The sixth quarterly Pink 1000 Index concentrated on questions regarding the adverse sector. 56 per cent of brokers surveyed reported undeclared adverse credit was the most difficult area; 34 per cent said finding the right product for an adverse client was the most difficult; and 5 per cent said that self-cert and ‘other’ respectively was the most difficult area to overcome.
When brokers were asked what best describes the current state of the adverse sector, 45 per cent declared it was okay but needs more competition; 29 per cent reported that it was innovative; 14 per cent said that it was severely lacking in innovation; 8 per cent believed the sector is saturated; and 4 per cent said ‘other’.
Tony Jones, managing director at Pink Home Loans, said: “These results don’t surprise me. The full extent of consumers’ knowledge of their credit histories is a grey area for many.
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There is a whole economic squeeze on consumers, debt levels are rising and I can see more lenders moving into this area as there is still room for new players. This will only lead to increased competition which can only be good for the industry.”
James Cotton, mortgage specialist at London & Country, commented: “Undeclared adverse credit is an understandably difficult area for brokers as the degree of adverse credit reflects directly on what products and rates can be offered.
“I don’t believe consumers are necessarily hiding the number of CCJs they may have. They just don’t know their full credit history which makes life a little harder for the broker.”
