"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."
Two thirds (66%) of people with adverse credit who intend to buy a property in the next 12 months would seek the advice of a broker, according to a survey by Pepper Money.
In February, when the study last took place, 57% of people in this group said they would talk to a broker and the equivalent research 12 months ago found that just 40% would seek professional advice.
When it comes to finding a broker, 53% of respondents to the latest survey said they would carry out online research. Almost half of people (45%) say they have an existing relationship with a broker.
The most common reason for choosing a broker is a recommendation from friends and family. This has steadily increased in importance over the last 12 months. Last year 36% of the group 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 again 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 as 61% of would seek advice from friends and family and 55% say they would speak directly with their bank, while 41% would carry out research online. So, 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.”
