That complexity, he pointed out, is reshaping the advice model. “Against this backdrop, the traditional ‘generalist’ approach to mortgage advice is gradually giving way to something different,” Smith added. “Specialist advisers focusing on particular client groups or types of lending.”
The core issue is inconsistency. Lenders can assess the same borrower in materially different ways, depending on how they treat variable income, dividends, or limited company structures. “For lenders, assessing affordability in these scenarios can be challenging,” Smith noted. “Criteria vary widely, and the same borrower could receive very different outcomes depending on which lender reviews the application.”
Specialisation, in this view, is less about positioning and more about repeat exposure to similar cases, which builds an understanding of what will and will not pass underwriting. “As complexity increases, so too does the value of niche expertise,” Smith said. “This depth of knowledge is difficult to maintain across every possible client type.”
One area where this is becoming more pronounced is among first-time buyers. The traditional picture of a buyer with a single PAYE salary is less typical for many younger professionals, some of whom rely on bonuses, commission or freelance work alongside employment. Others are early-stage business owners with limited trading history but strong prospects.
According to Smith, these borrowers may be viable in the long term, but their income structure can be difficult to evidence in ways that fit standard affordability models. Advisers who handle such cases repeatedly are more likely to know which lenders take a flexible approach to variable income and how to structure applications to avoid unnecessary delays or declines.