High loan-to-income lending accounted for nearly half of mortgage advances, according to FCA and Bank of England data cited by Mortgage Solutions, rising from 41.4% in the second quarter of 2025. At the same time, reports point to higher mortgage-rate expectations weighing on buyer demand, while a typical five-year fixed rate was reported to have reached 6% amid lender price increases.
For advisers, higher-LTI cases require especially careful affordability conversations. The immediate monthly payment is only one part of the assessment: clients should understand refinancing risk, the consequences of rate changes, term extension, future income assumptions and the sustainability of any protection arrangements. AI can help model scenarios and identify missing information, but recommendations must remain grounded in verified client data and lender policy.
- Stress-test payments at higher future rates.
- Document rationale where affordability is finely balanced.
- Review whether longer terms or high-LTI borrowing affect retirement and protection planning.