Beacon indicated that only 19 per cent of consumers had heard of the sector. However 42 per cent of respondents said the market would appeal to those with credit problems, with 21 per cent suggesting that the non-conforming market targeted the self-employed.
Find the latest industry jobs
20 per cent of consumers believed the non-conforming market catered for people who needed to borrow above normal income multiples, while 10 per cent suggested the market was for divorcees. 8 per cent believed the non-conforming market was for the unemployed.
Commenting on the findings, Nicola Severn, marketing manager at Beacon Homeloans, said: “With more and more consumers facing credit difficulties, there will be an increasing number of people who will not be able to get a high street mortgage and must look elsewhere.
“This research reveals that while there is a worrying lack of general understanding of the sector, some consumers do have a basic understanding of the products available and causes of credit problems.”
Get the latest equity release news here
However, Harry Katz, principal at Norwest Consultants questioned the need for consumer education. “Clients go to brokers to get a mortgage, they don’t want to know the ins and outs. Its like someone going to a garage to get their car fixed. They don’t always want to know what the problem is, they just want it fixed.”
