The specialists’ time
to shine
With many potential borrowers struggling to meet mainstream lenders’ criteria, Mortgage Introducer hears from two industry experts who believe that specialist finance is coming into its own in the current economy
More
BY ANY measure, these are testing times for the financial sector.
Eye-wateringly high inflation, a succession of interest rate rises, and the ever-present impact of the cost-of-living crisis continue to make life challenging for lenders, mortgage brokers, and consumers alike.
On a more positive note, the current economic circumstances faced by the UK do present an opportunity for specialist finance to shine, showing how it can step in to help borrowers when mainstream lenders cannot.
“The specialist market has never been more important in providing solutions for customers who might find themselves underserved by
“We have grown significantly, becoming established as one of the leading alternative banks,” says
Goldie. “We were the first of the new breed of challenger banks post-global financial crisis,
and have helped create a fairer mortgage market by saying yes to more customers.”
Aldermore focuses on specialist lending across four areas: asset finance, invoice finance, SME commercial mortgages, and residential mortgages. It serves customers and intermediary partners online, by phone, and face to face via its UK network of offices. It supports those who fall outside of mainstream lending criteria, such as the self-employed.
“We understand that not everyone’s finances are straightforward, so, for example, we can look at the share of retained profits in clients’ businesses when assessing income,” explains Goldie. “We will also consider those with adverse credit issues, as well as buy-to-let landlords.
“For first-time buyers struggling to get onto the housing ladder, we can offer maximum terms of up to 40 years and ignore communications defaults, and all defaults registered over three years are accepted. We consider every application on its own merit, and we’re not put off by quirks and complexities."
“Many intermediaries may have only dealt with a handful of cases that fit a more specialist lender profile over the course of a year, and therefore familiarity with what is possible and available may understandably be quite low.”
She adds, “As more customers start to need a more bespoke approach, knowledge of specialist offerings will need to increase. One of our focus areas for Aldermore this year is to bring to life our proposition and showcase real-life stories of where we are able to help customers, thus helping brokers support their customers in the best way possible.
“The role brokers can play in helping their customers navigate has never been so important. This provides a brilliant opportunity to really get close to their customers and provide a brilliant service that will no doubt be rewarded by extra referrals.”
How does Goldie envisage the specialist finance market evolving?
“This sector remains resilient, and we will see the specialist market continue to grow as customer requirements continue to evolve,” she says positively. “Lenders will look to support through education, innovation, and expert service.”
“I love being able to educate those who think all the doors are closed to them, where I can actually say, ‘Well, not necessarily,’” she says. “The market is tough right now, but it is still a market full of opportunities. Whenever there’s a challenge for borrowers, the true value of brokers shines through, and I do think that the second-charge mortgage market will grow because of current market conditions. We are seeing that in terms of the numbers of new brokers reaching out to us.
“If brokers are finding it harder to place a remortgage, then they are going to have to look more broadly to other areas of the market, whether those are unsecured loans, second-charge term mortgages, or consumer buy-to-let, buy-to-let, or bridging.
“Mortgage advisors will have to work harder than ever to find lending solutions for their customers. They're going to have to understand more broadly the other options out there, which could provide the solution that they're looking for in a slightly different way.”
Ward says that, despite an old legacy misconception about second mortgages – that they were the product of last resort or much more expensive than a first-charge mortgage – that is no longer the case. She encourages brokers not to be fearful of the unknown.
“The process for a second-charge mortgage follows the same as a first-charge mortgage, with some extra underwriting requirements that might be unknown territory for them,” she explains. “I would say to brokers, reach out to the specialist master brokers and packagers who have relationships with lenders in the specialist sector, use criteria tools such as Knowledge Bank that are readily available to you. And, in addition, for lenders, to continue to evolve, and broaden their reach in supporting the underserved, so that in turn brokers can support more of their clients’ banks with alternative lending solutions."
Goldie continued, “We recently launched our broker pledge, so we will give at least one full working day’s notice of any product withdrawal, and 10 days to convert a DIP into a full mortgage application.”
She points out that buy-to-let landlords are facing a number of challenges, including the uncertainty over EPC requirements.
As challenging as the economy might be, she agrees it could be a productive time for specialist finance.
“We will see more customers needing to look outside of the mainstream market,” Goldie acknowledges. “They may no longer fit neatly into mainstream lenders’ appetites. Specialist lenders are experts
Aldermore offers a range of buy-to-let mortgage options supporting landlords looking to expand their portfolios and those who are just starting out. Its team understands the buy-to-let market and is on hand to support brokers and clients all the way. It also caters for first-time buyers, those with a small deposit, or people who’ve experienced credit blips in the past. It is also there for the self-employed who need a lender who understands their earnings. Simply put, Aldermore describes itself as “the lender who likes a challenge and will always look for ways to say yes.”
Find out more
Central Trust is an independently owned lender, offering first- and second-charge mortgages with an LTV of up to 80 per cent. It is part of the Norfolk Capital Group, which has been providing secured loans for over 30 years. Its loans range from £10,000 to £250,000, with terms from three to 25 years. Central Trust provides access to a broker portal, as well as a dedicated mortgage desk to support referrals. It is committed to providing the highest standards of service to all its introducers and customers, always aiming to answer questions and deal with any challenges quickly and fairly.
Find out more
Maeve Ward, director of commercial operations for Central Trust and Mercantile Trust, succinctly sums up what the independently owned first- and second-charge mortgage lender is known for. “We help the underserved,” Ward says. “For example, we lend in Northern Ireland, where there are very few lenders, alongside helping those customers who are looking to repair and rebuild after falling victim to circumstance.
“Perhaps they’ve had a death in the family, they’ve maybe lost their job, they could possibly have been sick long-term. Their intention has always been to pay, but the circumstances have meant that they haven't been able to do so.”
She continues, “You can see from a credit search a previously good payment history, and you can tie in the timing of the circumstances that led to the impairment. You can also see how the circumstances have improved, giving comfort on the customer’s commitment to pay.”
Central Trust provides first- and second-charge loans from £10,000 to £250,000, with a maximum loan-to-value of 80 per cent and terms from three to 25 years.
“We live in an environment where a combination of the pandemic and rising cost of living has led borrowers, through no fault of their own, to start feeling the pinch – for some, unfortunately, the beginning of the odd missed payment. I do think we'll start to see more customers looking at second charges to restructure their finances, and this is where the specialist market, with a more holistic view to underwriting, is needed more than ever.”
Central Trust is an independently owned lender, offering first- and second-charge mortgages with an LTV of up to 80 per cent. It is part of the Norfolk Capital Group, which has been providing secured loans for over 30 years. Its loans range from £10,000 to £250,000, with terms from three to 25 years. Central Trust provides access to a broker portal, as well as a dedicated mortgage desk to support referrals. It is committed to providing the highest standards of service to all its introducers and customers, always aiming to answer questions and deal with any challenges quickly and fairly.
Find out more
“The market is tough right now, but it is still a market full of opportunities. Whenever there’s a challenge for borrowers, the true value of brokers shines through”
Maeve Ward,
Central Trust Limited
In Partnership with
“Overall market dynamics remain tricky. With swap rates continuing to be unpredictable and inflation being stickier than predicted, the overall impact on customers through the cost of living is having an impact.
“Lenders are navigating a turbulent economic environment, and intermediaries are navigating their clients’ way through rate increases and tougher affordability, and helping them understand the changes.”
She continues, “This is where we at Aldermore can help. Specialist lending such as ours uses manual underwriting, allowing for highly flexible solutions for complex mortgages, and considers many forms of complex income.”
Providing support for small and medium enterprises (SMEs), savers, investors, and home buyers, Aldermore was founded in 2009.
Ward’s career has always been in the specialist market, and she is passionate
about it.
“I love being able to educate those who think all the doors are closed to them, where I can actually say, ‘Well, not necessarily,’” she says. “The market is tough right now, but it is still a market full of opportunities. Whenever there’s a challenge for borrowers, the true value of brokers shines through, and I do think that the second-charge mortgage market will grow because of current market conditions. We are seeing that in terms of the numbers of new brokers reaching out to us.
“If brokers are finding it harder to place a remortgage, then they are going to have to look more broadly to other areas of the market, whether those are unsecured loans, second-charge term mortgages, or consumer buy-to-let, buy-to-let, or bridging.
“The specialist market has never been more important in providing solutions for customers who might find themselves underserved by mainstream lenders”
Nicola Goldie,
Aldermore Bank
mainstream lenders,” confirms Nicola Goldie, head of strategic partnerships and growth at Aldermore Bank.
Industry experts
Maeve Ward
Central Trust Limited
Nicola Goldie
Aldermore Bank
Industry experts
In financial services for over 15 years, Nicola Goldie is a multiple award-winning leader and mentor. She recently joined Aldermore as head of strategic partnerships and growth, and is responsible for leading the team to support its purpose of “backing more people to go for it in life and business.” Goldie is a thought leader and champion of the industry who’s able to influence the strategic agenda and was awarded Elite Women status in 2022 and 2023. She is also a co-opted director of IMLA, supporting the trade body and its members.
Aldermore Bank
Nicola Goldie
With over 20 years’ experience in specialist lending, Maeve Ward has been at Central Trust and Mercantile Trust, Norfolk Capital Group’s lending brands, since January 2021. Her previous roles include managing director of bridging lender Focused Bridging, and managing director, residential mortgages at Shawbrook Bank. Ward passionately believes in helping customers who have been underserved by the high street, and is an ambassador not only for the lending brands she represents, but also for the specialist market as a whole. She recently won Business Leader: Second Charge Lender at the 2023 British Specialist Lending Awards.
Central Trust Limited
Maeve Ward
Maeve Ward
Central Trust Limited
Nicola Goldie
Aldermore Bank
Industry experts
In financial services for over 15 years, Nicola Goldie is a multiple award-winning leader and mentor. She recently joined Aldermore as head of strategic partnerships and growth, and is responsible for leading the team to support its purpose of “backing more people to go for it in life and business.” Goldie is a thought leader and champion of the industry who’s able to influence the strategic agenda and was awarded Elite Women status in 2022 and 2023. She is also a co-opted director of IMLA, supporting the trade body and its members.
Aldermore Bank
Nicola Goldie
With over 20 years’ experience in specialist lending, Maeve Ward has been at Central Trust and Mercantile Trust, Norfolk Capital Group’s lending brands, since January 2021. Her previous roles include managing director of bridging lender Focused Bridging, and managing director, residential mortgages at Shawbrook Bank. Ward passionately believes in helping customers who have been underserved by the high street, and is an ambassador not only for the lending brands she represents, but also for the specialist market as a whole. She recently won Business Leader: Second Charge Lender at the 2023 British Specialist Lending Awards.
Central Trust Limited
Maeve Ward
Share
Share
Share
Nicola Goldie
Aldermore Bank
Maeve Ward
Central Trust Limited
Stewart Saunders
Heritage Bank
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Mark HarChristopher Leeon
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
With over 20 years’ experience in specialist lending, Maeve Ward has been at Central Trust and Mercantile Trust, Norfolk Capital Group’s lending brands, since January 2021. Her previous roles include managing director of bridging lender Focused Bridging, and managing director, residential mortgages at Shawbrook Bank. Ward passionately believes in helping customers who have been underserved by the high street, and is an ambassador not only for the lending brands she represents, but also for the specialist market as a whole. She recently won Business Leader: Second Charge Lender at the 2023 British Specialist Lending Awards.
Central Trust Limited
Maeve Ward
In financial services for over 15 years, Nicola Goldie is a multiple award-winning leader and mentor. She recently joined Aldermore as head of strategic partnerships and growth, and is responsible for leading the team to support its purpose of “backing more people to go for it in life and business.” Goldie is a thought leader and champion of the industry who’s able to influence the strategic agenda and was awarded Elite Women status in 2022 and 2023. She is also a co-opted director of IMLA, supporting the trade body and its members.
Aldermore Bank
Nicola Goldie
Published 21 Aug 2023
UK mortgages in numbers
£1,675.4 billion
outstanding value of all residential mortgage loans at the end of 2023 Q1, 2.7% higher than a year earlier
£58.8 billion
value of gross mortgage advances in 2023 Q1, which was £22.9 billion lower than the previous quarter, and 23.6% lower than in 2022 Q1
16.1%
drop in value of new mortgage commitments (lending agreed to be advanced in the coming months) in 2023 Q1 compared to the previous quarter; compared to less than a year earlier, the drop was 40.7%, at £48.9 billion. This was also the lowest observed since 2020 Q2
Source: Financial Conduct Authority
in taking a more holistic view, and are able to underwrite accordingly, which in turn will support customers in achieving their aspirations.
Testing times
5.6%
decrease on the quarter in the proportion of lending to borrowers with a high loan-to-income (LTI) ratio, to 43.7% in 2023 Q1, the lowest seen since 2020 Q2
9.5%
increase in the value of outstanding balances with arrears over the quarter. This was an increase of 12.5% over the year, to £14.9 billion in 2023 Q1, accounting for 0.89% of outstanding mortgage balances
Source: Financial Conduct Authority
“Mortgage advisors will have to work harder than ever to find lending solutions for their customers. They're going to have to understand more broadly the other options out there, which could provide the solution that they're looking for in a slightly different way.”
Ward says that, despite an old legacy misconception about second mortgages – that they were the product of last resort or much more expensive than a first-charge mortgage – that is no longer the case. She encourages brokers not to be fearful of the unknown.
“The process for a second-charge mortgage follows the same as a first-charge mortgage, with some extra underwriting requirements that might be unknown territory for them,” she explains. “I would say to brokers, reach out to the specialist master brokers and packagers who have relationships with lenders in the specialist sector, use criteria tools such as Knowledge Bank that are readily available to you. And, in addition, for lenders, to continue to evolve, and broaden their reach in supporting the underserved, so that in turn brokers can support more of their clients’ banks with alternative lending solutions."
“Mortgage advisors will have to work harder than ever to find lending solutions for their customers. They're going to have to understand more broadly the other options out there, which could provide the solution that they're looking for in a slightly different way.”
Ward says that, despite an old legacy misconception about second mortgages – that they were the product of last resort or much more expensive than a first-charge mortgage – that is no longer the case. She encourages brokers not to be fearful of the unknown.
“The process for a second-charge mortgage follows the same as a first-charge mortgage, with some extra underwriting requirements that might be unknown territory for them,” she explains. “I would say to brokers, reach out to the specialist master brokers and packagers who have relationships with lenders in the specialist sector, use criteria tools such as Knowledge Bank that are readily available to you. And, in addition, for lenders, to continue to evolve, and broaden their reach in supporting the underserved, so that in turn brokers can support more of their clients’ banks with alternative lending solutions.
E-mag
Jobs
Events
White papers
Bridging
Buy-to-let
Commercial
Equity release
Residential
Second charge
Interest rates
Growth
Guides
Market trends
Opinion
Technology
US
CA
AU
NZ
UK
Resources
TV
News
MORTGAGE TYPES
Best in Mortgage
Mortgage Industry
Contact us
Sitemap
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Terms and Conditions
RSS
Copyright © 1996-2023 KM Business Information UK Ltd.
Resources
TV
MORTGAGE TYPES
BEST IN MORTGAGE
MORTGAGE INDUSTRY
News
US
CA
AU
NZ
UK
Copyright © 1996-2023 KM Business Information UK Ltd.
RSS
Sitemap
Contact us
Terms & Conditions
Conditions of Use
Privacy Policy
Authors
About us
Newsletter
Maeve Ward, director of commercial operations for Central Trust and Mercantile Trust, succinctly sums up what the independently owned first- and second-charge mortgage lender is known for. “We help the underserved,” Ward says. “For example, we lend in Northern Ireland, where there are very few lenders, alongside helping those customers who are looking to repair and rebuild after falling victim to circumstance.
“Perhaps they’ve had a death in the family, they’ve maybe lost their job, they could possibly have been sick long-term. Their intention has always been to pay, but the circumstances have meant that they haven't been able to do so.”
She continues, “You can see from a credit search a previously good payment history, and you can tie in the timing of the circumstances that led to the impairment. You can also see how the circumstances have improved, giving comfort on the customer’s commitment to pay.”
Central Trust provides first- and second-charge loans from £10,000 to £250,000, with a maximum loan-to-value of 80 per cent and terms from three to 25 years.
“We live in an environment where a combination of the pandemic and rising cost of living has led borrowers, through no fault of their own, to start feeling the pinch – for some, unfortunately, the beginning of the odd missed payment. I do think we'll start to see more customers looking at second charges to restructure their finances, and this is where the specialist market, with a more holistic view to underwriting, is needed more than ever.”
Ward says that, despite an old legacy misconception about second mortgages – that they were the product of last resort or much more expensive than a first-charge mortgage – that is no longer the case. She encourages brokers not to be fearful of the unknown.
“The process for a second-charge mortgage follows the same as a first-charge mortgage, with some extra underwriting requirements that might be unknown territory for them,” she explains. “I would say to brokers, reach out to the specialist master brokers and packagers who have relationships with lenders in the specialist sector, use criteria tools such as Knowledge Bank that are readily available to you. And, in addition, for lenders, to continue to evolve, and broaden their reach in supporting the underserved, so that in turn brokers can support more of their clients’ banks with alternative lending solutions."
Ward says that, despite an old legacy misconception about second mortgages – that they were the product of last resort or much more expensive than a first-charge mortgage – that is no longer the case. She encourages brokers not to be fearful of the unknown.
“The process for a second-charge mortgage follows the same as a first-charge mortgage, with some extra underwriting requirements that might be unknown territory for them,” she explains. “I would say to brokers, reach out to the specialist master brokers and packagers who have relationships with lenders in the specialist sector, use criteria tools such as Knowledge Bank that are readily available to you. And, in addition, for lenders, to continue to evolve, and broaden their reach in supporting the underserved, so that in turn brokers can support more of their clients’ banks with alternative lending solutions."
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
MORTGAGE TYPES
TV
Resources
US
CA
AU
NZ
UK
Copyright © 1996-2023 KM Business Information UK Ltd.
RSS
Sitemap
Terms & Conditions
Conditions of Use
Contact us
Privacy Policy
Authors
About us
Newsletter