A call for smarter regulation in the mortgage industry has been made during the launch episode of Twenty7tec’s brand-new Elevate webinar series.
Kate Davies, Executive Director of the Intermediary Mortgage Lenders’ Association, Jennifer Lloyd, Head of Mortgage Products and Propositions at Skipton Building Society, and Chris Croft, Senior Consultant at Bellevue Law shared their opinions in the webinar – Less regulation, more opportunity? – which discussed the government’s plans to task industry regulators with cutting red tape to drive business growth.
Regulation essential but ‘excessive’
The event, hosted by Twenty7tec’s Senior Manager, David Wressell, addressed the question of whether reducing regulation could create more opportunities for borrowers and brokers – or whether it could simply shift greater risk and responsibility onto advisers.
All three speakers were unanimous in agreeing that keeping the mortgage industry regulated is essential for protecting customers, but felt that it has become “excessive” and “confusing”.
‘Regulation in spades’
Kate Davies highlighted that constant new rules are making the system overly bureaucratic.
“We’ve had regulation in spades,” she said. “We just do not need any more regulation… sometimes the regulator feels like the Department of bright ideas”.
Fellow panelist Chris Croft agreed: “There is no question in my mind that there is regulatory overreach,” he said.
The speakers also shared their concerns about whether reducing regulation could shift greater risk and responsibility onto advisers and borrowers, rather than genuinely improving outcomes.
Jennifer Lloyd warned that changes alone would not solve the deeper issues in the market, and that relaxing rules could leave advisers facing complex affordability challenges without enough support.
She said: “Regulation is not the only barrier when it comes to buyers being able to access the property ladder for the first time, but I do still maintain that there are elements within regulation that, if reformed, could make a very real difference.”
‘Rigid lending rules’
The panel also discussed whether affordability assessments should be made more flexible, particularly regarding income multiples.
Jennifer Lloyd said that many first-time buyers are being unnecessarily restricted by rigid lending rules, despite being able to afford repayments responsibly.
“There are buyers that are having their maximum loans restricted, not by the stress test, not by the affordability assessment, but by the Loan-to-Income limit,” she said.
Chris Croft agreed, adding: ”If you have a first-time buyer, the likelihood is that over time their income will increase, their ability to pay will increase.
“Restricting the flow of products to them is not a helpful intervention by the regulator,” he said.
‘Definitely an opportunity’’
On the webinar’s topic of Less regulation, more opportunity? the panel agreed that with careful reform, there was a real opportunity to create a more flexible, customer-focused mortgage market, with Jennifer Lloyd describing the government’s direction as “definitely an opportunity if approached with common sense.”
Advisers: ‘Opportunity for growth’
Prior to the session, Twenty7tec surveyed more than 250 advisers and lenders on their top business concerns for 2025.
The survey revealed that 55% of advisers and lenders see less regulation as an opportunity for growth rather than a risk, closely aligning with the panel’s call for smarter, more balanced reforms across the mortgage market.
Watch Elevate webinar series: Episode One
The launch episode of Twenty7tec’s Elevate webinar series is now available to watch on-demand.
