Unconventional borrowing dominating broker queries – TMA Club

Unconventional borrowing solutions were a top priority for brokers in the first quarter, TMA Club has reported.

The mortgage club revealed that the top three queries its broker support desk were assisting directly authorised (DA) brokers with in Q1 concerned “residential income”, “residential adverse” and “residential self-employed”.

TMA Club observed a sustained focus on queries regarding adverse credit in Q1, particularly on the residential side, as brokers sought support to advise clients around missed or defaulted payments and County Court Judgements (CCJs) for debt.

In terms of affordability, TMA Club also reported that it saw many queries relating to income stretches, as ongoing cost of living pressures and rising energy costs continued to put pressure on household finances and debt-to-income ratios.

The club said it also handled several requests around mortgages for the self-employed, reflecting tightening lender criteria for self-employed applicants over the past few years, as the market continues to feel the effects of the pandemic, inflation and economic volatility.

Furthermore, the broker support desk recorded a slight increase in standard residential queries around maximum age and later life lending, reflecting the extent to which borrowers are increasingly moving away from the “traditional” mould of younger nine-to-five workers.

Development director at TMA Club, Lisa Martin, commented: “With the rise in case complexity due to ongoing inflation and cost of living pressures, advisers are playing a more crucial role than ever in supplying customers with the right information and resources to make informed choices for their individual financial circumstances.”

She added: “Lenders continue to innovate to ensure there remains a range of products to suit all borrowing needs, including those who are unable to qualify for a high street mortgage.”

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