Complex prime clients account for a third of all mortgages handled by IFAs and 96% of advisers believe the sector is set to grow further, according to a national survey conducted by Sun Bank.
The study indicates that those most likely to be categorised as complex prime ‘ self-employed and high net worth individuals ‘ are also the most likely to have an existing relationship with an IFA.
However, the survey also indicated that there is a lack of understanding about the complex prime market among advisers. A total of 54% of survey respondents indicated they usually placed complex prime cases with sub-prime lenders.
Chris Cummings, marketing director at Sun Bank, said: ‘If IFAs are not fully aware of the options available to their clients then there will be large numbers of people who are forced to pay high rates, even though they may not suffer from a poor credit history.’
Changing working patterns and lifestyles have fired the emergence of the complex prime market. Apart from those with a failed credit score, clients with income that is difficult or complex to prove, such as from investments and rents may be labelled complex, as will purchasers of unusual property and foreign nationals.