Almost Two Thirds of People Would Feel Judged If They Looked for a Bad Credit Mortgage!
At Simply Lending Solutions we know that it can be daunting to start the search for a mortgage deal. Our colleagues at Simply Adverse tell us that their clients find it even more difficult to approach a broker, as they have a history of bad credit. In order to find out more about attitudes to mortgage products for those with a poor credit history, known as ‘bad credit mortgages’, Simply Adverse asked YouGov to carry out some research on their behalf.
Simply Adverse are using the results of this research to help support their plans for an online forum for people who aren’t yet ready to talk to a broker directly. While initially aimed at people who are specifically worried about how their credit history will impact on their ability to find a mortgage deal, this will also help anyone looking for a specialist mortgage where reliable information may be hard to come by.
We will be giving you support on unusual contracts of employment mortgages, e.g. police, doctor/nurse, limited hours, or for those living outside the UK or looking to buy unusual properties. At Simply Lending Solutions we can also help with the minefield of self-employed and company director mortgages, as well as any questions on freelance or consultant mortgages.
Simply Adverse work on a daily basis with people who are ready to apply for new mortgage or remortgage. Their clients all have some form of adverse credit, ranging from missed payments or defaults to CCJs and bankruptcy. Many have had their applications declined elsewhere. However, like us at Simply Lending Solutions, they also encounter people who are less eager to talk on a one-to-one basis. They interact with Simply Adverse online, via their quiz or live chat, but don’t want to go further than this.
Simply Adverse were keen to find a way to help everybody who is worried that their poor credit history will stand in the way of successfully applying for a mortgage, whatever stage of that journey they are at. The feeling was that an online forum, where users could share their experiences but also receive information from professional brokers, could provide a space for those individuals who would prefer a less formal space to discuss their needs.
With this in mind there was a focus on looking at where people would look for a ‘bad credit mortgages’ and how they might feel about seeking advice and information.
What we found
One of the most striking things that the research found was that 65% of respondents strongly agreed or tended to agree with the statement ‘I would feel that I was being judged for my past financial behaviour if I looked for a mortgage or mortgage advice specifically designed for people with poor credit history’. Adverse credit can happen to almost anyone, often for reasons partially or completely out of their control, and no professional working in the adverse credit market would make judgments about anyone who is trying to find help. Yet it’s important to keep in mind that this is how people do feel.
When this statistic was added to the discovery that two thirds of people would prefer to remain anonymous when they first looked for information or advice, this confirmed a belief that providing a place where people could interact without revealing their true identity, a place where they would maybe feel less ‘judged’, was vital to helping more people access advice and information.
Why is the Simply Adverse forum different?
The research shows that many individuals are already using online forums, with 50% of respondents in the study indicating that they would use such a site to advice on mortgages for people with a poor credit history – more than would approach either a broker they already knew or a specialist broker.
However, the anonymity that makes online forums feel safe, may also pose a problem. In particular there is no transparency about the reliability of any information given, or the background of those giving it. Simply Adverse wanted to address this by retaining the ability for users to talk to peers, a feature that users are familiar with, but also add an extra layer of transparent, trustworthy information given by mortgage professionals from Simply Adverse and also by us here at Simply Lending Solutions.
In addition to this the forum also intends to use the links with the Debt Support Trust, and lenders such as Bluestone to provide additional dimensions of information. The involvement of the Debt Support Trust will help those users who are still in the process of addressing any debt issues by allowing their signposting to the appropriate support. Lenders will be able to product specific information in more detail than would otherwise be available.
Information not advice
Both at Simply Lending Solutions and Simply Adverse, we know that every individual case is different. That’s why the forums are structured to let you speak to people who’ve been in a similar situation to yourself, and to allow you to have access to the most up-to-date professional information out there about mortgages, lenders and debt management. However, if you need any tailored advice, be it on buying your first home our sorting out your finances, you will always be directed the best place to access personal advice for your circumstances
The forum will also be moderated to ensure that you aren’t given misleading or inaccurate advice or information, setting it apart from many other online facilities.
If you’re not sure whether you are ready to speak to a mortgage broker yet, but have questions about bad credit history, self-employed, company director or unusual mortgage circumstances, then log onto the forum and take the first steps towards reaching your property goal..