Adverse credit and affordability issues dominated queries received at TMA Club’s broker support desk, showing how the cost-of-living crisis is impacting the work of mortgage intermediaries.

TMA Club said 68% of the queries received in the first three months of 2023 focused on residential mortgages,  these were ‘dominated’ by questions about adverse credit and unconventional borrowing. Meanwhile 32% of queries were about buy-to-let, with the main issue being ‘top-slicing’.

TMA Club said there has been an increase in queries about adverse credit as brokers look to advise clients around missed or default payments and County Court Judgements (CCJs) for debt.

It said it will be  pointed out that it will be increasingly important for brokers to familiarise themselves with options available to borrowers with these complex financial circumstances, particularly with a recent Pepper Money and Mortgage Business Expo poll showing that 15.1% of all adults have experienced some form of adverse credit in the last three years.

TMA Club said it also saw a large number of queries relating to mortgage affordability and income stretches. It also handled a number of requests around mortgages for the self-employed, reflecting tightening lender criteria for self-employed applicants over the past few years, as the market continues to feel the effects of the pandemic, inflation and economic volatility.

TMA Club also said its broker support desk saw a slight increase in standard residential queries around maximum age and later-life lending, reflecting the extent to which borrowers are increasingly moving away from the ‘traditional’ mould of younger, 9-5 workers.

Looking at the BTL market, TMA said that current and potential landlords face a number of financial challenges, including more stringent affordability tests and EPC regulatory changes, as this market cools. As a result, it said it saw an increase in the number of queries around top slicing, as brokers continued to find creative solutions to maximise borrowing, particularly in regions where property prices are inflated or deposits are especially large.

TMA Club development director Lisa Martin says: “As lenders continue to innovate to ensure there remains a range of products to suit all borrowing needs. TMA Club’s Broker Support Desk can signpost member brokers to a range of borrowing solutions.”