What do brokers really want? Together's 44 years' experience on getting it right

By Nick Jones, head of specialist distribution at Together

The specialist lending market is going from strength to strength, growing threefold in just seven years, according to the latest industry research.

Gross lending has seen an average increase of almost a fifth (19%) per year between 2009 and 2016 as specialist lenders benefit from a growing number of borrowers in non-standard situations who may fall outside mainstream lenders’ criteria.

A report by the Intermediary Mortgage Lenders Association revealed that specialist lending has increased to £17bn per year in 2016 – over three times more than the £5bn  recorded in 2009.

For lenders like Together, ‘non-standard’ can mean borrowers who may have complicated income streams – they may be a self-employed company director, for example – or they may wish to borrow against properties like former council flats, or in atypical circumstances, such as shared ownership.

So, what do brokers need to know about accessing specialist finance? Here are our top five tips.

1. Understand your customers’ goals. Talk carefully to them to hear the full story and ask open-ended questions. This can often uncover important information that could affect the outcome of their application. Detailed submission notes are the key as they give the underwriter a clear picture and help them understand what the client wants to do. This enables specialist lenders, who may have multiple solutions, to assist the customer as well as they can.
2. Know the key areas in which your lender operates. Some specialist lenders may have a great deal of expertise in an area you are not particularly familiar with. Get to know the specialist offering by contacting a dedicated business development manager. They will be able to offer expert advice and support by telling you about the latest products, while taking into account your customer’s unique circumstances.
3. Be specific from the outset. The role of the broker when presenting a case is more critical than it has ever been because of stricter underwriting criteria by mainstream lenders in recent years. The more detail that can be provided, the faster a decision on funding can be made. Specialist lenders, such as Together, can often be more flexible in approach and help to find the most positive outcomes, even in complex situations.
4. Explain the need for customers to be transparent about their situation. They will need to give you the fullest picture possible of past, present and foreseeable future. If lenders are aware up front of any issues which may stop an approval in its tracks, they may be able to find a solution.
5. Boost your own specialist experience. For those with little knowledge of specialist finance, it may seem complicated. However, you can increase your knowledge vastly by building strong relationships with key partners who know the industry, and who you can trust to take your cases to. By speaking directly to lenders, brokers can quickly gauge their preferred areas of operation. This, in turn may open up the possibility of more business in the future.