Navigating the mortgage market in 2025: A BDM’s perspective – Kavanagh

Affordability remains a major barrier for buyers, as high interest rates and rising living costs have made securing a mortgage increasingly difficult.

While it is true that easing affordability rules could help buyers access loans that better reflect their financial situation, a cautious approach is needed – loosening restrictions too much risks a return to the kind of overstretched lending seen in 2008. 

Having worked as a broker before becoming a business development manager (BDM), I have seen both sides of the lender-broker relationship. If these changes come into effect, a strong partnership between the two will be essential to keeping the market moving in the right direction.

Practical tip for brokers 

The proposed changes to mortgage affordability rules aimed at improving access to lending will introduce new challenges for brokers and reshape how they support clients. However, a few key strategies can help them stay ahead. 

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Strengthen lender relationships 

A good BDM isn’t just a point of contact – they’re a problem-solver, helping brokers navigate policies, push urgent cases forward, and find solutions for complex applications. With lenders likely to take different approaches to affordability, strong BDM relationships will be even more important. Some lenders may be more flexible, while others stay cautious, so brokers need to keep up with changing criteria.

Having somebody to call and have regular conversations with, rather than relying on live chats or automated systems, can save time and make all the difference in getting deals over the line.

Manage client expectations 

Affordability is more than just passing a stress test. Brokers need to have honest, sometimes difficult conversations with clients about budgeting – not just meeting minimum requirements, but ensuring they can sustain their mortgage and lifestyle. Underwriters will review spending habits, so if declared expenses don’t match reality, it can cause delays or rejections.

If a deal can’t be made to work, transparency is key – explaining why and guiding brokers and borrowers through their options builds trust and keeps them coming back. 

Keeping up with market changes 

Whether it’s new lending policies, changes to stress tests, or alternative routes like self-build mortgages, brokers who stay informed can position themselves as trusted advisers. More buyers are open to exploring custom- and self-build projects, with our research showing that 64% of 18-24-year-olds would consider or have considered it as an option.

With limited housing stock and sellers holding out for higher prices, brokers who understand specialist lending – whether for self-builds or renovations – will be well-placed to help borrowers find the right solution. 

Looking ahead 

This year will be defined by how well brokers can adapt to potential regulatory changes. If lenders are given more flexibility, it’s up to brokers to ensure their clients make responsible decisions. The best brokers go beyond securing loans and help clients plan for the long term.

As we move into 2025, brokers who focus on relationships, both with clients and lenders, will be in the strongest position. To succeed, they must act as a one-stop shop, exploring every opportunity and building a network of strong, strategic contacts. This is a time of transition, but also opportunity.

By staying informed, brokers can continue to thrive in an evolving mortgage landscape.