As one of our brokers you can source client solutions across multiple sectors, submit and track their cases 24/7.
Need to register? Click here to start using our sourcing and case management system
Everything's going to get a whole lot easier very soon. FIND OUT MORE
Call us: 01277 500 900
Your clients are changing…
Their circumstances are becoming more complicated and diverse and less likely to meet the automated approach of a standard mainstream lender. You may need help to place these cases? The good news is that a growing number of specialist mortgage lenders are available to meet the needs of clients with more complex circumstances, with a hands-on approach to underwriting and criteria that is sympathetic to customers who are self-employed, work as contractors, earn income from multiple sources, are portfolio landlords or have a blemished credit record.
There is also growing competition between lenders that offer specialist finance in many areas. These lenders increasingly offer competitive rates, but their primary focus is on delivering the criteria you need to secure a mortgage for your clients who don’t fit the high street. A traditional sourcing system might help you to search through the options based on some requirements but is unlikely to deliver an in-depth picture of the most appropriate product. At the same time, the specialist sector can be a complex area of the market if you deal with it infrequently. The landscape is constantly evolving with new lenders and changing criteria, and fully understanding all of the options can be a minefield.
So, how can you ensure that you are advising your clients on the best solutions for their circumstances?
A specialist distributor exists to provide solutions for the cases you deal with on an infrequent basis and can provide you with the tools you need to make the most of every lead and deliver great outcomes for your clients. Here’s a helpful guide, with everything you need to know:
What is a specialist distributor?
A specialist distributor is a full-time expert in the areas of lending that you may only deal with on an infrequent basis, with the knowledge and lender relationships to help more clients, more often.
Some specialist distributors focus on specific areas, but at Brightstar we cover a wide range of lending areas. You can’t be expected to be an expert in every part of the market, so we have dedicated teams that each have focused expertise on different types of lending, including:
Specialist distributors work with specialist lenders more often and so have a thorough understanding of criteria and application processes. They also have access to lenders and criteria that are not available direct to brokers. Many established lenders choose to distribute some of their most in-demand deals exclusively through specialist distributors. Some new lenders also choose only to distribute their products through specialist distributors to manage their launch appropriately.
So, with a specialist distributor, not only do you get access to unrivalled knowledge, you also get access to products that are not available to your client elsewhere.
What is the difference between a specialist distributor and a packager?
Packagers were originally established to help provide scale to small centralised lenders. In order to grow, these lenders needed to process more applications, but technology was limited, and the job was labour intensive, so resource was a problem. Packagers provided a solution as they had teams of people who could assemble, or ‘package’ all of the paperwork required for a case and submit a fully packaged application to the lenders for approval. Lenders paid a fee for each completed case, rather than having the sunk costs of their own employees and this provided a flexible way for them to grow their lending volumes, and packagers established a role in the market as an important intermediary between brokers and specialist lenders.
With online applications, packaging as a process no longer exists and so the concept of packagers has become outdated. But there remains a demand from brokers for professional support with specialist cases and there is continued demand from lenders to work with key distribution partners that understand their criteria and how best to submit an application and supporting documents. Specialist distributors have evolved and grown their offering to include giving the advice and dealing direct with some clients in many lending areas.
What are the benefits of working with a specialist distributor?
There are a number of benefits of working with a specialist distributor to place your specialist cases, including:
What ways can you work with a specialist distributor?
You can now choose to work with a specialist distributor in the way that best suits your business.
Why is it more important than ever to build a relationship with a specialist distributor?
Financial inclusion is a key part of the FCA’s vision and the regulator wants everyone to be able to access the financial products they need. For a growing number of borrowers, this means speaking to an adviser who can provide them with a specialist lending solution and, for brokers, it’s a great opportunity to build a robust income stream at a time when more mainstream business is under threat from automated advice processes.
At Brightstar, our purpose is to support every broker in providing the right solution for their clients. For firms that take a more hands-on approach to specialist lending, we can provide the expertise to upskill and diversify and for firms whose core business model lies in other areas, we say – you don’t need to be an expert, you just need 60 seconds to talk to Brightstar.
