46% of Scots with adverse credit see brokers as essential – Pepper Money
This compared with 29% of adverse-credit borrowers overall and 17% of all Scottish adults.
Almost half (46%) of Scots with adverse credit who are planning to buy a home within 18 months saw a mortgage broker as essential, research from Pepper Money found.
This compared with 29% of adverse-credit borrowers overall and 17% of all Scottish adults.
While 31% of Scottish adults want to use a broker for their next home purchase, the figure rose to 41% among people with adverse credit and 61% among those planning to buy within 18 months.
42% of people with adverse credit were concerned about securing a mortgage, while the same proportion had concerns about the application process.
Among non-homeowners with adverse credit, 26% said their first mortgage application had been declined.
This compared with 10% of homeowners with adverse credit.
Access to lenders that did not deal directly with customers was seen as a benefit by 26% of adverse-credit borrowers planning to buy within 18 months, compared with 18% of Scottish adults overall.
Of those who had used a mortgage broker, 87% said they had a good experience.
Finding the best market rate was the most cited benefit of using a broker at 36%, followed by professional advice at 31%, making the process quicker and easier at 29%, and having someone to speak to throughout the process at 27%.
Paul Adams, director of sales at Pepper Money, said: “These findings show that for customers whose financial circumstances may be more complex, a broker isn’t just a nice to have, it’s often central to getting a mortgage sorted.
“Nearly half of adverse credit buyers planning to purchase within 18 months told us they see a broker as essential.
“Brokers provide valuable guidance throughout the application process and, importantly, help customers understand the options available to them.”
Adams added: “That trust is reflected in the fact that 87% of people who’ve used a broker describe the experience as a good one.
“The research reinforces the value of the intermediary channel for borrowers whose circumstances may not fit straightforward lending criteria, as well as the role brokers play in connecting customers with lenders and solutions that are appropriate for their individual needs.”
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