Majority of brokers expect specialist market to grow
Nearly two-thirds (63%) of mortgage brokers expect the specialist lending market to grow significantly over the next year, with an additional 33% expecting it to grow slightly, according to a poll by Bluestone Mortgages.
This sentiment was reflected in the opportunities mortgage brokers said they are seeing in the specialist lending market. The top three opportunities were the growing number of people with complex credit (47%), growing number of self-employed workers (16%), and increased product choice (15%).
Lower product costs came out on top, with 29% of brokers choosing this option, closely followed by higher loan-to-value (LTV) ratios (28%).
Nearly a fifth (19%) said they are looking for more flexible products, with a similar number (18%) wanting better education.
Just 5% of brokers were looking for high procuration fees.
Reece Beddall, sales and marketing director at Bluestone Mortgages, said: “It’s great to see such confidence in the specialist lending market among brokers.
“As more people come out of lockdown in a more challenging financial situation than they were in before, it is an area of the market that is only going to grow as more customers get turned away from the high street.
“This represents a huge opportunity for brokers who are going to be approached by a growing cohort of underserved borrowers looking for a helping hand over the short, medium and long term.
“However, our poll also revealed that there are areas of the specialist lending market where brokers are wanting more.
“We, as lenders, must listen to these demands and provide brokers with education and the tools they need to support the growing number of ‘non-vanilla’ customers in achieving their ultimate dream of homeownership.”
This follows on from news last month which revealed that Bluestone Mortgages had reduced rates across its entire product suite by up to 1.87%.