New research from Nottingham Building Society shows strong broker support for the FCA’s Mortgage Rule Review, with the majority backing reforms aimed at creating a more flexible and inclusive mortgage market.
The survey of 500 UK mortgage brokers explored views of the review, finding that over three quarters of brokers (78%) are in support. According to the Nottingham, the review is "a timely opportunity to modernise the market, creating greater access to sustainable homeownership for borrowers who do not fit the traditional mould, including those with non-standard employment, complex income arrangements or atypical household structures".
However, the Society stressed that "intermediary-led advice must remain central to the UK mortgage market" after the FCA admitted the Review could affect the volume of advice taken as it proposed more relaxed rules around execution-only sales.
Nottingham's research also found that more than six in ten brokers (61%) want lenders to introduce new products designed to support a wider variety of borrower circumstances, while over half (52%) say lenders are too slow to respond to evolving customer needs.
Aaron Shinwell, chief lending officer at Nottingham Building Society, said: “Homeownership shouldn’t be limited by the complexity of a customer’s background. In recent years, we’ve made it a priority to better understand those whose circumstances fall outside the mainstream. Our foreign national mortgage range is just one example of how we’re putting that philosophy into action. As a mutual founded over 175 years ago, our purpose has always been to serve our members - and that means adapting to meet real needs.
“Borrowers’ lives, incomes and household structures are more complex than ever, yet mortgage products have not always kept pace. Our research shows brokers are calling for practical innovation and regulatory reform so lenders can responsibly serve a broader set of customers.
“The FCA’s consultation gives the sector an important opportunity to act. By enabling more flexible and inclusive products, the consultation can address the innovation gap highlighted by brokers while maintaining the integrity of professional advice and protecting consumers.
“We are a 100% intermediary-led business and strongly believe that brokers must remain central to the mortgage market. We oppose any regulatory changes that could fragment relationships, confuse roles or remove vital consumer protections.
“As a mutual committed to customer trust, we will continue to invest in innovation, partner with brokers, and shape solutions that balance flexibility with responsibility, ensuring that advice, access and confidence remain cornerstones of a healthy mortgage market.”
