Have you been rejected by a high-street lender because you’re self-employed, or perhaps have a blip on your credit record? Rob Barnard of Masthaven Bank explains how a specialist adviser and lender could help you find a mortgage
Specialist lending may sound technical but, simply put, it’s the area of finance that provides lending for those borrowers who often do not meet the requirements of mainstream lenders.
If you’re looking to purchase property but you’re self-employed, or perhaps have gaps in your employment history, it’s likely you won’t meet the lending criteria for banks on the high-street.
Similarly, if you have a blip on your credit record – perhaps you missed a monthly phone bill a few years back, for example – some high-street lenders won’t be able to sign off your mortgage.
It feels unfair that borrowers who have dependable income streams and are unlikely to go into arrears should be locked out of the housing market simply because their circumstances are different to borrowers with more ‘standard’ situations.
What’s more, these ‘non-standard’ income streams are becoming more common. In fact, 15% of the UK’s workforce is self-employed – and this number continues to rise.
Specialist lenders have stepped in to support this growing area of the market, offering finance options that are tailored to the specific needs and circumstances of each borrower.
How an adviser can help you
Masthaven, like many other specialist lenders, only offers its products through professional, regulated mortgage advisers.
Speaking with an adviser is important: they can help you understand how a lender would view your situation and recommend a provider and product you would be eligible for and whic best suits your needs.
Even during lockdown, these consultations have been continuing either on the telephone or via video calls.
While there are some advisers who offer free advice, the majority charge for their services – but the quality of the advice you will get will be well worth it.
You might feel, for example, you already have a good grasp of the mortgage market and can turn to the likes of a comparison site to investigate your options.
While this can certainly be a useful research tool, not all products will be listed on these sites, especially if you have slightly more complicated circumstances.
What’s more, even the most mortgage market-savvy borrowers can benefit from the unbiased expertise of an adviser who – in the case of IFAs – are committed to providing independent advice.
I have been working in the mortgage sector for more than 30 years and will still speak with an adviser when looking to remortgage or move to a new house.
I’d also emphasise the importance of using an adviser regulated by the Financial Conduct Authority (FCA), which regulates 58,000 financial services firms in the UK.
When you find an adviser you’d like to use, you can check if they’re FCA-regulated by using its Financial Services Register.
Advisers can open up a world of solutions that search engines simply can’t provide, for example, customers may be made aware of products that wouldn’t have been available if they’d opted to go direct to a lender.
Moreover, advisers can also provide holistic financial advice, such as guidance around protection products to ensure, if the worst happens, customers are financially protected and have a roof over their heads.
Rob Barnard, director of intermediaries at Masthaven Bank, a specialist, secured lender
