The Intermediary – March 2026 - Flipbook - Page 14
RESIDENTIAL
Opinion
Manual
underwriting for
modern borrowers
A
utomated
decision-making
and streamlined
digital journeys
have undoubtedly
improved speed
and consistency. But as the property
market grows more complex, many
borrowers no longer fit neatly into
automated models.
For brokers, this shi is tangible.
Increasing numbers of clients have
income profiles that are irregular
but sustainable, their circumstances
have changed or there are layered
affordability considerations that
require explanation. In this context,
the case for manual underwriting is
not nostalgic, it’s practical.
Context matters
At its core, manual underwriting is
about recognising that individual
circumstances maer. It allows
lenders to assess not only what the
numbers say, but why they look the
way they do.
That distinction is particularly
important when income is derived
from contracts, self-invested personal
pensions (SIPP), multiple roles
or newly-established businesses.
Algorithms are efficient at paern
recognition; experienced underwriters
can apply contextual judgement.
However, a considered,
human approach does not mean
relaxed standards.
On the contrary, responsible
lending depends on balanced decisions
that support long-term financial
wellbeing.
Reframing higher LTVs
This approach is increasingly relevant
at higher loan-to-value (LTV) tiers.
Historically, 95% LTV lending has
been reserved for straightforward
12
The Intermediary | March 2026
PAYE applicants with multi-year
employment histories.
But today’s workforce looks very
different. IT consultants working on
day rates, healthcare professionals
on fixed-term contracts, and business
owners with only a year’s trading
history are no longer rare cases, they
are mainstream.
We have recently extended 95% LTV
and applied tiered loan-to-income
(LTI) increases to reflect that reality.
For first-time buyers (FTBs)
with limited deposits, this broader
recognition of income is significant.
Newly-qualified professionals are
a good example. Doctors, solicitors
and accountants oen have strong
long-term earnings potential
but may struggle to evidence the
employment track record required by
automated systems.
The same principle applies to
property type. New-build and
shared ownership properties remain
important entrypoints for buyers.
Oen, the borrowers purchasing
these homes are also those with
complex income structures.
The ability to assess higher LTV
lending on a case-by-case basis, across
a range of property types, ensures that
our flexibility in criteria is matched by
depth of understanding.
This philosophy extends beyond
owner-occupiers. In the buy-to-let
(BTL) and holiday let sectors, our
increased leverage – such as 80% LTV
on regulated buy-to-let and holidaylet mortgages – can provide landlords
with additional headroom.
In the bridging finance sector, our
75% LTV on short-term lending can
offer a flexible alternative.
For brokers managing timesensitive transactions or portfolio
clients, manual underwriting allows
for clearer guidance.
JON CARTLIDGE
is head of member and
broker strategy at Furness
Building Society
Speed and substance
Speed, of course, remains important,
and manual does not have to mean
slow. Our streamlined processes,
clear upfront requirements and preapplication discussions with our BDM
team has reduced the time from app to
offer by 68% – and it is still falling.
When brokers can speak to
empowered BDMs who understand
the case and can liaise with
underwriters ahead of submission,
progression can be rapid, and this also
avoids the last-minute surprises that
damage client confidence.
Transparent communication also
plays a role. We know that clear
checklists, consistent criteria and
regular case updates help brokers set
realistic expectations.
Equally, by ensuring consistency
across intermediary and direct
channels – including avoiding dual
pricing at product transfer – we’re
driving trust in our proposition.
Working together
Manual underwriting is not about
resisting technology. It’s about
ensuring that technology does not
crowd out judgement.
The 2026 lending environment
demands adaptability. In this
environment, our relationships with
intermediaries are central.
Brokers are the first to understand
the nuance of a client’s situation,
and lenders that value that
insight are beer placed to make
informed decisions.
Working collaboratively to find a
way to say ‘yes’ benefits borrowers,
brokers and lenders alike. ●
