By Matthew Dilks, Bridging and Commercial Specialist, Clever Lending
In today’s uncertain marketplace, the number of clients seeking specialist lending advice is growing. Whether this is due to affordability challenges, the rise in “improve don’t move” mentality, or ongoing growth in the buy-to-let (BTL) and property development space, there is no denying the fact that this niche area of the mortgage market is experiencing a surge in popularity.
Although the specialist lending sector has traditionally been associated with the commercial and property investment areas of the mortgage market, such as commercial mortgages, development finance and specialist BTL, a growing number of residential borrowers are also starting to seek specialist lending solutions such as bridging loans as an alternative means of funding their property purchasing needs.
In many cases, this is for chain break purposes so they can buy a property before an existing one sells, enabling them to mitigate the risk of losing out on a house due to any delays in the homebuying process or on account of any ongoing volatility in the money markets.
Other clients, including BLT landlords and property investors, are also using bridging loans to purchase a cheaper property at auction or renovate a property deemed unmortgageable because it has no kitchen or bathroom. This allows them to achieve their property purchasing goals before refinancing onto a longer-term mortgage once the renovations are complete.
For brokers unfamiliar with the specialist lending sector, knowing where to place this type of business if they come across an enquiry can be daunting. All these cases require time, specialist knowledge and established relationships to ensure your client gets the financing solutions that they need, which is why using a referral process for these more complex transactions is crucial.
Working with Clever Lending
As a specialist lending broker with over 25 years’ worth of experience in the mortgage market, Clever Lending has the expertise and knowledge that can help you source financing options for those clients looking for alternative financing solutions to those available in the mainstream market. We can also take care of any commercial finance clients that may come your way as well.
Navigating this area of the market can be tricky and we understand that brokers cannot be experts in all areas of the mortgage market, which is where we can help. By referring these cases to us, not only will we help you to source the most suitable lending solution for your client, we can also take on the administrative burden associated with such cases leaving you free to focus on handling the business with which you are most comfortable.
Referring these clients will also enable you to capitalise on an otherwise untapped and valuable revenue stream as we pay a referral fee for finding the client. This is an ongoing agreement and also applies to repeat business, which ensures brokers get paid every time a client returns.
Not only is this an excellent form of passive income, it also reassures the broker that their initial introduction is valued. For example, we have had one particular case where a commercial client has returned to us every year for seven years since first introduced by a broker. This nets them between £3,000 and £4,000 annually and as we always contact them a few months before the client’s current deal is up for renewal, they remain informed of the needs of their client.
We understand that for many brokers, this area of the mortgage market is unfamiliar territory which can present challenges when sourcing finance for your client’s next property purchase. By referring them to us, we can work closely with our extensive panel of lenders to provide solutions for almost any scenario, resulting in a win-win situation for everyone involved.