View more on these topics

Look to niche areas for ongoing growth

The avalanche of lenders changing their interest-only policies over the past few weeks is likely to cause a ripple effect among small lenders that will find themselves swamped with applications.

Of course this is not the only change affecting the intermediary market – there is also the lack of lending appetite being displayed by the big six.

The constant system crashes, withdrawal of entire product ranges and tightening of policy are all signs of the challenges lenders are grappling with at the moment.

If a big lender sneezes, small lenders catch a cold. The service of many second tier lenders is under pressure and we will see an increase in product withdrawals with little or no notice.

While this backdrop doesn’t look favourable, parts of the market are enjoying growth.

Buy-to-let looks as though it will expand again this year and with rental demand likely to continue to increase, it should be a good place for brokers to focus.

Near-prime is growing and with the continued squeeze on prime criteria, more and more borrowers will be unable to get a mortgage on the high street.

Bridging and short-term lending are also in expansion mode, fuelled by investors looking to boost their property portfolios to tap the buoyant rental demand.

It is going to be many years before the government’s building plans have any appreciable effect so for now the focus is likely to move towards products that support the private rented sector.


The Mortgage Mole

Best Foote forward He helps mortgage lenders fight fraudsters by day, but by night he trains for marathons.

60 seconds with… Richard Lambert, Chief Executive Officer, National Landlords Association

How do you view the Budget changes to Stamp Duty?The government is justified in closing the Stamp Duty loophole to prevent tax avoidance. But this may have an unintended impact on legitimate companies that buy properties to let as their primary business activity. The move could influence investment decisions by landlords who operate as small […]

Frexit & contagion risk in Europe

Many commentators have suggested the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune Head of European Equities Rob Burnett discusses the likelihood of this happening. Click here to read more Important informationInvestment risks Neptune funds may have a high historic volatility rating and past performance is […]


News and expert analysis straight to your inbox

Sign up