Big lenders urged to tackle niche markets

The Mortgage Hut

Mortgage broker The Mortgage Hut is urging more mainstream lenders to move into niche markets.

The firm says that lenders’ appetite for risk has advanced over the past five years, and notes that challenger banks handle niche markets well.

The broker says the UK workforce is changing to include more self-employed, and that opportunities exist for bigger lenders.

The Mortgage Hut managing director Chris Schutrups says: “All the major lenders are looking to increase their distribution in a more competitive market. 

“While the future looks uncertain with Brexit on the horizon and house prices softening, the large banks should be embracing niche markets, as they are growing in line with economic changes.”

He adds: “The major lenders need to adapt to the changing workforce and respond to new trends in employment if they are to maintain and grow their market share.”

Recommended

Cover-feature-equity-release

Cover feature: Will equity release stay niche or boom?

Sales are increasing but equity release remains a small fragment of the overall mortgage market. Will the growth continue or is it destined to remain a niche product forever? Equity release is the Marmite of the financial services world. Brokers and customers either love it or loathe it. Devotees will point to growing interest in […]

Look to niche sectors for growth opportunities, says Izard

Even when times are tough, opportunities can usually be found for intermediaries who want to grow their businesses I have good news and bad news for you. The good news is that 2017 is likely to be the year in which gross mortgage advances almost double from their 2010 low point of £134bn to £261bn, […]

Pad Bamford

Comment: Are niches about to get popular?

Should we stop focusing on a flaky delivery of ‘innovation’ and look at broadening our offering in existing sectors? There is a constant pressure in this market to come up with the ‘next big thing’. There seems to be an obsession with innovation despite the fact that mortgage products tend to stay pretty constant. True […]

UK policy: Kate Moss and short-termism

“Nothing tastes as good as skinny feels,” said supermodel Kate Moss, who is not often credited for her insights into policy making. Perhaps she should be. In politics, as in matters of diet, the course of action that is the best over the long term is often not the most desirable course of action in the short term. Add the instant gratification of the democratic electoral cycle and, instead of good policy making, you sometimes get the equivalent to a midnight binge in front of the fridge.

Read more


Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

Newsletter

News and expert analysis straight to your inbox

Sign up