Blog post
January 19, 2021

What do lenders need to do to rise to the challenges of 2021?

To see our rates, criteria and offers across our lending products visit our lending page. 

by Sophie Mitchell-Charman, Sales Director

While 2020 feels like a year that will live uniquely in our memory, we can expect similar volatility for at least a large part of 2021, and faced with this situation, it is important that lenders get a head start on being ready by carrying forward the lessons from the past year and understanding what the market could look like. 

The first and most obvious of these messages is the need to be agile and change with the times. 

This doesn’t just relate to home working, but on applying that same flexibility to their clients with technology throughout the application process; like Open Banking, E-Signatures, Onfido or Stripe. Simple tools that make a large difference to the speed and safety of people’s mortgage borrowing when they want to stay safer.

Nowhere have we seen the growth of this kind of technology more than in desktop valuations, which shows at the right LTV and loan amount lenders can provide the right solutions to a growing demand. 

It is important for lenders to remember that the benefit of some of these tools won’t disappear with relaxed restrictions and the most forward-thinking lenders need to be constantly building and improving upon this technology.

Case studies: Buy-to-Let offers in under 10 days with Open Banking

The importance of feedback 

While navigating unfamiliar times, it is vital lenders remain customer-focussed. It is not for us to decide the needs of brokers and their clients in a vastly changing market, but instead remain close to them to respond to those needs as best we can. 

We’ve seen several times in 2020 how quickly the landscape can change and in those circumstances being open to your customers for discussion is the most beneficial way to inform what steps to take, which will be a valuable skill to retain as we enter 2021 under tough restrictions across the country. 

Delivering on record demand: Reviewing 2020 with Sophie-Mitchell Charman

What will be different in 2021?

I think we can expect bigger product ranges to meet the variety of needs and different circumstances property professionals will need to keep meeting their ambitions in 2021.

These should be priced for risk – because frankly in the current climate there is more risk – but that’s why communications with brokers and borrowers are so important to help lenders understand what the needs are. 

We’ve always maintained a broad product range and have been lending across it throughout all levels of restrictions. Reacting quickly to the market and making LTV, rate and criteria adjustments to mitigate risk while keeping these products open is the best way to keep serving needs in 2021.

How do you improve Buy-to-Let applications? By bringing people and technology together

Predicting the 2021 property market

The value of listening to brokers and their clients will be paid back in kind when it comes to understanding their needs in 2021’s market. 

It is difficult to predict what will happen, but we can expect the purchase market to slow following the stamp duty holiday ending in March, although the lower-end of the market may remain strong as people can pick up those properties cheaper. 

A slow down in purchasing may cause a drop in house prices, combined with an end to furlough potentially creating more redundancies, and depending on the level of financial stimulus we may begin seeing more effects of the Covid-recession. 

Considering all of these things, the rental market would be expected to grow and therefore it will be important for Buy-to-Let landlords to have the opportunity to grow through appetite statements and refinancing for purchasing power, while also having good options for refinancing on their existing properties. 

See our latest Buy-to-Let rates and offers.

Transparency is the key to success

In a potentially adverse market, being upfront with what you can deliver to your clients is vital to help them understand the circumstances they are operating under. 

Full communication with clients about product changes, direct access to underwriters and case managers and transparent service levels are – above anything else – vital to ensuring broker and borrower confidence in lenders, which is what they will all need in 2021. 

To see our rates, criteria and offers across our lending products visit our lending page. 

Your privacy matters
We use cookies to offer you a better experience. To understand what data we collect you can access our privacy policy and cookies policy. You can also adjust your or confirm your consent by clicking the accept button.

The cookies we use:

These are required for the operation of our website. For example, they support you to log into secure areas. You may disable these by changing your browser settings, but this may affect how the website functions.
These allow us to collect information such as how you navigate our website or if you experience errors which we can use to improve your journey.
These recognise you when you return to our website so we can personalise your content and improve your visit.