Almost three-quarters of brokers think mortgage products are not fit for purpose

According to Nottingham Building Society, which surveyed around 500 brokers, over half – 52% – said lenders have been too slow to respond to changing customer needs.

Nottingham Building Society said this showed that confidence may be returning but that the “sector is at risk of complacency”.

A quarter of brokers said product innovation, including more flexible options for non-traditional employment patterns, income types and family structure, should be the primary focus in the year ahead.

Around 23% of brokers want to see lenders adopt new technologies to streamline the application process and another 23% want better support for vulnerable borrowers to be a key area of development.

However, around 83% of brokers are more optimistic about the state of the mortgage market than they were six months ago.

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Greg Went, head of mortgage product and proposition at Nottingham Building Society, said: “It is encouraging to see signs of confidence returning to the mortgage market. Coupled with the recent Bank of England base rate cut, and the potential for further cuts this year, this could offer further relief for some borrowers and stimulate more activity across the sector.

“But the message from brokers is clear: lenders must ensure they keep pace with changing lifestyles. People’s lives and finances have changed, from income patterns to household structures, and mortgage products need to remain suitable.”

He added: “We are in constant dialogue with brokers, and their feedback has never been more important. Many are telling us that outdated lending criteria risk locking good customers out of the market. Whether it is supporting borrowers with complex incomes, simplifying journeys through technology or offering tailored support to those in vulnerable circumstances, lenders have a responsibility to adapt.

“We remain committed to building a fairer, more accessible mortgage market. That means taking bold steps, embracing innovation and ensuring our products reflect the diversity of modern life.”