Two-thirds of the 1.9m adverse credit borrowers looking to buy a house in the next year expect to ask a broker for advice, so advisers need to make themselves far more visible to these customers, said Rob Jupp, CEO of Brightstar.
According to Pepper Money’s adverse credit White Paper, of the 1.09m people who have experienced adverse credit in the last three years, t66 per cent will be approaching a broker for advice, up from 40 per cent a year ago.
In the second video debate focused on the research, Rob Jupp Brightstar’s CEO said the quality and in-depth nature of brokers’ online customer reviews have never been more critical.
“What your potential customers will be looking for is people who look like them. Normal people with similar issues to theirs. What I would really urge your [adverse] customers is not just to leave online reviews, but encourage clients to make them relevant. You’ll find that they will be refreshingly honest about their own situation. It’s almost a cathartic thing, they say this is me, this is what I had and this is what the broker did for me – and that will be tremendously encouraging to the million or so people looking to buy in the next 12 months,” said Jupp.
If they can see people who look like them, they are more likely to pick up the phone and say can you help me, said Jupp.
Dale Jannels, managing director of Impact Specialist Finance said education will be key for this market as a lot of adverse credit customers still don’t know they are in a position to buy a home.
“It’s down to all of us – advisers, packagers, lenders, networks and even trade bodies – should be out promoting to the end-consumer the fact it is an option to get a mortgage, no matter what your scenario,” said Jannels.
Of course it’ll depend on their affordability, credit history and score but they must come in to an adviser to explore all avenues,” he added.
Pepper Money sales director, Paul Adams said he was ‘chuffed to bits’ that interest in brokers’ services had risen from 40 to 66 per cent since the first survey was taken over 12 months ago and advocated a higher online presence promoting support for adverse credit customers as part of that skillset.
For more from all of our panelists watch part two of our debate [09:50] – and click on the link under the video to download the research.
Download the full report from: https://www.pepper.money/wp-content/uploads/2020/10/Pepper_Autumn-White-Paper-2020_09.pdf
Watch the first video in the four-part series here: https://www.mortgagesolutions.co.uk/news/2020/11/25/lender-treatment-of-mortgage-payment-holidays-still-pretty-unknown-jannels/
Victoria is group editor, Mortgage Solutions and Your Mortgage at AE3 Media.
Previous titles include editor of What Mortgage and Credit Today and a stint freelancing for various titles, including The Guardian, Which? and Money.co.uk