Just 9% of mortgage brokers think high-street lenders have become more understanding towards non-standard borrowers, according to research from Bluestone Mortgages.
As a result, 94% of brokers are likely to refer their client to a specialist lender if they have been rejected by a high-street lender.
Bluestone says its Specialist Lending Tracker research series shows the growing importance of the specialist lending market in serving a growing number of customers who do not fit the traditional lending criteria of high-street lenders, and the opportunities available for brokers.
When questioned whether clients were aware of the difference between a mainstream and specialist lender, brokers were nearly equally split – 42% agreed that clients were aware, while 38% said that clients weren’t. However, when asked which three products were most popular when referring clients to a specialist lender – buy-to-let (34%), remortgage (30%) and residential mortgages (26%) came out on top.
Steve Seal, director of sales & marketing at Bluestone Mortgages, said: “These figures show the need for specialist lending – it’s a vital part of the mortgage market and serves those who may otherwise be unable to secure homeownership. There’s a clear perception amongst brokers that mainstream lenders aren’t very understanding towards non-standard borrowers, so it’s great to see that they view specialist lenders as a viable alternative.
“According to ONS, household debt has been rising since 2013. It’s becoming increasingly likely that lenders, both mainstream and specialist, will be met with demand from consumers with complex credit histories.
“However, just because a borrower may not have a perfect track record, does not mean they should be barred outright from home ownership. Through tailored advice and individualised solutions, specialist lenders are continuing to secure positive outcomes for a broad range of customers.”