There’s a storm quietly gathering over the mortgage market – and while it might not be headline news yet, the signs are all there. The Bank of England’s latest Financial Stability Report lays it out in stark terms: around 3.6 million UK mortgage holders are on track to see their repayments increase in the next three years. That’s nearly 40% of the market facing a squeeze on their household budgets, just as consumer confidence is being tested on multiple fronts.
It’s not just about the numbers. It’s about timing. Many of the households who fixed their mortgage deals during the era of record-low interest rates are now nearing the end of those terms. As those deals expire, the reality of higher repayments will start to bite.
For advisers, this isn’t just a macroeconomic concern. It’s a practical one. It means more conversations with anxious clients. More pressure to find solutions in a market that’s becoming harder to read. And more risk if clients are guided by hope rather than hard facts.
In uncertain times, people crave clarity. They want reassurance that someone is watching the market, reading the signals, and helping them make informed decisions. But the truth is, this market is hard to predict. We’ve had rate rises, pauses, talk of cuts, sticky inflation, political distractions, and sudden global shocks – and it’s still only July.
What we do know is this: the choices advisers make today will shape how well their clients weather the months ahead. Which is why data has never been more important.
At Twenty7tec, we track daily shifts across the mortgage market. That means we can see – in real time – how buyer and borrower behaviour is changing. In the past six months, for instance, we’ve seen a notable jump in demand for 2-year fixed deals, rising from 41% to 48% of the market.
That suggests borrowers are expecting rates to fall in the near future and are holding out for better options later. But it also reflects a nervousness and a reluctance to commit long term in case the landscape shifts again.
We’ve also seen a rise in high loan-to-value (LTV) mortgages. People are borrowing more, stretching their budgets, and chasing affordability in a market where house prices aren’t necessarily falling but disposable income is. This is particularly pronounced among first-time buyers (FTBs) and younger households, who are often most vulnerable to rate changes and income shocks.
At the same time, some lenders are adjusting their criteria. Whether it’s increasing income multiples, increasing LTV’s, reducing minimum income requirements, or accepting a broader range of income sources, there’s recalibration happening across the industry. On one hand, this flexibility keeps the market moving. On the other, it places even more responsibility on advisers to assess suitability and manage client risk.
This is where data matters most. It’s not just about what’s available today, but what trends are emerging. Who’s offering what, where the demand is growing, which products are shifting in or out of favour. Without access to that insight, it’s impossible to see the full picture. And without that picture, advisers are left reacting to the market rather than helping clients stay ahead of it.
We often talk about advice being personal. That’s true – every client has different needs, goals, and circumstances. But personal advice should also be precise. It should be shaped by what’s actually happening in the market, not just what might happen in six or twelve months. With so much uncertainty in play, relying on instincts or assumptions just isn’t enough.
The good news is that the tools exist to cut through the chaos. Good data platforms and customer relationship management (CRM) systems give advisers a real-time view of what’s happening, allowing them to spot patterns, identify risks, and act with confidence. It’s not about removing the human element from advice – quite the opposite. It’s about giving advisers the insight to have better, more informed conversations. To challenge assumptions. To protect clients from false hope or poor fit. And to help them navigate uncertainty with facts, not guesswork.
Because clients don’t want to be told to “wait and see.” They want options. They want to know what their choices are today and what might change tomorrow. And they want to feel that their adviser is not only informed, but proactive.
This moment in the market demands that kind of clarity. Brokers are uniquely placed to offer it but only if they’re equipped with the right tools. That means ditching the crystal ball and doubling down on data.
Economic uncertainty isn’t going away anytime soon. But good advice, grounded in real-time insight, is one of the best ways to help clients feel in control – even when the market isn’t.
Nakita Moss is head of lender at Twenty7tec
