Shaun Church, director at Private Finance, said the fact high street banks and specialist lending had seen the most growth was not surprising given the current mortgage climate.
He said: "Challenger banks and specialist lending are going to have to continue to evolve. Unfortunately, if you're not doing something niche enough you will not be able to succeed.
"The market is self-regulating so if you're not doing enough then you're not going to continue to exist."
Mr Church also pointed out there were 'mini price wars' between specialist lenders. For instance, he said, most building societies were vying for the ex-pat business or the self-employed business where bespoke and manual underwriting can make a difference.
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