Around 58% of customers with adverse credit would seek the advice of a mortgage broker, a study has found.
The Pepper Money Specialist Lending Study, which estimated that over 15 million people have some form of adverse credit, found that this was an increase from 24% in the previous year.
The study surveyed people who had adverse credit in the last three years who were planning to buy a property in the next 12 months.
The research also noted that around 60% would find a mortgage broker through online research while the same percentage (60%) would rely on recommendations by friends and family.
This is an increase from 36% and 37% last year respectively.
Customers with adverse credit recognise broker value
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 are unaware that there are some lenders only available through mortgage brokers, and half have never heard the term ‘specialist mortgage lender’.”
He continued: “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.”
