Recent regulatory changes promise to simplify mortgage lending in the UK - and raise the stakes for brokers
A series of reforms from the Financial Conduct Authority (FCA) and the UK government are set to reshape the way mortgages are accessed, with a renewed focus on simplification, speed, and digital infrastructure. While these changes aim to improve outcomes for borrowers, they also elevate the advisory role of brokers.
Simplifying access without sacrificing assessment
The FCA’s Policy Statement PS25/11 signals a shift in how mortgage applications are assessed. "PS25/11 is about ensuring the assessment process is proportionate, recognising that there’s a sweet spot between cautious lending and unnecessary friction," said John Fraser-Tucker, Head of Mortgages at Mojo Mortgages.
The changes encourage lenders to rely more on data and discretion rather than overly rigid documentation processes. This could lead to faster, less intrusive assessments for borrowers whose profiles align with lender appetites. Meanwhile, the government’s retooled mortgage guarantee scheme is designed to widen access in the high loan-to-value (LTV) market by reducing deposit-related barriers.
"For brokers, this is an opportunity to truly lean into the advisory role," Fraser-Tucker said. "When the 'mechanics' of the application are simplified, the focus shifts entirely to the quality of the advice."
A more complex landscape behind the scenes
Despite the push for simplicity, the evolving environment is unlikely to make brokers less relevant. If anything, Fraser-Tucker believes it will make their expertise more critical.
"While the assessment might be streamlined, the number of potential products and criteria subsets - especially with the government guarantee scheme and new lender offerings - is only going to grow," he said. "The broker’s value lies in their ability to spot the subtle fit, prevent application churn, and provide holistic advice."
That means understanding not only product-level differences but also how a mortgage fits within a client's broader financial life. As decisions become quicker, the depth of consultation must increase accordingly.
Digitisation as a lever for speed and safety
With Open Banking and digital identity verification gaining traction, brokers now have an opportunity to shift from paperwork processors to strategic advisors. Fraser-Tucker advocates for this transformation: "Digitisation is our biggest lever for enhancing client experience. The goal is to move towards 'advise, not administer.'"
Consent-based data sharing enables faster and more accurate decision-making, while also allowing brokers to manage risk more proactively. "Better data flows provide a more complete, less manipulated picture of the client's finances," he said. "The broker becomes the data interpreter and validator, making the process more robust, not riskier."
Meeting the needs of new buyers
The government expects the updated guarantee scheme to increase home ownership, particularly among first-time buyers (FTBs). Fraser-Tucker sees this as a positive shift, but one that will require brokers to adapt.
"This influx of FTBs will require brokers to shift from transactional service to in-depth educational consultation," he said. That means explaining not just rates, but also fees, long-term obligations, and how different schemes intersect.
He also anticipates a rise in brokers specialising in areas such as Shared Ownership and Help to Buy replacements. "Customers will seek out experts who know the ins and outs of these schemes, not generalists," he said.
The cost of inaction in a fast-moving market
After years of tolerating slow, manual processes, Fraser-Tucker believes the mortgage industry is finally approaching a tipping point.
"For too long, the industry has viewed technology as a cost, rather than a competitive necessity," he said. "The result has been a frustrating experience built on legacy systems, PDF uploads, and manual data keying."
Now, with regulatory support, advancing technology, and rising consumer expectations all converging, mortgage distribution is poised for structural change. The brokers and lenders who adapt quickly - by embracing digitisation, refining their advice, and anticipating new borrower demands - won’t just keep pace. They’ll help shape what comes next.
