The latest Pepper Money Specialist Lending Study indicates a growing trend among customers with adverse credit histories turning to mortgage brokers for guidance.
The study reveals that 58% of these customers, who plan to purchase a property within the next 12 months, would consult a mortgage broker, a significant increase from 24% last year.
The research highlights changing preferences in how these customers seek mortgage brokers. 60% of respondents would use online research to find a broker, matching the percentage who would rely on recommendations from friends and family.
This is a noticeable rise from the previous year, where online research and recommendations stood at 39% and 37%, respectively.
Rob Barnard, director of intermediary relationships at Pepper Money, said: “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.
“The number of customers with adverse credit who recognize the value of professional advice may have grown significantly, but nearly half (48%) are unaware that there are some lenders only available through mortgage brokers, and half (50%) have never heard the term ‘specialist mortgage lender’.
“Brokers need to be proactive in marketing their services and where they can add real value. Our study found that most customers start their journey online, and brokers have an opportunity here to ensure that their online presence delivers a positive reflection of the value they can provide.
“At Pepper Money, we have created an online Broker Marketing Hub to help brokers take the first steps in marketing their services more effectively.”
