The specialist lending landscape is continuing to grow and has, in my opinion, become an unstoppable force in the mortgage industry. Consequently, we are seeing changes in terms compliance, consumer behaviour and regulation. This includes changes brought about by the MCD and the controversial three per cent stamp duty charges, with many investors flocking to beat the hikes this April.
An increasing number of new entrants are expected to enter the market this year and, as the pool of specialist lenders continues to expand, the market is able to provide an even more compelling proposition for its clients. New products and solutions are also continuing to evolve and, as a result, there is clearly a growing sense of support and a wider awareness, understanding and acceptance of the specialist mortgage market from the broker community.
The specialist lending market is always growing and developing and it is evident that the only constant thing is change, and it is vital that we do not go back to where we were during the credit and financial crisis of 2007-2008.
The market has opened up to investors with more complex requirements, with many requiring more than just a commoditised ‘tick box’ approach, and this is what the specialist market is attuned to providing. However, although the specialist lending sector does not have the ability to place every single case, each specialist case is a reminder that all clients are different. Therefore, as more brokers become increasingly more confident about the specialist lending sector, I am confident that they will start to understand that it is a careful and considered form of lending.
Specialist lending is increasingly becoming a crucial component to the UK’s lending market and it will be the specialist lenders with their tailored approach that will thrive. It is therefore time we embraced this change, because it is an unavoidable fact and is the only aspect of specialist lending that is constant.