Specialist mortgage lending grows by 19% per year

Jessica Nangle

October 3, 2017

The value of specialist mortgage lenders’ annual lending has grown by 19% per year since 2009, a report from the Intermediary Mortgage Lenders Association (IMLA) has found.

Specialist lenders – which first came to prominence in the 1980s characterised by having no branches, relying on introductions for business and wholesale markets for funding – have seen the total value of their lending increase to £17bn per year in 2016 compared to the £5bn recorded in 2009.

A similar increase was seen in the late 1980s when the segment saw its market share reach as high as 14%.

Peter Williams, executive director of IMLA, said: “Specialist lenders have enjoyed strong growth since the end of the recession, largely through their focus on classically niche, less well-served areas of the market.

“Mortgages are not ‘one size fits all’ products and as such the number of borrowers with non-standard needs is increasing.

“Through innovation and flexibility, combined with strong underwriting standards, specialist lenders have capitalised on the growing demand for products like specialist residential and lifetime mortgages.”

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