Rejection

Are advisers turning away clients with specialist lending requirements?



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Seven in 10 brokers have claimed that some advisers are turning away clients with specialist lending requirements, according to a recent survey.

The poll from specialist distributor Brightstar found that 69% of the hundreds of mortgage brokers surveyed said clients were not getting the information they needed.

Brightstar found that 94% of brokers agreed that there was a moral obligation to make customers aware of specialist lending options, even if the advice provider doesn’t want to provide the advice.

The distributor believed the results showed how borrowers were not getting the correct information with regards to the specialist loan sector and demonstrated the need and demand for specialist distributors.

“It lays bare the shocking failure of clients being left stranded without the right information to make key decisions,” said Michelle Westley, head of marketing at Brightstar.

Brokers revealed that the main reason clients were being turned away without proper information was related to concerns over service levels, the complexity of cases and the time-consuming process.

It also was found that brokers preferred to deal directly with lenders and there were concerns over the volume of information required for certain specialist deals.

Brokers were asked what solutions they could provide to borrowers when they needed more information than a broker could supply.

The most popular answer was to refer the clients to a specialist distributor who could provide a tailored solution, while the next most popular response was for brokers to learn more about specialist areas themselves.

“Specialist distributors such as Brightstar can step into the breach and provide solutions with wider access to products,” added Michelle.

“Some argue the model of specialist distributors is dead.

“This research shows it is more important than ever to provide real choice.”

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