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.”

Enter your e-mail address to receive updates on this topic straight to your inbox

* indicates required
Send me news alerts on: