Demand for limited company BTL products has continued to rise, but evidence suggests that lenders are failing to capitalise on this according to new research from Finova.
Surveying over 200 brokers and 100 lenders, Finova found that three quarters of the former have seen an increased demand for limited company BTL products.
However, the research revealed that lenders are not necessarily seeing this come through.
Out of the lenders surveyed, 41% cited limited broker demand as the main barrier to innovating for new brokers with this percentage higher (63%) for specialist lenders.
The research points toward a disconnect between lenders’ intentions to innovate and their actual investments. More than three quarters (78%) of lenders surveyed said their appetite for innovation is stronger than two years ago.
Despite this majority, only 15% of lenders are prioritising investing in entirely new product types, and just 11% are focusing on faster decisioning engines.
When looking at investment priorities, 21% of lenders are channelling investment into broker portals and communication tools. However, brokers say the biggest under-delivery areas lie elsewhere: 48% point to flexibility for complex borrowers, and 43% cite speed of service, suggesting that brokers’ and lenders’ business goals are not aligned either.
“The gap isn’t a lack of ambition, it’s where investment is being directed,” said Gareth Richardson, CEO at Finova (pictured above).
“Many lenders are focusing on broker portals and other support tools, but the real opportunity lies in investing in the products the market is craving, like specialist BTL, and in the technology needed to accelerate service and product development.
“There’s huge potential here, and those who can adapt quickly and with confidence will be the ones leading in specialist BTL.”
