Specialist lending predicted to treble in next 10 years

August 26, 2022 by Brendan O'Neill

Lenders

New research that has been carried out by mortgage lender Together forecasts that the number of specialist residential loans will treble within the next decade.

Together worked with economist Dr John Glen on this research, which predicts that specialist lending will rise to £16 billion eight years from now, compared with the current figure of £5 billion. The research suggests that permanent changes in the ways people live and work will be the primary reasons for this big increase in the specialist market.

The study predicts that the market for residential loans in general will grow significantly during that time, up to 56%, with this potentially leaving up to 500,000 people needing specialist lenders to be able to buy a home. The study states that the specialist market will expand to make up 4% of the total mortgage market in the UK by the end of 2030.

According to Glen, there are two reasons why specialist loans will become more prominent. The first is that there will be more people looking to buy homes who are self-employed and thus do not fit into standard high street-lender models.

The second is that those lenders are becoming more risk averse in response to inflation and rising living costs, driving people towards the specialist market.

Glen then pointed out that such lenders were going to be crucial in ensuring access to the market for many.

Anyone with CeMAP mortgage advisor training will already be aware of the growing importance of specialist lending.