How can advisors overcome the specialist lender stigma?

January 26, 2023 by Brendan O'Neill

Mortgage Advisors

This is a difficult time for many people looking to buy a home, thanks to very high house prices and fluctuating mortgage rates. However, it is particularly tough for first time homebuyers. There are specialist lenders within the market that can help them, although the public sometimes has a negative perception of this, so in this blog we’ll be exploring how advisors can help them overcome these negative perceptions.

The major problem is that some people associate specialist mortgage lending with things like bad credit. Even in tough economic periods, clients can feel a stigma attached to that which prevents them exploring viable mortgage options.

It is undoubtedly true that many specialist lenders do cater to those with credit ratings that are lower. However, advisors can help clients overcome these negative perceptions by making it clear that this applies to increasing numbers of people due to economic factors that are outside of their control.

Their CeMAP training course will also have made them aware that this is not the only group of clients that specialist lenders serve. They provide mortgages for self-employed people who do not have credit issues, but also do not meet the criteria of the bigger lenders in areas such as accounts. These lenders also cater for people looking to buy through shared ownership and Government schemes like Help to Buy.

Making it clear that the market for specialist mortgage lending is a wide one and does not necessarily say anything about your financial circumstances will help remove any doubts that clients may feel about exploring these options.