IMLA recently reported that market and economic conditions suggest that the outlook for the specialist mortgage market will mean there’s likely to be an increase in demand from ‘non-standard’ borrowers. Therefore, I predict that we will continue to see a rise in intermediated mortgages where clients need additional support to navigate the specialist market. That said, there are still a great deal of borrowers who are still disenfranchised from both the mainstream and non-standard markets, so there is still need for further entrants and product innovation to cater for these gaps.
We are starting to see an increase in applications for first time buyers, and this will grow due to the change in stamp duty rules as well as the trend to shift from automated scoring to a manual lender underwriting process. Additionally, lenders are now starting to allow for adverse credit histories, including those in debt management plans for help to buy and right to buy applicants. The self-employed and grey markets will continue to benefit from wider improvements in lender attitudes towards risk layering.
Despite a growing market and continued innovation, some borrowers will remain disenfranchised and unaware of the possibilities due to a lack of signposting. Brightstar undertook a poll earlier this year and found that 69% of the hundreds of mortgage brokers surveyed said clients were not getting the information they needed. In addition, 94% of brokers agreed that there was a moral obligation to make customers aware of specialist lending options, even if the broker doesn’t want to provide the advice.
Now, more than ever, is the time to partner with a specialist distributor who can take the time-burden of searching the market to source the best deal available for your clients. Brightstar offer a choice in how we manage your client applications, so, regardless of whether you want to provide the required advice or simply pass a client name and number to us, you will still be paid a proc fee.
If you have a case that doesn’t fit the mould or is failing on the high street, give us a call; there are very few situations where we’re not able to find a solution. The specialist market is becoming very competitive which is driving rates down so we challenge you to surprise you and your client with the options that are available.
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