In a broker survey conducted by BrightStar, seven in 10 intermediaries said they believed some advisers were turning away clients with specialist lending requirements, often with little or no information, even when products were available.
When asked, brokers said the main reasons clients were being turned away without the proper information was due to a concern over service levels for their clients, the complexity of specialist lending deals and the perceived time-consuming nature of specialist loans.
The biggest concern when partnering up with a specialist distributor was a concern over service levels being given to their clients.
Brokers also said they would prefer to deal directly with lenders.
When asked what they would do if they lacked the skills or information to recommend a specialist product, the most popular choice was to partner with a specialist operating in that field of finance.
In his blog for Specialist Lending Solutions, Paul Flavin, managing director for Zing Mortgages, talks about how he convinced his advisers to see second charge mortgages as a viable alternative to remortgages. He said the quality of the specialist partner chosen by the broker was vital.
For mortgage brokers wishing to keep advice for specialist lending products in house, it is now easier to compare first and second charge mortgages and source products.
Mortgage Brain is the latest sourcing software provider to offer brokers the option to compare firsts and seconds within the same system and offers the option of applying to the lender directly for finance, rather than using a master broker.
BrightStar has its own sourcing system, Easy Source, while software firm Twenty7Tec has partnered with a number of networks to allow advisers to use Loan Source. The systems also compare short-term lending products.
Read Flavin’s blog, How I switched my mortgage advisers on to second charges.