Survey finds rising broker confidence but highlights need for product innovation
Confidence among mortgage brokers has improved, according to new research from Nottingham Building Society, but concerns remain that lenders are not adapting quickly enough to the changing needs of borrowers.
A recent survey of 500 brokers revealed that 83% feel more positive about the mortgage market than they did six months ago. This renewed optimism comes despite ongoing challenges such as high interest rates and pressures on household finances, with many brokers perceiving signs of greater market stability.
However, the research also indicates that many brokers believe mortgage products are not keeping pace with the realities of modern borrowers. Seventy-four percent of respondents said that current offerings do not reflect the evolving financial circumstances of UK customers. More than half (52%) felt that lenders have been slow to adjust to these changes, raising concerns that the industry may become complacent even as confidence grows.
The study highlights a growing demand for innovation. One in four brokers identified the development of more flexible mortgage products—particularly those accommodating non-traditional employment, varied income streams, and diverse family structures—as the top priority for lenders in the coming year.
In addition, 23% called for greater adoption of technology to simplify the application process, while another 23% pointed to the need for improved support for vulnerable borrowers.
These findings reflect a shift in the mortgage landscape, with an increasing number of applicants working outside conventional employment patterns. Brokers report that freelancers, the self-employed, and gig economy workers often face difficulties in meeting standard lending criteria, prompting calls for lenders to adapt their approach.
Digital solutions and streamlined procedures were cited as priorities by over a fifth of brokers. There is also a growing recognition of financial vulnerability, with calls for lenders to provide more tailored support and education.
“It is encouraging to see signs of confidence returning to the mortgage market,” said Greg Went (pictured right), head of mortgage product and proposition at Nottingham Building Society. “Coupled with the recent Bank of England base rate cut, and the potential for further cuts this year, this could offer further relief for some borrowers and stimulate more activity across the sector.”
For industry commentator Nicholas Mendes, mortgage technical manager at London broker John Charcol, the mutual lender’s research “highlights a very real tension: optimism on one side, but frustration that current products don’t reflect how people live and work today.”
“The call for innovation couldn’t be more timely.” he said. “With growing numbers of freelancers, people borrowing later in life, and households with varied income streams, lenders need to adapt criteria and product design if they’re to serve these groups fairly.
“Without that flexibility, there’s a risk of shutting out perfectly creditworthy borrowers. Beyond new ideas, there’s also a strong case for bringing back proven solutions like offset mortgages, which have declined in availability but could provide borrowers with valuable flexibility in today’s climate.
“What will define the next stage of recovery isn’t just market stability, but lenders’ willingness to modernise through smarter use of technology, rethinking traditional criteria and products, and more tailored support. Those who move fastest here will not only win broker confidence and market share but also play a crucial role in making homeownership more accessible.”
Went agreed, stressing that “the message from brokers is clear: lenders must ensure they keep pace with changing lifestyles.”
“People’s lives and finances have changed, from income patterns to household structures, and mortgage products need to remain suitable,” he said.
“We are in constant dialogue with brokers, and their feedback has never been more important. Many are telling us that outdated lending criteria risk locking good customers out of the market. Whether it is supporting borrowers with complex incomes, simplifying journeys through technology or offering tailored support to those in vulnerable circumstances, lenders have a responsibility to adapt.”
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