Specialist lenders can provide a lifeline for individuals who lose their job or are made redundant as a result of the current economic conditions according to Steve Seal, managing director of Bluestone Mortgages.
The UK unemployment rate was estimated at 5% in the three months to November 2020, the ONS Labour market overview detailed.
Seal outlined that while the roll-out of coronavirus vaccines offers some hope to the UK employment market, the wider economic consequences of the pandemic will continue to be felt by businesses over the coming months.
He said: “For individuals who lose their job or are made redundant as a result, this could leave them in a more precarious financial position than they were before the crisis.
“While some will get back on their feet over the long-term, others may continue to face financial hardship, which could hinder their chances of securing mainstream financing later on.”
As a result of this, Seal believes that specialist lenders can provide a lifeline for individuals, and detailed that it is vital that the market is prepared for a significant spike in demand.
As part of this, specialist lenders should be encouraging advisers to tap into this market and seize the opportunities that are available, explained Seal.
Seal added: “This will ensure that brokers are also well-prepared for a post-coronavirus future where a growing number of customers are looking for specialist lending.”