Market outlook, specialist lending and the role of AI: Chris Blewitt and James Travers, Darlington BS

Chris Blewitt (pictured): Greg, how would you describe the current market mood?

Greg Cunnington: It is an interesting one. If we had done this a few weeks ago, most people would have been very positive. The start of the year was strong and forecasts looked good. Now, it feels more mixed.

On one hand, lenders and brokers have had very busy periods. Some firms have seen record weeks, with brokers working long hours to get cases over the line. But there is a question around how much of that business was already in the pipeline. A lot of it may be linked to maturities rather than new purchase activity.

That said, the market still has strong foundations. The maturities market this year is around £400 billion, which is about 20% higher than last year. That gives the sector a solid base. Even with some movement in swap rates, we are not far off where we were a couple of months ago. Importantly, affordability has not really changed. Clients still have access to similar options, so there are reasons to remain positive.

James Travers: There has been some volatility in swaps. Should brokers be concerned?

Greg Cunnington: In the short term, it has looked quite dramatic. But if you step back and take a wider view, it is not as bad as it might seem. We have been through similar periods before and the market has coped well.

The bigger challenge for lenders is knowing where to price. That uncertainty is what creates product instability. But overall, the market is still functioning well.

Chris Blewitt: What have you made of how lenders have responded in recent weeks?

Greg Cunnington: This has been a real test of how lenders treat brokers. Some have given notice periods before pulling products, which has allowed brokers time to submit cases. That has been very well received.

Others have not, and that has caused frustration. Brokers want to feel that lenders understand the pressure they are under. Giving time to secure a rate can make a big difference for clients. It shows that intermediaries and customers are being put first.

Chris Blewitt: Regulation and affordability are still causing friction for brokers. What is your view?

Greg Cunnington: Affordability is still the main challenge. Even though there have been improvements, brokers are still finding it difficult to place some cases.

There is also an issue with criteria. Despite innovation across the market, there are still cases that should be getting placed but are not. That suggests there is more to do in terms of education and awareness.

Documentation and admin also remain a burden. A simple rule is to ask whether a document actually changes the lending decision. If it does not, then we should question why it is needed.

James Travers: Do you think we will see more lenders adjust criteria rather than pricing?

Greg Cunnington: Yes, particularly for lenders who cannot compete purely on rate. If you cannot move pricing, you have to look at criteria.

That could be a positive. It may lead to more support for underserved borrowers, which is an important part of the market. There is an opportunity for lenders to be more flexible and help more clients access finance.

Chris Blewitt: Is specialist lending becoming more mainstream?

Greg Cunnington: Very much so. If you look at the data, the largest lenders have grown strongly, but they have also expanded what they will accept. Some of the cases they are doing now would have been seen as specialist a few years ago.

At the same time, smaller and regional lenders have grown by being more flexible and innovative. Customer profiles are changing. We are seeing more complex income, more self-employed borrowers, and more varied credit histories.

Standard cases still exist, but a growing share of the market involves more complexity. That is where brokers and specialist lenders can add real value.

We are also seeing a need for more education. That is why we (Legal & General) is launching a specialist lending academy. The aim is to help brokers build confidence in areas like foreign nationals, complex buy-to-let, and adverse credit.

James Travers: Let’s talk about AI. How do you see it shaping the market?

Greg Cunnington: AI is already here, and it will play a bigger role. But it is important to be clear about what it can and cannot do.

It will not replace advice. The data is not reliable enough for that, and the risks are too high. One wrong decision could have serious consequences.

Where AI will help is with tasks that are time-consuming and manual. Things like reviewing documents, summarising information, and preparing cases. That allows people to focus on the parts of the job that require judgement.

For example, AI could help an underwriter assess documents from overseas borrowers. That opens up opportunities that were previously difficult due to language or complexity.

Chris Blewitt: Should brokers be using AI now?

Greg Cunnington: Yes, but with care. There are two risks. One is ignoring it completely, which could leave you behind. The other is relying on it too much without understanding the output.

The best use of AI is to support your work, not replace it. Use it to save time and improve efficiency, but always check the results.

Customers are already using AI themselves. They may come to brokers with information they have found online, but they still want reassurance and advice before making a decision.

James Travers: Will AI reduce the need for brokers?

Greg Cunnington: I do not think so. In fact, recent market conditions have shown how important brokers are.

When rates are changing quickly, customers need guidance. AI cannot keep up with that level of change, and it cannot provide the reassurance that people want when making a major financial decision.

The role of the broker is to interpret information, provide context, and support the customer. That is not going away.

Chris Blewitt: What will make brokers stand out over the next few years?

Greg Cunnington: It comes down to value. Handling complex cases, providing clear advice, and building trust with clients.

Efficiency matters, but it is not the whole story. Customers want someone who understands their situation and can guide them through it.

We have seen record levels of intermediary use in the UK. That shows customers value advice. As long as brokers continue to focus on that, their role will remain strong.

James Travers: Final thoughts on the year ahead?

Greg Cunnington: There will be challenges, but there is strong demand, a large remortgage pipeline, and growing opportunity in more complex areas.

If lenders, brokers, and networks continue to work together and adapt, we can overcome most challenges.