We can learn many different lessons during challenging times and what I have realised – both from the credit crunch and the recent pandemic – is that the advice process is more valuable than ever during a time when financial circumstances and outlooks can change so quickly. This is a hardly an earth-shattering discovery but focusing on the simple things can often prove to be the most effective.

In the current landscape, clients need our support and engagement more than ever. In the BTL sector we have to remember that most landlords are businesspeople. After their initial reaction (which is clearly survival), they swiftly move on to identifying opportunities where they can add to portfolios and maximise the value of existing ones – a factor which has been highlighted by the recent uplift in BTL business as a result of Stamp Duty changes. These heightened activity levels place the emphasis back on the advice process, in terms of helping landlord clients to survive and prosper.

Looking further forward, there’s no getting away from the fact that the next 12 months are going to be tough for intermediaries, landlords and investors. A key factor in overcoming these challenges will be specialist lenders, and the point of difference they can make in terms of meeting a variety of borrowing needs.

The rise in prominence of specialist lenders was highlighted in the latest data from UK Finance, outlining that this lending band had increased its mortgage market share in 2019. The figures showed that specialist lenders have been performing well in the buy-to-let sector and are seeing stable growth in the full market. Specialist lenders increased their lending by £0.4bn in the full market and by £1.1bn in the buy-to-let market. Banks increased mortgage lending by £7.5bn and buy-to-let lending by £2.7bn. Building societies saw a £1.8bn fall in total mortgage lending and a £1.1bn fall in buy-to-let lending. In 2019, gross lending totalled £268bn, down 0.3% on 2018, while buy-to-let lending totalled £42.2bn, up 4.2% on 2018.

Picking up on the topic of building societies, BTL lending figures may have fallen but many societies remain at the forefront of the specialist lending marketplace. This is due to their ability to take each borrower’s personal circumstances into account, whilst providing a criteria-led approach to offer greater flexibility and incorporate a manual underwriting process. This is the kind of methodology which is vital in meeting the needs of borrowers as circumstances continue to change – especially for landlords, tenants, furloughed staff and the self-employed.

These ever-shifting circumstances will place an even greater reliance on flexibility and access to alternative forms of finance which may not be available via the more mainstream lending channels. Over the past month or so, there has been one constant within lending criteria and that is – there is no constant. Criteria is changing on a daily basis alongside shifts in LTV bands and in the use of AVMs.

As the market opens up, for cases which didn’t previously fit – many even only a matter of a few short weeks ago – viable solutions can now be sourced and intermediaries need to have their finger on the pulse to ensure they are aware of how quickly criteria within the specialist markets are changing. Working closely with clubs, packagers and specialist distributors can help with this process. And with such organisations forming even closer relationships with specialist lenders, working with the right distribution partner could prove key in meeting a wider range of client needs moving forward.