Half of potential homebuyers with adverse credit (50%) say they would speak to a mortgage broker for advice on getting a mortgage.

This is according to the latest Pepper Money Specialist Lending Study, with the figure slightly down from the last study, when 58% said they would speak to a broker.

The research found the most popular ways of finding a broker are through recommendations from family and friends (47%), while 46% said they would use online research.

According to the study, the ability to access lenders that aren’t directly available to customers is the most popular reason for speaking to a broker (67%), but close behind is finding the best rate in the market (64%).

Some 59% of customers favour face to face advice, close behind were email (58%) and telephone (50%).

The study found that people are divided as to whether they would want to pay for mortgage advice. Nearly 4 in 10 (38%) said it would depend on the broker, with 27% saying they would prefer to use a broker who doesn’t charge a fee. A further 22% said they didn’t know and 13% said they would prefer to use a broker who does charge a fee.

Commenting on the latest study Pepper Money director of intermediary relationships Rob Barnard said:  “The latest Pepper Money Specialist Lending Study should make encouraging reading for brokers. There’s been a significant increase in consumer confidence year on year with 1.76 million people with adverse credit planning to buy a property in the next 12 months.”

However, he said there was still more work for brokers and lenders to do to encourage customers to realise their mortgage ambitions.

“Especially when you consider the number of customers with adverse credit who say they would speak to a broker for advice is slightly lower than last year. Although it’s still a significant number and the growing number of people with adverse credit should mean there will be plenty of chances for brokers to help customers who have slipped up in their finances.”

Mortgage Advice Bureau business principal Kate Fuller (pictured) commented: “For most people, a mortgage is the single largest financial commitment they’ll ever make, and so professional advice is vital for all customers, particularly those who have adverse credit. This is why the percentage of mortgages arranged through intermediaries is so high and growing.”

She added: “So, while it’s encouraging that half of customers say they would speak to a broker. I personally believe this number should really be much higher. The study highlights although an intermediary may not be their first point of call, it is not surprising it is ultimately where circa 85% will end up.”