The Intermediary – July 2026 - Flipbook - Page 37
RESIDENTIAL
Opinion
Mortgage reforms
must ensure support
when life changes
T
he debate around
mortgage market
reform has rightly
focused on helping
more people achieve
homeownership. But if
there is one message coming through
consistently from brokers, it is that
access to a mortgage is only part of the
story. The real challenge is ensuring
the market continues to support
borrowers when life changes.
A mortgage may start with a
property purchase, but it oen spans
decades. During that time, changes
in income, health, family dynamics,
caring responsibilities, employment,
or retirement plans can all affect a
borrower’s options and affordability.
Increasingly, brokers tell us they
are supporting customers who are
not struggling to get onto the housing
ladder, but who are trying to navigate
an unexpected change once they are
already on it.
That is why the Financial Conduct
Authority’s (FCA) proposals to
improve access for first-time
buyers, older borrowers, and other
underserved groups are a welcome
step forward. The regulator’s vision
for a mortgage market that beer
reflects changing consumer needs
throughout life is an important one.
Yet reform should not be judged
solely on how many people it helps
into homeownership. It should
also be judged on how effectively
it supports borrowers when
circumstances change.
For some, financial pressure arrives
suddenly following bereavement,
illness, relationship breakdown,
or job loss. For others, it develops
more gradually as household budgets
tighten, fixed-rate deals come to an
end, retirement approaches, or an
interest-only repayment strategy
moves from a distant consideration to
an immediate reality.
Whatever the trigger, these are
oen the moments that define a
customer’s long-term financial
resilience and where the mortgage
market has the greatest opportunity to
make a meaningful difference.
A growing issue
Our latest broker research also
supports this, with more than
a third (34%) saying stronger
help for customers in vulnerable
circumstances is the reform they
believe would most support the
UK mortgage market. A further
quarter (25%) point to beer support
for borrowers struggling with
repayments, while another 20% want
improved understanding and support
around customer vulnerability.
The picture is reinforced elsewhere
in our research, with more than
a quarter (28%) of brokers seeing
more borrowers facing affordability
challenges as fixed-rate deals end,
while 27% report more over-60s
reaching the end of interest-only
mortgages. These pressures affect
different groups of borrowers and
illustrate the point that people’s
circumstances change over the
lifetime of a mortgage.
Brokers aren’t just asking for more
products or more flexible criteria,
although these remain important.
Brokers are pointing to a broader
need for earlier guidance, clearer
routes to support, and a market that is
beer at identifying pressure before it
becomes acute.
This is where the industry needs
to be honest about the gap between
the support that exists on paper and
borrowers’ confidence in accessing
it in practice. Lenders already
offer a range of options, from
AARON SHINWELL
is chief lending officer at
Nottingham Building Society
payment arrangements and term
adjustments to tailored support for
customers experiencing difficulty,
but if borrowers don’t know when
to ask, who to speak to or what the
consequences might be, those options
can remain out of reach.
A key role to play
This is where the adviser-borrower
relationship is critical. Brokers oen
have greater visibility of a customer’s
circumstances than a single lender
interaction and are well placed to
spot early signs of change. However,
that insight only works if lenders can
respond to it.
The industry has already made
progress, with lenders offering more
tools to support borrowers when
circumstances change and taking
a more proactive tone in arrears
conversations.
For example, we offer customers
access to our advisers to discuss
options such as reviewing their
mortgage term or repayment
method, switching deals at the end
of a product term, or exploring
support if they are struggling with
payments, alongside clear guides and
resources to help them understand the
choices available.
A market that identifies pressure
early is more likely to deliver beer
outcomes and greater confidence
among brokers handling complex
cases. Reform should therefore
focus not just on access at the point
of origination and also on support
throughout the journey, as a mortgage
is not a single transaction but an
evolving relationship that should
adapt as circumstances change. ●
July 2026 | The Intermediary
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