There are times when the market feels sluggish – waiting for something to give, for someone to blink first. And then there are times like now, when a series of subtle but significant changes begin to move the dials, hopefully giving advisers further confidence that strong demand and market activity can be taken advantage of.
The mortgage space is not transforming overnight, but it is evolving – quietly, constructively – and that makes this quarter a genuinely promising one for proactive advisers who are ready to embrace a growing opportunity.
Let’s start with the obvious. We’ve seen a notable shift in lender behaviour. Not because the first quarter was especially cautious – if anything, it provided a level of consistency that many welcomed – but because this quarter has opened the door to greater proactivity.
Lenders are starting to press harder on the volume button, encouraged by falling swap rates, the growing probability of a Bank Base Rate cut, and perhaps also a touch of strategic urgency in response to potential post-stamp duty changes activity dips. The upshot is we’re clearly seeing more competitive rates, more product diversity, and more intent.
Mortgage rates dipping below 4% again is no accident. It’s a marker. One that says lenders recognise what is already happening, and what is likely to be coming in terms of rate expectations, and are keen to position themselves advantageously ahead of these wider market shifts.
What’s key here is these don’t feel like token rates tucked away in unachievable LTV bands – they’re mainstream, accessible, and from big-brand lenders who carry real clout. And more are likely to follow. If this becomes a sustained trend, advisers should benefit from this shift to a rate environment which we’ve not seen for some time.
STRESS RATES
It’s not just rates that are changing, either. Take HSBC’s decision to revise its stress rate for affordability. This change applies to both purchasers and remortgaging borrowers – important in itself – and one that opens up the potential for increased borrowing across the board.
According to HSBC, an average uplift of £39,000 in borrowing potential for the typical applicant, which is a substantial shift. And in the current climate, where marginal improvements can unlock major opportunities, this kind of policy change is exactly the sort of thing advisers should be tracking closely and leveraging with their client base.
The signal here is unmistakable: lenders are back in the game, and they want business. This isn’t a flurry necessarily driven by fear; it feels more calculated reflecting where they believe the market is heading – and what borrowers will need to get there.
POSITIVE SIGNS
One hopes it’s part of a wider forward planning strategy, of pre-emptive repositioning, which will bode well. It means Q2 could act as the ignition point not just for higher enquiry levels, but for higher conversions and completions too.
Of course, we can’t ignore the impact of the end of the temporary stamp duty relief. March was hectic – many lenders reported their busiest period in years – but April has already shown signs of slowdown. And that, in itself, may be motivating lender proactivity.
No lender wants to lose momentum, and we may well see a further waves of product repricing aimed at plugging any perceived volume shortfalls. Again, this represents opportunity: not in the sense of a race to the bottom on rate, but in the form of targeted borrower engagement and sharpened affordability positioning.
For advisers, this should deliver a stronger environment. One in which the value of advice is not just preserved, but amplified. Clients are still grappling with affordability pressures, still unsure whether to buy now or wait. They need reassurance. They need clarity. And they need someone who can read between the lines of lender behaviour and understand what it means for them today – not what it meant three months ago.
And it’s where working with the right distributor makes all the difference. We’re moving into a period where precision matters. Where the depth of your lender access, the quality of your criteria search tools, the responsiveness of your support, and the insight of your leadership team will materially affect what kind of experience you can offer your clients – and whether or not you’re able to close business efficiently in what could become a highly competitive end of spring/start of summer.
So, for anyone waiting for the market to show something – some indication that the tide was turning – here it is. Rates are falling. Criteria is shifting. Lenders are moving more purposefully. And the clients who were on the sidelines at the start of the year may now find the door has swung open.
Advisers who understand this, who use every resource available through the right partnerships, and who keep a close eye on lender movement, will be the ones best placed to capitalise on what is shaping up to be a quietly transformative few months.
