Brokers Say Specialist Mortgage Cases Take a Lot More Time...

18 December 2024

...However, 96% say specialist customers are also more likely to use them again.

According to research carried out for United Trust Bank Mortgages new white paper, 91% of brokers are spending a lot more time completing specialist mortgage cases than those fitting mainstream criteria. However, this extra time, care and attention appears to produce more loyal clients with 96% of brokers saying specialist customers are more likely to use their services again.

Nearly half (49%) of brokers who took part in the research said that they were spending from 10-30% more time on specialist cases with a further 31% saying they were spending more than 30% extra time than they would on average spend on a mainstream case.

38% of brokers said that more than half of the cases they had completed in the last 12 months were specialist. 21% included in that figure said that all their cases had been specialist. 87% of brokers said that clients often approached them having been turned down by a lender or other broker.

Don’t say ‘No’, refer!

Although 82% of brokers still prefer to submit their cases direct to lenders, 43% said that they may use referral partners in the future. Experts agree that if brokers lack the time, knowledge or inclination to take on specialist cases, they should refer rather than pass up the opportunity altogether.

Kevin Roberts of L&G Mortgage Club said, “If you can’t do specialist mortgage cases, find a partner.” Liz Syms of Connect Mortgages said, “If the adviser’s volume of specialist lending is low or they have no appetite to write this type of business, they can find a partner. If they are keen on the market, they should immerse themselves.” William Lloyd-Hayward of Brightstar said, “Don’t try and be an expert in everything. It is easier to build relationships with a partner than try and know all the criteria that exists.”

Brokers can download a copy of the white paper – Growing opportunities for brokers in the specialist mortgage market - HERE

Buster Tolfree, Director of Mortgages - United Trust Bank, who commissioned the white paper, commented: “The specialist mortgage market is continuing to grow and undoubtedly offers excellent opportunities for brokers. Many are now devoting their whole business to customers who are not served by the mainstream mortgage market whilst others continue to complete smaller volumes. It’s no surprise that customers who don’t meet mainstream criteria can take a bit more time to source mortgages for. However, the end result is customers who will come back to the broker time and again when they refinance or move home.

“For those brokers who feel they lack the market knowledge or time to take on specialist cases, packagers and referral partners are an excellent way of keeping new business opportunities. Building trusted partnerships is key to the health and continued growth and success of the mortgage industry as a whole and it’s great to see more brokers embracing collaboration as a means of growing their business and looking after more customers who may struggle to find the mortgage they need on the high street.”

Brokers can register to use UTB’s services at www.utbankmortgages.co.uk