The Intermediary –- June 2026 - Flipbook - Page 20
RESIDENTIAL
Opinion
The early bird
advantage
T
he current economic
climate is having a
noticeable impact on
both first-time buyers
(FTBs) and home
movers.
We are speaking with prospective
clients much earlier than in recent
years, as economic uncertainty and
negative mortgage rate headlines
encourage buyers and homeowners to
seek professional advice sooner.
Many are pleasantly surprised to
learn that the market is oen more
positive than media coverage suggests.
For FTBs, the biggest challenge
remains saving a sufficient deposit,
with Stamp Duty (SDLT) oen
creating an additional hurdle even
aer that goal has been reached. This
purchasing a property below market
value and intending to remain within
the property for the long term – they
carry significant risks for many
buyers, oen without them realising.
Entering the market with lile or no
equity leaves borrowers particularly
exposed to any downturn in house
prices, especially given the recent
headlines around property values.
The right tools
Technology and digital solutions
are also changing the mortgage
application process. Overall,
technology is improving processes
across the industry and enabling faster
results, when it works.
Some lenders can now issue a
mortgage offer on the same day
Borrowers should be aware of new products and emerging mortgage market trends
is why early advice has become more
valuable than ever and SDLT now
makes up part of our initial advice
process more than ever before.
In terms of residential mortgages,
borrowers should be aware of new
products and emerging trends.
High loan-to-value (LTV) products,
for example, have become more
prevalent, with more lenders entering
the 95% space and some now offering
98% and even 100% LTV solutions.
While these products can be suitable
in certain circumstances – such as
18
The Intermediary | June 2026
of application without manual
underwriting, which is a clear benefit.
However, issues arise when postoffer changes are needed; for example,
one lender will revert a case to full
underwriting if the interest rate is
amended aer offer.
This can trigger further information
requests, leading to delays and client
confusion, particularly if time has
passed since the original offer.
Technology should be seen
as a tool, not a replacement for
advisers, underwriters, or business
THOMAS BOUGHTON
is founder at Artillium Real
Estate Finance
development managers (BDMs) – it
should make their jobs easier.
The main frustration is the
growing number of lenders who now
require use of live chat instead of
speaking to someone on the phone. In
practice, this is oen slower and less
efficient than a direct conversation
with a BDM.
With the overall product choice of
residential mortgages rising above
7,000 options for the first time since
March 2026, according to Moneyfacts
UK, this increase will undoubtedly
affect borrowers. More products
means greater competition among
lenders, which will undoubtedly
improve outcomes for clients.
Many lenders, particularly on the
high street, are adjusting criteria
to accommodate cases that would
historically have been considered ‘high
risk’, allowing them to pass under
standard lending rules. 2- and 5-year
fixed rate capital repayment products
continue to dominate the market.
It would be encouraging to see more
lenders take a more flexible stance on
self-employed borrowers and foreign
nationals, as these clients now form a
significant part of our book.
There is also room for greater
innovation in product design,
particularly with structures similar to
Offset Mortgages, helping borrowers
make more efficient use of their funds
and reduce interest costs.
Overall, navigating today’s
mortgage landscape requires careful
consideration and expert guidance
to ensure borrowers make informed
decisions and secure the best possible
outcomes. ●
