Packagers should not shun difficult cases: Payne


Many packagers deal across all specialist sectors and have a flat-fee approach, so you should not turn away difficult cases

If you have a client with complex borrowing needs, you may already have an idea of the best sort of product for them, even if you are not entirely sure. But if you focus only on that particular product type, you exclude the possibility that a different one may be more competitive.

Specialist lending is not black and white precisely because many clients’ circumstances do not fit into neat boxes. For example, brokers sometimes call us about a deal they expect to be a bridge but, after analysis of their client’s circumstances, we find them better suited to a second charge mortgage.

When that is the case, no problem. No client has a burning desire for a particular type of non-standard mortgage; they simply want a funding solution on the best terms.

Many packagers deal across all specialist sectors and have a flat-fee approach whatever the type of deal. It is gradually getting easier for brokers and packagers to look at options across various sectors because technology is starting to catch up, particularly sourcing systems. There is software that can source different product types side by side, so you can look at the remortgage versus the second charge deal, for example.

By definition, specialist lending does not fit the mainstream, is more difficult to place and requires a different approach. Those distributors with expertise across all specialist sectors are well placed to help your clients, particularly if they use technology that searches across the spectrum.

A mortgage is a mortgage, whatever its label: same fee, same technology and same approach.

We should deal with the clients who come to us, whether they need an adverse self-employed deal, a second charge loan for home improvements or a bridging deal to secure a purchase.

Nigel Payne is managing director of TFC Homeloans