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Meeting diverse homeownership needs with a specialist approach
The specialist residential mortgage market is expanding rapidly as more borrowers seek lending solutions beyond what high-street lenders can offer.

Self-employed individuals, those with multiple income streams, and borrowers with complex credit histories often struggle to meet traditional mortgage criteria.
Given this growing demand, it’s unsurprising that the wider specialist mortgage sector is projected to grow by 70%, rising from £32 billion to £54 billion by 2029.
Data from the Mortgage Lending and Administration Return (MLAR) shows that the total outstanding value of residential mortgage loans in the UK reached £1,670.9 billion in Q3 2024, a 0.6% increase from the previous quarter, marking its highest level since early 2023. Additionally, the Royal Institution of Chartered Surveyors (RICS) reports continued growth in buyer enquiries and sales activity, reflecting positive momentum across the housing market.
These figures highlight sustained demand for homeownership, reinforcing the need for diverse mortgage products that accommodate a broader range of borrower circumstances. Within this, incorporating a holistic approach, which considers an applicant’s full financial picture and history rather than relying solely on credit scores, is essential.
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A significant trend shaping this market is the increasing need for larger loan sizes. The reason behind this is to ensure that specialist residential clients can secure the level of loans they need, and as property values have begun to rise, albeit at relatively low levels, we must ensure loan size criteria meets the changing demographics of the UK property market.
As such, we have recently enhanced maximum loan sizes across multiple product tiers and loan-to-value (LTV) thresholds so that our intermediary partners and their clients can access the funding required to buy their first home, move up the property ladder or refinance to more favourable terms.
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Specialist mortgages are no longer just an alternative for those unable to meet high-street lending criteria. Whether supporting first-time buyers, facilitating home moves, or suitable refinancing options, they are becoming a far more mainstream solution for a growing segment of borrowers.
For advisers already established in this sector, the expanding market presents valuable opportunities to serve an even wider client base. Meanwhile, those new to specialist lending can build expertise by working closely with a range of lenders to stay ahead of loan size adjustments, evolving mortgage products, and shifting borrower trends - all key factors in delivering tailored solutions for complex cases.
As lenders continue to refine their products and expand criteria, intermediaries who embrace innovation and understand individual lending nuances will be well-positioned to navigate this evolving market. Most importantly, they can help more clients achieve their homeownership and property goals with confidence.
*This article was originally published on The Intermediary
References:
https://www.fca.org.uk/data/mortgage-lending-statistics
https://www.mortgagestrategy.co.uk/news/housing-market-ended-2024-on-a-high-rics/
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