Research carried out for a white paper by United Trust Bank (UTB) found that 91% of brokers spend significantly more time on specialist mortgage cases compared to mainstream ones.
This additional effort pays off, as 96% of brokers reported that specialist clients are more likely to return.
Nearly half of the brokers surveyed said they dedicate 10% to 30% more time to specialist cases, with 31% spending over 30% more time than on standard cases.
Specialist cases accounted for more than half of the work completed by 38% of brokers last year, with 21% focusing exclusively on them.
Moreover, 87% of brokers said clients often approach them after being turned down by other lenders or brokers.
Buster Tolfree (pictured), director of mortgages at UTB, said: “The specialist mortgage market is continuing to grow and undoubtedly offers excellent opportunities for brokers.
“Many are now devoting their whole business to customers who are not served by the mainstream mortgage market while others continue to complete smaller volumes.
“It’s no surprise that customers who don’t meet mainstream criteria can take a bit more time to source mortgages for.
“However, the end result is customers who will come back to the broker time and again when they refinance or move home.
Tolfree added: “For those brokers who feel they lack the market knowledge or time to take on specialist cases, packagers and referral partners are an excellent way of keeping new business opportunities.
“Building trusted partnerships is key to the health and continued growth and success of the mortgage industry as a whole and it’s great to see more brokers embracing collaboration as a means of growing their business and looking after more customers who may struggle to find the mortgage they need on the high street.”
Kevin Roberts of L&G Mortgage Club said: “If you can’t do specialist mortgage cases, find a partner.”
Liz Syms of Connect Mortgages said: “If the adviser’s volume of specialist lending is low or they have no appetite to write this type of business, they can find a partner. If they are keen on the market, they should immerse themselves.”
William Lloyd-Hayward of Brightstar added: “Don’t try and be an expert in everything. It is easier to build relationships with a partner than try and know all the criteria that exists.”
