Specialist lending is a great option for brokers looking to expand their toolkit and generate more business through referrals, writes Resimac’s Allan Savins.
We all know the importance of having a strong referral network in mortgage broking. When we first start out in business, it is probably the first piece of advice most mentors will give: “Have you contacted your accountant and solicitor about referring you clients? Have you visited the local real estate agents and asked them for their business?”
But there is every chance these potential referral sources have heard all this before – many times over. To have an impact and win their business, you need to set yourself apart from those who have visited before you. This is where specialist lending and lenders such as Resimac Financial Services come into play.
By expanding your toolkit and offering the solutions that only specialist lending can provide, you are opening up a much broader opportunity for your referral partners to refer you new business. Some of these scenarios could include:
• The self-employed borrower who may need to borrow to pay tax;
• The self-employed borrower with a short trading history needing funds to assist with growth;
• The recently separated or divorced borrower looking for a fresh start.
These potential borrowers have already sought the advice of their trusted financial or legal adviser and will now be looking for professional mortgage advice to assist with their borrowing requirements. Specialist lending is not always about defaults and arrears, and in most of the above scenarios the borrower is simply looking for a solution at a time in their life when their current lender may not be able to assist – payment of taxation liabilities, short-term self-employment, or consolidation of a large number of debts with a potentially patchy repayment history. It is the background story as to why the borrower requires a specialist lending solution that is key for these applications.
Specialist lending follows the same basic principles of traditional lending – suitability, serviceability and security. When adding specialist lending to your range of lending solutions, you are opening up opportunities to help more potential borrowers more of the time.
Allan Savins is the chief commercial officer at Resimac.