The cost of living crisis and interest rate rises combined to make affordability a challenge as specialist lenders became a more important part of a brokers’ arsenal and many borrowers now fitting specialist lender criteria. And Specialist Lending Solutions was here to cover the market every step of the way.
The buy-to-let sector had a volatile year, with mortgage and stress rates going up due to interest rate rises, which stretched affordability for many landlords.
However, portfolio landlords have been increasingly eyeing the specialist lending sector with limited company, houses in multiple occupation (HMO), multi-lets and multi-unit freehold blocks (MUFB) gaining in popularity.
Given affordability challenges, more borrowers turned towards second charge and bridging to meet their borrowing needs.
More lenders and brokers have started to enter the sector, with Barclays acquisition of Kensington Mortgages going through in March and The Mortgage Mum also brought out a specialist finance arm later in the year.
The funding markets were challenging this year, with specialist lenders having to increasingly diversify their funding lines, however the securitisation markets have started to open up again with around two securitisations with Kensington Mortgages and Lendco going through in the past few weeks.
Specialist lending market cautiously optimistic
Specialist lenders and brokers have said that they are cautiously optimistic for the coming year as more stable interest rates bring confidence back to the market and over a million people coming off fixed rates next year possibly needing specialist lender support. Bridging and second charges are also expected to grow more in popularity.
This year has been a rollercoaster, which brokers and lenders have dealt with admirably, but here’s to some calm and certainty in the coming year.
After a stressful year, from all here at Specialist Lending Solutions, we wish you all a very Merry Christmas and a Happy New Year.
Take a look at our most read for highlights of the year, and reflections from a selection of brokers and lenders on the past year.
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