The Intermediary – February 2026 - Flipbook - Page 48
RESIDENTIAL
Opinion
Despite optimism,
innovation still
needed
I
n conversations we are having
with brokers and others across
the mortgage sector, it’s clear
there is a sense of optimism
running through the market
in the early part of this year.
With the uncertainty created by
the Autumn Budget now behind us,
confidence has started to return to
the market.
There are several factors which
are likely contributing to this.
Mortgage rates are at their lowest
level since 2022, buyer borrowing
power has increased following the
Financial Conduct Authority (FCA)
‘clarification’ of stress rates, and
more flexibility with loan to income
multiples. And there’s more to come,
with the FCA commiing to a series
of reforms which should support
first-time buyers, later life lending,
and the rollout of new technology and
other innovations.
The need for expert advice will
only increase given this changing
landscape. The support and advice of a
good broker through the homebuying
journey can save thousands over the
lifetime of a mortgage. This is true
of those buying for the first time and
those remortgaging at the end of their
current deal. This year an estimated
Optimism alone
won’t deliver better
outcomes [...] because
even in an improving
rate environment, many
borrowers still struggle to
access a mortgage”
46
The Intermediary | February 2026
AARON SHINWELL
is chief lending officer at
Nottingham Building Society
1.8 million fixed-rate mortgages
are due to expire, according to UK
Finance’s mortgage market forecast.
Across the market, lenders are
responding – not only by reducing
interest rates but looking at other ways
to improve access for borrowers. In our
case, that has included price changes,
simplifying criteria for self-employed
applicants, widening our approach
to future income, and providing
greater flexibility around borrower
profiles. We believe optimism alone
won’t deliver beer outcomes unless
it is paired with continued innovation
in how we lend, how we assess risk,
and how we support borrowers whose
circumstances don’t fit neatly into
traditional boxes.
Embracing new ideas
Why? Because even in an improving
rate environment, many borrowers
still struggle to access a mortgage.
Not because they can’t afford it, but
because the system has difficulty in
recognising how they earn, spend, and
manage money in today’s world.
These borrowers include the
aforementioned self-employed and
contractors, those with variable
income, older demographics, or those
whose financial resilience doesn’t
present itself neatly on a payslip.
Many of these borrowers demonstrate
strong payment behaviour every
month through rent, bills or
childcare costs, yet those behaviours
don’t always carry enough weight
in underwriting.
That’s where lenders, working
closely with brokers, continue to play
a vital role in making sure that rigid
processes and assessment models do
not create barriers.
If we’re serious about widening
access, we need to collectively embrace
a more holistic measure of financial
resilience. Beer use of data and
alternative verification can reduce the
amount of uploading, re-uploading,
and explaining that borrowers are
asked to do, without removing the
checks that protect both customer
and lender.
Innovation should be about
practical change that removes
friction and improves outcomes. On
the product side that means greater
flexibility around income assessment,
term structures, and later-life lending.
But innovation isn’t just about what
we lend, it’s about how we lend.
Application journeys are still
oen too slow and cumbersome and
too document-heavy for customers
who already feel anxious about the
process. The adoption of artificial
intelligence (AI) will help streamline
these processes for brokers and
lenders alike – we’re already seeing
the benefits of investment in this area
which will only gather more pace
through the year.
For brokers, clarity is just as
important as speed. A healthy market
is one where advisers can clearly see
which paths are viable for “unique but
credible” cases rather than spending
time navigating opaque criteria or
unnecessary dead ends.
This year brings genuine
reasons to be positive. Lower rates,
returning confidence, and strong
remortgaging volumes give the
market momentum and will open
more doors. But optimism should
be matched with responsibility.
Innovation must continue so that
underserved borrowers don’t miss
out. If we can do that, this year won’t
just be a beer year for volumes, it
will be a beer year for outcomes
across the market. ●
