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.”