Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Market Volatility Drives Demand for Adviser Support
The UK mortgage market has experienced significant volatility in the first five months of the year, according to a report by Mortgage Strategy. Factors such as the war in Iran have contributed to spikes in swap rates, leading to record lending weeks, rapid product changes, and reduced product availability. Rising mortgage rates have also affected borrowers’ affordability.
In this environment, the need for adviser support has increased. Advisers are providing technical expertise, guidance, and reassurance to borrowers navigating financial and emotional decisions. The report notes that advisers’ value extends beyond the initial home search, especially with millions of fixed-rate deals due to end in 2026.
Lenders and Technology in the Mortgage Market
Lenders have worked to support the market’s health during these uncertain times, providing as much notice as possible when products change or are withdrawn. The Financial Conduct Authority has reopened debate on the future of the mortgage market, focusing on first-time buyers, innovation, disclosure, and vulnerable consumers. The FCA has also encouraged the use of technology and artificial intelligence to help advisers deliver better and faster advice, while maintaining a human touch.
Despite the growing use of digital tools, research cited in the report shows that less than one in ten borrowers would arrange a loan using only automated tools. Borrowers continue to place significant value on expert advice from a person.
Adviser Education and Specialist Support
The report highlights the importance of adviser education as the market becomes more complex. New technology, shifting regulation, and varied borrowing needs require advisers to balance technical expertise with judgement and reassurance. Specialist lending, in particular, demands a broader range of knowledge and confidence from advisers.
For letting agents and inventory clerks, these trends underline the importance of staying informed about market changes and the evolving role of advisers in supporting clients through periods of uncertainty.
Source: Mortgage Strategy