Giving consumers good advice
Propertymark’s Mortgages Explained consumer guide can help agents support their clients through the mortgage process, breaking down key concepts and highlighting important questions to ask lenders or brokers. We’ve also explored the impact of lender changes in our recent article,
Santander increases mortgage affordability — what this means for the market
The lender has reduced its stress testing rates and adjusted how they calculate income, enabling some customers to borrow up to £35,000 more than before. This follows calls from the Financial Conduct Authority (FCA) for lenders to review their affordability tests and ensure they are not too restrictive.
There are now more low-deposit mortgage options available than at any time in the last 17 years, offering greater choice for first-time buyers and movers. At the same time, some lenders are pushing the boundaries of affordability.
April Mortgages has launched a product that allows some borrowers, such as doctors, accountants, and lawyers, to access loans worth up to seven times their income, subject to strict eligibility criteria. However, most mainstream lenders continue to apply a maximum of 4.5 to 5.5 times income.
More low-deposit options
According to Moneyfacts, there are now 333 mortgage products available at 95 per cent loan-to-value (LTV), the highest number since 2007. This reflects growing lender confidence and strong business competition. However, higher LTV products typically come with higher interest rates, meaning affordability remains a significant hurdle for many.
Despite more mortgage options, affordability remains a major barrier to homeownership. Propertymark’s Housing Insight Report: February 2025 shows that from 5 February to 2 March 2025, 32% of adults reported finding it very or somewhat difficult to afford their rent or mortgage payments. Saving for a deposit, rising house prices, and high interest rates continue to lock many out of the market.
The case for regulation
With the market offering more complexity, the need for clear, accessible advice is growing. Propertymark has long called for stronger protection for consumers and higher standards across the industry.
Estate agents across the UK are not required by law to be licensed or qualified, and, in England, there is currently no overarching statutory regulation of private sector letting or managing agents. Our report Property Agents: The Case for Regulation wants to see the introduction of both, and that they follow the framework to introduce minimum qualification requirements for all property agents to ensure they are fit and proper to operate, and create a statutory code of practice.
Mandatory continuing professional development (CPD), supported by professional bodies like Propertymark, would also ensure agents stay up to date and accountable in a fast-changing market.
