Written by: Danny Belton - Head of Lending
By assessing a larger amount of criteria and manually reviewing mortgage applications, specialist lenders can provide an alternative path to borrowers that might not fit the criteria of standard mortgage lenders.
What exactly is a specialist lender?
Specialist lenders cater to individuals with unique financial situations. This could include, but is not limited to:
Self-employed borrowers: If you have irregular income or haven't been self-employed for the minimum period usually required by high-street lenders, specialist lenders may be more flexible in assessing your application.
Borrowers with adverse credit: Past credit issues can derail your mortgage application with a high-street lender. Specialist lenders take a more holistic view, considering your current financial strength and the reasons behind any past issues.
Applicants with complex property types: Whether you're looking to buy a non-standard property like a thatched cottage, a property above a shop, a listed building, or facing unusual circumstances like buying with multiple owners, specialist lenders can offer tailored solutions.
What are the benefits of using a specialist lender?
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They consider your individual circumstances, offering bespoke products and terms that align with your current needs
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Many high-street lenders use automated systems, which speed up the process and can be useful. However, if you have unique needs, they can be a hurdle. Specialist lenders tend to assess applications manually, allowing them to understand your unique story and make informed decisions
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They offer a broader range of products, including niche mortgages not available from traditional lenders
Things to consider when going to a specialist lender
- Due to the perceived higher risk, interest rates on specialist mortgages might be slightly higher than those offered by high-street lenders
- Processing and arrangement fees can be higher compared to mainstream lenders
- Some specialist products may have complex terms and conditions, so careful research and professional guidance are crucial
How can a mortgage adviser help?
Navigating the specialist lending market can be challenging. A qualified mortgage broker can:
Assess your needs and eligibility
They'll help you understand if a specialist lender is the right option for you
Match you with the most suitable lender
They have access to a wide range of specialist lenders and can find the one with products and terms that best fit your situation
Guide you through the application process
They'll assist you with gathering documentation, explaining complex terms, and negotiating terms with the lender
While specialist lenders may charge slightly higher fees and interest rates, their flexibility and willingness to cater to unique circumstances can open doors to homeownership that might otherwise be closed.
If you're facing challenges securing a mortgage due to your individual situation, explore the world of specialist lending with the help of a trusted mortgage adviser. You might be surprised at the possibilities!
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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