"Intermediaries now write a large proportion of all UK business and specialist lending gives them the edge they won’t get on the high street."
FR: You recently became sales director for long term lending at Masthaven. What will your day-to-day responsibilities look like?
I work closely with the managing director and I am responsible for the first and second charge mortgage distribution strategy of the Bank. This involves taking a real hands-on approach with all of the UK’s major mortgage clubs, networks and packagers.
I also work closely with the field-based sales teams to maximise returns from field visits. It is all too easy to forget about those out on the ground when in an office environment, but I really enjoy working with the teams out and about and will ensure this remains an integral part of my role.
FR: What are your plans for Masthaven’s long term lending sales?
It is still early days but the proposition in general really excites me. Masthaven covers a lot more bases than many of the other specialist lenders on the market, meaning we can offer far more solutions to meet client needs. From breaking ground on a new build, to buy-to-let, seconds, downsizing and later life lending, we serve the whole property life cycle. This means we could potentially see a person throughout all their lending needs –– which is a truly unique position to be in!
A core focus of mine will be to develop our sales team into one that is seen as market-leading and best in class. In turn, this will mean intermediaries are keen to engage with the team at every possible opportunity. Market monitoring is a key aspect of this, but I also want to know what is working well and not so well within our current teams as knowledge sharing and communication is key when it comes to sales.
FR: With over ten years’ experience in the specialist lending market, what are the biggest changes you have seen during your career?
The global financial crisis undoubtedly brought about many changes – mostly for the better. The buy-to-let market is one of the areas that has changed beyond recognition, particularly in light of the various regulatory and tax changes over the years. From regulatory updates, stamp duty changes and increased verification requirements, the market has been put under quite a bit of stress.
This, combined with flat house price growth, means returns for buy-to-let investors are a challenge. However, we are slowly starting to see landlords regaining confidence in the sector and new incentives and lending products will go a long way in supporting this.
County Court Judgments numbers have increased significantly over the last 5 years. Whilst the value of CCJs has dropped – showing people want debts settling quicker than ever – this has led to a significant increase in the number of credit score fails – which has been one of the contributory factors to the growth of the specialist sector. This is where specialist lenders can step in, to provide products that cater for customer niches. In another ten years’ time I suspect these groups of people will outweigh those who are classed as currently more ‘traditional’.
FR: What do you think the specialist lending industry needs to do to keep up with the growing demands of customers?
Intermediaries now write a large proportion of all UK business and specialist lending gives them the edge they won’t get on the high street. In order to maintain this, innovation is key. Specialist lending serves many under-served sectors and we have to find solutions to more of them – whether it be the young, old, self-employed or credit impaired, the specialist lending industry must continue to evolve and adapt products that mean real client demand. These aren’t just hypothetical profiles of individuals, they’re actual human beings with specialist lending needs that can’t be catered for on the high street.
Essentially, specialist lending is now the ‘new norm’ and a constant cycle of market reviewal, customer feedback and product development must continue in order to keep up with the growing client demand.
FR: As we approach 2019, what challenges and opportunities will the specialist lending industry face next year?
The growing specialist market is vitally important to the intermediary world. With more lenders seeking out direct lender-to-lender solutions, my key message would be: brokers should ignore specialist lending at their peril!
