CLS Money has reported that specialist first charge lending has been largely responsible for its record new business growth.
The company saw new business increase by 112% over the past 12 months.
The highest percentage of cases were introduced to non-high street lenders.
Clayton Shipton (pictured), CLS Money’s managing director, said: “Specialist lending is definitely the place brokers need to be fully involved in! From the evidence we have seen a high percentage of active homebuyers and those seeking remortgages, typically do not fit the template of the average high street lender. If they have tried to go directly themselves, the experience of being turned down has given them a greater appreciation of what a broker can do.
“Customers definitely prefer to deal with advisers like us, as we have access to multiple lending sources, give comprehensive advice and provide valuable human contact throughout the process.
“There are a number of reasons why perfectly good cases do not fit the high street template but they only tend to surface once we get past the initial sourcing sweep. Predominantly, change of circumstances, credit history, changes in job status, self employment or gaps in employment history tend to crop up, along with issues involving the property, which can stem from specific instructions given to surveyors by individual lenders.
“The current generation of second and third time home movers were the first to face the full impact of the credit crunch and many are still carrying baggage caused by that event. Although it was over 10 years ago, the knock on effects, in terms of changing the way people are remunerated and job security among other factors, have meant that more customers, thanks to their advisers, are turning to specialist lenders to fulfil their needs.”