The Intermediary – March 2026 - Flipbook - Page 51
He goes on to say: “We rigorously underwrite
are really well thought out, and offer security for
all loan applications on a case-by-case basis to
lenders and greater protection for clients from
ensure that every mortgage is affordable.
market volatility."
“Clearly, there is a risk of negative equity, but
While there are arguments on both sides, when
as our Family Mortgage is fixed for five years
landing on a conclusion as to whether 100% LTV
and there is an option for family members to
mortgages are the solution to – or a symptom of
guarantee the loan (family members can provide
– a broken system, it is worth asking what these
20% additional security through savings or a
products actually solve. For those who can afford
collateral charge over property), we don't foresee
a mortgage but simply cannot save enough, they
this to be an issue.”
could offer a genuine helping hand.
The bigger picture
current ills, these products do not make housing
While the Government has made no specific
any more affordable – prices are still high, wages
comment on 100% LTV mortgages, since coming
have not kept pace, and renting makes saving
to power it has committed to building 1.5 million
harder than ever.
However, rather than being a panacea for
homes over five years, and has made no secret of
A 100% mortgage may get more buyers
through the door, but it does not change what
its desire to increase homeownership.
Following Government encouragement,
faces them on the other side.
the FCA has reminded
lenders of existing
ADVERTISEMENT
flexibility in its
affordability stress-testing
rules, while the Prudential
Regulation Authority
(PRA) has offered lenders
the option to temporarily
exceed the 15% cap on
high loan-to-income
(LTI) lending.
Both regulators also
jointly raised the threshold
at which the LTI cap
applies from £100m to
£150m in annual lending.
Yet the regulatory
framework remains tight.
Prudential and conduct
rules make large-scale
high-LTV expansion
Building
Relationships
Together
difficult. Affordability
requirements under the
Mortgage Market Review
(MMR), Consumer Duty,
LTI limits and higher
capital requirements all
discourage excessive high-
Supporting you, supporting your clients,
with a people-first approach and
common-sense lending.
LTV growth.
“For those in the industry
with long memories, it is
easy to be slightly nervous,”
says Phillips.
“However, lenders are
in far greater shape
today compared to 2008
to offer these products
Contact our
BDM team
and proactively support
customers in difficulty.
The products themselves
March 2026 | The Intermediary
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09/03/2026 11:50 AM
