Majority find their brokers through online research and recommendations
An increasing number of customers with adverse credit are turning to mortgage brokers for guidance, new research has revealed.
The latest Pepper Money Specialist Lending Study found that nearly six in 10 individuals with adverse credit, or 58%, in the past three years intending to purchase a property within the next 12 months expressed their intention to consult a mortgage broker. This marks a significant surge from the 24% that said the same in the previous year.
The study also delved into the preferred channels for finding a mortgage broker among this demographic. Around 60% opted for online research, while an equal percentage relied on recommendations from friends and family. This represents a notable shift from the previous year, where 39% indicated online research as their method of choice, and 37% leaned towards recommendations from their social circles.
“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,” Rob Barnard (pictured), director of intermediary relationships at Pepper Money, commented.
“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.”
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