More homebuyers with adverse credit turning to advice
Nearly six in ten (57%) homebuyers with adverse credit would seek the advice of a broker to find the right mortgage, up from just 40% six months ago.
This is according to recent research carried out by YouGov on behalf of specialist lender, Pepper Money.
The study found that 57% of all adults who have experienced adverse credit in the last three years and are intending to purchase a property in the next 12 months would go to a mortgage broker to source a mortgage for them.
When it comes to finding a broker, 54% say they would carry out online research, which is up from 49% in the last report.
Just over a third (34%) say they have an existing relationship with a mortgage broker, down from 44% last autumn and 48% would ask friends and family for recommendations, which is up from 36%.
Paul Adams, Sales Director at Pepper Money, says:
“It is very encouraging that a growing number of people with specialist mortgage requirements understand the benefits of seeking professional advice, and we have seen a real surge in awareness over the last six months.”
“We have also seen an increase in the number of people who would go online to find a broker and also a decrease in the number of people who say they have an existing relationship with a broker. This could possibly be due to an increase in the number of first-time buyers. Whatever the reason, it is clear that there is significant opportunity for brokers with a strong online presence to take on new clients.”
“There are, however, still many potential homebuyers with adverse credit, who would go directly to a high street lender or seek advice from friends and family and these avenues may lead to them thinking that they have no opportunities to secure a mortgage. So, we still have plenty of work to do to raise awareness and understanding amongst customers, and potential clients for brokers.”
In February 2020, YouGov conducted an online survey on behalf of Pepper Money to a nationally representative sample of 4,094 adult respondents aged 18+. Of these, 598 had experienced adverse credit (defined as anyone who had missed credit payments or loans, and/or had a CCJ or DMP) within the last 3 The figures have been weighted and are representative of all GB adults (aged 18+).
*based on UK adult population of 52.4m, according to the ONS https://www.ons.gov.uk/aboutus/transparencyandgovernance/freedomofinformationfoi/projectedukadultpopulationfor2018