More borrowers with adverse credit aim to seek professional mortgage advice – Pepper

More borrowers with adverse credit aim to seek professional mortgage advice – Pepper

 

The latest Pepper Money adverse credit study has revealed that 54 per cent of people plan to seek a broker’s advice, compared to the 44 per cent who said the same in spring 2021. 

The survey was conducted in October with 4,192 people including 492 who had experienced adverse credit such as missed credit payments or loans, a county court judgement or debt management plan within the last three years.  

A quarter said their existing relationship with a broker would motivate them to seek advice while 51 per cent said recommendations from family and friends prompted them to consider this. 

However, two-fifths said they would feel uncomfortable speaking with a professional adviser about their finances. Pepper said this highlighted the need for more work to be done to make people feel comfortable. 

Some 28 per cent of respondents said they were ‘very worried’ about their mortgage application being declined, a rise from 12 per cent of concerned respondents in spring. 

 

Effect of the pandemic on finances 

Regarding the impact of the pandemic on finances, 31 per cent of people said they ‘strongly agree’ that the economic implications of Covid-19 would make it harder for them to get a mortgage. 

Around a third of people with adverse credit said the pandemic had negatively affected their personal income, compared to a fifth of the general population. 

Paul Adams (pictured), sales director at Pepper Money, said: “It’s great news that more than half of customers with adverse credit would speak to a broker to help them get a mortgage to buy a new property. 

“However, at the same time, more than four in 10 still say that they would feel uncomfortable talking to a professional financial adviser about their finances. 

“It’s important then that we work harder to break the stigma around missed credit payments and do more to promote the benefits of speaking to a mortgage adviser.”