A majority (52 per cent) of mortgage brokers claimed the specialist lending market will grow by at least £1bn over the next six months, according to Bluestone Mortgages Specialist Lending Tracker.

Furthermore, over a third of mortgage brokers (34 per cent) said they had referred more than a quarter of their client base to a specialist lender over the last 12 months. Of those that had referred clients, 53 per cent did so because their clients fell outside of mainstream lending criteria.

Other reasons why brokers refer their clients to a specialist lender included irregular and multiple income streams at 43 per cent and 42 per cent respectively, and clients with impaired credit history at 42 per cent.

Just 9 per cent of brokers said high-street lenders have become more understanding towards non-standard borrowers, with almost all (94 per cent) of them likely to refer their client to a specialist lender if a high-street lender has rejected them.

Bluestone Mortgages director of sales and marketing Steve Seal said: “There is very little research available which focuses only on the specialist lending market. Our decision to launch this research was driven by the fact that we wanted to highlight to advisers how much the specialist market can offer.

“Specialist advisers are helping a growing number of complex borrowers in their search for affordable lending, and the opportunities here for brokers and specialist lenders are unique. Customer lifestyles and habits are changing. It’s essential to raise awareness of how this area of the market is growing and how it can boost a broker’s business in the long-term.”

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