Almost six out of 10 home buyers with adverse credit would turn to a mortgage broker for advice, research by Pepper Money has found.

A YouGov survey commissioned by the lender found that 57 per cent of prospective home buyers with a missed payment on their credit file within the past three years would use a broker, up from only 40 per cent six months ago.

More than half of buyers say they would go online in order to research the best broker, up from 49 per cent in the last survey.

Around a third already have a broker, down from 44 per cent last autumn and 48 per cent would ask friends and family for recommendations, which is up from 36 per cent.

Pepper Money sales director Paul Adams says: “It is very encouraging that a growing number of people with specialist mortgage requirements understand the benefits of seeking professional advice, and we have seen a real surge in awareness over the last six months.

“We have also seen an increase in the number of people who would go online to find a broker and also a decrease in the number of people who say they have an existing relationship with a broker. 

“This could possibly be due to an increase in the number of first-time buyers. 

“Whatever the reason, it is clear that there is significant opportunity for brokers with a strong online presence to take on new clients.”

But he adds: “There are, however, still many potential homebuyers with adverse credit, who would go directly to a high street lender or seek advice from friends and family and these avenues may lead to them thinking that they have no opportunities to secure a mortgage. 

“So, we still have plenty of work to do to raise awareness and understanding amongst customers, and potential clients for brokers.”