There are reasons to be optimistic - and the market is resilient, says lender
Specialist lenders will do more business in the next 12 months than they have in the last year, as the sector expands its market share, an industry expert predicts.
Jamie Pritchard (pictured) is managing director of sales at Glenhawk, which provides short-term property finance. It specialises in unregulated and regulated lending, with a key business aim of being both swift and competitive.
Surveying the current market, Pritchard declared: “I am optimistic - I feel the industry has demonstrated its resilience in the face of numerous challenges, and our ability to pivot quickly is a cause for this optimism. Rates have levelled and the signs are that the base rate will come down this year as inflation further improves.
“Specialist lending will continue to grow its market share through increased exposure, correct and targeted education and lenders who are able to adapt and pivot to the ever-changing market. The investor is more experienced and needs brokers and lenders who understand their needs. This, combined with more settled and competitive rates, will mean that there will be more business written in twelve months versus the last twelve.”
He continued: “I would like to see a housing minister in place for more than five minutes, and some respect that housing is not a quick fix. This could mean unlocking land that is held for too long for developers, broadening the scope of permitted development to aide SME developers or an end to BTL and landlords being used as a political football.”
Pritchard pointed to the ‘great strides’ that Glenhawk has made in its six years as a business, in terms of volume, market position and the amount of loans written and under management.
"With the strong funding we have backing us, thanks to our internal treasury team and the excellent systems and controls we have, as well as market leading service, I am confident we will have even more market share as the year continues,” he told Mortgage Introducer.
“Although I am constantly monitoring the market conditions I prefer to stay in my lane, focusing on how we can improve processes, relationships and products that are as suitable tomorrow as they are today.”
Why lenders need to collaborate with brokers
Collaboration with brokers is key to the business, Pritchard believes.
“It’s everything!” he said. “There is no resting on our laurels. We need to fight and work on each deal individually, as the broker has entrusted us to write it for the customer and them. This is a very competitive market with plenty of other good lenders, so my team -and all the management team here - work hard to listen to our brokers’ needs and continuously manage the relationship, as this is and always will be about collaboration.”
It’s been a challenging couple of years but, as the market stabilises, Pritchard believes diversification is important for intermediaries to achieve more.
“If, as a broker, your business model is solely term residential, or BTL, then you have probably suffered over the last year,” he reasoned. “Landlords and investors are looking to diversify their business models with yield and rental creation. This could be through HMOs (houses in multiple occupation) or multi units, and this is where bridging can help.
“Education is key here so these brokers should be leaning on excellent sales teams like ours who can add value. The best BDMs manage and develop the businesses that we interact with and this is why brokers should set up sessions with specialist BDMs who can assist with this diversification.”
Read more: Glenhawk enhances product range
How a new role can be empowering in business
Pritchard has spent more than 20 years in financial services and was recently promoted to his latest role at Glenhawk; a responsibility that clearly motivates him.
“I am feeling empowered in my new role to drive the team forward and achieve what are very ambitious goals over the next few years, both in bridging and new product areas as we continue to diversify in the specialist lending space,” he said.
“I believe the people we have here across every function is our differentiator. Guy Harrington (founder) and Nick Hilton (managing director) have assembled what I believe is a best-in-class team, continually striving to be better each day and here to deliver the best outcome for our customers.”
The importance of communication is a business lesson that resonates with Pritchard.
“Pick up the phone!” he urged. “Discuss the case, talk through the problem, or just build the relationship. A lot is achieved through good, active conversations and a lot is learnt through active listening.”
He joked: “I have a 100% success rate of never dying through a conversation!”
