After the tumultuous past 12 months, there are reasons for hope and stability going into 2021, Rob Barnard (pictured), director of intermediaries at Masthaven said in his online presentation.
He said there are now “massive opportunities” and huge amounts of business to place.
Barnard said these opportunities lay in four broad areas: the self-employed, borrowers who have had a payment holiday, people who have been furloughed and people who have a less than perfect credit file.
Specialist lenders can step in and help borrowers in these segments where mainstream and high street lenders will not, Barnard said.
He predicted a rise in County Court Judgements (CCJs) off the back of the pandemic and added: “I think we saw at the end of last year that CCJs were already rising again. Sadly, I think they will increase, but again specialist lenders are well placed to help you with these circumstances.”
Future-proof your business
As lenders and advisers chase business coming out of the pandemic, online and digital processes adopted in the pandemic will remain in play, Barnard said.
He added: “It’s crucial we all adapt and meet changing borrower needs. It’s up to us to look at our models and look at our trading styles to make sure that we give those solutions.”
The use of online and digital solutions was also highlighted by Roger Morris, group distribution director at OneSavings Bank in his presentation ‘How to future-proof your business’.
Brokers’ websites should explain all the different areas where they are able to help borrowers who may be struggling to fit into mainstream criteria, such as the self-employed or those with credit blips, Morris advised.
He agreed there were lots of opportunities within the specialist market in the current climate, particularly as high street lenders decline more borrowers who fall outside of the mainstream.
But advisers need to ensure they are able to explain how they can provide solutions.
For example, it is important brokers understand – but don’t advise – on the different tax implications related to buy-to-let structures, and are on top of market developments, Morris said.
He added that brokers can go on numerous training workshops to make sure their knowledge is up to date and maximise the opportunities of specialist lending.