Two thirds of those with adverse credit would seek broker advice

Two thirds (66%) of individuals with adverse credit would seek the advice of a broker, according to a study conducted by YouGov on behalf of Pepper Money.

The data is based on those who intend to purchase a property in the next 12 months.

In February, 57% of people with adverse credit who intended to purchase within 12 months outlined that they would seek the advice of a broker.

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A year ago, the figure was noted at 40%.

When it comes to finding a broker, 53% of respondents to the latest survey detailed that they would carry out online research.

Meanwhile, 45% said that they have an existing relationship with a broker.

According to the data, the most common reason for choosing a broker is through a recommendation from a friend or family.

Last year 36% of the respondents cited recommendations from friends and family as a reason for choosing a broker, this increased to 48% in February, and in the latest report it has risen to 55%.

Paul Adams, sales director at Pepper Money, said: “It’s really encouraging that the number of people with adverse credit who would go to a mortgage broker for advice is on the rise as this is by far the best way for them to access the most suitable product for their circumstances.

“However, there is still plenty of room for improvement, there are many customers who won’t be accessing the most appropriate information for their situation.

“As we continue through the COVID-19 pandemic, a time when so many people have experienced disruption to their finances, it is important that we as an industry do more to make the benefits professional advice understood and available to a wider group of people.

“The research suggests that a good way to achieve this is for brokers to ensure that have a strong online presence, with information on their expertise and ability to help customers with a range of circumstances, including adverse credit, and to talk to their existing clients to make them aware of the full range of products and services they offer and encourage referrals.”