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Kensington: Brokers must free mortgage prisoners

  • 15/06/2011
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Kensington: Brokers must free mortgage prisoners
Mortgage advisers need to reapproach potential clients with smaller deposits or doubts they may be excluded from the market, after research found one in three borrowers think their application would fail.

Research by Lloyds found that more than two thirds of first-time buyers perceive that everyone is rejected so there is no point in applying.

While a report from L&G Mortgage Club and AMI has found that only one in three of all borrowers are very confident that they could get a new loan if they applied for one.

Meanwhile, former Conservative MP and chairman of AMI, John Gummer said last night at the AMI dinner, that home ownership is the basis of freedom and people who do not own their own home do not have independence.

Mortgage criteria has tightened, said Kensington, but brokers must seize the opportunity presented by their client base and local community to free mortgage prisoners.

By targeting clients they have not dealt with for a while, or extending their reach to customers who have not used a mortgage adviser in the past, Kensington believes that intermediaries can find new opportunity for borrowers that help challenge these perceptions, and grow their own business as a result.

Charles Morley, head of sales at Kensington, said: “Mortgage brokers have access to lenders, that are able to offer an intelligent approach to lending and can make the process more accessible for real people. We therefore need to work harder to educate consumers about the benefits of professional mortgage advice and how to access that advice.

“Kensington would therefore urge all intermediaries to target the mortgage prisoners in their area. They will not be able to help all of them, but by freeing those prisoners who are trapped by nothing more than perception, brokers can win new clients and grow their business.”

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