Speaking on a video debate hosted by Mortgage Solutions, in partnership with Pepper Money, the mortgage club’s head of lender relationships said customers researched options online and panicked when calculators showed they would be rejected for a mortgage.
Pepper Money’s recent adverse credit study found that while 52 per cent of adults wanting to purchase a home in the next year were worried about being rejected for a mortgage, just six per cent of those who actually applied were turned down.
Belton said: “I generally think there is a role for intermediaries to become more visible. And be more visible in channels that customers actually use on a regular basis. Whether that be the likes of Facebook or other social medias.”
He said people would usually speak to family and friends about their credit worries and then be referred to mortgage brokers who could help. However, with people being less connected due to the pandemic, Belton suggested brokers position themselves on online platforms where concerned clients may be.
“I do believe online channels are the first port of call. This then leads to brokers having good quality websites,” he added.
He said updated web systems also helped brokers to keep in touch with existing customers who may have had a change in circumstances by asking them how they were and if they needed help.
Paul Adams, sales director at Pepper Money, acknowledged there was a lack of understanding amongst consumers.
“It’s the very reason why we do the adverse credit study. We want to promote this by social media channels, we take it to the national press as well for coverage.
“It’s a perception gap. People are very embarrassed to talk about credit issues,” he added.
Watch the video below [6:38], chaired by Victoria Hartley, group editor of Mortgage Solutions, featuring Paul Adams, sales director, Pepper Money; Stephanie Charman, head of strategic relationships, lender, Sesame Bankhall Group and Danny Belton, head of lender relationships, L&G Mortgage Club.