The specialist mortgage market has gained significant traction over the last few years as the needs and demands of mortgage borrowers have continued to evolve.
Driving this growth is the increase in the number of people who do not fit the traditional lending criteria set by mainstream banks and mortgage lenders.
Many of these individuals have complex financial situations, but are looking to secure a first charge mortgage to buy a property. In some cases, these borrowers will be self-employed or have a history of adverse credit, while in others they will be buy-to-let (BTL) investors seeking to purchase unmortgageable or non-standard property types.
Catering to the needs of these individuals is crucial as this demographic has historically been under-served by mainstream lenders and high street banks for far too long.
This has subsequently led to the rise of the specialist lending sector as it has stepped up to fill the gap left by conventional lenders.
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Varying degrees of specialism
However, much like in the mainstream mortgage market, not all specialist lenders are cut from the same cloth. Each will have its own product offerings, level of risk and degree of flexibility when it comes to writing business.
This is particularly true in the first charge mortgage market, where lending criteria can vary significantly between different lenders.
For brokers looking to place a specialist first charge mortgage, this can prove confusing, so it is important to understand which lender can best serve the needs of their clients, especially those with more complicated borrowing requirements.
Much like in the mainstream market, the needs of each borrower will differ. It also means there will be cases where the client may have a greater degree of complexity and the process of securing a specialist first charge mortgage may take a little longer than others.
There are a number of reasons for this, including extremely unusual property types, a very complicated income structure or a particularly challenging history of adverse credit.
In some cases, the level of complexity associated with all these complications can actually sometimes prove difficult to place, even with a specialist lender, which is where the flexible and accommodating approach offered by Norton Home Loans can help.
For example, our first charge mortgage product range is available to customers with a history of adverse credit or payday lending older than 12 months. Norton will also consider applications from borrowers with a bankruptcy charge or debt relief order that is over three years old.
Borrowers with a history of adverse credit, such as those holding a county court judgment (CCJ) over 12 months old, are also eligible to apply for a Right to Buy mortgage. Norton will also consider applicants with an active individual voluntary agreement (IVA).
We will also lend on a variety of unusual and different property types.
Catering to the needs of clients who require a specialist first charge mortgage, especially those with extremely complex backgrounds, is essential in helping those borrowers who fall outside the traditional lending criteria of mainstream borrowers.
By working with lenders that offer flexibility, understanding, and tailored solutions to customers, brokers can help individuals achieve their property goals in situations where other lenders may fall short.
