Accord Mortgages has called for more policy reform, regulatory review and support for lender innovation, after its new research reveals growing broker concern over borrowers’ mortgage affordability.

The latest research found that 73% of mortgage advisors surveyed believe that borrowers will face greater challenges over the next decade due to the high cost of living and rising house prices, despite recent regulatory improvements.

Accord Mortgages managing director Jeremy Duncombe says: “While recent developments around affordability rules and loan-to-income limits are encouraging, more needs to be done – and faster.”

“As an industry, we must think creatively to support first-time buyers in particular and ease pressure around deposits, the disparity between house price and income growth, and affordability.”

“This means keeping up the positive momentum with a continued review of regulation to give lenders more freedom to innovate, allowing them to create new types of products – our own recent £5k Deposit Mortgage being one example which allowed people to borrow up to £500,000 with a deposit of £5,000.”

“And, from the Government, we need incentives for downsizers and a revamped Help to Buy scheme, as well as the reintroduction of Stamp Duty relief for first-time buyers, to ensure a buoyant housing market with more opportunities for all types of borrowers.”

Earlier this year, regulators clarified affordability rules and began reviewing loan-to-income (LTI) limits, allowing lenders to responsibly increase the flexibility they can offer borrowers, providing them with a significant lift.

Accord was among those to act on these changes, updating its affordability model and increasing its LTI limits to be able to lend more.

Duncombe explains: “Progress is happening, but these findings confirm what we already know –there’s still much more to do. Borrowers, especially first-time buyers, face significant obstacles like inflation, stagnant wages, and rising property values.”

“At Accord, as one of the country’s largest intermediary-only lenders, we understand the vital role brokers play in helping borrowers to navigate these challenges, and their importance will only grow.”

“Brokers also need to help tackle the lack of awareness in the market of the positive changes that have been made to date and what they might mean for their clients on an individual level.”