More customers with adverse credit turning to professional advice
11 January 2022
The latest Pepper Money Adverse Credit Study has revealed that more than half of customers with adverse credit looking to buy a property say they would speak to a broker to help them get a new mortgage.
In addition, CACI reported remortgage activity could significantly climb to almost £40bn in January, overtaking the biggest month of October 2021, with remortgage maturities at £38.9bn
Whether customers are seeking to buy or remortgage, the role of an adviser is increasingly important this month. According to Pepper Money’s research, 54% of people with adverse credit, who want to buy a property in the next 12 months, say they would speak to a broker to help them get a new mortgage. This is up from 44% when the study was last conducted in Spring 2021.
However, 41% of respondents with adverse credit say they would feel uncomfortable talking to a professional financial adviser about their finances. Therefore, work remains to help customers with credit blips become more comfortable in seeking professional advice.
More insights about the role of advisers are available within the Pepper Money Adverse Credit Study Winter 2021/2022, which is exclusively available via Pepper Money’s LinkedIn intermediary page:
www.linkedin.com/showcase/mortgage-intermediaries-hub
Paul Adams, Sales Director at Pepper Money, says:
“Professional advice is the best option for any customer who has experienced blips on their credit record. Advice not only ensures they are presented with the best options for their circumstances, but it also opens up the option of lenders that are not available direct to customers. So, it’s great news that more than half of customers with adverse credit would speak to a broker to help them get a mortgage to buy a new property. However, at the same time, more than four in 10 still say that they would feel uncomfortable talking to a professional financial adviser about their finances.
“It’s important then that we work harder to break the stigma around missed credit payments and do more to promote the benefits of speaking to a mortgage adviser. At Pepper Money, we continually develop our proposition to benefit exactly those customers. With our Adverse Credit Study, we are investing in raising understanding and awareness of the options available to them.”
Information
In October 2021, YouGov conducted an online survey on behalf of Pepper Money to a nationally representative sample of 4,192 adult respondents aged 18+. Of these, 492 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 years.
