The Intermediary – August 2026 - Flipbook - Page 69
I N P RO F I L E
While a broker might be expected to know
offhand what the core mainstream lenders can
offer, the very nature of the specialist market
means this will not be the case. Therefore,
relationships and communication are key.
Rather than complex borrowers being turned
away, specialist finance is increasingly a tool in the
kit of the best brokers.
This goes beyond just bridging, which has
already made its way into the mainstream,
Rodrigues says: “Our borrower base is maturing,
they’ve got more experience, and because with
certain lenders there’s only so much that they
can do, these borrowers must look at alternative
lending. What we’re also seeing is the experienced
professional developers and investors are
changing what they’re looking for. We’re seeing
more auction properties, and again, a lot of your
traditional ‘vanilla’ brokers would run away.
“There’s also this continuous shift in the
professionalisation of the private rented sector
(PRS), and I think that will continue. The PRS is
here to stay, but what we’re seeing is amateur
landlords exiting because the tax advantages that
were there have gone.
“You’re then seeing developers taking on
refurbishment products and heavy refurbishment,
because they’ve got the strength and depth of
their conviction to do it.”
In general, the change and uncertainty of recent
years, combined with market trends such as EPC
requirements, older property limitations, and
reduced stock, means that investors are starting to
think differently.
Rodrigues says: “The savvy investors are very
much looking at what’s coming down the track
with regulation, EPCs, and all that. They’re using
economies of scale, they’re working better with
the developers to get a better bang for their buck.”
Better lending
The more investors look to new asset classes and
more complex structures, the better trust they
must have in lenders. In the past year, this trust
might have been rocked by events with MFS.
Rodrigues sees this as a necessary correction,
and a shake-up of potential complacency among
lenders that will ultimately improve the market,
rather than undermine it.
She says: “Yes, there will be a tightening, but it’s
a justifiable tightening of requirements and due
diligence, and one that you would expect.”
Stronger scrutiny need not weaken specialist
lending; it can strengthen trust in lenders that
are operating properly. This is particularly true in
a complex and challenging market. For example,
where developers are facing volatile build costs,
and the echoes of Covid-19 are a reminder of how
dramatically construction cost estimates can be
blown away, and underwriting must adapt.
“It’s really important that the build costs are
realistic and there is a sensible contingency,”
Rodrigues explains. “Some lenders say a 10%
contingency now isn’t sufficient, you have to have
at least 20%, because things will overrun. The
biggest thing for us is the exit. We’re going to be
more robust and stress that even more.”
Not every potential improvement lands at the
feet of lenders, though. Rodrigues is clear that
build targets and a smooth housing market will
only be in reach with proper planning reform, and
longer-term Government thinking. This means a
halt on the revolving door of Housing Ministers.
“The high street 10 years ago was bustling,”
Rodrigues continues. “Now, a lot of properties are
empty, because rents are too high or they can’t
deal with the build cost to change it. Change of
use is important, that will help bring back the
high street. Specialist lenders understand that
necessity, and the flexibility you’re going to need
– you might want a longer term, staged payments,
the option to extend your funding.
“It’s not about lending less during a challenging
market, it’s about lending with a clear-eyed view
as to what the exit strategy is, and making sure
that the deals that should be succeeding are the
deals that are succeeding.”
Building the future
TAB is now focused on reinforcing the breadth and
depth of its proposition. In particular, it will be
building out its commercial offering.
Rodrigues says: “I’m looking forward to
continuing to build on what we’ve already got. The
foundations are great, and we are adaptive. One of
the key things I’d communicate to brokers is that
cheap is not always best. TAB is an established
lender that brokers can trust. There will have to be
consolidation in the market, and that will reinforce
the importance of being a known brand with core
values of trust and transparency that run right
through the business.”
With continued fallout from Covid-19 and
Bounce Back Loans, growing complexity of
properties, deal structures and borrower
backgrounds, Rodrigues warns that brokers are
will see more “computer says no mentality.” This
adds to the value of working with a lender that is
willing to “get to the nuts and bolts very quickly.”
While TAB works to create stability through its
own lending practices, Rodrigues hopes for more
continuity in its surrounds, namely from both
Government and the regulator.
She concludes: “Housing is a fundamental,
massively important part of the economy. It should
be looked after accordingly.”
August 2026 | The Intermediary
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