More brokers seek flexible financing solutions for complex cases
Major banks are losing ground to specialist lenders as mortgage brokers increasingly seek alternative financing solutions for complex cases, new research from Butterfield Mortgages has found.
More than six in 10 UK mortgage brokers rely on specialist lenders to secure financing for these cases, particularly for high-net-worth individuals (HNWIs), non-UK residents, and those purchasing unique properties, according to the prime London-based mortgage lender’s independent survey of 300 brokers.
The study found that 61% turn to specialist lenders when mainstream options are unavailable. It also revealed that securing mortgage products for non-UK residents (56%) and financing properties that are difficult to value (51%) are among the most common challenges brokers encounter. In addition, 51% of brokers reported difficulties in finding suitable products for HNWIs and ultra-HNWIs, with 17% describing it as “extremely challenging.”
Alpa Bhakta (pictured), chief executive of Butterfield Mortgages Limited, said brokers face significant hurdles in obtaining mortgages for complex cases, largely due to the strict lending criteria of mainstream lenders.
“Specialist lenders are ready and appropriately placed to fill this gap – something which is reflected in the increasing number of brokers using alternative options to high-street banks,” Bhakta said.
“With activity levels expected to rise in the coming months, it’s important that brokers continue to seek out lenders who can provide tailored solutions to ensure all of their clients can access the mortgage finance they need to invest in UK real estate with confidence.”
Butterfield Mortgages also highlighted broker expectations of a base rate hike by early next year, which could create further opportunities for specialist lenders.
“It is surprising that 69% of brokers expect the base rate to be higher at the start of 2026,” Bhakta said. “This underscores the need for lenders to stay ahead of the curve – our research points to a clear demand for expert guidance in navigating the increasingly complex regulatory and tax landscape.
“Specialist lenders must utilise their network of regulatory and tax experts to help brokers support property investors to make confident decisions about their portfolios in the coming months.”
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