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Lenders have been urged to consider implementing region-specific product ranges to support advisors and clients in particular areas of the country.
Mortgage and protection network JLM Mortgage Services has spoken out, suggesting that a homogenised product range is no longer suitable for the current mortgage climate with region-specific offerings better suited. This is particularly relevant in the specialist lending market. It is argued that newer lenders should think about tailoring their ranges to offer specific product types in certain areas of the country.
Suggestions put forward included offering products tailored to the buy to let borrower in University cities for or those purchasing in prime property markets such as London, the Home Counties and areas of the North West.
A region-specific product approach could allow lenders to consider increasing LTVs in the buy to let market, or potentially offer a tiered LTV or rate approach for borrowers aiming to purchase in markets such as London.
Director of JLM Mortgage Services, Rory Joseph, said: ‘Our view is that, in this market, a one size fits all lending approach is not going to work if you are a relatively new lender who is merely replicating the range of tens of lenders that already exist, have a larger lending appetite, and a far wider reach.’
He continued: ‘In talking to numerous lenders, and weighing up the needs of our clients right across the country, there would be considerable mileage in providing region/sector-specific products. For instance, with buy to let that could mean increasing LTVs for HMO or multi-unit blocks in large student cities such as Sheffield, Leeds, Nottingham and the like, or it could mean offering different criteria/higher LTVs in London, which as we all know is a ‘different place’ when it comes to the housing market. There are opportunities to drill down and get much more specific in different regions.’