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Mortgage broker comment on consolidation in the specialist lender space

Journalist:

ended 15. March 2023

I am looking for comment from commercial mortgage brokers about consolidation in the specialist lender space.

I would like to know what mortgage brokers think (whether it is a good or bad thing), how it might affect the market, and whether there might be more of it.

2 responses from the Newspage community

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Kundan BhaduriVerified
Property Developer and Portfolio Landlord at The Kushman Group
As a large portfolio landlord who regularly works with some of the biggest specialist lenders in the country, and relies mainly on specialist lending to expand our portfolio, I believe diversity is key in this segment of the market. A consolidating and shrinking market poses the risk not just for brokers that operate in the space, but also to portfolio landlords that operate in this space as our borrowing requirements are constantly changing from project to project. No two properties are the same and if the choice of lenders in the market diminishes, it will pose a serious threat to market activity as investor confidence gets affected due to limited choice of borrowing options.
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Samuel Mather-HolgateVerified
Independent Financial Adviser at Mather and Murray Financial
The specialist market needs more players to stimulate innovation and competition in this area. Consolidation in isolation might be a good thing, but if there is too much the sector will shrink and this means poor outcomes for clients.