Have a case to discuss?

0800 111 020 Mon-Fri 9am - 5pm intermediary.enquiries@kmc.co.uk

Want to apply for a mortgage?

You can apply for a Kensington mortgage using our online portal. Login or register to set up an account.

Did you know your browser is out of date? It is strongly recommended that you use an alternative browser.

Do it Later x

Release: Specialist lending will be a key battleground in mortgage market

04-Mar-2015

Specialist lending will be one of the key battlegrounds in the mortgage market over the next two years with new lenders launching and High Street providers targeting the sector, new research* indicates.

Nearly two-thirds of those surveyed expect new specialist lenders to open for business while another 13% of intermediaries believe High Street lenders will wake up to the potential for growth and offer specialist services. Around 60% of brokers believe specialists will take a bigger share of the mortgage market over the next two years.

The scale of demand is underlined by brokers’ views – around half believe that 20% or more of their clients would benefit from applying to a specialist lender. In the past year two out of five brokers say 20% or more of their clients have had difficulties proving their income.

However high rates in comparison to the ultra-low deals offered by High Street lenders are seen as the most significant barrier to the expansion of the specialist market – 52% of brokers highlighted rates as the major issue ahead of 47% who say regulation will be the main brake on growth in the specialist market.

More than one in three (32%) say clients' lack of understanding of the specialist market could also constrain growth – however just 15% of brokers say their own lack of understanding of specialist options will hurt the market.

Steve Griffiths, Head of Sales and Distribution at Kensington says: “Industry figures show that intermediary market share is increasing and we expect the significance of the specialist market to grow.

“Kensington’s experience over 20 years shows that homebuyers and remortgage clients do not all fit High Street criteria and while they will be entirely creditworthy may have issues with proving income which applies to the self-employed and also those in full-time jobs.

“The focus on rates is important but there is also a real need for advice and individual underwriting which is why Kensington will be investing in providing support to brokers to help them identify and place specialist cases.”

Around 37% of brokers believe the specialist lending market will be constrained by a lack of capacity to lend. However just one in five (22%) believe reputational issues will hit growth.


*Research conducted online among a nationally representative sample of 100 mortgage advisers by Pollright Research between February 12th and 23rd 2015.

Apply for a mortgage now

You can apply for a Kensington mortgage using our online portal. Login or register to set up an account.

Portal login Register

Submission tips

One of our underwriters will call you to discuss an application within days of you submitting it online. By uploading essential documents ahead of this conversation you can help us to process your case more quickly. Click on the button below to find out what documents you should upload.

Find out more

Mortgage Processing

You can keep up to date on our mortgage processing service levels by clicking on the link below.

Service levels

Case to discuss?

If you have a case you'd like to discuss, contact our Business Development Unit. They'll be happy to help with all enquiries regarding mortgage applications.

Call 0800 111 020

Sign up to our newsletter

Enter your details below to receive regular news, product updates and more.