The Vantage Point report surveyed 21 specialist lenders in the short-term, complex buy-to-let, development and commercial mortgage sectors and found 71% would prefer to deal with intermediaries who work with complex deals every day.
Over half of those lenders surveyed said specialist distributors and master brokers provided the best quality deals with the highest rate of conversion.
Lucy Hodge (pictured), managing director of Vantage Finance, said: “We deal with a range of introducers, networks, brokers and lenders and everyone has something to offer the specialist market.
“What was once a pretty straightforward process of getting a loan has become multi-faceted and complicated for many people in the UK.”
Hodge said the mortgage market had increasingly split into various niches that each have their own specialist providers and brokers. Buy-to-let, for example, had broken into sub-markets: consumer buy to let, private residential buy to let, limited company buy to let, multi-unit let, semi-commercial, commercial buy to let.
She added: “It’s increasingly difficult for anyone to keep up with all of the nuances of each sub-division of the market – that’s where specialists can really add value for brokers who have to offer clients as broad a service as possible.”
Jonathan Sealey, chief executive at bridging lending Hope Capital, said: “We receive most of our bridging business directly from brokers. However, master brokers offer a valuable service for intermediaries who only come across the odd specialist lending case so do not know which lenders operate in that particular area. Most brokers who deal with bridging, development or buy to let all the time, for example, will probably know which lenders operate well in those markets and which provide the best service and the best rates, but someone who may have a specialist case once every month or two will greatly benefit from the expertise that a master broker brings.
“For networks that don’t deal in all of the specialist areas as a matter of course, letting their broker members choose lenders or master brokers outside of the panel structure seems to be a shrewd move so that the broker can always find the right solution for their client whatever area it is in.”
The Vantage Point report also revealed development finance is outperforming other specialist lending with 60% of lenders believing development finance will see most significant growth rate over the next six months.