The Intermediary – February 2026 - Flipbook - Page 49
RESIDENTIAL
Opinion
A strong start to
the year, will it
just get busier?
2
026 has already started
with the usual aermath
of the festive period.
People deciding to bite the
bullet and list their home
for sale aer realising
that their current home is too cramped
to cater for extended family. Or, ears
begin to prick up when lenders reduce
rates which makes that extension
potentially viable once again.
Being just a few weeks into the
year, here at Fowler Smith Mortgages
& Protection, we’ve already seen an
influx in enquiries and submissions.
Indeed, it looks as though 2026
is going to be a very busy one for
mortgage advisers.
We’re currently seeing predictions
of the Bank of England’s base rate
being cut at least twice throughout
the year. Off the back of this, we’ve
already seen a number of lenders
reducing fixed rates. This ultimately
gives borrowers more spending
power and will drive them to borrow,
whether that be to move or to stay put
and extend.
Market optimism
With a potential boost in property
activity, we might in turn see an
increase in property prices throughout
the year. Something that isn’t the
most welcomed by the first-time buyer
(FTB) market, but with lower rates
and many lenders offering some form
of incentive for FTBs in the form of
cashback, increased lending multiples
or free valuation surveys, then it
hopefully shouldn’t cause too much of
a detriment to the market as a whole.
As much as I’m feeling positive
about the residential market, I equally
feel the same way about buy-to-let
(BTL). As we know, that market has
taken a bit of a hammering in the
past 18 months or so. Increased Stamp
Duty, impending energy performance
requirements, Renters’ Rights
Act and more.
But, again, if a yield presents
itself in a way that is beneficial to a
landlord, they’re going to invest. With
lower rates, lenders opening criteria,
and even some lenders completely
rebranding to put a focus on more
specialist BTL cases, there’s not too
much of an argument remaining as to
why someone wouldn’t consider a BTL
for 2026.
Room for growth
Besides, if interest rates are
decreasing, then we’re going to be
seeing a spike in enquiries where
people somewhat ‘flirt’ with the idea
of property investment. They might
not see the same strong returns from
keeping their funds locked away in a
savings account.
Considering the positivity for the
property market this year, I’d really
like to see some lender improvements,
too. One of the main ones that I’m
seeing at the moment is inconsistency
with property valuations, especially
in the new build space for smaller
developers. For instance, we have seen
one apartment unit value up, while
the one next door sees a hey down
valuation. You can try to contest it,
but ultimately, you’ll get nowhere.
Equally, with regards to the
more traditional house purchase or
remortgage, automated valuation
models (AVMs) might be great for
speed, but when they don’t work,
it’s a real pain. For instance, a house
that has been significantly improved
through renovation, that then gets
down-valued due to an automated
survey based on the house price index,
can severely impact that purchaser
or remortgaging client and have
a really detrimental effect on the
JONATHAN FOWLER
is managing director and
founder at Fowler Smith
Mortgages & Protection
With a potential
boost in property activity,
we might in turn see an
increase in property prices
throughout the year”
overall transaction. You then ask for a
physical survey and the lender can just
say ‘no’ as they don’t need it. This can
impact borrowers deposit amounts,
the amount they are able to pull out
of their existing property or just halt
the transaction altogether. What’s
even worse is if it’s then aempted
with another lender, and they also
decide an automated survey is all that’s
needed again. The cycle continues.
I understand from a lender’s
perspective that speed is vital, and
automation helps manage demand;
but sometimes, it is just necessary to
have a human approach and consider
what is fair, not just fast.
While certain issues within the
market certainly still exist, it is clear
that 2026 will be busy in all aspects –
we’re seeing it already in just the first
couple of weeks of the year. I, for one,
remain optimistic, as I think we as
advisers can work closely with lenders
to make the year even beer than
we anticipated. ●
February 2026 | The Intermediary
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