We’re at the beginning of a very exciting year in the property market. The coming months will bring significant change and economic shifts that will profoundly affect landlords and investors.
These developments are likely to increase demand for specialist products, given their ability to help navigate the property world’s twists and turns.
Yet many brokers and borrowers remain underserved by the specialist market, which may — at least in part — be driven by hesitancy. A recent survey of lenders offering specialist BTL products found that 44% believe borrowers with complex needs are the most deprived group in today’s market.
To encourage greater use of specialist finance, providers must dispel the industry’s lingering, outdated myths.
One of the most prevalent objections is the belief that bespoke finance is simply too expensive. Yes, bridging rates can be relatively high. But this oversimplifies our entire industry. Bespoke loans are designed as short-term products. While borrowers may agree to a 12-month term, many will exit much sooner, significantly limiting their overall interest costs. Borrowers can also materially reduce the cost of bespoke borrowing by being selective about the lenders they work with.
Many specialist lenders offer a range of affordability tools, including deferred interest, rolled interest, and in some cases top slicing. Moreover, additional fees — such as early repayment charges — are often limited or removed entirely.
Beyond cost concerns, some may also assume bespoke finance has limited use. Bridging loans and tailored BTL mortgages are often marketed purely as acquisition tools. That’s the exciting side of the industry, after all: expanding a portfolio with a property that can be sold for profit or rented for income.
But the reality is far broader. Specialist finance can support refinancing, capital raising, refurbishments, and conversions, to name just a few use cases. As providers, we must play our part in ensuring hesitant brokers and borrowers fully understand this versatility.
Time is of the essence here too. The Renters’ Rights Act will kick into gear from 1st May, ushering in unprecedented changes for landlords — the kinds of changes that will need flexible solutions.
Meanwhile, UK Finance expects overall gross mortgage lending to rise by 4% this year, hitting £300bn. It also believes there will be a 10% rise in external remortgaging, a 2% rise in product transfers, and some 1.8 million fixed rate mortgages are due to come to an end.
There is significant opportunity here for bespoke lenders to support borrowers across a wide range of end goals. Let’s ensure potential clients clearly understand how we can assist them in 2026.
