26% of brokers are concerned about finding a mortgage for this group of customers
One in four mortgage brokers believe that customers with adverse credit will find it most challenging to access a mortgage in the next 12 months.
Pepper Money and Mortgage Business Expo’s online survey of more than 500 brokers found that around 26% of brokers are concerned about finding a mortgage for customers with adverse credit in the next year.
The next hardest to place cases, according to nearly 22% of brokers, will be buy-to-let, with remortgaging at high loan-to-values (LTVs) seen as the most challenging by nearly 12% of brokers.
The research also revealed that over one in 10, or 11%, of brokers expect to have trouble finding a mortgage for their self-employed customers and those with complex income, while nearly 10% think they will struggle to find a mortgage for first-time buyers. Just under 9% were most concerned about accessing a mortgage for older customers nearing retirement.
“The results of the broker survey support the findings in the latest Pepper Money Specialist Lending Study,” Ryan Brailsford (pictured), business development director at Pepper Money, commented. “The data suggest that brokers are right to think that they will encounter more customers with adverse credit in the next year.
“For the Specialist Lending Study, we partnered with YouGov to conduct research among more than 6,000 adults and found that 15.1% of all adults have experienced some form of adverse credit in the last three years. This means the number of potential mortgage customers with adverse credit has grown by more than 1.6 million in the UK.”
Brailsford, however, stressed that finding a mortgage for this growing group of customers does not have to be a challenge.
“Lenders are open to considering individual circumstances, have clear, concise criteria and, at Pepper, we’re also very proud of our service levels,” he said. “So, finding a mortgage for customers who have blips on their credit record can be a lot more straightforward than you would think – and it could make an enormous difference to their lives.”
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