The Intermediary – October 2025 - Flipbook - Page 24
RESIDENTIAL
Opinion
Fixed rates
still need
flexible thinking
W
e’ve been
talking about
the mortgage
‘cliff edge’ for
nearly two
years now. The
reality is, many borrowers are still
quietly approaching it, with far less
aention than before.
According to UK Finance, around
1.8 million mortgage customers are
expected to reach the end of their fixed
rate in 2025, following the 1.4 million
who already did so in 2024. That’s
a substantial portion of the market
being pushed to reassess their options.
For some, a straightforward
product transfer will be enough, but
for others, particularly those whose
circumstances have changed, the
situation is more complicated.
Straight switch
It’s easy to assume that a product
transfer is the simplest and most
efficient route. In many cases that’s
true, as it can avoid fresh affordability
checks, speed up the process and
remove much of the paperwork.
However, real life rarely follows a
neat script.
Some borrowers now want to raise
additional funds, whether to help
children, consolidate debt, or invest
in home improvements. Others
may have changed jobs, moved
into self-employment, or taken on
new financial responsibilities since
they last secured their mortgage. In
these cases, a standard switch oen
falls short.
This shi is becoming increasingly
visible in broker conversations.
Borrowers coming to the end of
their fixed rate aren’t just asking for
a new deal, they’re asking what’s
actually possible in light of their
changing needs.
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The Intermediary | October 2025
Part of this trend is being driven
by the housing market itself.
With property prices still high
and affordability stretched, many
homeowners are understandably
reluctant to take on additional
borrowing just to upsize. Instead,
they’re choosing to stay put and
improve what they already have.
In fact, research from Aviva earlier
this year found that almost seven
million UK homeowners plan to
renovate their properties over the
next two years, a clear indication of
shiing priorities.
For brokers, this presents a specific
type of funding challenge. These
are clients who want to remortgage
and release equity at the same time,
but whose personal or financial
circumstances may have changed since
their last application.
If the loan amount or profile
pushes them beyond standard lending
criteria, they’re going to need a lender
that can look beyond the automated
process and assess the case on its
own merits.
Flexibility matters
In response to this, we’ve recently
refreshed our residential, expat buyto-let (BTL) and holiday let ranges, to
focus on flexibility and underwriting
capabilities to tackle the needs of the
modern borrower, not just those that
historically looked good on paper.
This includes supporting borrowers
who need to raise extra funds as part
of their remortgage, even where
the structure is more complex
than average.
This approach is especially valuable
for self-employed clients with shorter
trading histories, or older borrowers
who need to raise capital later in life.
Both groups which are oen
underserved by mainstream lending
ROB OLIVER
is distribution director at
Dudley Building Society
channels, and who require lenders
to consider context and individual
circumstances, rather than relying
purely on automated assessments.
Fill the gap
For borrowers reaching the end of
their fixed rate, the worst outcome
is being told they have no choice but
to fall onto a high standard variable
rate simply because they no longer fit
the mould. The second worst is being
steered into a product transfer that
technically fits but doesn’t support
their broader financial goals.
This is where brokers play a crucial
role. By looking beyond the high
street and considering whether an
alternative lender might provide
a more suitable option, they can
help clients access funding that
actually meets their needs, especially
where additional borrowing is part
of the plan.
We fully recognise that the market
has become more cautious, but that
doesn’t mean it should become less
personal. There is still a large and
steady flow of borrowers reaching the
end of fixed rates this year. This isn’t
a backlog from the last rate spike, it’s
the normal rhythm of the mortgage
market, with clients whose situations
are quietly evolving.
As a lender, we want to be part of
the answer. That means giving brokers
direct lines of communication,
clear and considered decisions, and
products that are designed around
real-life circumstances, not just those
that stand out in a rate table. ●
