When Eli Kosiner, head of mortgages at HFMC Wealth, called the rise in mortgage income multiples a massive game changer, they were right.
With some lenders now lending up to six and a half times income, for first-time buyers, it could be the difference between staying stuck in rented accommodation and finally getting the keys to a home. For advisers, it is something else entirely. It is a call to be the supporter your clients need.
More generous lending criteria mean bigger loans, which sounds positive, but it also means the stakes are higher. Our analysis has shown that post the stamp duty change on April 1st, half of first-time buyers are relying on 90%+ LTV mortgages.
The decisions that clients make now will shape their financial future for years. It’s become more than just how they can get their application approved; it’s whether they will still feel comfortable with their decision in five or ten years. This is where the correct level of guidance comes in.
Advisers have always had a duty of care, but that duty is now more important than ever. It’s no longer enough to simply tell clients what they can borrow and assume that more is always better. Advisers need to guide them towards understanding what they should borrow - and why that matters.
Stretching to the maximum might secure the home they want, but it could just as easily leave them exposed if interest rates rise or their income falls. We’ve seen time and again how a sudden shift in rates or wider economic uncertainty can push borrowers into real mortgage peril.
It’s unlikely (we hope) that we’ll see a repeat of the repossession crisis of 2008/09, when 216,400 mortgages fell into arrears and nearly 49,000 homes were repossessed. But the risks are still real - and today’s advisers can’t afford to let history even begin to repeat itself.
This is where technology can transform the conversation. Sourcing systems make it easy to model different scenarios and show clients what their monthly payments could look like under different interest rates or term lengths. Being able to visualise that impact helps clients make informed decisions and builds trust.
There is also a risk of false hope. Some buyers will be delighted to learn they can borrow more, while others may discover that despite higher multiples, they still fall short. They may be able to borrow more, but wages won’t allow them to deliver on the monthly repayments.
House price rises may be slowing, but they’ve still risen far faster than wages – and everything else from food costs to energy bills is taking an increasing chunk of income. Advisers have to manage expectations carefully and help clients see the full picture.
Regular reviews should now be standard practice. Advisers can spot when a client is coming to the end of a deal, secure a better rate, and prevent them from slipping onto a costly standard variable rate that ends up costing them more. They can also take advantage of changes in income to shorten terms, reduce interest costs, or restructure borrowing if life circumstances change.
This is not just good for clients. Lenders also benefit when advisers take a careful, data-led approach that takes into account multiple factors that influence affordability. The risk of arrears is lower when borrowers are well informed and not overstretched. Everyone wins when clients are supported to make sustainable choices.
Technology is a powerful enabler, but it is not a replacement for human advice. Calculators and online tools can run the numbers with ease - but numbers alone don’t tell the full story.
Where advisers come into their own is explaining them, asking the right questions, and providing reassurance. They can talk through whether fixing for two years or five is the better choice, whether overpaying now could create future breathing space, and how to balance ambition with security.
We’re going to see people needing their advisers more frequently. At the start of 2025, just under a quarter of searches (23.14%) were for six to ten-year fixes. By August that figure had nearly halved to 12.41%. In contrast, searches for two-year and under products rose from 41.13% in January to 52.94% in August. Three to five-year fixes have been the steadiest part of the market, accounting for around a third of searches across the year.
This is the chance for advisers to show the true value of their profession. Those who embrace data, use technology well, and focus on proactive service will build stronger relationships and keep clients for life, and in their homes for life.
Rising income multiples may feel like good news for buyers who are struggling to get on the property ladder. They are, but they are also a test of the advice profession.
This is the time to prove why advice matters and to make sure that higher borrowing power leads to better outcomes, not bigger problems, and make this the game changer we all want.
