‘Adverse credit’ among top priority for brokers in Q2 2023 – TMA Club

TMA Club has revealed that the top three queries their Broker Support Desk assisted brokers with in Q2 were related to residential adverse credit, residential income support and residential foreign national services.

TMA Club reported a sustained focus on queries regarding adverse credit, particularly on the residential side, as brokers sought support to advise clients around missed or defaulted payments and County Court Judgements (CCJs) for debt.

Growing financial pressures on consumers are no doubt contributing to this. In fact, research done in November 2022 found that 48% of borrowers were worried about missing mortgage repayments due to the cost-of-living crisis.

TMA also saw a large number of queries related to income types, as affordability remained a key obstacle to gaining mortgage approval.

In particular, a number of queries relating to clients with multiple income sources, benefit income, and income from buy-to-lets.

Q2 saw a notable increase in the number of applications for residential mortgages from foreign nationals on a visa.

A number of socioeconomic factors, including the invasion of Ukraine and impact of Brexit, will be contributing to this trend but the increase has been significant enough this quarter for lenders such as Skipton Building Society to amend their mortgage criteria to accept more of these applicants.

Lisa Martin (pictured), development director at TMA Club, said: “The argument for seeking independent financial advice when taking out a mortgage is being constantly strengthened by the growing complexity of the mortgage market.

“Brokers are used to dealing with a broad range of clients and play a critical role in helping borrowers make the most informed decisions possible for their individual financial circumstances.”

She added: “Brokers can put themselves in the best position to support their customers by joining a club to ensure they have access to the full range of products to meet their clients’ needs.

“In addition, TMA’s Broker Support Desk can support member brokers as they try to achieve the best possible outcomes for borrowers.”