Adverse credit’ and ‘income types’ were top priority for brokers in the second quarter of 2023, according to TMA Club’s broker support desk.

TMA Club reveals that the top three queries it assisted directly authorised (DA) brokers with in Q2 were related to residential adverse credit, residential income support and residential foreign national services.

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

Growing financial pressures on consumers are no doubt contributing to this. In fact, research done in November 2022 found that 48% of borrowers were worried about missing mortgage repayments due to the cost-of-living crisis.

TMA also saw a large number of queries related to income types, as affordability remained a key obstacle to gaining mortgage approval.

In particular, a number of queries relating to clients with multiple income sources, benefit income, and income from BTLs.

The second quarter saw a notable increase in the number of applications for residential mortgages from foreign nationals on a visa.

The TMA suggests a number of socioeconomic factors, including the invasion of Ukraine and impact of Brexit, will be contributing to this trend but the increase has been significant enough this quarter for lenders such as Skipton BS to amend their mortgage criteria to accept more of these applicants.

TMA Club development director Lisa Martin comments: “The argument for seeking independent financial advice when taking out a mortgage is being constantly strengthened by the growing complexity of the mortgage market”.

She adds: “Brokers are used to dealing with a broad range of clients and play a critical role in helping borrowers make the most informed decisions possible for their individual financial circumstances”.