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.”

Editors Notes:

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