By Michelle Ward, Senior Corporate Account Manager, Leeds Building Society
I recently joined ValidPath’s Mortgage Club to discuss how the mortgage market is evolving and what those changes mean for advisers.
The traditional customer journey has become far less predictable. People are buying later, borrowing for longer and managing increasingly complex financial lives. At the same time, affordability pressures, changing household structures and shifting client expectations are creating new opportunities for advisers who are prepared to adapt.
For financial advisers who already provide mortgage and protection advice, or those looking to become a mortgage adviser as part of their broader proposition, understanding the latest mortgage market trends is essential.
In this article, I explore five UK mortgage market trends shaping today’s advice landscape – and the wider trends in the mortgage industry that advisers should be planning for.
1. Mortgage customer requirements are becoming more complex
The traditional, linear mortgage journey – buying a first home, moving up the ladder and repaying the mortgage before retirement – is becoming much less common. Today’s clients are buying later, with the average first-time buyer now aged 34 according to Skipton Group’s annual home affordability index. They are also bringing more varied circumstances to the advice process, including:
- Multiple income streams
- Self-employment
- Variable income
- Side businesses alongside employment
- Friends buying together
- Intergenerational purchases
Five years ago, the biggest challenge for many first-time buyers was raising a deposit. While that remains important, today’s clients are also navigating affordability pressures, uncertainty about whether now is the right time to buy and increasingly complex financial circumstances.
For advisers, complexity is no longer the exception. Taking the time to understand each client’s circumstances has become one of the biggest ways to add value.
Read more: The Importance of Providing Independent Mortgage Advice
2. Later life lending is becoming mainstream
One of the biggest growth areas I see is later life lending.
As people buy later and borrow for longer, carrying a mortgage into retirement has become increasingly common. Conversations around retirement, term extensions and long-term affordability are becoming part of everyday mortgage advice rather than specialist discussions.
Later life lending is no longer a niche area of advice – it is becoming a core part of the role. Advisers who are confident having long-term planning conversations with clients will be well placed as this continues to become part of the mainstream market.
3. Existing clients are becoming more valuable than new ones
With fewer people moving home (a trend backed up by the Financial Times), existing client relationships have never been more valuable. Regular reviews, product transfers and proactive communication all create opportunities to:
- Strengthen existing client relationships
- Help clients make informed decisions as circumstances change
- Re-engage past clients
- Identify product transfer and remortgage opportunities earlier
Rather than waiting for clients to get in touch, advisers can plan retention activity around known remortgage peaks, ensuring clients receive timely advice before their current deal comes to an end.
In many firms, the greatest growth opportunity already exists within the client bank they have today.
4. Helping first-time buyers is now about ownership structure, not just deposits
Helping first-time buyers is becoming less about finding a mortgage and more about helping them find a route onto the property ladder.
Affordability, confidence and complexity have become some of the biggest barriers to home ownership. As a result, advisers who understand the full range of options available can provide far greater value.
That means being familiar with routes and support options such as:
- Shared ownership
- Gifted deposits
- Family support
- Longer mortgage terms
- Alternative ownership structures
These are increasingly becoming part of mainstream first-time buyer advice, helping more clients find a realistic path to home ownership.
Read more: Building Your IFA Referral Network
5. Clients increasingly want advice on the total cost of home ownership
When I first started advising in the 1990s, conversations were often about the total package – the mortgage, protection, buildings insurance and contents insurance.
Today, clients are asking much broader questions:
- Can I afford the energy bills?
- What will the upkeep cost?
- Can I actually afford to live in this home over the long term?
That is changing the role of advisers. We are moving beyond mortgage advice towards more holistic advice, helping clients understand the overall financial commitment of home ownership rather than simply whether they can afford the monthly mortgage payment.
Turning market trends into advice opportunities
The mortgage market hasn’t simply become more challenging. It’s become more varied.
Clients increasingly expect advice that reflects their individual circumstances, longer-term goals and wider financial picture.
For financial advisers who already provide mortgage and protection advice, or those looking to develop their proposition, these changes present a significant opportunity. Firms that embrace more complex cases, strengthen client relationships and broaden the conversations they have with clients will be well placed to grow as the market continues to evolve.
Key takeaways
- Mortgage customers are becoming increasingly diverse, with more complex financial circumstances.
- Later life lending is becoming a mainstream area of advice.
- Existing client banks represent one of the biggest growth opportunities for advisers.
- First-time buyers need support navigating affordability and alternative routes onto the property ladder.
- Clients increasingly value holistic advice that considers the full cost of home ownership.
Explore ValidPath’s dedicated proposition for mortgage & protection advisers.
