Seven out of 10 (72%) brokers believe the specialist market now presents a bigger opportunity than ever before with six out of 10 (60%) writing more specialist mortgage business than a year ago, latest research from UTB Mortgages reveals.

The last two years have been tough for many consumers with the cost-of-living crisis hitting household finances hard.

And according to brokers who took part in UTB’s research, the higher inflationary environment appears to have pushed more consumers into the specialist mortgage sector, with one in five brokers now concentrating solely on servicing customers who fall into the specialist category.

ROUTE TO MARKET

Buster Tolfree, director of mortgages at United Trust Bank, says: “This report illustrates just how much the specialist mortgage market has evolved in such a short period, albeit with significant economic factors pushing it along.

“Specialist mortgage lending has certainly increased in importance, and its place in the market is only going to grow.”

COMPLEX NEEDS

“For many customers it will be their only route to reaching their property-owning aspirations. Particularly as mainstream lenders are more frequently unable or unwilling to serve borrowers with more complex needs.

“The lender community can do more to help brokers recognise and then take full advantage of the opportunities the specialist lending market has to offer, and my colleagues and I at UTB are committed to doing just that, recognising that we achieve more if we work together and that united, we go further.”

LENDING LANDSCAPE

UTB Mortgages’ 2024 white paper looks at trends in the specialist residential and Buy-to-Let mortgage market as well as second charge loans.

It examines the lending landscape and reveals broker views on challenges they face and potential areas of opportunity for growth and the importance of education and collaboration between lenders, distributors, packagers and brokers.

LEADING FIGURES

Prominent industry figures including Stephanie Charman, group partnerships and propositions director at Sesame Bankhall Group, Liz Simms, managing director of Connect Mortgages, William Lloyd-Hayward, chief operating officer of Brightstar Financial, and Matthew Arena, group managing director at Brilliant Solutions were among those who took part in interviews relating to the research.

The report also includes independent research from the Office of National Statistics (ONS), Registry Trust, UK Finance and the Insolvency Service.

Read the full report HERE.