According to figures from TMA Club’s broker support desk, said that it had seen a “sustained focus” on queries around adverse credit as brokers looked to give the best advice to clients on missed or defaulted payments or County Court Judgements.
The firm said that the cost of living crisis was contributing to this but noted that adverse credit issues relating to defaults around three years ago were also being reported. It said this highlighted the important role of broker support.
TMA Club added that there were a large number of queries around income types as affordability has become increasingly constrained.
Areas of interest included multiple income sources, benefit income and income from buy-to-let properties.
TMA Club said that following the pandemic, cost of living crisis, inflation and rising interest rates the range of financial circumstances brokers were encountering was growing.
“Brokers should place an emphasis on understanding the individual needs of every client to find the most suitable product for them at this time. This means investing appropriate resources into KYC, fact-finding and CRM systems to ensure brokers are working with their customers every step of the way,” the firm said.
TMA Club continued that there was also a notable increase in applications for residential mortgages from foreign nationals on a visa.
It said that the invasion of Ukraine and impact of Brexit contributed to this and some lenders like Skipton Building Society has amended mortgage criteria.
Lisa Martin, development director at TMA Club, said: “The argument for seeking independent financial advice when taking out a mortgage is being constantly strengthened by the growing complexity of the mortgage market. Brokers are used to dealing with a broad range of clients and play a critical role in helping borrowers make the most informed decisions possible for their individual financial circumstances.
“Brokers can put themselves in the best position to support their customers by joining a club to ensure they have access to the full range of products to meet their clients’ needs. In addition, TMA’s Broker Support Desk can support member brokers as they try to achieve the best possible outcomes for borrowers.”
