backing, rather than with networks that view their members as numbers instead of individuals.

Clients are working longer, living longer, and seeking ways to make their property wealth work harder.

Advisers need to be able to deliver for them, whether by extending their own permissions or by forming strategic partnerships.

For networks, the challenge is to provide structured, forward-looking support. Those that make it easier for advisers to support older borrowers will help secure the sustainability of their members’ businesses, while also ensuring clients continue to receive the advice they need.

Later life lending is not a niche, but a central feature of today’s mortgage market. Advisers and networks that take proactive steps now will be best placed to serve their clients, strengthen their businesses, and meet the demands of an ageing population. ●

L AT E R L I F E L E N D I NG Opinion

Adapting to challenges in later life lending

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ur financial needs evolve over time.

Lending solutions must adapt to meet those changes.

While mortgages are o en seen as a milestone for younger buyers, borrowing in later life is increasingly important.

Whether it’s funding home improvements, supporting family members, or retirement planning, demand for flexible and responsible lending options is growing.

According to The Generation Gap Report by Lenvi, by 2050 one in four people in the UK will be over 65. The mortgage market is already reflecting this development, with UK Finance reporting 33,130 new loans advanced to older borrowers in Q2 2025. This is worth £5.2bn, up 3% year-on-year.

Total lending in the equity release market has risen 10% year-on-year, according to the Equity Release Council. This landscape presents both opportunities and challenges. Later life borrowers require a variety of solutions, as well as clear, responsible guidance to make informed decisions.

Variety Later life isn’t one-size-fits-all.

Our later life mortgages provide repayment, part-and-part or interestonly solutions for retired customers aged 55 to 85 at application, with mortgage terms extending to age 90. We’ll accept earned income up to age 75 and downsizing as a repayment vehicle.

Lending into retirement mortgages support clients aged 55 to 70 who are approaching retirement, with interest-only, repayment or partand-part solutions. Mortgage terms can extend to age 80, and like later life, we’ll accept earned income

up to age 75 and downsizing as a repayment vehicle.

Retirement interest-only (RIO) mortgages offer an alternative to equity release, giving borrowers the ability to release funds while only repaying the interest each month.

The capital is repaid upon a life event such as moving into long-term care or passing away. Unlike equity release, interest doesn’t roll up, protecting remaining equity for inheritance.

These products offer borrowers more choice. Some may want to remortgage at the end of an interestonly term to remain in their home, others to release funds to help family or cover home improvements.

Collaboration Advice is critical in later life lending.

Borrowers deserve to understand every option that’s available to them.

That’s why we work closely with our intermediary partners to regularly review and update our lending criteria. Some key criteria include: Higher affordability multiples: Fivetimes income for pound-for-pound remortgage cases on both Later Life and RIO products.

Greater flexibility on income: State and private pensions, 5% of pension and investment portfolios (even if they aren’t being drawn), and rental or investment income (as long as the income is declared).

Case-by-case underwriting: This allows us to take a personal view of each borrower’s circumstances, so we’re willing to take a view on cases even if they don’t quite fit criteria.

Communication Product choice is only one part of the equation. Clear, ongoing communication ensures borrowers

JO CAVE is head of mortgages at Marsden Building Society

make informed decisions and can manage their mortgage responsibly.

We equip brokers with factsheets and resources, so that clients fully understand their options before commi ing. Once a mortgage is in place, we maintain regular communication, such as repayment reminders, to support borrowers throughout their mortgage term.

This transparent approach not only supports borrowers, but also reinforces the trust that intermediaries and clients place in us as a specialist later life lender.

Adaptability and prudence As a mutual, the Marsden has a responsibility to adapt lending solutions for a changing market, while ensuring they’re sustainable.

One example is Joan and Paul, both approaching 85. With an interestonly mortgage ending and their home requiring lifestyle improvements, their options were limited. Rejected by high street lenders due to their age, they were faced with selling or equity release. Through a RIO, they were able to transfer their existing loan, add a li le extra, and continue making manageable payments. They also avoided rolled-up interest and preserved equity for their children.

They’ve remained in their home and funded a stairli , demonstrating how the right solution can be life-changing.

Later life lending will only become more important for borrowers like Joan and Paul. The Marsden is commi ed to evolving alongside our intermediaries and their clients. ● September 2025 | The Intermediary

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P RO T E C T I O N Opinion

Let’s close the protection gap

I

always find it intriguing how long-winded the mortgage process can o en be, and then the arguably significantly more vital conversation of protection is finalised much more swi ly. If there was a tachometer that demonstrated the time and focus spent during a typical purchase or remortgage transaction, the needle would be well within the redline, and the protection part is o en the low-fuel warning light.

It’s interesting, as protection is so extremely vital and complex – yet providers seem to be able to manage applications through underwriting swi ly. Granted, the o -dreaded GP reports can slow things down substantially, but on the whole the process is smooth.

Protection providers are clearly working on increasing efficiency where they can, too. With o en automated underwriting taking place, and even online trusts which can be finalised with a number of clicks, this offers a seamless process for the adviser, and ultimately a much be er outcome for the client.

With this in mind, I always wonder how the industry mentality can change in order to ensure that protection is at the forefront of advisers’ minds. Some opt to carry out the protection discussion at the initial meeting, yet some clients are wary to apply at such a stage before they know that the mortgage application is approved. In my opinion, that’s very understandable.

Research undertaken by LifeSearch and the HomeOwners Alliance has pinpointed that 36% of UK mortgage holders do not hold any protection whatsoever. No life cover, no critical illness cover, no income protection.

This percentage is representative of more than 2.3 million people.

It’s also reported that in the age range of 18 to 34, 30% of mortgage holders have no protection. Still

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within that age range, only 15% know a lot about income protection, whereas 57% of mortgage holders say that they would be in financial difficulty within six months of losing an income.

As advisers in this industry, it’s our duty to educate. Not only those new to taking out a mortgage, but those with an existing one, too. If we all didn’t think we were somewhat superhuman, we wouldn’t function, but protection providers give enough statistics that can back up our advice surrounding the need for such policies.

Moving the needle If we can adjust the needle on that tachometer, that’s where we make a start. We all know about having the discussion, providing valuable and useful insight, and having regular catch-ups with business development managers (BDMs) to ensure we know not only about the policy but also the value-added services. That then begins to formulate the ability for advisers to be confident in having those hard-hi ing conversations about worst case scenarios. It’s clear that more needs to be done to highlight the need, however. Exactly what, I don’t know. There are plenty of webinars, summits and networking events that focus on providers and advisers, but what about the client?

JONATHAN FOWLER is founder and managing director at Fowler Smith

36% of UK mortgage holders do not hold any protection whatsoever.

No life cover, no critical illness cover, no [IP]” Could it be that there’s some form of initiative put forwards, somehow, much like the Government supporting high loan-to-value (LTV) mortgages to get people on the ladder. Well, what are they doing to keep them there?

Could Starmer’s Government strike up conversations with protection providers, not just lenders? I wonder how that will help fill some of the ‘black-holes’ that Reeves keeps spo ing, and how certain services might be less leant on.

We as advisers do our duty, and I don’t doubt that all of us do. But what can be done to get it in the public eye even more? Maybe we all need to think about it together. Perhaps more of us should connect and collaborate. ●

Government and the industry must work together to fill in the coverage chasm

P RO T E C T I O N Opinion

Making protection a priority for younger clients

I

ntermediaries are in a unique position to address their clients’ most pressing concerns. By building relationships grounded in insights about their clients’ financial circumstances, personal priorities and financial goals, they earn trust and pick up vital information. This enables them to support their client to achieve those goals, and when required, protect them from foreseeable risks.

One crucial conversation, particularly with younger clients, is the need to make protection a priority.

Generational trends According to the Association of Mortgage Intermediaries’ (AMI) 2024 report, there is a growing appetite among younger consumers for protection products. For example, more young people (65% of Gen Z and 70% of Millennials) think it’s important to have income protection than older generations (48% of Gen X and 39% of Boomers).

However, just 13% of Gen Z and 15% of Millennials have income protection. Although higher than their Gen X counterparts (5%), this demonstrates that a significant amount of work must still be done to illustrate the value of these products.

This does vary depending on the product. The Millennial take-up for life insurance, for example, rises to a third (34%) compared with just 27% of Boomers.

However, L&G’s latest claims data highlights just how important protection policies are for younger clients. According to the data, the average age of people claiming on their critical illness and income protection policies is 49 and 41 years old, respectively.

In their 40s, people might think of themselves making meaningful strides in their career, growing their families, and moving up the property ladder.

While intermediaries are uniquely placed to support their younger clients to achieve those financial goals, they are also in a strong position to help protect their clients from the financial impact of a decline in health or injury.

The data suggests that protection products such as income protection and critical illness should be a priority for younger clients.

The increasing risk to those in midlife is also highlighted elsewhere.

For example, according to research in the British Medical Journal, cancer among people in midlife has risen by 57% in men and 48% in women over the past 25 years, in part due to changing lifestyle factors.

According to L&G’s latest claims data, cancer made up the vast majority (63%) of critical illness claims, while it was the second most common reason people claimed on their income protection policies. While recovery rates have massively improved, many people will still find their lives turned upside down by their diagnosis and treatment.

True value If advisers demonstrate the value of protection, it could prompt more younger people to consider it. Reports highlight that there’s a gap here, with AMI finding that one in three (34%) adviser firms have no online presence when it comes to protection.

At L&G, we’ve leaned into developing animated videos that explain the role of an adviser and the process typically followed when it comes to the customer’s mortgage and protection needs. These short videos

JULIE GODLEY is director of intermediary, retail protection at L&G

can be shared on social media, added to an adviser firm’s website, or even used within client communications to help explain what intermediaries do and plant the seed of protection advice from the onset.

We also have a TikTok channel, targeted at Gen Z and Millennials, to help empower them with financial knowledge in an engaging and entertaining way.

The bottom line It’s true that your health is your wealth. If that health declines, it’s important that the necessary measures are put in place to cushion the financial impact of not being able to work – or work at the same capacity as you once could.

There will be many priorities tugging at a client’s finances during this stage of life, which makes it harder for them to appreciate costs that are not immediately in front of them. However, illness and injury do not discriminate, and their impact can be devastating physically, emotionally and financially.

It’s therefore essential that intermediaries lean on their relationships and client insights to identify those that would benefit from a protection policy, and where required, demonstrate the value of such a policy.

For some clients, this may be through one-to-one conversations, while communicating through other channels – particularly digital – will help firms inform younger clients that protection should be a priority. ● September 2025 | The Intermediary

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P RO T E C T I O N Opinion

Why speaking to a human is more important than ever

I

n a world increasingly dominated by automation and artificial intelligence (AI), the simple act of speaking to a human being has taken on greater value and significance now, more than ever. Whatever the business or industry, genuine human interaction remains irreplaceable.

As convenience and speed become the ‘norm’, empathy, understanding, and connection are becoming rarer in everyday business interactions. That’s a problem for businesses that are removing all human contact.

When people are navigating stressful, complex, or emotionally charged situations – like pu ing in an insurance claim – an automated phone system, Chatbot or online web-based options only can be cold and alienating. In moments like these, what people truly need isn’t a quick answer. It’s human contact,

just help us solve problems, they help us feel seen, heard, and validated. The Covid-19 pandemic illuminated the psychological importance of human contact, and made it even more valuable than before.

While digital tools help us stay connected remotely, many of us still experience loneliness and social isolation now that we never felt before. Technology can support human interaction but cannot replace it totally.

Trust and judgment Businesses know that trust is built through relationships, and relationships are built through human interaction.

Speaking to a real person, especially one who listens actively, shows empathy, and understands context, fosters trust in ways no AI or chatbot can.

In industries like home insurance, the nuances of a conversation can also make all the difference. People don’t just want answers, they want explanations and reassurance.

That kind of support comes more authentically from another human being.

Competitive advantage

understanding, reassurance, and the sense that someone cares – while delivering factual support and advice that’s as bespoke as possible – that is key.

Psychological needs Humans are social beings.

Conversations with real people don’t

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Ironically in 2025, as automation becomes more widespread, businesses that prioritise human interaction are standing out in the crowd.

A company that puts people at the heart of its customer service strategy sends a powerful message: we value you not just as a customer, but as a human being.

At Safe&Secure Home Insurance, the Trust Pilot Reviews give a window in to the critical desire to speak with a real person. Words in the reviews that repeatedly show up are ‘guidance’,

STEPHANIE DUNKLEY is development director at Safe&Secure

People don’t just want answers, they want explanations and reassurance” ‘understanding’, ‘patience’, ‘human’, and sentences such as: “Having someone at the end of the phone is much more comforting and personal than a computer screen.”

In many industries, speaking to a knowledgeable, compassionate representative has become a luxury.

And because it’s now rare, it’s also a major differentiator. The companies that lean into this – that make it easy to speak to a real person – are the ones winning long-term customer loyalty.

Old style, way forward Safe&Secure Home Insurance is taking the non-automated route a step further, too. In Q4 of this year, we have made the decision to post out a hard copy le er with a welcome to every single customer, new and at renewal, as well as an email copy sent immediately a er the policy is sold. Why? Providing an even be er service so that the client has all their information on one physical, tangible page – the insurer, cover, premium, claims number, on risk date, etcetera.

They don’t have to hunt online or dig around for it – it’s all there, just in case.

In a push toward technological efficiency, we must not lose sight of what makes us human.

Connection, compassion, empathy.

These aren’t just ‘nice to have’ values.

They’re essential. ●

A specialist lender with a common-sense approach to...

Lending into Retirement

Later Life Lending

Retirement Interest Only

Expat Residential

Expat Buy to Let

Furnished Holiday Let

We know not all cases are straightforward, so we apply a common-sense approach to lending, helping you to find a place for your clients with the Marsden.

We don’t work on a ‘computer says no’ basis. We know that every mortgage is different and that’s how we look at cases submitted to us.

We don’t credit score. Your clients are more than just a number and we know that a credit score isn’t always straightforward.

We assess each case on its own merit, and our teams have access to key decision makers for cases that are a little different.

Speak to our team about your case 01282 440583* intermediaries@themarsden.co.uk www.marsdenintermediaries.co.uk

Why not get in touch today?

FOR INTERMEDIARY USE ONLY Marsden Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 206050. Principal Office, 6-20 Russell Street, Nelson, Lancashire BB9 7NJ. *Calls will be recorded and may be monitored. FP196305

P RO T E C T I O N Opinion

Not just in passing, a duty of care

T

he past few months have seen some welcome easing of affordability for borrowers – opening up the market for more to move and refinance their homes.

Of course, it is not perfect, and more o en than not conversations around affordability centre on the thorny subject of disposable income and a borrower’s ability to save in order to cover unexpected costs.

When you’re a homeowner and mortgage payer, the likelihood of unexpected and large costs hi ing when least convenient rises considerably. Protection, then, is more important than ever. Not just for the borrower’s future financial stability, but also to protect advisers from possible future complaints.

Research published over the summer by LifeSearch and the HomeOwners Alliance found that more than a third (36%) of homeowners with a mortgage have no life insurance, income protection, or critical illness cover in place – equating to approximately 2.34 million individuals.

Almost half (46%) of mortgage holders said they would struggle to meet their payments within six months of losing their income due to illness or injury. One in five would face financial difficulties within just two months.

For advisers, this speaks to an uncomfortable reality. Two out of three borrowers who took part in the research said they had spoken to a bank, mortgage adviser or family member about protection insurance when taking out their mortgage. Just 16% currently have income protection in place.

The scale of under-protection in the UK is hard to measure, but some have tried. In 2019, Swiss Re estimated a shortfall in the UK of £2.4tn – a number that is so big few of us can

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really make any sense of it. I had to google how many zeros constitute a trillion – it’s 12, if you are interested.

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

Unpacking the benefits What clients do understand are their own circumstances, and what the impact of being unprotected means to them. Many employees are unaware until they ask just what their employer’s sickness policies are, and o en find they rely on Statutory Sick Pay (SSP), which is a limited benefit.

When I was advising, I o en asked clients if they really knew their employee benefits. The reality is that most were unsure, and therefore I would seek to clarity by calling their employers – with their permission – mid-interview. The outcome of the call would o en confirm they would receive less than they thought. The conversation about protection became much more pressing and meaningful.

This is even more important when you consider that the Chancellor’s decision to hike employers’ National Insurance contributions has been devastating for companies.

Small businesses have seen profits literally wiped out, while larger businesses have taken a scythe to their workforces to offset the massive extra cost, this could also lead to further reductions in what an employer is offer in terms of sick pay.

Around 89,000 jobs in restaurants, bars, pubs and hotels have been axed since last October, according to UK Hospitality analysis of Office for National Statistics (ONS) data.

ONS data published in August showed the number of payrolled employees in the UK fell by 149,000 between June 2024 and June 2025 and by 26,000 between May 2025 and June 2025.

The estimated number of vacancies in the UK fell by 44,000 (5.8%) on the quarter in May to July 2025. This is the 37th consecutive period where vacancy numbers have dropped

compared with the previous three months, with vacancies decreasing in 16 of the 18 industry sectors.

LifeSearch’s research found that without adequate cover, many mortgage holders said they would need to take decisive action to stay afloat. While some would reduce nonessential spending (29%) or request a mortgage payment holiday (26%), others would borrow from family or friends (19%), sell valuables (19%), or rely on Government support such as Universal Credit (15%).

Additionally, nearly one in five (19%) would reduce their pension or savings contributions, which could affect their long-term financial security.

This has major implications for advisers under the Consumer Duty rules, which state unequivocally that regulated firms should be considering how to deliver good financial outcomes to customers.

Notwithstanding the challenges facing young buyers, it’s clear that there is an opportunity and a need for mortgage advisers to step up their game on protection.

September is an ideal time to start, as we are set to see a spike in the number of borrowers with mortgage maturities in Q4, along with the seasonal surge in homebuying, with customers seeking to find their dream home and move in ahead of Christmas.

Clients must be made aware of the vital role Protection plays in keeping the roof over their head, should an unexpected life event occur.

It is not enough to mention protection in passing. It’s a duty of care. ●

P RO T E C T I O N Opinion

How are advisers navigating the market?

E

ach year at Paymentshield we carry out our Adviser Survey with financial advisers to explore their perspectives, working methods, and obstacles particularly concerning general insurance (GI).

This research delivers valuable understanding of how advisers approach GI and the challenges they face, and provides practical market intelligence for an industry that’s always looking to improve.

This year’s Adviser Survey drew 485 responses, and as always, there’s a lot to unpack. While five consecutive interest rate reductions have encouraged greater mortgage market activity – welcome news for the industry – advisers are simultaneously navigating emerging opportunities and challenges.

State of play One of the most striking findings from this year’s survey is the measured confidence that advisers are displaying about the economic outlook. Nearly half (47%) of respondents report feeling more confident about the state of the economy compared to the same period last year.

Despite this, a significant 17% of advisers disagree with positive economic sentiment, while more than a third (36%) remain neutral, suggesting swathes of the industry remain incredibly cautious a er the last few years of market headwinds.

Perhaps more revealing than economic sentiment is that our advisers are continuing to diversify, with GI emerging as a key growth area. More than eight in 10 (83%) advisers intend to grow their GI business over the next 12 months – signalling the industry’s

recognition of traditionally ‘ancillary’ products as increasingly important revenue streams.

Client relationships We also found that a huge 93% of advisers view having general insurance discussions with their clients as best practice – a figure which has remained firm in the 12 months since our 2024 Adviser Survey.

However, execution remains inconsistent. While nearly half of advisers (45%) revisit existing clients’ GI needs annually, more than a quarter (28%) only do so when clients specifically ask. This means there’s significant potential for advisers looking to add value by proactively approaching clients ahead of their GI renewal dates.

Interestingly, the survey challenges assumptions about client preferences in an increasingly digital world.

Almost 40% of advisers report rising client demand for GI advice over the past year, with only 12% saying their clients don’t want advice at all.

This should be balanced with the growing competition that advisers face, however.

Almost half of advisers report that they are worried about the rise of finfluencers as an alternative source of advice. The vast consumer adoption of short-form video apps like TikTok means the potential impact of unregulated advice is huge. Indeed, a recent report from social media management company Sprout Social found it has 24.8 million users aged 18 and above in the UK, as of June 2025.

With just 6% of advisers using TikTok to communicate with clients, this highlights why it’s crucial for advisers to maximise the direct and personal relationship they already have with clients who come to them

LOUISE PENGELLY is director of proposition at Paymentshield

for mortgage advice. By proactively offering guidance on connected areas like GI, advisers can strengthen these existing relationships and provide comprehensive support that unregulated sources simply cannot match.

The remortgage market presents an interesting case study in opportunities that advisers could be missing out on.

Despite representing 30% of advisers’ client base – the second largest group a er first-time buyers – many advisers admit to regularly overlooking this cohort. Especially against a fluctuating economic backdrop, it’s crucial that advisers continue to take the opportunities that come their way.

Looking ahead The 2025 Adviser Survey paints a picture of an industry in transition.

For advisers that have made it through the challenges of the past five years, it’s clear that their focus remains on sustained growth, balanced by tempered expectations.

But it’s important that we’re seeing renewed market activity, as well as growing client demand for advice. At the time of writing, interest rates are currently at 4% – their lowest since 2023, suggesting a gradual return to more favourable lending conditions that will continue to keep advisers busy into Q4 and beyond.

We’ll continue to take these temperature checks of our advisory network to be er understand the challenges that both individuals and the collective are facing.

If you’re keen to take part in 2026’s Adviser Survey, keep an eye on our network communications – we’d love to have you take part. ● September 2025 | The Intermediary

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B RO K E R B U S I N E S S Case clinic

Case Clinic Want to gain insight into one of your own cases in the next issue?

Get in touch with details at editorial@theintermediary.co.uk

CASE ONE First-time landlord with limited personal income

A

n applicant earning £27,000 annually is purchasing a £220,000 flat as their first buy-to-let (BTL), with a 25% deposit.

Expected rental income is £850 per month.

They currently rent their own home and have no property ownership history. The applicant has a clean credit record but no additional savings beyond the deposit.

MOLO FINANCE

It is encouraging to see an applicant looking to start their investment journey. At Molo, we don’t set a minimum income requirement, so their £27,000 salary would not be an obstacle. On the face of it, this case could fit comfortably at 75% loan-to-value (LTV), subject to our usual checks around the deposit and broader affordability.

While they are a first-time buyer as well as a first-time landlord, we are happy to support applicants in this position, and we wouldn’t apply any additional rate loading. Provided all other criteria is met, this applicant would have a clear path to purchase.

FLEET MORTGAGES

As the applicant is a first-time buyer, this falls outside Fleet’s lending policy. However, if the 82

The Intermediary | September 2025

client already owned a property for at least 12 months, such as their residential home, we could consider them as a first-time landlord.

We could also accept the application if there was a joint borrower who was already a property owner and a party to the mortgage. It’s important to note that Fleet does not require applicants to be owner-occupiers, we simply require that at least one applicant has a minimum of 12 months’ property ownership.

FOUNDATION HOME LOANS

As this would be the customer’s first property, we would class as a first-time buyer, first-time landlord, but would unfortunately not be able to accept this case. There is a potential risk of the customer moving into the property, but also as they have no background savings to draw upon, we would see the potential inability to cover any rental voids as an issue.

CASE TWO Multiple income sources with irregular patterns

A

n applicant plans on moving home to a new house worth £365,000. They earn £28,000 from salaried employment, receive £10,000 per year in freelance design work, and an additional £6,000 annually from Airbnb hosting in their own home.

B RO K E R B U S I N E S S Case clinic

While total income supports the mortgage, lenders have thus far varied in their treatment of secondary income streams. Some required two years’ history for freelance or side income, while others discounted the Airbnb earnings altogether.

The applicant is hoping to secure a deal which takes all of their earnings into account.

UNITED TRUST BANK

This scenario is a prime example of where a specialist lender comes into its own, including United Trust Bank (UTB), which will accept multiple sources of income to support affordability.

The freelance design work appears to be self-employed income, therefore we would require two years’ evidence of this by way of SA302s, which will also hopefully show the required two years’ evidence of the Airbnb income as profit from UK land and property.

However, it is unclear from the scenario description what deposit the applicant has.

This would determine whether this would meet our loan to income lending requirements.

HARPENDEN BS

Here at Harpenden Building Society, we pride ourselves on being experts in complex income situations. Therefore, we would accept all incomes in this example, as long as the second working income was received for a minimum of six months.

We would ideally look for evidence of the Airbnb income showing on tax calculations, but can potentially work in the absence of this if we can understand why.

BUCKINGHAMSHIRE BS

The society may consider using secondary income, subject to its consistency. The proportion of this income that can be included will depend on how stable and regular it is. Income generated from hosting via Airbnb within the applicant’s own home may present challenges; however, it could be considered on a case-by-case basis.

TOGETHER

Together could support this applicant with all their income sources subject to affordability and valuation. The salaried employment can be used as long as they have been in continuous employment for 12 months, even if they are in a probationary period. We could take into account additional income to assess affordability, including the Airbnb earnings, as long as two years’ income can be evidenced.

CASE THREE HMO purchase with licensing requirements

A

landlord is purchasing a five-bedroom property valued at £425,000 with a 30% deposit, intending to let it as a house in multiple occupation (HMO). They have previous landlord experience, but no HMOs in their portfolio.

The local authority requires a licence for this type of property, and planning permission for change of use has only been approved in the past two weeks.

The landlord expects a strong rental yield of £3,000 per month, but has yet to put formal management arrangements in place.

MOLO FINANCE

The applicant’s experience as a landlord would meet our requirement of having held a buy-to-let property for at least 12 months, even though they have not previously managed an HMO. The recent planning approval would not prevent us from progressing, provided that the licence application is in place.

Our HMO criteria allow lending on properties of up to 12 rooms, with one set of products and rates across the range. Subject to the usual underwriting and confirmation of satisfactory management arrangements, this case could be supported.

FLEET MORTGAGES

Fleet offers a dedicated HMO product range and can accept properties with up to six bedrooms.

Our maximum LTV is 75%, so a 30% deposit is more than sufficient.

For HMO cases, we require a minimum of 12 months’ landlord experience.

During the legal process, all necessary planning permissions and licences will be checked to ensure compliance.

FOUNDATION HOME LOANS

This would be acceptable to Foundation. We’d rely on solicitors to check that planning has been agreed and would also require an HMO licence application to be submitted, with solicitors to sign → off that the licence will be attainable. ● September 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

Opportunity for advisers or a threat to advice?

A

s we get closer to the 19th September deadline date for responses to the Financial Conduct Authority’s (FCA) DP 25/2 on the future of the mortgage market, I have been revisiting the paper and seeking to glean from it some information – or indeed a thread – on what the regulator sees as the future of advice and technology’s role in it.

Of course, perhaps unsurprisingly, there is a lot wri en in the DP about artificial intelligence (AI) usage, but this is from the perspective of the regulator, not firms active within the industry, and that is a major – potential – point of difference.

What struck me a er a re-read is how frequently the FCA refers to ‘firms’ telling it how much they want to innovate with AI-assisted sales journeys, but it never tells us who these firms are. You, however, can hazard a guess.

If advisers represent a community where more than 90% of sales are already advised, and where AI is much more likely to be embraced as a time-saver and compliance helper rather than a wholesale replacement for professional judgement, then it’s hard to believe we’re the ones pushing hardest for AI to ‘disrupt’ the advice process.

Lenders, on the other hand, have every incentive. The removal of the ‘interaction advice trigger’ this summer is already a case in point.

Put those two together – lender appetite for slicker direct journeys, and regulatory encouragement or capitulation for greater executiononly usage – and suddenly advisers find themselves in a very different place. One where AI is not necessarily

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a neutral ‘efficiency tool’ for advisers, but a lever for lenders to grow their direct business under the reassuring label of ‘innovation’.

That is what should be giving our sector pause for thought. Because if the FCA chooses to interpret ‘AI usage’ in this way, then we should all expect far more aggressive pushes by lenders for direct business.

Execution-only Of course, the FCA is right to recognise that AI can bring benefits.

Automated document handling, streamlined fact-finding, improved compliance record-keeping, personalised communications that help clients actually understand their mortgage choice, for example.

These free advisers up to do what they do best: interpret, contextualise, and deliver holistic advice that meets Consumer Duty requirements in full.

But those adviser-centric benefits are not what the DP lingers on.

Instead, the language is about enabling ‘AI-assisted advice and sales’, about improving eligibility checks and acceptance likelihood.

On one level, there’s nothing wrong with that – consumers of course want clarity early in the process. But dig a li le deeper and the emphasis feels less about adviser support and more about building confidence that execution-only can be done safely.

That is not a direction of travel the advice profession should simply nod through.

If execution-only journeys are made ‘smoother’ and ‘lower risk’ for lenders because AI is deemed enough to run the checks, then the value of professional advice risks being diluted. Worse, consumers may be led to believe that an algorithm’s approval is equivalent to human judgement

BOB HUNT is chief executive at Paradigm Mortgage Services

about what is suitable for their unique circumstances. We know that isn’t true.

The first step is to challenge the FCA’s narrative that ‘firms’ want this shi . Advisers must make clear that when we talk about AI, we mean using it to support the advice process, not to bypass it. We need to ensure the regulator understands the distinction between AI as an adviser-enabler and AI as an execution-only escalator.

That’s why initiatives like our recently-launched survey on AI are important. We want to capture how advisers are actually using – or wanting to use – these technologies.

We are seeking views on the opportunities, the challenges, and the potential risks. Crucially, it’s about hearing the adviser’s voice, not just accepting what the regulator or lenders tell us is happening, or what is required.

This ma ers because if advisers do not articulate their perspective, the debate risks being shaped exclusively by those who benefit most from loosening the boundaries around advice.

Advisers’ competitive strength lies in quality of service, holistic planning, and trust. If regulation shi s to make it easier for consumers to bypass advice under the comforting banner of AI – and we’ve already seen this happen – then the adviser community could find itself playing catch-up.

As the deadline for responses to the DP approaches, we would urge advisers to engage both with the FCA’s DP and our survey. One speaks to the regulator, the other ensures the broker community itself has the data and insight to push back against any onesided framing of AI’s role. ●

B RO K E R B U S I N E S S Opinion

Inner work that changes everything

W

hen most of us think about ‘becoming be er’ we start by looking out. A new productivity tool, a management hack, the latest book on persuasion.

But the deepest transformations don’t begin with tricks.

Jerry Colonna, former venture capitalist turned executive coach, calls for radical self-inquiry. His message is consistent: until we face ourselves honestly, our a empts to lead or connect will be limited. I use this in coaching all the time.

At its core, radical self-inquiry is the practice of asking unflinching questions about our own lives.

Noticing not just what we do, but why we do it. These questions must be asked non-judgmentally and with respect.

I o en ask: “How have I been complicit in creating the conditions I say I don’t want?”

That question alone can shake loose years of frustration. It reframes problems not as things happening to us, but as pa erns we may unconsciously reinforce. It’s not about blame. It’s about ownership.

Leaders o en look for external solutions to team dysfunction, low morale, or poor results. The maturity to li others up begins with selfawareness. When you understand your triggers and fears, you stop projecting them onto your team.

Radical self-inquiry exposes the subtle ways we repeat old pa erns.

Maybe we avoid conflict because we fear rejection. Maybe we micromanage because uncertainty feels intolerable. Seeing these pa erns clearly opens the door to healthier, more honest connections.

Self-inquiry teaches us to notice our emotions rather than be ruled by them. Instead of reacting in anger or shu ing down in fear, we create a

gap – a space where we can choose a wiser response.

Colonna is clear: radical self-inquiry is not about shame. Shame says, “I am bad.” Self-inquiry says, “I see what I’m doing, and I can choose differently.”

It is not indulgent navel-gazing; it is rigorous and o en uncomfortable.

Discomfort is the ground of growth.

Imagine a manager frustrated that her team never takes initiative.

Through self-inquiry, she notices her own habit of jumping in too quickly, correcting every small mistake. The team has learned to wait for her direction because she has trained them that way. From that insight, she experiments with holding back, giving space for others to step up.

Slowly, initiative grows.

Radical self-inquiry doesn’t promise easy answers. But over time, it delivers something more powerful: authenticity. Leaders who practise it become more grounded, less reactive, and more human. Teams trust them because they trust themselves.

Relationships deepen because honesty replaces pretence.

Perhaps most importantly, selfinquiry reconnects us with purpose.

When we strip away the defences, we find not just flaws but also our deepest values – the reasons we wanted to lead, create, or love in the first place.

This method is simple, but not easy. It takes courage to face your own reflection without flinching.

Yet every step inward creates ripples outward. When we grow more mature and compassionate with ourselves, we grow more capable of developing others. The journey begins with a question. What might change if you dared to ask yourself the ones you’ve been avoiding?

How to do it Create space for reflection You cannot do self-inquiry while racing to a meeting or scrolling your

AVERIL LEIMON is co-founder of White Water Group

phone. Set aside 15 to 20 minutes daily or weekly for journaling, walking, or simply si ing quietly.

Ask the hard questions Use prompts like: How have I been complicit in creating conditions I don’t want?

What am I not saying that needs to be said?

What am I saying that is not being heard?

What pa erns keep repeating in my work or relationships?

Write answers without censorship.

Honesty ma ers more than elegance.

Notice your stories O en we tell ourselves stories: “I have to do everything myself” or “If I show weakness, people will leave.”

Write these down. Then ask: Are these stories true? Where did I learn them?

Do they still serve me?

Hold your feelings gently Self-inquiry may surface sadness, anger, or fear. The goal is not to push feelings away but to accept them as signals. They reveal what ma ers.

Translate insight into action Awareness alone is insufficient. If you discover you avoid conflict, practise a small act of honesty: tell a colleague what you really think, kindly but clearly. If you notice burnout, take one concrete step to restore balance.

How to Begin Today 1. Write down one area that feels stuck.

2. Ask: What role am I playing in keeping this stuck?

3. Share your reflection with a trusted friend, coach, or therapist.

4. Choose one small behaviour to shi this week. ● September 2025 | The Intermediary

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B RO K E R B U S I N E S S Opinion

T

he mortgage industry, like countless others, has seen a wave of change thanks to the rise of artificial intelligence (AI). This innovative technology has a wealth of practical applications and benefits for brokers, from improving efficiency in administrative processes to boosting client satisfaction.

With an ever-growing suite of AIpowered tools available for brokers, it’s hard to know where to start. In this article, we’ll help you do more with this technology by discussing which AI tools mortgage brokers should be using, along with the key benefits and practical tips for integrating them into your business.

Relationship management Effective client relationship management is central to success in mortgage brokering. AI can enhance customer relationship management (CRM) systems by automating followup emails, scheduling reminders, and predicting the best times to engage with clients.

These systems do a fantastic job of identifying pa erns in client behaviour and tailoring communications accordingly. For example, AI might flag when a client is due for a mortgage renewal and initiate a personalised reminder.

Some of the main benefits of adopting AI CRM technology include: improved lead nurturing; timely relevant communication; and less manual administration.

Client engagement AI-powered chatbots are becoming a standard part of digital customer service. For mortgage brokers, these tools offer a way to respond to client questions instantly, even outside office hours. Clients genuinely benefit from having 24/7 support, advice and guidance, which is why AI chatbots are so useful for brokers.

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A chatbot can answer frequently asked questions, provide basic mortgage information, or collect client details to begin the prequalification process. Some can even book appointments directly into your calendar.

This creates some really potent benefits, such as: 24/7 client support; faster response times; and the automation of initial data collection.

Automation Mortgage brokers handle large volumes of paperwork, including key information like proof of income, bank statements and identification documents. AI tools can automatically extract and organise data from these files, helping to streamline application processing.

Such tools reduce the need to manually enter information, which minimises errors and ensures compliance with financial regulations.

AI can also help detect missing information early in the process, avoiding delays later on. This level of efficiency offers several notable benefits, including: faster document handling; reduced human errors; and improved compliance processes

Lead generation AI can transform how brokers a ract and convert new clients. Instead of relying solely on traditional advertising and outreach, brokers can now use AI to analyse online behaviours, identify high-intent audiences, and personalise marketing campaigns.

AI tools can also assist in writing emails, blogs, and social media posts, helping brokers maintain a consistent online presence without dedicating hours to content creation. This form of AI application can essentially bring in a new member of the team for brokers, by le ing the technology handle the marketing side of things.

Some of the key benefits include: targeted marketing campaigns; be er

IFTHIKAR MOHAMED is a mortgage consultant and director at WIS Mortgages and Insurance Services

quality of leads; and efficient and effective content creation.

Virtual assistant tools Client meetings, whether online or in person, are core aspects of the mortgage process. AI-powered transcription tools can record conversations, summarise key points, and highlight follow-up actions, all automatically. This can help brokers and clients alike get more from these meetings.

Brokers have a be er opportunity to focus on the conversation rather than note-taking when using AI assistants.

It also helps create a reliable record of discussions, which can be useful for compliance and service quality.

This creates tangible benefits such as: more accurate meeting notes; clear action tracking; and be er use of time during appointments.

Compliance and risk Mortgage brokers in the UK are expected to adhere to the compliance standards set by the Financial Conduct Authority (FCA). AI can support compliance efforts by monitoring communications, identifying risks, and flagging activity that could indicate potential breaches.

These systems can also track any regulatory changes and ensure policies are kept up to date, reducing the

administrative burden on brokers and their teams. It also helps to mitigate the risk of falling foul of the latest compliance regulations.

Other benefits include: ongoing compliance monitoring; early identification of risks; and reduced audit preparation times.

Market analysis AI excels at analysing large datasets, making it a powerful tool for understanding mortgage market trends and gleaning insights. Brokers can use AI to track key metrics like interest rate changes, housing market data, and economic indicators. This can help brokers stay informed and offer be er advice to clients.

By identifying pa erns in the market, AI can also help brokers anticipate changes before they occur, providing a competitive edge in a fast-moving industry. This helps with planning and identifying growth opportunities. For brokers, the key benefits of AI for market analysis include: real-time insights into

market conditions; enhanced client advisory services; and be er mortgage product matching.

Time management Beyond client-facing tasks, AI can support brokers behind the scenes by managing schedules, prioritising tasks, and automating daily routines. From sorting your inbox to organising your calendar, AI-powered productivity tools help keep your day running smoothly.

This can be particularly valuable for brokers juggling a high volume of enquiries, client meetings, and paperwork, as it frees up time for relationship building and strategic planning. Some of the main advantages of using AI for productivity include: streamlined workflows; less time spent on administrative processes; improved focus on revenue-generating tasks.

Do more with AI AI is making big changes to the mortgage sector, and brokers who

embrace it stand to gain even bigger advantages in efficiency, accuracy, and client service. Whether you’re an independent broker or part of a larger firm, incorporating AI into your operations can help you meet growing client expectations and regulatory demands.

By starting small and building gradually, mortgage brokers can unlock the full potential of AI. It makes their services smarter, faster, and more competitive, which is great news for both you and your clients. ●

Mortgage professionals have a duty towards their clients to protect their personal data.

Therefore, please refrain from including any personal data in large language models and platforms that may carry a risk of breaching the privacy laws.

September 2025 | The Intermediary

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Meet The Broker Metic Financial

Marvin Onumonu speaks with Ursene Mouanda, mortgage broker and director of Metic Financial Tell us a little bit about yourself – what inspired the move from professional football?

Outside of work and football, what might people be surprised to learn about you?

I’ve always been passionate about building a future that’s stable and secure – not just for myself, but for the people around me.

Football taught me discipline, teamwork, and resilience, but once I stepped away from the game I wanted to channel those values into something lasting. My family’s experience of moving around a lot when I was younger showed me how important a home is to creating stability. That’s what led me to mortgages and financial protection.

For me, helping someone buy their first home or secure their family’s future is just as rewarding as scoring a goal ever was.

I’m a massive Marvel fan – I’ve watched every film, even some of the terrible spin-offs that most people skip! Although they’re fiction, I think there’s a lot in those films that mirrors real life.

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What sets Metic Financial apart, and how do you support clients through the mortgage process?

Working at London & Country gave me a strong foundation and taught me how to deliver advice on a large scale. It also showed me

how powerful technology can be in helping clients along their journey, with automated updates, rate-end reminders, and other tools. But setting up Metic Financial earlier this year has allowed me to take everything I’ve learned and build something that reflects my own values. What sets us apart is the personal approach – we’re not just here to secure a mortgage, we’re here to educate, guide, and build long-term relationships. At larger firms, where the focus is on volume, it can be difficult to build lasting connections with clients and deliver a more bespoke level of service.

At Metic Financial, every client’s situation is unique, and we take the time to understand their story, tailor solutions, and make the process feel clear and empowering. For me, it’s about creating stability and helping people not just buy a property, but build a future.

M E E T T H E B RO K E R

What opportunities are you seeing in the market?

For first-time buyers, there are still great opportunities if you’ve got the right guidance – through schemes, lender products, and ways to structure things that make owning a home possible, even in today’s climate.

I’m still seeing quite a lot of activity in the first-time buyer market. We’re also seeing an increase in investor clients looking to release equity from their existing portfolios to capitalise on opportunities created by landlords leaving the market.

What are some of the main challenges facing borrowers and brokers in today’s market, and how do you help your clients overcome them?

The biggest challenge right now is affordability – both in terms of what lenders are willing to offer and what borrowers feel comfortable committing to. With interest rates fluctuating and the cost of living continuing to rise, many clients worry about whether now is the right time to buy or remortgage. Products can change weekly, sometimes daily, which creates uncertainty and stress for people trying to make big financial decisions.

For brokers, the challenge is staying on top of those rapid changes while still providing clear, confident guidance. It’s not just about knowing which products are available; it’s about filtering through the noise and helping clients see the bigger picture – what’s sustainable in the long run, not just what looks good today.

My role is to simplify the process. I take the time to break down complex information into plain language, so clients know exactly what they’re agreeing to and how it fits into their wider goals. Sometimes that means telling a client that waiting

six months to improve their credit or save a bigger deposit will put them in a much stronger position, and other times it’s about showing them how they can structure things in a way they hadn’t considered.

I also spend time stress-testing affordability with clients, so they feel confident that their mortgage won’t just work on paper but will also work in real life, even if circumstances change.

Ultimately, I see myself as both a guide and a buffer – removing the stress of the unknown and giving my clients the tools and confidence to make smart, lasting decisions.

How could lenders further support brokers?

Speed and communication remain the biggest areas where lenders can make a real difference. Every client’s situation is unique, and while technology has helped streamline a lot of the process, there are still moments where a case doesn’t quite fit into a neat box. In those instances, being able to get through to an underwriter quickly – or having a lender that’s open to dialogue – can completely change the outcome for a client. Too often, delays or rigid processes create unnecessary stress and can even cost someone their dream home.

Another area is consistency.

Different lenders interpret criteria in different ways, and that inconsistency can lead to confusion for both brokers and clients. If lenders were more aligned in how they assess affordability, credit history, or self-employed income, it would make the whole process smoother and reduce the risk of clients receiving mixed messages.

That said, I think many lenders are making good progress in investing in broker portals, application tracking tools, and automated updates. These are invaluable, but they should complement, not replace, the human element. A quick phone call, an underwriter willing to look at a case in context rather than in isolation,

or a lender willing to be flexible on a borderline case can make all the difference. Ultimately, brokers and lenders share the same goal: helping clients secure the right outcome. The more lenders can empower brokers with fast, clear and human-centred support, the better the experience will be for the people who matter most: the clients.

Are there any upcoming trends or changes you’re particularly excited about?

There has been a lot of talk about artificial intelligence (AI) and the potential ways it could disrupt our industry, but I’m very excited about how technology is shaping the sector – tools that help clients better understand their affordability and track applications more transparently.

On my side, I’m working on building more educational content so people can make informed decisions about mortgages and financial protection. Knowledge is power, and I want my clients to feel confident at every stage of their journey.

Finally, do you have a key piece of advice for those considering investing in property?

Don’t wait for the ‘perfect’ time – because there isn’t one. Speak to a broker early, even if you’re just exploring or want to entertain the idea of ownership. Getting a better idea of where you are, and what you need to do to get to where you want to be, will massively increase your chances of making homeownership or property investment a reality and not just a dream. The right advice can save stress, money, and missed opportunities. At the end of the day, property isn’t just about numbers – it’s about creating stability, building wealth, and securing a future.  September 2025 | The Intermediary

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T E C H NO L O GY Opinion

The real risk is doing nothing

T

he Prudential Regulation Authority (PRA) regulates around 1,500 banks, building societies, credit unions, insurers and major investment firms in today’s market and was born out of the mess le in the a ermath of the Credit Crunch in 2008.

Its role is to ensure firms do business safely and to reduce their chances of ge ing into financial difficulty. The aim is to ensure that the financial services and products that we all rely on are provided in a way that does not put customers, their money or the economy at risk.

The Bank of England defines the PRA’s systemic responsibilities for the layman as: “If banks stopped working, the entire economy would grind to a halt.”

This is vital when it comes to financial services in the UK, which in 2023 contributed £208.2bn to the UK economy, equal to 9% of total economic output. It is the fourth largest industry when it comes to GDP. It’s also a highly complex industry, including in the retail banking marketplace. This market is mature and developed. It is heavily regulated.

It is responsible for individuals’, businesses’ and the Government’s financial welfare. As we saw in 2008 and 2009, when it falls over, well, it’s just not an option. We are still paying the price for the a ermath of the Global Financial Crisis.

It’s this that makes change in the mortgage and savings market a much harder journey than in many other walks of life.

Yes, there is widespread recognition that technology is outdated.

Origination platforms are restrictive.

Product design and underwriting is still heavily reliant on manual processes in more specialist parts of the market and in lenders outside of the biggest banks and building

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societies. Customers’ data may be exposed to harm as a result.

Application process, case management and third-party integrations are o en less than desirable. The investment risk is a barrier. The transition risk is a barrier.

The regulatory risk is a barrier.

Changing tides It doesn’t need to be this way. As a market we need to start thinking about technology adoption with a new mindset – one that is appropriate for the tech that exists today. The beauty of cloud-based services is their ability to flex and to integrate.

There’s a reason we have a tripartite regulatory structure in the form of the Bank of England, PRA and Financial Conduct Authority (FCA). Each has a mandate to prioritise.

The flipside to managing prudential risk is the risk to consumers engaging with financial services.

The recent Mortgage Rule Review and introduction of the consumer duty in 2023 create another set of considerations for lenders when thinking about how they manage risk – there must be a balance.

On the consumer side of the coin, the FCA is clearly commi ed to simplifying the rules around remortgaging on a like for like basis, addressing vulnerability before it becomes a debilitating issue and ensuring good outcomes where foreseeable and possible.

This is a positive aim and can only serve to improve the market and customer experiences. Delivering against the FCA’s expectations given the limitations that legacy technology imposes, however, is harder.

As with all guidance that issues from the FCA, how lenders meet their regulatory responsibilities is down to them.

Process for a high street bank’s business model will differ hugely from the way things are done in a small

JERRY MULLE is managing director at Ohpen

regional society or a specialist lender operating in the near-prime space.

This makes the playing field uneven, and it is fuelling the tendency all humans have, which is to delay big decisions. This gets to the heart of the challenges faced by lenders today – is the risk of doing nothing worse or be er than doing something which may or may not improve the situation?

The answer to this question is a set of scales, but one that is tipping further and further towards doing something. The question then, is how you achieve this and mitigate transition risk to the best of our ability.

Utilising cloud-based services and platforms enables lenders to manage change safely, one step at a time over a timeframe that allows for troubleshooting, training and responsible, robust customer management.

Using integrators that really understand how to immerse this technology into a business and address the cultural challenges that accompany upheaval is also key. From boardrooms to shop floors there are plenty of issues to consider but, they are manageable with the right people and technology mix.

Not only this, it allows lenders to manage more of their regulatory risk be er, more comprehensively and efficiently. It supports clearer, more robust reporting and oversight through more granular management information. Legacy thinking is possibly the biggest hurdle lenders must address. ●

T E C H NO L O GY Opinion

The benefits of embracing change

W

e talk a lot about how valuable more granular data is, and about how technology can give us insights from that data that allow us to maximise efficiency and deliver be er property risk management.

Most of us understand this concept but it’s harder to picture the detail and the power it could have. In the world of mortgage valuations, this is largely because we’re very much at the start of the journey.

must-do. The decision to improve and benefit from the scale of efficiencies that modern valuations technology can bring is not ‘either/or’ anymore.

It is also far less difficult than it once was.

At Cotality we are delivering this now. We’re connecting lenders, panel managers and surveyors through our Lender Hub without the need to integrate platforms. The result is a faster, more accurate data exchange that delivers faster offers. We are not stopping there. Conveyancing is already on our roadmap.

By managing instructions through one hub, multiple possibilities suddenly become real”

What this means is capturing more data, more consistently and – critically – having that data readily and easily available for lenders to use it to maximise their margins. Quicker be er decisions mean a be er broker experience as valuations moves up the process to the Decision in Principle (DIP) or Full Mortgage Application – saving days – which positively impacts lenders’ margins and brokers’ cashflow.

Lest we forget, the borrower also has greater visibility of the transaction too. Transparency is a core requirement of the Financial Conduct Authority’s (FCA) Consumer Duty, requiring firms to communicate clearly, fairly, and in a way that borrowers can understand allowing customers to make informed decisions.

By managing instructions through one hub, multiple possibilities suddenly become real. Multiple user access to the system allows all parties – broker, surveyor, underwriter and ultimately the lender and customer – visibility of progress. A single view that also meets the need to cut down on multiple integrations that bring

For some lenders, the old adage ‘if it ain’t broke, don’t fix it’ holds serious weight. On the one hand, conceptually they may be able to see that things could be done be er, and more achieved, using more modern technology and data capture. On the other, the inherent risk that the applecart is upset in the process of changing systems and procedures deters action.

Until very recently, accessing be er data capture by adopting new technology has o en meant the prospect of difficult or costly integrations, patching legacy platforms and the dangers associated with transferring highly sensitive customer data.

But capturing new data in the pursuit of be er property risk management is now a regulatory

In practice

MARK BLACKWELL is COO at Cotality

their own risks for lenders.

Post valuation queries – the bane of so many in this industry – can be captured. What the query is, who made it, what the response is, whether the response has been given in a timely manner is all at your fingertips.

This information allows lenders to improve the process, cut the time it takes to close out the valuations aspect of the mortgage application, minimise the administrative burden on all parties and deliver a slicker service to advisers and their clients.

Under Consumer Duty rules, having a clear picture of the interaction with a retail customer allows lenders to assess potential pinch points and flag vulnerability risk early. It allows lenders to have a robust process to handle consumers and excel at it.

Managing third party providers becomes simple and effective almost overnight.

Technology advances tend to come in spurts, with transformative change sometimes crammed into a brief period before the market takes time to adapt. This is where we are at the moment in valuations management.

Clear, measurable insight into process efficiency is suddenly achievable. The process is transparent, trackable and, consequently, easily improvable. Customer service, administrative burdens placed on intermediaries having to deal with frustrated borrowers – managed.

The market can work be er for lenders, valuers, brokers and their end borrowers and there are already early adopters seeing the benefits.

Those that are embracing this notion are making tremendous inroads into old ways of doing things and gaining a huge advantage as they do so. ● September 2025 | The Intermediary

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T E C H NO L O GY Opinion

Couldn’t have put

A

fter a quieter couple of months over the summer, we are now well into September and the usual Autumn bounce in activity. As 2024 drew to a close, UK Finance issued its annual forecasts, anticipating that remortgaging is expected to grow by 30% to £76bn this year.

In August, the trade association published commentary affirming that high refinancing volumes have indeed dominated the market over the first half of the year. It cited figures from Legal & General that highlighted the trend, showing that in Q1 2025 broker searches for remortgage products jumped by 34% compared with Q4 2024.

UK Finance noted the changes to Stamp Duty in April, lowering the threshold for tax to kick in for those purchasing a home who are not firsttime buyers back down from £250,000 to £125,000. September is likely to show a further swell, with this month the second major peak in remortgage as customers’ fixed rate deals end.

It is not just the volume of people coming off fixed rates that is boosting refinance this year. Five rate cuts from the Bank of England since July 2024 mean the deals available today offer borrowers a very welcome reduction in their monthly payments. The much higher cost of living has been noticeable for the majority of middle Britain, households with children to feed and school. A few extra hundred pounds off their mortgage each month will make a big difference to many.

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The numbers are significant.

UK Finance estimates 1.8 million borrowers’ fixed rate deals will mature in 2025 alone, up from 1.6 million last year. Compare the Market carried out analysis that suggests roughly 940,000 of these homeowners will be coming off 2-year fixes in 2025.

UK Finance is expecting even higher refinance volumes next year, with 1.9 million fixed rates maturing in 2026.

Product transfers For brokers, the opportunity to take advantage of this is self-evident; for lenders, it is just as important an opportunity.

Customer retention strategies have characterised the UK mortgage market over the past five or so years, with a significant increase in the number of product transfers driven by rising interest rates. With rates now lower again, borrowers have more flexibility on affordability and more choice when it comes to switching lender for the best rate available.

The price war that has ensued is especially fierce at the lower loan-tovalue (LTV) end of the market, and is dominated by the big six high street lenders vying for market share.

The next tier of lenders, mainly the mid-sized building societies, have higher cost of funds than the big banks with access to capital markets. The improved affordability environment therefore poses a different sort of risk to their lending volumes. Retention is

HAMZA BEHZAD is business development director at finova

absolutely key for these lenders, who must maintain balance sheet size as well as credit quality.

Across the market as a whole, UK Finance figures show that product transfers have seen a decline already this year. The easing of affordability checks on like-for-like remortgaging or where a new deal is cheaper than the existing one, brought in by the Financial Conduct Authority (FCA) earlier this year, will further support borrowers looking to move lender.

Without the lure of ultra-keen pricing to compete with, mid-sized lenders must offer their existing customers another reason to stay.

T E C H NO L O GY Opinion

it better myself An increasing number of mutuals have not only recognised this, but have begun to act to address this risk, using technology platforms to manage customer interactions. They realise that the more touch points they have with the borrower, the stickier those borrowers are. Key to achieving this is to understand that giving customers the choice to handle these interactions makes all the difference.

Consumer confidence Customer psyche is a huge factor in how people want to interact with services of all kinds. Younger generations are more likely to be comfortable communicating online or through chatbots and messaging apps than those in their later years.

Those who have been through the remortgage process several times already may feel more confident selfselecting than those making their first home purchase.

Some people manage their money through apps, others through online browser-based accounts. There are those who prefer the independence

that a mortgage broker offers, some want their hands holding. Some just want to talk to someone over the phone.

Segmenting these customer needs and preferences is not simple for lenders – especially as historical customer touch points have been sporadic. Yet most lenders have reams of data that could help them to develop more sophisticated retention and servicing strategies.

Under the Consumer Duty rules requiring ongoing monitoring of customers at risk of qualifying as vulnerable, getting a handle on what customer data is telling lenders is another priority.

Effective management of this requires the technological functionality that more modern origination and servicing platforms offer. Investment in such tech has to be balanced against the risk of system change, but there are solutions that

address both considerations and offer huge efficiency improvements.

Analysts at UK Finance have hit the nail on the head in their August missive to the market: “For lenders unable to match the cheapest market rates, the emphasis will shift to making the remortgage process as frictionless as possible.

“That’s true for direct-to-consumer channels and even more critical for intermediary-led business.

“In short: for many lenders, streamlining the remortgage journey could be the decisive factor in winning – and keeping – customers.”

Couldn’t have put it better myself. ●

September 2025 | The Intermediary

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Nottingham

focus on ...

OXFORD Each month, The Intermediary takes a close-up look at the housing market in a specific region and speaks to the experts supporting the area to find out what makes their territory unique

O

xford’s housing market has always been distinctive, shaped as much by its centuries-old university as by the city’s growing status as a global hub for research, science, and culture.

The pull of the university continues to underpin buy-to-let (BTL) demand, as landlords remain keen to capitalise on a steady stream of renters ranging from undergraduates to visiting professionals.

Yet this creates its own challenges.

With competition for property fierce, stock is often stretched, and affordability pressures ripple through both the rental and residential markets. For brokers, that makes Oxford a city of contrasts – historic housing stock sits alongside hightech growth, and demand rarely seems to dip.

Current values Property values in Oxford remain among the highest in the country, reflecting the city’s chronic supply pressures. The average home in the postcode area now stands at £455,000, with a median value of £395,000.

Price growth over the past year has been marginal, with only a £1,900 uplift. Established homes currently average £453,000, while new-builds carry a sharper premium at £493,000, underlining strong appetite for modern housing stock.

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The Intermediary | September 2025

Sales activity has slowed, with 7,500 transactions recorded, marking a 10.8% drop year-on-year, equating to 973 fewer sales. The bulk of movement has been concentrated in the mid-market, with 27% of homes sold in the £300,000 to £400,000 range and a further 20% between £400,000 to £500,000.

Oxford’s market spans a wide affordability spectrum: from OX16 5, where average prices are £223,000, to OX7 4, one of the county’s most exclusive postcodes, with an average of £1.7m. Detached homes lead the market at £643,000, while semidetached houses stand at £428,000, terraced at £382,000, and flats at a slightly more accessible £264,000.

Price sensitivity With the housing market in as much demand as ever, brokers stress that it must be balanced with realistic pricing. Marcus Gunn, director at Carbon Oxford, says: “Oxford is a robust market and always seems in demand. We are in a very price sensitive market though, so properties that are not priced sensibly are in danger of sitting on the market with little or no interest for an extended period.”

He underlines a growing reality in Oxford: while demand rarely disappears, overpriced homes can linger, forcing difficult choices between reducing the asking price or waiting for the right buyer to

come along. Gunn also points out that “the seasonal summer months can often be sluggish for residential purchase mortgages with clients away,” although this year he has “had a busier than usual level of purchase enquiries.” This suggests that while Oxford is not immune to seasonal patterns, underlying demand is strong enough to offset them.

Gunn adds that there is “a constant flow of previous clients looking to remortgage and capitalise on more attractive lender pricing.”

Mandy Best, director at Best Financial Planning, offers a similar picture, though she highlights additional challenges. She explains: “The Oxford housing market has remained consistent, with above average prices compared to the rest of country; however, we have seen delays in purchase case completions.”

A robust market TOBY AULD business principal and adviser at Fisher Coulson Property Finance

JESSICA O’CONNOR is deputy editor at The Intermediary

Transactions are increasingly fragile, with chains collapsing more often and timelines stretching. Best observes: “First-time and subsequent movers are buying further afield in Oxfordshire, but with limited supply under £500,000 the market is very competitive.” This forces many buyers to expand their search beyond central Oxford. At the other end of the spectrum, “properties over £800,000 up to £1.5m have stagnated, and we have seen sellers accept a lower offer in the last year on a couple of deals.”

Enduring demand Nevertheless, Oxford remains an attractive property market, bolstered by the university, a steady flow of professionals, and the city’s international reputation.

Toby Auld, business principal and adviser at Fisher Coulson Property Finance, explains: “Although there has been minimal growth since 2024, Oxford is an ever-popular destination due to its status as a hub for education and research, consistently attracting buyers from the UK and abroad.”

That underlying demand provides a degree of insulation against wider economic headwinds, ensuring that Oxford continues to draw both domestic and overseas interest.

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he housing market in Oxford remains robust, with average house prices at around £477,000. Although there has been minimal growth since 2024, Oxford is an ever-popular destination due to its status as a hub for education and research, consistently attracting buyers from the UK and abroad. The appetite for residential mortgages has increased as interest rates have come down, bringing a larger number of potential buyers into the market. This has also helped to fuel a greater number of properties coming onto the market. Buyer and seller confidence has been lower than in the last year or so, which can cause transactions to fall through.

For this reason, it has become more important than ever for buyers to have the backing of a mortgage in principle before making an offer, in order to be taken seriously and avoid any delays in the transaction. The Oxford North Development is an example of what makes Oxford a unique destination, not only in the UK but globally. This development will see a million square ft. of labs and workspaces, 480 new homes and three public parks. It is billed as a new district to enable the next century of life-changing discoveries in science and technology.

He adds that “the appetite for residential mortgages has increased as interest rates have come down, bringing a larger number of potential buyers into the market,” though “buyer and seller confidence has been lower than in the last year or so, which can cause transactions to fall through.”

This faltering confidence makes broker advice even more critical, and Auld notes that “it has become more important than ever for buyers to have the backing of a mortgage in principle before making an offer, in order to be taken seriously and avoid any delays in the transaction.”

Prevailing demographics The Oxford postcode area is home to 688,000 residents with an average age of just over 40. Gunn notes that

over two decades he has worked with “first-time buyers, local and foreign property investors, high-net-worth individuals and many next time movers and refinancers.”

One of the key shifts this year has been the way clients are tackling stalled transactions, he adds: “Clients [are] looking to understand other ways to solve timing issues when a property’s struggling to sell. They are often turning to other tools such as structured bridging, second charge, let-to-buy. The phrase ‘proceedable’ has a huge currency in 2025 property market and can often be achieved in a variety of ways.”

The wide-ranging client base is echoed by Darren Meehan of Bright Money Independent, who notes: “Our → client base is diverse, with academics, September 2025 | The Intermediary

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L O C A L FO C U S Oxford

Steady enquiries MARCUS GUNN director at Carbon Oxford

O

xford is a robust market and always seems in demand from my experience. It’s important to note that we are in a very price sensitive market, though, so properties that are not priced sensibly are in danger of sitting on market with little or no interest for an extended period. Vendors often need to consider price or patience. The seasonal summer months can often be sluggish for residential purchase mortgages, with clients away. I am pleased to say we have had a busier than usual level of purchase enquiries. We also have a constant flow of previous clients looking to remortgage and capitalise on more attractive lender pricing.

We deal with predominantly three main lender brackets: high street lenders, investment banks and more locally focused institutions like Handelsbanken. Handelsbanken, for example, can be very helpful with quirky properties and complex income in Oxford. Clydesdale and Virgin can be used for limited company directors based anywhere, and investment banks such Investec and Coutts are useful for high-networth clientele. The challenge for an adviser is to keep up to date on a vast array of lending products and criteria which is constantly changing.

Buy-to-let is a mixed picture. Mortgage pricing is much better than it was two years ago, but this market is under threat of constant tenancy regulatory changes and fear of increased taxation. Accidental landlord enquiries have increased this year from owners also looking to break chains to maximise their position and perhaps hold onto a property for two to five years before selling. In a slower sales market this can often be a tool for many owners to secure their dream home, with of course some consideration, cost and compromise to be factored in.

Increased demand MANDY BEST director at Best Financial Planning

T

he Oxford housing market has remained consistent, with above average prices compared to the rest of country; however, we have seen delays in purchase case completions. First-time and subsequent movers are buying further afield in Oxfordshire, but with limited supply under £500,000 the market is very competitive, and several deals have seen chains collapsing and then restarting again, delaying the process even further. Properties over £800,000 up to £1.5m have stagnated, and we have seen sellers accept a lower offer in the last year on a couple of deals. Residential mortgages remain strong, and with a strong client bank we remain busy with product transfer reviews, remortgages and further borrowing cases.

We have seen increased demand for affordable housing in line with Oxford City Council’s planning for the future for affordable and social housing. However, this trend is yet to be matched with competitive lenders’ criteria and rates, coupled with the high rental cost for the Shared Ownership, stress-testing on affordability remains challenging.

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The Intermediary | September 2025

professionals, foreign nationals, families seeking good schools, and retirees downsizing or releasing equity.” He has also seen “an uptick in younger professionals needing guidance to navigate higher deposit requirements.”

Auld’s clients also “range from firsttime buyers employed in service roles to company CEOs, portfolio landlords and some prominent members of the entertainment industry.”

Popular lenders In Oxford, brokers agree that a blend of high street staples, regional building societies, and specialist banks define the market. Best says: “With the value of properties and demographic of our average client, specifically in South Oxford, the key lenders typically are either Halifax, Virgin Money, Coventry Building Society, or Santander.”

Yet the diversity of Oxford’s borrowers means a broader panel is often essential. Meehan’s firm works with a broad range of lenders, “from high street names [...] to regional specialists.” He adds that specialist lenders are “key for more complex cases, ensuring we can cater to a wide range of client needs.” Gunn deals “predominantly [with] three main lender brackets: high street lenders, investment banks and more locally focused institutions.” He says: “Handelsbanken, for example, can be very helpful with quirky properties and complex income in Oxford.

Clydesdale and Virgin can be used for limited company directors based anywhere, and investment banks such Investec, Coutts are useful for highnet-worth clientele.”

Auld adds: “Handelsbanken has been an important lender for me this year due to their ability to take a view on properties which other lenders would not lend on. In Oxford there are some unique houses which may not be suitable for a high street bank so having a lender with local knowledge and flexibility is invaluable.”

Rental landscape Unsurprisingly, Oxford’s rental sector continues to play an outsized role in the local housing landscape. Private rental stock accounts for 24.9% of the area’s housing, above the national average of 23.6%. Yet for landlords, the picture is far from straightforward.

L O C A L FO C U S Oxford

Auld explains: “Although buy-tolet remains a challenging market, there has been a shift in the type of client looking to purchase, with a strong focus on limited company transactions.” He adds that rental prices have surged in the area, and that “Oxford also remains a strong destination for houses in multiple occupation (HMOs) due to council legislation and the number of student lets in the area.”

Meehan notes that “despite tighter margins due to tax and regulatory changes, Oxford remains a solid rental hub thanks to its student population and strong demand from hospital and university staff.” He highlights that “professional landlords remain active, especially in HMOs and welllocated smaller units,” with many now targeting properties where they can add value rather than simply relying on capital growth.

Still, the market is not seeing the same inflow. Best notes: “We continue to service existing clients’ rental portfolios, but have not seen new buyers in Oxford this year.”

She adds: “BM Solutions last month entered the limited company buy-tolet market with competitive rates and underwriting, making other lenders

address the competitiveness of their limited company rates, criteria, and affordability.”

For Gunn, the market is one of contrasts. He says: “Mortgage pricing is much better than it was two years ago, but this market is under threat of constant tenancy regulatory changes and fear of increased taxation. Overall, investors feel a little battle weary!” At the same time, he notes a rise in “accidental landlord enquiries” as homeowners use letto-buy strategies to break chains and secure onward purchases, sometimes holding onto an existing property before selling.

Future growth Development is playing an increasingly important role in shaping Oxford’s future. The average price of a newly built property in the postcode area now stands at £493,000, a 6% increase over the past 12 months.

Hotspots such as OX16 9 have recorded 63 new-build completions in the past year.

Brokers say new schemes are not just about housing, but broader transformation. Best explains: “While private property developers still thrive in and around Oxfordshire – and offer

Exciting times ahead DARREN MEEHAN mortgage adviser at Bright Money Independent

W

e think Oxford is one of the UK’s most resilient property hotspots. Prices have levelled off, but well-presented family homes near good schools and commuter routes are always prime. We’re seeing healthy interest from both first-time buyers and movers. Affordability is getting better, and with rates slowly coming down, this is making it worthwhile for first-time buyers to consider switching renting for purchasing. Longer-term fixed rates are popular as buyers look for security, but equally, many think rates will continue to decrease. There’s also a noticeable rise in later life lending – releasing money to stay in the family homes and help their children with a deposit, or retirees exploring options to release equity or secure flexible borrowing.

We work with a broad panel – from high street names like Nationwide and Halifax to regional specialists such as Skipton and Coventry Building Societies. Specialist lenders are also key for more complex cases, ensuring we can cater to a wide range of client needs.

There’s a huge amount of commercial development on the outskirts of Oxford, from the Ellison Institute of Tech to talk of the new railway and Puy du Fou’s £600m plans for a Theme Park in Bicester – exciting times ahead for all in and around Oxford.

Oxford Residents

688k Average age

40.3

Residents per household

2.53

Oxford postcode area.

Source: www.plumplot.co.uk

some exclusive sites for discerning buyers – we have seen some reviewing and reworking for portfolio landlords in line with the Government’s changes to investment properties.”

Indeed, Meehan points to the scale of upcoming projects, including “a huge amount of commercial development on the outskirts of Oxford, from the Ellison Institute of Tech to talk of the new railway and Puy du Fou’s £600m plans for a Theme Park in Bicester,” which makes for “exciting times ahead for all in and around Oxford.”

For Auld, one ongoing development captures the city’s distinctive character and ambitions. He says: “The Oxford North Development is an example of what makes Oxford a unique destination, not only in the UK but globally. This development will see a million square ft. of labs and workspaces, 480 new homes and three public parks. It is billed as a new district to enable the next century of life-changing discoveries in science and technology.”

Uniquely strong While Oxford’s housing market may face the same affordability, regulatory, and buyer behaviour challenges seen nationwide, its fundamentals remain uniquely strong.

Meehan concludes: “Oxford is one of the UK’s most resilient property hotspots. Demand is strong, driven by limited supply, the university’s global pull, and steady professional relocation.”  September 2025 | The Intermediary

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On the move...

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BSA appoints Sarah Harrison as CEO

he Building Societies Commission, and senior roles at Association (BSA) has Ofgem. Harrison will be the first appointed Sarah Harrison as female CEO at the BSA, replacing CEO, set to take up the role Robin Fieth, who is leaving a er 12 years. from 1st December.

She said: “As a strong Harrison has over 30 years’ experience in senior advocate of the customerGovernment and regulatory ownership business model I positions, most recently as feel really privileged to be asked chief operating officer (COO) at to join the BSA, representing building societies and the Cabinet Office.

She has also held credit unions which positions as COO at provide vital financial the former business services to consumers department (BEIS), and communities CEO at the Gambling across the UK." SARAH HARRISON

Ultimate Finance appoints asset finance sales director

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ltimate Finance has appointed Paul Hansen as asset finance sales director, a new role created as part of its broker-first growth strategy.

Hansen brings over 30 years’ experience in asset finance sales, including more than 10 years in senior leadership roles at lenders and brokerages.

He will lead the asset finance sales strategy, to drive new business and increase engagement with brokers across the UK. PAUL HANSEN Hansen said: “Ultimate Finance is commi ed to investing in people and driving significant, sustainable growth through strong, meaningful partnerships with our broker network.

“I’m delighted to join the senior leadership team, and my focus is on elevating the profile of Ultimate Finance to our existing broker network and forging new introducer relationships.”

Andrew Ribbins, group head of sales, said: “Paul’s decades of Asset Finance experience and broker insight make him a great fit for our values."

Lendco hires Steve Smith as head of sales

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endco has appointed Steve Smith as head of sales.

Smith has over 25 years of financial services experience and previously held senior roles at a number of lenders within the specialist finance sector.

He said: “This really felt like the right move for me. Lendco is a on a phenomenal growth trajectory, so to join at this stage is special.

“I’m hoping to make an immediate impact, and very excited to see what the future holds.”

Executive director Alex King added: “Steve is vastly experienced, and his knowledge and expertise will make him a valuable asset as we continue to scale our operations to service more brokers and borrowers.”

STEVE SMITH

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RECRUITMENT

HTB strengthens underwriting team across specialist and bridging divisions

H

ampshire Trust Bank (HTB) has made a series of appointments across its specialist mortgages and bridging finance divisions.

Russell Harvey joined the specialist mortgages division from Landbay, while Denis Arefyev was promoted to senior underwriter is specialist mortgages. In bridging, Jack Unsworth joined as underwriter from Glenhawk. He is joined by Krisha Karunananthan from Funding 365, and Nim Shah from United Trust Bank. In addition, Faith Ndebele has joined the bridging team as underwriter from TAB. Andrea Glasgow, sales director, specialist mortgages and bridging finance at HTB, said: “Brokers tell us time and again that what they value most is being able to speak directly to an underwriter who understands their case.

“These hires give us more depth to deliver that. Whether it is bridging or specialist mortgages, our team are here to give brokers the confidence that their clients will get the right solution and the right support.

“What ma ers is that brokers know they can pick up the phone and get straight through to an underwriter."

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KELLY ILES

hello@barrowmount.com Associate Member

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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.

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