Adverse credit cited as biggest challenge by advisors

April 17, 2023 by Alan

Mortgage Advisors

A new survey of mortgage advisors in the UK saw more than a quarter of them cite finding a suitable loan for clients who have adverse credit scores as being the most significant challenge they will face this year.

Pepper Money carried out this survey and the specialist lender spoke to over 500 mortgage advisors throughout the country for it. The results show that close to 26% of them feel that securing a mortgage for clients in that situation will present the most difficulties during the remainder of 2023.

Beyond those borrowers, the next group that it will be tough to get loans for those looking to buy properties to let. Almost 22% of the advisors that took part in the survey said that, with another 12% indicating that it would be high loan-to-value remortgage cases that would present the biggest challenge.

Perhaps surprisingly, just 11% of the advisors that Pepper Money surveyed suggested that securing mortgages for clients who are self-employed would be a hard task. Around 10% cited finding loans for clients buying their first homes as the most difficult challenge, and 9% said it would be getting loans for clients close to retirement age.

Speaking to Mortgage Strategy, Ryan Brailsford from Pepper Money said:

“The data suggests that brokers are right to think that they will encounter more customers with adverse credit in the next year.”

The knowledge provided by the CeMAP mortgage advisor course becomes particularly important when dealing with clients whose circumstances make finding loans challenging.