Mortgage Soup fires the questions at Enzo Mora, CEO and founder of The Mortgage Brain.

Mortgage Soup (MS): You’ve been running The Mortgage Brain for more than 20 years – what lessons from earlier market cycles feel most relevant to today’s environment?

Enzo Mora (EM): Pre the Global Financial Crisis in 2008 lenders relied heavily on wholesale markets and securitisation, now non-bank lenders and specialist firms remain more capital-markets dependent.

The lesson learnt here is stable, diversified funding is as important as loan performance. We’ve seen interest rates at their lowest and affordability at its highest in the run up to the ‘mini Budget’ of 2022.

Borrowers had been able to fix for 2-5 years at incredibly low rates and suddenly they were looking a cliff edge when it came to remortgaging. However, what was in place then that wasn’t there in 2008 was the strict stress testing for potentially higher interest rates. So affordability was stretched relative to incomes but still manageable.

Guard rails are working but they don’t eliminate the effect of cyclical pressure or global or political upheaval. Last year we had the FCA reminder to lenders about flexibility in interest rate stress tests which widened borrowing options and eased affordability pressures.

The FCA’s own figures show that despite the rise of interest rates and living costs, 99% of mortgages taken out since 2014, when mortgage standards were tightened, are not in arrears. It is currently consulting on reforms to the mortgage market for today’s borrowers for different stages of their lives, for instance offering more flexible products, and this is how lending is evolving based on past and today’s needs.

Simplifying mortgage rules to allow more flexible products will benefit the way people work now and that first time buyers are older and later life lending is needed, as well as for the self-employed and contract workers.

The opportunity in buy-to-let today is less about expansion driven by cheap debt, that we saw 20 years ago, and more about professionalisation. Buy-to-let lending is stabilising after a period of contraction driven by rate volatility, tax changes and affordability recalculations.

Over the past 12–18 months we’ve seen greater pricing competition as swap rates have steadied. More five-year fixed products are helping landlords meet stress tests and some lenders are reducing stress rates where rental cover is strong.

There’s increased flexibility for limited company structures and more pragmatic underwriting for experienced portfolio landlords. The core PRA affordability framework remains in place. In particular, ICR (Interest Coverage Ratio) stress testing hasn’t disappeared.

Typically, rent must cover 125-145% of the mortgage interest payment, calculated using a stressed interest rate rather than the pay rate. That framework is still firmly embedded in policy. What has changed is the application of stress testing. Following FCA guidance and improved rate stability, some lenders have moderated stress rates or adopted more flexible approaches where risk profiles are strong.

Landlords remaining in the market are generally better capitalised, more strategic and focused on yield resilience. We’re also seeing increased activity around portfolio restructuring, as landlords prepare for regulatory and structural changes.

The proposed Renters’ Rights Act will abolish Section 21 possessions, gives stronger tenant protections and longer-term tenancy expectations. Ongoing tax pressures include mortgage interest relief restrictions and the potential future tightening of EPC standards.

As a result, many landlords are moving properties into limited company structures, consolidating borrowing, rebalancing portfolios toward stronger yielding stock and reducing leverage on weaker assets. So activity is shifting from acquisition growth to optimisation and resilience.

MS: Interest rates dominate client conversations – how should brokers be helping borrowers think beyond the headline rate in 2026?

EM: As brokers we need to understand customers current and future needs and communicate clearly what the short term and long term costs of borrowing will be. For instance it’s about reframing the total cost of fixed deals, not just the rate, and the monthly payment certainty for two or five years, but how this fits into life events and then the scenarios at remortgage time.

How forward planning to this point will avoid moving onto an expensive SVR and show how much it will cost if they don’t, and the importance of annual reviews – this is thinking strategically and helps to build a trusting relationship.

Explaining potential benefits of overpaying, mortgage portability and payment holidays will also help to convey the wider picture.

Fees are another consideration – will a slightly higher rate with low fees win over a two to five year window. It’s about making it visual – is there a break-even point in month X where the cheaper rate actually wins.

MS: When it comes to affordability are buyers fundamentally adapting their expectations, or simply waiting for conditions to improve?

EM: It depends on the individual, their circumstances and how confident they feel about their prospects.  Customers usually come to us with a budget in mind based roughly on earnings but when we dig deeper considering all earnings, especially in the case of self-employed or contract workers, we can often show they can borrow more at an affordable rate.

Expectations and reality have definitely aligned in the last year or so. Simply waiting for lower interest rates or a house price crash isn’t an option any longer, it’s definitely about adaptability .

MS: What do you think the wider market still gets wrong about first-time buyers right now?

EM: It still assumes deposit size is the main barrier. In reality, many FTBs can now access family support, use 95% LTV products or even save aggressively. And although a relaxation of stress testing helps, student loans, parental leave income fluctuations and high childcare costs can affect affordability and the lending model.

Underwriting can also be heavily skewed towards salaried PAYE applicants when in reality many first time buyers have multiple income streams from side hustles or self-employed earnings. The system prefers tidy borrowers over resilient ones with a one profile fits all mentality.

We also still underutilise long term fixed rates over 20-30 years which are more common in Europe and a broader use of rental track records in underwriting. And although many first-time buyers are a lot more informed than the market assumes in terms of accessing online affordability calculators they lack strategic guidance, confidence and certainty about timing.

MS: How have lender risk appetites and criteria changed over the past 12 to 18 months, and where are you seeing genuine opportunity for borrowers?

EM: There has been some excellent innovation from lenders across the markets in the last 12 months to support first time buyers.

Most lenders have now increased their salary multiples to 6 x salary or similar, however, it  would be good to see more innovation in deposit requirements such as Santander’s recent 98% LTV proposition where a customer could buy a £500k property with a £10k deposit.

MS: Do you expect criteria easing to continue, or is the industry close to the limits of responsible flexibility?

EM: I expect further incremental easing but within the boundaries of responsible lending. We’ve already seen income multiples increasing (up to 6x salary in some cases) and reduced stress testing buffers.

There’s innovation at high LTV (including 95–98% propositions) and broader acceptance of complex and multiple income streams. If market stability continues, lenders will likely keep refining affordability models, particularly around self-employed income averaging, contract workers, multiple income households and later-life lending structures.

Foreign national borrowers remain underserved in the UK mortgage market. Criteria are often restrictive with larger deposit requirements, minimum UK residency periods and limited lender choice, even where borrowers are high-income professionals with strong credit profiles.

This includes skilled professionals on work visas; international executives relocating to the UK; long-term UK residents without indefinite leave but with strong earnings and overseas buyers purchasing UK property. Many represent lower credit risk than policy conservatism implies.

As lenders look for controlled, quality growth in a stable environment, foreign national lending is a logical area for development. With improved underwriting systems, stronger data verification and clearer visa frameworks, risk can be assessed more precisely than in the past.

We are already seeing early signs of policy broadening and I expect more lenders to follow suit if conditions remain steady. The industry isn’t at the limits of flexibility but any easing will remain data-led and capital-conscious.

MS: The Mortgage Brain has introduced AI-driven call transcription what problem were you aiming to solve, and what impact has it had on adviser training and quality?

EM: We are using AI-driven call transcription and monitoring to review client interactions allowing us to identify compliance risks early, highlight any training gaps while maintaining consistent advice standards and supporting targeted adviser development.

We encourage every client to leave a review once their transaction completes. Any review that is not perfect is treated internally as a complaint and reviewed thoroughly. We do not filter negative feedback — transparency is critical to maintaining trust. Our Compliance Management team carries out detailed file checks and outcome audits across mortgage, protection and insurance advice reducing the risk of regulatory breaches.

MS: How do you ensure technology enhances advice rather than diluting the human judgement that clients value most?

EM: Technology should improve accuracy, efficiency and visibility but it doesn’t give advice, it tells you what’s possible. Human interaction provides interpretation, risk tolerance alignment and strategic timing decisions. Advisers should advise what’s appropriate so an informed decision can be made.

MS: You’ve secured overseas investment to support growth – what does that allow the business to do differently over the next phase?

EM: We are incredibly excited to be working in partnership with The BetterHome Group. They are significant players in the South African new build market with decades of experience nurturing developer relationships at scale. That experience brings operational discipline and commercial insight into the new build space.

One of their greatest strengths is their in-house technology capability. They have developed sophisticated systems that drive qualified buyer leads directly to developers, integrate financial qualification earlier in the reservation process, track sales milestones in real time and improve conversion rates through structured data insight. We plan to introduce that capability into the UK market.

For our developer partners, that means we can offer earlier financial vetting of buyers, improved reservation-to-exchange conversion, greater pipeline visibility and stronger integration between sales and financial advice.

This allows us to evolve beyond being a traditional broker partner and become a more embedded commercial partner within the new build ecosystem.

MS: As the firm scales, how do you maintain consistency in advice standards, compliance and client experience?

EM: Scaling responsibly requires visibility, structure and accountability. We’ve increased oversight across key sales process milestones.

Every lead is monitored by a dedicated Sales Analyst team to ensure there is timely engagement, comprehensive fact-finds, clear advice rationale and strong client outcomes. Scaling is not about volume alone, it’s about repeatable quality.

MS: Looking ahead five years, what will matter most for mortgage broker success: technology, specialism, scale, or trust and why?

EM: Trust remains fundamental. As products become more complex such as longer fixes and multi-income households, clients will increasingly rely on brokers for strategic interpretation rather than simple rate comparison.

Technology will play a major role in improving compliance oversight, adviser training, data analysis and turnaround times.

Specialism will become increasingly important in areas when it comes to later-life lending, self-employed, fostering income (where we work alongside The Fostering Network), new build lending (we already work with over 20 UK national housebuilders) and buy-to-let restructuring.

On scaling specifically, sustainable growth will depend on continuous training and professional development, structured governance, investment in systems ahead of headcount and maintaining a strong client-first culture.

Our new partners are experienced in operating at scale within the new build space and that operational experience supports our growth ambitions while preserving quality and standards.

Ultimately, long-term success will be built on a combination of trust, specialism, technology and operational discipline, not one element in isolation.