The Intermediary – July 2026 - Flipbook - Page 31
I N T E RV I E W
Good advice can only go so far, though. For
first-time buyers to make it onto the property
ladder, the products themselves must be fit
for purpose. This is where April Mortgages’
philosophy comes into play.
Pagan explains: “We came to the UK with a
purpose really to bring more stability to the
lives of first-time buyers and all mortgage
holders.
“Our product is different, which in theory
could increase complexity, but it’s literally
designed around what are the things that will
help the longer-term fixed rate work in the UK.
“For example, if the first-time buyer starts at
a high LTV, the rate will naturally reduce with
its LTV.”
In addition to easing affordability challenges,
April Mortgages takes into account that life
events, and unexpected disruptions, can take
place at any time.
“If they need to sell up because something
goes wrong, there is no early repayment
charge,” Pagan says. “If their income increases
and they’re ready for the next house in two
years’ time, again, they can get out of the April
product with no penalty.
“Affordability was one of our first big areas
we went into – how could we unlock extra
affordability for people, using the power of the
longer term fixed rate?
“For 100% LTV, we’ve used only our 10year product to start with, to learn about the
market. That extra stability has given us the
confidence to have the simplest 100% product
in the market.”
Brown adds that there is a lot of focus in the
market on headline rate, but that this should
shift from being a key priority to simply one
factor. The broker’s role is to help the borrower
find a product where the rate is workable, but
more importantly, the structure of the loan
works for their circumstances.
For example, April deliberately positions
itself around long-term value rather than
pushing for the cheapest price.
Brown adds: “We’re looking for partners
who are actual advisers. What I mean by that
is people who actually will embrace that there
is a selection of options. We’re not saying
everyone needs to come to April, but there will
be clients out there who value that peace of
mind, and for whom the rate itself is not the
biggest reason to use us.
“If you look at the volatility in terms of price
movements, who’s to say that within the next
five years, things will remain the same.
“When we educate brokers about our
proposition as a whole, and our objective of
peace of mind, security, while having flexibility
in our products, advisers get it.”
Self-service and automation
As many of the larger, more high street lenders
are becoming increasingly automated, the
conversation around self-service models of
lending has once again emerged in recent
months. Brokers should not be concerned,
however, as for every client that is able to make
self-service work for them, many more will
continue to need help navigating the market.
Brown says: “When you truly look deep,
deep down at the complexity of most
individuals, they will understand that the value
of advice is so important.
“A lot of people will first go and check, say,
an aggregator, or speak to their bank. Often
they find actually, for one reason or another,
they need a more comprehensive solution.
The right advice will always play a huge part in
the market, and will continue to do so as the
complexities of people’s lives continue.”
Pagan adds: “The beauty of the UK market
is that there is a really rich set of second,
third and fourth-tier lenders that embrace
that customer complexity. I don’t see that
changing, and therefore there is a strong place
for advisers if they’re willing to keep their mind
open to a full range of options.”
While many large lenders might be
accused of attempting to make the journey
to homeownership as homogenous as
possible, other lenders must take up the slack
of innovation.
Nevertheless, while April Mortgages makes
it a mission to keep modernising, Pagan
and Brown are very clear on the fact that
innovation should not exist for its own sake,
but must focus on solving real problems.
Pagan says: “I see lots of good innovation in
the market, and I see a willingness from the
[Financial Conduct Authority (FCA)] as well
to support the market in a way that I don’t
remember seeing for a long time.
“We’ve certainly felt embraced as an
innovative new lender by both brokers and
some of the other lenders, actually. We’re
doing something unique and special, but we’re
not alone in doing that. There are a growing
range of good options for borrowers and the
environment is right for further innovation. We
hope to be a leading part of that, obviously.”
“We particularly champion the idea that
innovation only matters if it solves a real
customer problem,” Brown adds.
To this end, April Mortgages engages in
an ongoing discourse with brokers, to find →
July 2026 | The Intermediary
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