PRIMIS: Adverse credit dominates broker queries in Q3

Adverse credit dominates broker queries in Q3 as PRIMIS’ product desk continues to support brokers through market disruption.

Key points from analysis:
    • PRIMIS’ all-round product desk supported brokers with 8,316 queries in Q3 2022, 707 more than Q2 2022
    • Overall, PRIMIS’ product desk assisted brokers with 23,700 between September 2021 and September 2022
    • Broker queries covered topics including adverse credit, self-employed workers, and income to affordability

PRIMIS Mortgage Network has today revealed that the network’s product desk helped appointed representative (AR) advisers with 8,316 queries in Q3 2022, 707 more than Q2 2022. These figures show the product desk’s vital role in providing brokers with all the necessary support during this turbulent economic period.

During Q3, some of the most common queries from brokers included:

1. Adverse credit

The product desk saw a large proportion of queries relating to mortgages for those with adverse credit. Despite the rising cost of living placing pressure on many consumers, there are still options available to borrowers with adverse credit, as well as to those in other complex financial circumstances. The uptick in queries on the topic of adverse credit suggests that broker guidance on the most suitable products for this group of customers is particularly important at this time.  

2. Self-employed

The product desk also saw an increase in the number of queries regarding self-employed mortgages. Lenders have tightened their criteria for self-employed applicants in recent years, leading to the application process becoming more complex. Brokers are now playing a vital role in supporting self-employed borrowers, who often don’t know where else to turn, looking to receive advice regarding their mortgage needs during this period.

3. Income to affordability

First-time buyers have seen the amount they can borrow decrease, in some cases by as much as 30 per cent, as banks tighten their mortgage affordability calculations in the face of rapidly rising rates. With interest rate repayments increasingly eating into borrowers’ monthly incomes, lenders are becoming more cautious as to the amount they will lend.

4. Family assist mortgages

Rising house prices and the cost-of-living crisis has put more pressure than ever on first-time buyers saving for a deposit. Family support is a very plausible option for buyers looking to take their first step onto the housing ladder and securing a deal on a lower rate, especially during this rising interest rate environment.

Vikki Jefferies, Proposition Director at PRIMIS, comments:

“Despite the cost of living increasing significantly, along with rising inflation levels and interest rates, these statistics show that demand remains healthy, and advisers are being approached for information on how they clients can best navigate the market at this difficult time.

“Brokers will need to be well informed in order to find suitable and affordable deals for their customers, especially those with complex circumstances. By working with the right network, brokers can access the support they need to ensure they are best meeting their clients’ needs. We look forward to continuing to provide the help and guidance we know our intermediary partners value for the remainder of 2022 and into 2023.”

 

The product desk support works in tandem with PRIMIS’ ‘Virtual Experts’ page, which features vodcasts, blogs and newsletters on key industry issues to provide brokers with on-demand information and guidance.

 

Kindly shared by PRIMIS Mortgage Network

Main article photo courtesy of Pixabay