They, however, drive stronger client retention
Specialist mortgage cases are taking up significantly more time for UK brokers compared to mainstream deals, according to a new white paper by United Trust Bank (UTB) Mortgages.
The research revealed that 91% of brokers are devoting extra time to specialist cases, which often require more care and attention. However, the effort appears to pay off, with 96% of brokers reporting that specialist clients are more likely to return for future services.
Nearly half, or 49%, of brokers surveyed said they spend 10% to 30% more time handling specialist cases, while 31% said these cases require over 30% more time compared to mainstream mortgages.
Specialist mortgages now form a significant portion of brokers’ workloads. Some 38% of respondents said over half of the cases they completed in the last year were specialist, with 21% reporting that all their cases fell into this category. Additionally, 87% noted that specialist clients often approach them after being turned down by another broker or lender.
The UTB report also indicated that although 82% of brokers currently prefer to submit cases directly to lenders, 43% expressed openness to using referral partners in the future. Industry leaders have encouraged brokers to refer specialist cases if they lack the time or expertise to handle them.
“If you can’t do specialist mortgage cases, find a partner,” said Kevin Roberts, director of Legal & General Mortgage Club.
Liz Syms, chief executive of Connect Mortgages, echoed this advice, saying that if the adviser’s volume of specialist lending is low or they have no appetite to write this type of business, they should find a partner.
“If they are keen on the market, they should immerse themselves,” Syms stated.
“Don’t try and be an expert in everything,” added William Lloyd-Hayward of Brightstar Group. “It is easier to build relationships with a partner than try and know all the criteria that exists.”
Buster Tolfree (pictured), director of mortgages at United Trust Bank, highlighted the growing opportunities in the specialist mortgage sector, which is increasingly becoming a core focus for many brokers.
“The specialist mortgage market is continuing to grow and undoubtedly offers excellent opportunities for brokers,” Tolfree said. “Many are now devoting their whole business to customers who are not served by the mainstream mortgage market.
“For those brokers who feel they lack the market knowledge or time to take on specialist cases, packagers and referral partners are an excellent way of keeping new business opportunities. Building trusted partnerships is key to the health and continued growth and success of the mortgage industry as a whole and it’s great to see more brokers embracing collaboration as a means of growing their business and looking after more customers who may struggle to find the mortgage they need on the high street.”
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