Mortgage advisors sceptical about loosening lending restrictions

August 16, 2025 by Brendan O'Neill

Mortgage Advisors

News

A new survey of mortgage advisors indicates they are sceptical about government plans to loosen restrictions on lending, with less than one quarter of them thinking it is a good idea.

This survey was carried out by the specialist buy-to-let lender Landbay, which asked advisors what they thought about plans outlined by the Chancellor of the Exchequer for cutting back red tape. Among the ideas that Rachel Reeves put forward during a speech at Mansion House was to raise the limits on mortgage lending. However, just 23% of advisors told the survey that they consider this to be a good plan.

Meanwhile, 30% of them – which adds up to three out of every 10 – said that the result would be loans that are too risky. Only 16% of the advisors polled thought that it would help people trying to buy for the first time, while 7% felt that it would grow the economy.

It should be noted that, although many advisors feel that loosening lending restrictions will create too much risk, others think the idea does not go far enough. 47% of them stated that the proposed changes amounted to little more than tinkering.

Landbay distribution and sales director Rob Stanton spoke to the Financial Reporter. He said the survey results show that advisors have doubts. He then added:

“At Landbay, we understand the need for growth, but striking the right balance between access to lending and managing risk is critical to avoid repeating past mistakes.”

This is a point most advisors with CeMAP training would agree with.