The Intermediary –- June 2026 - Flipbook - Page 19
RESIDENTIAL
Opinion
Affordability, advice
and execution
W
hen was the
last period of
‘normal’ in the
UK mortgage
market?
For many,
it’s 2019 – pre-Covid. Others point
to 2015-16, before the referendum.
Whichever view you take, I’d argue
we’ve moved beyond simply ‘adjusting’
to rate shocks driven by economic and
geopolitical instability.
Rates may have steadied recently,
but affordability pressures remain
stubborn, and at the same time,
customer expectations of both brokers
and lenders continue to rise. That
combination is reshaping not only
broker-client conversations, but also
how intermediaries choose their
lender partners.
Affordability landscape
There are signs of marginal
improvement. Skipton Group’s
latest affordability index shows the
proportion of potential first-time
buyers able to get onto the ladder has
risen from under 10% at the start of
the decade to 12.1% in Q4 2025, with
forecasts suggesting this could reach
14.4% by Q4 2028.
That equates to around 125,000
more first-time buyers entering the
market, assuming income growth
continues to outpace house prices.
That forecast, of course, pre-dates
the recent Middle East conflict and is
subject to any economic fallout.
But beneath those headline
improvements lies a deeper structural
challenge. Only 6% of first-time
buyers are now under 25, compared
with 23% in the 1990s. More than
half (52%) rely on two or more fulltime incomes just to buy and sustain
homeownership.
Brokers are seeing this every day:
fewer straightforward applications
and more cases siing right on the
edge of affordability. Customer
profiles are shiing, too. The average
first-time buyer is now 34, oen
bringing a deposit that exceeds their
annual income. Meanwhile, 62% are
taking terms of 30 years or more,
stretching affordability over time
rather than solving it upfront. Geing
on the ladder has become a long-term
financial strategy rather than a single
transaction.
In this environment, the broker’s
role has fundamentally evolved.
Intermediaries are no longer just
product finders, they’re affordability
problem-solvers. That means
structuring cases creatively, seing
expectations early, and navigating
increasingly nuanced lending criteria.
Demand for a broader range of
solutions is growing, and with it the
need to understand not just what a
lender’s criteria says, but how it’s
applied. As complexity increases,
certainty becomes more valuable.
Brokers are prioritising lenders that
can give an early, confident view on
whether a case fits their appetite – not
just those offering the lowest rate.
Service expectation reset
At the same time, borrower
expectations of the mortgage journey
have shied significantly.
Customers increasingly expect
the process to mirror other sectors:
intuitive applications, real-time
updates and speed. But in a more
pressured market, human support has
become even more critical.
Brokers need access to
knowledgeable BDMs and
underwriters who look to try find a
way. They need clear answers on cases
that sit just outside standard criteria
but still have merit. And they need
confidence that decisions will hold.
When that clarity or consistency
breaks down, it affects not just the
lender relationship, but the broker’s
ability to deliver for their client.
For mutual lenders, this market
plays directly to our strengths. A
member-first model allows for a
AIDAN WALKER
is senior national accounts
and first-time buyer lead
at Skipton Building Society
longer-term perspective, balancing
prudent lending with a clear purpose
to improve access to homeownership.
In 2025, Skipton supported more than
26,000 first-time buyers, representing
around 50% of new lending.
Alongside that, targeted
innovation is helping to bridge gaps
that traditional criteria can’t. That
includes alternative approaches to
deposits and more flexible income
assessments. These are practical ways
to respond to the realities brokers and
customers face.
Certainty over price
Pricing will always maer, but it’s
no longer the primary differentiator.
Increasingly, brokers are asking:
Will this lender accept the case? How
quickly will they decide? Can I rely
on them to deliver? In a market where
affordability is tight and borrower
confidence can be fragile, those
answers maer more than ever.
The affordability challenge hasn’t
gone away; it has evolved, and it’s
increasingly sensitive to external
shocks. Cases are more complex,
borrower expectations are higher, and
brokers are more central than ever in
navigating the journey.
For lenders, the challenge is clear:
align with broker needs not just on
product and price, but on criteria,
service and a genuine understanding
of what customers are trying to
achieve. For mutuals, the opportunity
is to lean into purpose, flexibility and
service to stand out.
For brokers, success will
increasingly come down to partner
choice, selecting lenders that can help
turn complex, marginal cases into
sustainable homeownership outcomes
in a market where geing there is
anything but straightforward. ●
June 2026 | The Intermediary
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