GROWING NUMBER OF ADVERSE CREDIT CUSTOMERS TURNING TO BROKERS FOR ADVICE
15 January 2024
Nearly six in 10 (58%) customers with adverse credit would seek the advice of a mortgage broker, according to the latest Pepper Money Specialist Lending Study.
The study found that of those people with adverse credit in the last three years who are planning to buy a property in the next 12 months, 58% say they would speak to a mortgage broker. This is up from 24% last year.
According to the research, when this group of customers were asked to select from multiple choice which channels they would typically use to find a mortgage broker, 60% selected online research, whilst recommendations from friends and family were also chosen by 60% of the respondents. A stark increase compared to last year, when 39% said they would find a broker through online research, and 37% said they would find a broker through recommendations from friends and family.
The 2023 Pepper Money Specialist Lending Study is available to download now at www.pepper.money
Rob Barnard, Director of Intermediary Relationships at Pepper Money, said:
“Brokers have a huge role to play in helping customers, whether they have adverse credit or not, to open new opportunities to enable them to move forward in their life plans.
“The number of customers with adverse credit who recognise the value of professional advice may have grown significantly, but nearly half (48%) are unaware that there are some lenders only available through mortgage brokers, and half (50%) have never heard the term ‘specialist mortgage lender’.
“Brokers need to be proactive in marketing their services and where they can add real value. Our study found that most customers start their journey online, and brokers have an opportunity here to ensure that their online presence delivers a positive reflection of the value they can provide. At Pepper Money, we have created an online Broker Marketing Hub to help brokers take the first steps in marketing their services more effectively.”
