01 Jan 2026

Working the affordability gap

By Louise Weiss, National Partnership Manager at Bank of Ireland for Intermediaries

High net worth lending has always sat slightly apart from the rest of the mortgage market. These borrowers are often asset rich, income diverse and deliberate in how they use debt. Yet over the past 18 months, they have felt the same affordability pressure as everyone else, just expressed in different ways.

Rising rates have tightened mortgage affordability across the income tiers. However, for high net worth clients, the issue was not access to lending, but how much flexibility lenders were willing to show when income and assets did not fit a standard model. Loan to income limits became a key pinch point, particularly for borrowers purchasing above £1m, or those with complex remuneration.

The loan to income conundrum

That is why changes in 2025 around affordability and stress testing have also been key for this part of the market. In March, the FCA reminded lenders that its interest rate stress test rules already allow flexibility. ^[1] Firms can design stress tests that are appropriate for the customer and the mortgage, including whether the lender is likely to offer a new deal at the end of a fixed rate. This clarification gave lenders more confidence to lend where the wider picture supports it.

The impact has been increasingly visible. Bank of England reports confirmed several major lenders have subsequently adjusted lending approaches, with median stress rates on new lending falling by around 100 basis points between early 2025 and Q3. ^{[2] [3]}

For high net worth borrowers, this has reopened conversations that stalled last year, particularly around family homes, lifestyle properties and strategic purchases made as part of wider wealth planning. Indeed, the FCA noted in the December Mortgage Rule Review feedback that affluent borrowers already often benefit from a broader assessment of assets and liabilities, so are less constrained overall by rigid income caps than mainstream customers. ^[4] In my experience, that approach reflects how these clients actually manage money, often choosing to hold assets and leverage debt rather than maximise income drawdown.

The lender reaction

The result is a market where lenders willing to lean into judgement, rather than automated, default settings, are gaining ground. Those lenders tend to share a few traits. They are comfortable operating below the regulatory maximum where needed but can stretch loan to income when the case stacks up. They assess assets alongside debt, rather than in isolation. And they recognise that affordability for this client group is about sustainability and trajectory, not just today’s payslip.

Property assessment plays a part too. High net worth borrowers are more likely to buy homes that fall outside a neat template, from country houses with land to properties with annexes. Lenders that can assess the property in context, rather than reject it on structure alone, are better placed to serve this market.

Tailored lending

Sitting between vanilla high street lending and full private banking, these ranges are designed for clients who want tailored underwriting without handing over assets under management or paying higher fees. They rely on manual assessment, experienced relationship managers and close operational links between BDMs and underwriters.

Within our Bespoke range, that approach means presenting the full story to the BDM. This way, income can be layered and assessed selectively, rather than all being forced into the calculation from point of application. Underwriters are able to assess assets to give comfort around liabilities and expenditure. So, in many cases, only part of the available income needs to be used, keeping the overall loan to income below the maximum.

The lender’s underwriting model matters just as much as the policy. Ring-fenced teams with experience of complex wealth profiles can look at both borrower and property in the round and keep continuity from enquiry through to offer. That gives brokers clarity early on, and clients confidence that the decision will not shift halfway through the process.

The definition of high net worth may not have changed, but the lending landscape is evolving at pace. Rising property values, modern income structures and a greater focus on strategic borrowing mean more clients now sit in a middle ground.

As loan to income flexibility feeds back into the market, brokers who understand how to present these cases, and which lenders will engage properly with them, will be best placed to close the affordability gap.