Specialist lending intermediaries confident about 2019 market

Its new broker survey found that more 61% of intermediaries working in the sector feel confident about the prospects of the mortgage market, with 84% confident about their company’s prospects over the next twelve months.

Intermediaries are also optimistic that their investments will yield positive results, with 43% expecting turnover to rise by more than 10%.

When asked which area of the market is experiencing the most growth, 22% of respondents cited later-life lending, followed by short term finance (18%) and remortgaging (14%). However, 20% believe later life lending still needs the most innovation in order to meet growing customer demand.

An increase in demand for more niche mortgage products and flexible criteria was also echoed throughout the research. 61% confirmed the main reason for customers approaching them for advice was because they have specialist lending needs which cannot be met by traditional high street banks.

Over a third (35%) stated lending criteria was the biggest barrier to achieving this increase in demand for specialist products, followed by regulatory requirements (27%) and lack of product innovation (18%).

Referrals were seen as the top method for additional sales with over half of respondents (56%) predicting the majority of growth over the coming year would be generated in this way.

Jon Hall, managing director at Masthaven, commented: “Our first ever Broker Beat survey has shown that the specialist lending market shows no sign of slowing with customer demand for specialist products higher than ever. Intermediaries in the market are experiencing an influx of clients who need access to more accessible and affordable products and this, coupled with growing headcount and investment in staff, indicates now is an excellent time to be a part of the sector.

“Diversification of products is key to maintaining a growing customer need for flexibility. There is clearly both demand and gaps in the market for later-life lending, innovative solutions and more flexible lending criteria to meet customers’ needs. Masthaven will respond by prioritising this in our plans and focusing on giving great customer service, given the clear message from brokers. Referrals will also play a key part in navigating this expanding market. What this shows is that the human element is still very much alive, well and indeed vital in the mortgage market and will continue to play a key role in making this sector succeed.

“It is fantastic to see sentiment across the market remains high. Whilst we have embraced a number of regulatory changes already this year and as we gear up for what Brexit might mean to the sector, the specialist lending market continues to be as strong as ever.”