The move follows the recent high-profile campaign by Legal & General Mortgage Club and the Association of Mortgage Intermediaries (AMI) to promote the benefits of professional advice,
Kensington, which claims to specialise in “an intelligent approach to lending“, says there is a worrying perception among many consumers that the mortgage market is closed to them.
Recent research by one high street lender found that more than two thirds of first-time buyers say there is a general perception that everyone is rejected so there is no point in applying.
However a report from L&G Mortgage Club and AMI has found that only one in three of all borrowers are very confident that they could get a new loan if they applied for one.
Meanwhile, former Conservative MP and chairman of AMI, John Gummer, has claimed that home ownership is the basis of freedom and people who do not own their own home do not have independence.
Yet, while it is true that lenders have tightened their criteria since the banking crisis, the current perception of mortgage availability is in danger of creating a generation of mortgage prisoners who consider themselves trapped in rental accommodation, their current property or mortgage without fully assessing the options available to them.
Kensington therefore fully supports the campaign by L&G Mortgage Club and AMI to promote the benefits of professional advice and is calling on all intermediaries to seize the opportunity presented by their client base and local community to free mortgage prisoners.
By targeting clients they have not dealt with for a while, or perhaps extending their reach to customers who have not used a mortgage adviser in the past, Kensington believes that intermediaries can find new opportunities for borrowers that help challenge these perceptions, and grow their own business as a result.
Commenting, Charles Morley, head of sales at Kensington, said: “It is worrying that there is a general perception among many consumers that everyone is turned down for a mortgage and so they don’t even bother trying. This is creating a culture of mortgage prisoners, which is inhibiting market growth and having a detrimental impact on the lifestyles of individuals who may unnecessarily consider themselves trapped in rental accommodation, their current property or mortgage.
“Yet mortgage brokers have access to lenders, like Kensington, that are able to offer an intelligent approach to lending and can make the process more accessible for real people. We therefore need to work harder to educate consumers about the benefits of professional mortgage advice and how to access that advice.
“Kensington would therefore urge all intermediaries to target the mortgage prisoners in their area. They will not be able to help all of them, but by freeing those prisoners who are trapped by nothing more than perception, brokers can win new clients and grow their business."
