Mortgage Broker Tools (MBT) has launched a vulnerable customer disclosure information service.

The new service will provide brokers with an up-to-date, searchable database that outlines how to declare a customer as vulnerable to each lender.

The service, designed in response to broker feedback, aims to help intermediaries meet their regulatory obligations and deliver the most appropriate advice to clients with additional needs.

It will be available on the MBT platform and updated to reflect changes in lender policy.

Research undertaken in November last year by Smart Money People, led by Newcastle for Intermediaries, found that more than 89% of brokers had encountered a vulnerable client in the previous year.

However, more than 58% highlighted a lack of clarity around disclosure processes as a major barrier to providing appropriate support.

MBT chief executive officer Tanya Toumadji says: “The FCA is very clear on the role that brokers play in identifying and supporting vulnerable customers, whether they are experiencing illness, disability, financial hardship or significant life events.”

“However, a recent survey found that lack of clarity when it comes to knowing how to disclose vulnerabilities to lenders is a major hurdle for brokers.

“This important piece of industry-wide research, spearheaded by Newcastle for Intermediaries, clearly demonstrated the need for clearer, more accessible information when it comes to disclosing vulnerable customers.”

“Our new vulnerable customer disclosure database helps to address this, with clear information on how to declare vulnerabilities to lenders.”

“By making this service easy to access, we’re helping brokers meet their obligations and offer tailored advice, without having to second-guess each lender’s process.”

In March, the Financial Conduct Authority revealed that only four out of 10 vulnerable customers disclosed their needs to their financial services provider.

However, it found that those who do open up tend to have better experiences.