A new survey of mortgage advisors has found that 80% of them expect to be completing more specialist loan applications for clients this year than they have in any previous period.
Norton Home Loans and Knowledge Bank carried out this survey, with unusual types of property or income and bad credit ratings being cited by advisors as the key factors that they expect to bring demand for more specialist mortgages. In total, 43% of them stated that they had seen more clients suffering from bad credit ratings since the Covid-19 crisis began, while 57% said that this had not yet been an issue.
Homes that have unusual building issues were pointed to by advisors as major issues in trying to secure loans, as 53% said that ones with frames made of steel or timber caused problems. A further 41% said that it was freehold flats that had proved the biggest issue, while 29% named homes with flat roofs or access to a balcony as the biggest factor.
Norton Home Loans Commercial Manager David Binney told Mortgage Introducer that:
“Specialist mortgages cater for a variety of circumstances, including adverse credit, unusual incomes and different property types and the experience of brokers is that they are seeing more of these more complex cases than ever before.”
Binney went on to say that places like Norton could assist advisors in successfully completing applications of that sort.
Clearly, most advisors will need to use their CeMAP course training to identify specialist lenders that can help clients with complicated circumstances.