In a survey of over 4000 adults, Pepper Money found that 50% of potential homebuyers with adverse credit would speak to a broker for mortgage advice.

Revealed in the 2024 Pepper Money Specialist Lending Survey, this is down from 58% in last year’s research.

In terms of those who would speak to a broker, 2024’s report found that 47% would use recommendations from family and friends to find a broker. Marginally fewer (46%) would use online research to do so.

The research also revealed homebuyers’ motivations when speaking to brokers.

Accessing lenders who aren’t directly available to customers was the most popular reason for speaking to a broker (67%), but finding the best rate in the market was close with 64%.

Homebuyers are also split in their attitudes to paying for mortgage advice.

Pepper Money found 38% said it would depend on the broker, with 27% saying they would prefer to use a broker who doesn’t charge a fee. A further 22% said they didn’t know, while 13% would prefer to use a broker who does charge a fee.

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Commenting on the research, Kate Fuller, business principle at the Mortgage Advice Bureau (pictured above), said she personally believed the percentage of customers wanting to speak to a broker should be higher.

”The study highlights although an intermediary may not be their first point of call, it is not surprising it is ultimately where circa 85% will end up,” said Kate.

“For me this is one of the many reasons why the Specialist Lending Study is so important. It helps us, not just to better understand customer behaviour, but also to raise awareness of the options that are available and the crucial role of professional mortgage advice.”

Rob Barnard, director of intermediary relationships at Pepper Money, added: “There’s still more work for brokers and lenders to do to encourage customers to realise their mortgage ambitions.

“Especially when you consider the number of customers with adverse credit who say they would speak to a broker for advice is slightly lower than last year.

“Although it’s still a significant number and the growing number of people with adverse credit should mean there will be plenty of chances for brokers to help customers who have slipped up in their finances.