52% of mortgage brokers predict huge growth in specialist market
Over half (52%) of mortgage brokers believed the specialist lending market would grow by at least £1bn over the next six months, Bluestone Mortgages’s ‘Specialist Lending Tracker’ research has found.
Over a third of mortgage brokers (34%) said they had referred more than a quarter of their client base to a specialist lender over the last 12 months.
Steve Seal (pictured), director of sales and marketing at Bluestone Mortgages, said: “There is very little research available which focuses only on the specialist lending market. Our decision to launch this research was driven by the fact that we wanted to highlight to advisers how much the specialist market can offer.
“Specialist advisers are helping a growing number of complex borrowers in their search for affordable lending, and the opportunities here for brokers and specialist lenders are unique. Customer lifestyles and habits are changing.
“It’s essential to raise awareness of how this area of the market is growing and how it can boost a broker’s business in the long-term.
“After the great reception and success of the first series, we will soon be launching the second wave – so watch this space.”
One of the primary reasons why brokers refer their clients to a specialist lender is because they fall outside of mainstream lending criteria, with over half (53%) of brokers stating this.
Other reasons why brokers refer their clients to a specialist lender included irregular and multiple income streams (43% and 42% respectively) and clients with impaired credit history (42%).
Only one in 10 brokers (9%) believe high-street lenders have become more understanding towards non-standard borrowers.
Some 94% of brokers are likely to refer their client to a specialist lender if a high-street lender has rejected them.