Specialist and bridging solutions are set to play a bigger role in broker activity as borrower needs become more complex ahead of this week’s Bank of England decision.
According to Paul McGerrigan, CEO at Loan.co.uk, the key issue for intermediaries is not the direction of interest rates, but the growing number of borrowers who fall outside standard lending criteria.
Rising levels of adverse credit and affordability pressures are increasing demand for alternative finance routes, including bridging and secured loans, particularly where remortgaging is not viable.
This shift is expected to benefit brokers with access to a wider lending toolkit, as borrowers seek solutions beyond high street products and comparison site offerings.
COMPLEXITY NOT RATES
McGerrigan (main picture, inset) says: “Whatever the MPC decides on Thursday, the headline isn’t the rate. It’s the complexity around it.
“This is the moment brokers earn their keep. Borrowers don’t need us for easy cases; comparison sites do that. They need us when the high-street says no, when a remortgage doesn’t stack, when credit history isn’t picture-perfect. Pepper Money found 16.6 million UK adults have experienced adverse credit. That’s not a niche, it’s the mainstream.
“Brokers with the full toolkit, secured loans, bridging and specialist lending, will grow through this cycle. Those defaulting to vanilla fixes are the most exposed. Their clients are already looking elsewhere. They just haven’t said so yet.”
