In today’s property market, there are many financial products. Whether your clients’ a homebuyer looking to purchase a new property, or a property investor looking to develop their portfolio, finding the right finance tailored to their needs is crucial. In what has become a taboo product, we explore some specialist finance facts.

What is specialist finance?

To simplify it, specialist finance is a section of the market dedicated to providing financial solutions to borrowers with unique circumstances. Your clients’ circumstances may include:

• Adverse credit

• Increasing affordability pressure

• Complex income structures

• Undervalued properties

Whilst many brokers can be dismissive of the specialist lending market, research conducted by The Intermediary Mortgage Lenders Association (IMLA) estimates that more than one-sixth of regulated mortgage lending in 2023 fell into one or more specialist categories. The next five years are forecast to grow by a further £22bn. Diversifying your offerings and delving into the specialist lending market, is a must in a world of unique demands from today’s borrowers. At Crystal Specialist Finance we work with an extensive panel of lenders, who offer us exclusive rates. We find solutions, even for the most complex client cases.

Specialist Finance Offerings

There are 6 types of specialist finance. Choosing the correct finance for your client can sometimes be overwhelming. We’re here to take the pressure off and make the complex simple.

Bridging

Bridging finance is a short-term arrangement secured against property or land, allowing your client to access funds whilst waiting on cash elsewhere, typically lasting between 1-12 months. Bridging loans come in two forms, regulated and non-regulated.

Buy-to-Let

If your client is buying a property as an investment, a buy-to-let mortgage is the most suitable option. In specialist terms, this ranges from HMOs, multi-unit blocks, student lets and semi-commercial properties. Different from residential mortgages, most buy-to-let mortgages are interest only, meaning the monthly repayments will only pay off the interest, not the capital. Instead, your client will be required to repay the capital in full at the end of the agreed term.

Commercial

A commercial loan is a funding arrangement between a business and a lender to support business activity or expenditure. Typically, commercial loans are based on shorter terms than residential mortgages, due to the higher risk involved. This could be a great option for business owners seeking expansion or investment in assets.

Development

Development finance is used to support the costs associated with a development project, such as buying land, construction, or renovation of existing properties. Associated with residential or commercial projects, this loan type typically lasts between 6-24 months.

Second Charge

If your client is a homeowner looking to raise extra capital, a second charge mortgage could be for them. It is a loan taken out on their property using equity as security whilst an existing mortgage is already in place. Typically, second charge finance is used for home improvements, debt consolidation or other large expenditures.

Specialist Residential

A residential mortgage is a large loan taken out for a non-standard property purchase, with interest repayment terms lasting between 25-35 years. A 5% minimum cash deposit is required when purchasing the home, then the mortgage will make up the remainder of the balance. If you have clients that are self-employed, have adverse credit or are first-time buyers, this mortgage type could be what they’ll need.

Packaged or Referred?

No matter the basis you prefer to operate, we deal with both packaged and referred cases.

Packaged – Use our CrystalHUB to submit your case online and book yourself an appointment with one of our experts when it suits you. We’ll do the nitty gritty searches, so you don’t have to, package up the application AND complete the deal! Don’t worry, you’ll still earn your commission, our aim is to just assist you with the process.

Referred – Use our CrystalHUB to share your clients’ details with us online. Sit back, relax and we’ll do the rest by dealing with the client directly. You can track the progress online through the CrystalHUB dashboard. Once the case completes, you’ll receive a percentage of the commission.

We understand that securing specialist mortgages for your clients can be challenging. Here at Crystal Specialist Finance, we have a team of experts and an extensive panel of specialist lenders to assist you in securing the most suitable loan for your client’s needs.

If you’re interested in finding out how we can support your next case, we’d love to hear from you. Get in touch on 01827 337710 or enquire through our CrystalHUB.

Find out more about Crystal Specialist Finance here.