The Intermediary – October 2025 - Flipbook - Page 23
RESIDENTIAL
Opinion
of England (BoE) has tried to temper
expectations, but the consensus
remains that rates will ease further –
even if they now drop a lile slower
than first expected.
Against that backdrop of further
price falls, many homeowners are
clearly cautious about locking in for
five years at today’s rates.
Borrower psychology is another
factor. Memories of the 2021-23 rate
spike – when the average mortgage
rate jumped from around 2% to more
than 6% in just two years, according to
Moneyfacts – remain fresh.
Understandably, homeowners are
wary of commiing long-term. When
the BoE signals the end of the current
rate cycle, 5-year fixes will almost
certainly regain popularity.
The whistleblower’s claim also
rests on a flawed assumption: that
5-year fixes are inherently ‘beer’ for
borrowers at the moment.
Who decided that, exactly? The
only way that would be true is if we
knew for sure that mortgage rates
would be higher in two years’ time.
But no one – not me, not the BoE, not
even the whistleblower – knows where
rates will be in two years.
To suggest otherwise is at best
disingenuous, and is outright
vexatious in my view. Come forward,
name yourself and name the improper
brokers – and risk defamation
proceedings!
Tailored advice
Even if we knew what will happen to
rates, mortgage advice is not onesize-fits-all. For some customers –
say, a family planning to move in a
couple of years – flexibility is a key
consideration. Therefore, a short-term
deal may be most suitable. For others,
certainty and stability are paramount,
and a longer fix is the right fit.
The adviser’s role is to be a guide
through these trade-offs, not impose
generic solutions.
It’s also worth stressing how
tightly and successfully regulated the
mortgage market has become since
the financial crisis. Brokers document
their advice and can professionally
defend their recommendations
when challenged.
I can’t speak for directly authorised
(DA) brokers who arguably face less
regular scrutiny than authorised
representative (AR) firms, but at
Stonebridge, compliance and ensuring
that quality advice is delivered, is of
critical importance.
Last year, we surpassed four
million case file checks through our
artificial intelligence (AI)-powered
Check, Action, Resolve system, which
runs more than 50 checks on every
submied mortgage file. That level
of scrutiny leaves lile room for the
kind of broker behaviour alleged in
the press report. If it did occur, our
technology and our supervision teams
would spot it.
Whistleblowers play an essential
role in exposing wrongdoing. But
when claims are made apparently
without evidence, the effect is
corrosive. Suggesting that brokers
en masse are gaming the system for
personal gain is laughable and unfair.
Furthermore, it risks damaging the
trust that underpins the advisercustomer relationship.
The reality is that mortgage brokers
are highly trusted, tightly regulated,
and the vast majority are motivated
by their duty to their customers. Trust
is hard-won and easily lost. Brokers
deserve beer than to be smeared with
such baseless accusations. ●
