Property: The missing half of FCA mortgage reform.

Author: Tanya Elmaz, Managing Director of Intermediary Sales, Together.

If, like me, you’re encouraged by any changes that make mortgages more accessible, the recent reforms announced by the FCA were welcome news.

For far too long, mainstream mortgage criteria and affordability have been out of step with how millions of Britons actually live, denying finance simply because the individual is self-employed, gets paid in a foreign currency, is reaching retirement age or has had minor credit issues. The changes look to address these common stumbling blocks in mortgage applications.

But what if the borrower isn’t the issue?

When the property becomes the problem

Together’s latest research has uncovered over 1.5 million homes that would still be unmortgageable* to most high-street lenders, even with the proposed changes.

It highlights that the borrower is only half of the equation when determining whether a mortgage application is accepted or rejected. In fact, many properties can fall outside mainstream lending criteria because of their condition, construction, legal complexity or location, regardless of the applicant’s ability to repay.

While the term “unmortgageable” often conjures images of derelict buildings or abandoned homes, the reality is often very different. Many are family homes, investment properties or desirable assets that simply require a more detailed assessment than standard lending processes are designed to provide.

The unusual suspects: The properties that fall outside standard criteria

The properties that struggle to secure finance are often not as unusual as many people think. While some may require significant refurbishment, others can be perfectly habitable homes that simply fall outside mainstream lending criteria.

Examples include listed buildings, flats above commercial premises, non-standard construction homes, ex-local authority properties, homes affected by flooding concerns and properties with legal complexities such as flying freeholds. Short-lease flats can also prove challenging, despite remaining attractive to buyers and being in areas of strong demand.

Many of these properties form an important part of the UK's housing stock. Older homes can provide more affordable entry points onto the property ladder, while refurbishment projects can help bring underused properties back into productive use. Yet factors such as condition, construction type, lease length or legal complexity can prevent them from fitting neatly into traditional lending models.

The result is that a property can be considered higher risk by a mainstream lender, even when there’s clear market demand and a borrower with the means to support the loan. For advisers, this is where property complexity can become just as significant as borrower complexity.

Why it matters for brokers

Increasingly, the role of the broker is shifting from adviser to interpreter. Borrowers, properties and circumstances rarely fit into neat categories, meaning successful outcomes often depend on connecting the different pieces of a complex case.

For example, a self-employed individual with historic credit issues may also be trying to purchase a home constructed using concrete, adding three layers of issues to resolve (or three reasons for automated criteria to reject your case).

That requires brokers and lenders to become skilled problem-solvers, able to look beyond a single issue and understand how borrower circumstances, property characteristics and future plans fit together. In a market where complexity is becoming the norm, finding a solution is often less about ticking boxes and more about seeing the complete picture.

Flexibility throughout the mortgage process

The FCA is right to challenge the industry to think differently about how it assesses borrowers. But if we want a mortgage market that genuinely reflects modern Britain, we must also think differently about how we assess properties.

Because mortgage accessibility is shaped not only by the person making the application, but by the property itself. Until both sides of that equation are addressed, mortgage reform may only solve half of the problem.

Specialist lending can help bridge that gap, giving brokers more options when a viable case falls outside mainstream criteria and ensuring property complexity does not automatically become a barrier to finance.

*Analysis was conducted using Searchland property intelligence data (May 2026) and supplementary government and industry datasets as part of Together’s Unlocking 'unmortgageable' properties report

As seen in IRESS Industry Voice Autumn 2026