Research shows borrowers with credit issues turning to advisors

January 26, 2024 by Brendan O'Neill

Mortgage Advisors

There has been a rise in the percentage of people wanting to buy a home but suffering from credit issues who would turn to a professional mortgage advisor for help, according to a new piece of research.

This finding comes from the annual Pepper Money Specialist Lending Study, and it shows that 58% of people in that situation would get help from an advisor. That amounts to six out of every 10 people that participated in the survey. By way of comparison, when Pepper Money published their study at the start of 2023, just 24% of borrowers with credit issues were prepared to get help from an advisor.

The study also found that searching for an advisor on the internet was the preferred method of finding one for 60% of respondents. The same percentage of those that participated said that they would look to family or friends to recommend an advisor to them.

In the 2023 study, the percentages that named searching online and personal recommendations as their preferred methods of finding an advisor were 39% and 37% respectively.

Rob Barnard from Pepper Money told Mortgage Strategy:

“Brokers have a huge role to play in helping customers, whether they have adverse credit or not, to open new opportunities to enable them to move forward in their life plans.”

He added that the goal was now to make those currently unaware see that.

One of the ways in which someone with the CeMAP mortgage advisor qualification can help those with credit issues is by identifying potential specialist lenders.