Embracing Change: Why Specialist Lending is the Future for Brokers

Greg Cunnington is Head of Strategic Accounts – Lender at Legal and General Mortgage Services (LGMS). He joined L&G in April 2024 after a career in the mortgage intermediary business, fulfilling various senior roles with Alexander Hall and more recently with LDN Finance, where he oversaw the creation of LDN Private Clients. Greg heads up the newly formed lender team for LGMS and is responsible for the lender relationships of all the areas under LGMS.

Specialist lending – the future for mortgage brokers

The mortgage market has transformed significantly over the last ten years. A decade ago, a typical client profile was often relatively straightforward—an employed individual with a single income, a steady job, and a healthy 10% + deposit. Securing a mortgage for these clients was relatively simple, with high street lenders catering to most borrowers without much complication (archaic systems aside!).
 
Fast forward to today, and that landscape has changed dramatically. While mainstream lenders have adapted, borrowers have evolved even more. The idea of a single, salaried job being the norm is fading. Instead, the modern mortgage applicant is more likely to have multiple sources of income—mixing employment with self-employment, adding commissions, bonuses, shares remuneration, and side hustles, and then there are zero-hour contracts. Many Gen Zs see having more than one income stream as entirely normal.

The new mainstream

With these changing dynamics, the demand for specialist lending has surged. The traditional one-size-fits-all mortgage model no longer serves the modern borrower. More clients now need manual underwriting, flexible criteria, and lenders who can understand their unique financial situations. This shift has created a significant opportunity for mortgage brokers who can navigate the specialist market effectively.
 
Technology is also playing a pivotal role in this evolution. Five years ago, fintech companies aimed to overhaul broker and lender processes—often charging high fees for solutions to solve problems that didn’t necessarily exist. Today, technology has pivoted towards increasing efficiency rather than disrupting existing workflows. Automation is reducing the burden of admin work, freeing up brokers to focus on what truly adds value: providing expert advice. A great example of this is our own Ignite tool, doing a lot of the heavy lifting on criteria, affordability and product for the broker.

Using technology to get closer to your customers

Sourcing systems have become a game-changer. Tools like our own Ignite system are making it easier for brokers to filter on lender criteria, product options, and affordability, saving time and effort. Rather than spending hours manually researching mortgage products, brokers can now quickly identify the best options, allowing them to concentrate on their core strength—advising clients.
 
According to IMLA, 86% of mortgage applications are now managed by intermediaries, a figure expected to rise to 90% by 2027. This underscores the growing reliance on brokers to help clients navigate the increasingly complex mortgage landscape.
 
Automated underwriting is also making simple, ‘vanilla’ mortgage applications more efficient. However, the pool of straightforward borrowers is shrinking. Growth is happening in the underserved specialist market, where clients require a more hands-on approach and closer broker-lender relationships to secure deals.

The value of lender relationships

Consider this: six of the top eight income searches on Ignite are for self-employed customers. Yet only 50% of these applicants meet lender criteria. This is where strong broker-lender relationships come into play. Brokers who can engage directly with lenders—discussing cases, finding flexible solutions, and leveraging manual underwriting—will be at a distinct advantage.

At L&G Mortgage Club, we recognise both the importance of the specialist mortgage market and the need to support brokers in developing their expertise. With one in three intermediary mortgages now coming through L&G, we are in a unique position to educate brokers about specialist lending and help them capitalise on this growing sector.

Many brokers have never handled a specialist case—either because they’ve never needed to or because traditional lending has kept them busy. However, the tide is shifting. Mainstream lenders will increasingly look to automate vanilla customers, leaving brokers with more time to actually advise and to spend on more complex cases. Those who embrace the switch to serving customers with specialist circumstances or requirements will thrive.

To support brokers in this transition, as a mortgage club we are looking to significantly enhance our support for Specialist Lending. This initiative will provide in-depth training on a variety of topics for example self-employed and contractor income, limited company buy-to-let (BTL) lending and solutions for customers with adverse credit.

Additionally, we’ll be helping intermediaries attain a specialist lending qualification, giving them greater confidence and expertise to serve this expanding market.

We’re also evolving the way we engage with brokers. Instead of large-scale industry events (which we will still do as they have a place), we’re shifting towards targeted, interactive sessions where intermediaries can connect directly with specialist lenders. These sessions will provide a deeper understanding of lender requirements, improving brokers’ ability to secure deals for complex cases.

My own experience in the intermediary space has shown me just how much there is to learn about specialist lending. Before joining L&G, I worked with a large intermediary and thought I understood the sector. It wasn’t until I transitioned to a firm fully immersed in specialist finance that I realised how much more there was to grasp. As the saying goes, you don’t know what you don’t know—which is why continuous learning and thought leadership are so vital.

Seize the opportunities

There has never been a better time for brokers to expand their knowledge of specialist lending. As the proportion of specialist customers continues to grow, those who invest in their expertise now will be the ones to benefit in the years ahead.
 
At L&G, we are committed to helping brokers seize this opportunity. By embracing specialist lending, building stronger lender relationships, and leveraging technology effectively, intermediaries can ensure their businesses remain competitive and future-proof.