Bluestone: High street lenders still don’t help non-standard borrowers enough
Only one in 10 brokers (9%) believes high-street lenders have become more understanding towards non-standard borrowers, Bluestone Mortgages’s Specialist Lending Tracker has found.
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.
Steve Seal, director of sales and 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.”
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.