"Open Banking will come into its own this year"
With much uncertainty in the market at present, the direction of the specialist sector has been on the minds of many industry experts.
Reece Beddall (pictured), sales and marketing director of Bluestone Mortgages, believes that innovation within the space will be fundamental this year amid the challenging economic landscape.
While Beddall believes technological innovation will be key in driving the market forward, he said brokers and lenders will also face opportunities and challenges in the form of education and increased customer support in 2023.
Innovation in the specialist market
Beddall said with product innovation, there are a lot of hurdles you have to jump, but the core aim is to make it easier for brokers and, therefore customers, which in turn drives the industry as a whole forward.
Open banking is a subject which Beddall believes should be top of mind and explored by the market. Bank statements are an area which often slows the sale process down, which he believes open banking could help with.
“Automated Valuation Models (AVMs) are another area we are looking to improve; by upgrading our AVMs this would help speed things up for the back end lender and allow them to work more efficiently,” Beddall said.
He added that speed and efficiency is the lender’s number one focus point, and said the market is very competitive at present, so offering its own integration process is something the specialist strives to achieve to allow it to stand out.
Education on the specialist market
Beddall said education is going to be fundamental in 2023, and believes brokers must be aware of all options lenders offer in order to accurately place their customers.
“The majority of brokers choose to avoid specialist lenders and this needs to change, especially given the current economic outlook,” he said.
With many customers struggling financially, Beddall said more and more are falling into adverse credit and therefore will need to turn to specialist lenders in order to access finance.
Education and understanding is steadily improving, but Beddall said more needs to be done in order to speed things up.
“You have to walk before you can run, and improving the market all revolves around increased education for brokers, who can in turn provide better advise for their clients,” he said.
Supporting buyers
Beddall believes that a replacement to the Help to Buy scheme would also present an opportunity for brokers and lenders in the specialist market.
While Beddall said that Shared Ownership is rising in popularity, he believes a definitive replacement is needed.
“Affordability is another area; rates are going to have a significant influence on the market this year and lenders need to find solutions to their customers’ diminishing affordability,” he added.
Beddall said some lenders are increasing their loan-to-income calculations to allow customers to borrow more.
“There is also a rise in complex credit, and lenders need to be increasingly flexible when dealing with customers who are impacted,” Beddall said.
How do you believe the specialist market will fair over 2023? Let us know in the comment section below.
