Over half (53%) of brokers are confident they could clearly explain the characteristics of vulnerability and identify vulnerable customers, a new study by TMA Club has suggested.
The mortgage club said that recognising vulnerability has become “increasingly important” since the beginning of the COVID-19 pandemic, with government support having come to an end, and many banks now relaxing requirements for borrowers with complex or non-standard finances.
However, of the same sample that TMA surveyed, 41% of brokers stated that while they could broadly identify the characteristics of vulnerability and identify vulnerable customers, they would like further guidance in the area.
TMA Club development director, Lisa Martin, said that the mortgage club has seen a “surge” of borrowers finding themselves financially vulnerable over the past 20 months.
“While we’re pleased to see that half of brokers are confident understanding customer vulnerability, which is far wider than just financial situations, today’s results reveal that there is more work to be done from all stakeholders in the industry to ensure borrowers are supported,” Martin said.
“Brokers play an instrumental role in their clients’ lives, and it is their moral duty to ensure a full understanding of requirements. Through all times, but especially now, it is important that brokers show empathy when dealing with all customers, and remove any risk of ‘labelling’ customers, instead reacting to their individual needs and offering a tailored service to best address these.
“The withdrawal of government support schemes such as furlough, paired with potential interest rate rises and surging energy costs, will likely increase strain on many households over the coming winter months. Brokers need to stay in regular contact with their clients, to assess any change in situation and to ensure they are informed on, and have access to, the right products.”
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