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Large Mortgage Loans/specialist broker firms

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 24. August 2023

Interested in speaking to mortgage brokers about Large Mortgage Loans and what read-across this could have for mortgage brokers in the specialist space. 

  • Was the closure surprising? 
  • What is the high net worth market like currently? 
  • Will other specialist broker firms be struggling at the moment? 

6 responses from the Newspage community

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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
This is surprising news. In the current market, brokers have never been more highly valued and obtaining financial advice as important. Especially with Large Mortgage Loans focussing on the larger loans that earn higher income, making the volume of transactions less of a concern, I would suspect this is closure through mismanagement rather than market conditions.
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Justin MoyVerified
Managing Director at EHF Mortgages
I have to say it is surprising that any mortgage broker firm of this size has closed, there may be reasons outside of market conditions, so we need to be mindful of this. With those with larger mortgages, you could argue the needs of high-worth clients are even greater, given the increase in payments is magnified and will need more care overall. Purchases transactions have obviously slowed and that could see application volumes at a level not able to sustain larger teams. I think all mortgage brokers are both helping their client bank with the current situation and finding new opportunities to help, so any firm that specialises may need to look for all types of clients at this time.
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Darryl DhofferVerified
Founder at The Mortgage Geezer
Certainly, a shock for me when I heard the news, and I know the ownership team tried everything to keep things going. Hard for me to comment on the reasons for the closure, however, I can only comment on the specialist lending arena, which I also work within has become quite a minefield with rising interest rates across the board, leading to a slowing of the market, and in some specialist areas a retraction completely. I think any company that survives the last few years and also the next 12-18 months, will be stronger as opportunities will rise again.
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Ritesh Sood0
CEO & Founder at Soul Mortgages
There could be a multitude of reasons ranging from operational costs and market conditions, the number of shareholders involved who may be seeking exits, an eye on retirement, or simply exploring new pastures. It's sad to see them go, and I'm sure it was not a decision taken lightly. For us, there will be more activity in the HNW and specialised areas with restructuring and raising funds
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Clive Read0
Owner at Goldmanread
LML has been around for 18 years and its closure seems sudden. Whilst we are unaware of the specific reasons for its closure the "Large Loans" niche is one which has become increasingly competitive in recent years. As the cost of doing business increases more established brokers and larger lenders have increasingly focussed on attracting larger mortgage borrowers. The issue is that as the general market falters it's not just First Time Buyers and Buy to Let borrowers who are stepping back from the market but also those looking to borrow higher mortgage levels. At Goldmanread we have seen a number of our Higher Net Worth clients preferring to stay put and improve their properties rather than look to move home. One particularly impactful factor is the cost of stamp duty. For clients with existing background properties, this can be in excess of £70,000 on a £1mn property - not insignificant. The clear message for specialist brokers is that now may be the time to consider generalising.
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Ashley ThomasVerified
Director at Magni Finance
It was a surprise and sad to see the news about Large Mortgage Loans. The market has been tough for all mortgage brokers with rates increasing significantly over the last year.

The high net worth market is challenging as it is across the market. Even though HNW clients have more disposable income, the rates have reduced this. In some cases, we have seen clients pay off their mortgage due to the higher rate.

However, there is still a demand for finance, HNW clients have the funds to allow them to get creative solutions such as Lombard finance (loan against other assets such as a stock portfolio). They use the funding to allow them to invest more in investments where they see a good opportunity.