Borrowers with poor credit more likely to use advisors
November 20, 2020 by Heidi
Borrowers
A new study shows that people who are looking to buy a home but have poor credit are much more likely to turn to a mortgage advisor for help than those who do not.
The study was carried out by Pepper Money, and it reveals that two thirds of aspiring homebuyers who have had poor credit during the last three years stated that they would go to an advisor before seeking a loan. This represents a large rise compared with the percentage that felt that way at the start of the year, which was 57%.
For its latest research, Pepper Money talked to a total of 4,000 people who are thinking of buying a home, with 537 of those that took part having suffered from adverse credit within the previous three years. Its Sales Director, Paul Adams, told FT Adviser that:
“If this trend of seeking professional advice continues, we can at least be sure that customers are giving themselves a better chance of securing a mortgage that meets their circumstances, however complex they may be.”
The Pepper Money study also showed that those who have adverse credit frequently fear that it will prevent them from successfully securing a mortgage loan – with 69% citing this as a worry. In fact, just 7% had actually lost out on a loan due to this, suggesting that it is something an advisor can reassure them about.
Clearly, this is an area of the home buying market that advisors can target after getting their CeMAP qualification.
Written by
Heidi
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