Over four in five (83%) brokers believe that lenders are not moving quickly enough to cater for changing borrower needs, marking an increase from 52% six months ago, Nottingham Building Society has found.

The society’s latest survey comes as the Financial Conduct Authority (FCA) is reviewing mortgage rules to boost wider access, with the regulator exploring whether affordability testing and product design are keeping pace with today’s Britain.

The Nottingham said its research reflects growing broker concerns that not enough of the mortgage market is evolving its approach to indicate how people across the UK earn and manage money, as well as a growing disconnect between traditional lending models and the reality of modern working and living patterns.

This is reflected in an increase in the number of brokers who have cited lenders’ inflexible approach to mortgage lending as one of heir main concerns for the prospects of the UK mortgage market, increasing from 16% to 30% in the last six months.

Brokers also stated that the strain is being most felt by borrowers whose finances and live do not fit “traditional moulds”.

When asked which borrower groups are most likely to be disadvantaged by mainstream mortgage affordability assessments, the most cited group is people returning from career breaks (32%), borrowers with multiple income streams (31%), applicants with irregular and seasonal income (29%) and those relying on bonuses, commission or overtime (29%)

The Nottingham’s research revealed that 86% of brokers believe that lenders need to develop products that support a broader range of financial circumstances, up from 61% six months ago.

Almost a third (32%) also said that placing greater emphasis on affordability reform would be the single most effective lever for improving mortgage outcomes in the current market, overtaking other priorities such as speed, pricing or process.

Chief lending officer at Nottingham Building Society, Aaron Shinwell, stated: "What brokers are telling us feels very real in the current climate. Households are juggling higher living costs, changing work patterns, and more uncertainty, yet too many aren't able to pass standard affordability assessments.

"Rigour in affordability matters, but so does relevance. Particularly in an environment where money is tight for many. As the FCA looks again at whether the rules are fit for modern borrowing, this is a moment for lenders to be more pragmatic and human in how we assess affordability.

"That means recognising diverse income patterns, life events, and career paths — while still lending responsibly. If we get that balance right, we can support more sustainable homeownership whilst lending responsibly."

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