According to a survey by Atom Bank, a further 74% expected this trend to continue, leading to an increase in near prime business.
Brokers called for increased financial education so borrowers can avoid making the same credit mistakes.
The government recently announced that it would include financial education within the national curriculum, making it compulsory for primary school students to learn financial literacy.
The survey asked brokers what elements of financial education were the most important for inclusion in proposed financial education.
An overview of different forms of credit was the most popular at 22%, and a fifth called for lessons on the real cost of borrowing and how debt can build up over time.
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Richard Harrison, head of mortgages at Atom Bank, said: “Near prime is now a mainstream part of the market, with our research highlighting the growing role it plays – and looks set to play – in the daily workloads of brokers across the country. What came through clearly in our webinar is that customers need more support and better financial education to help them understand borrowing, avoid unnecessary credit blips and navigate the mortgage process confidently.
“Demand for near prime lending is only likely to increase, as we see the continued ramifications of the budgeting challenges of recent years, so it’s crucial that lenders provide clear pathways back to Prime products as customers’ circumstances improve. Atom Bank is committed to supporting these borrowers, combining flexibility, speed and criteria designed for the realities of today’s market.”
