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.”