"Specialist lenders have been offering adverse credit ranges for a long time, but more competition in the market is welcome and could help to bring down rates"
The vast majority of brokers support mainstream lenders offering products to borrowers with some adverse credit, according to the latest survey from Insights, Barcadia Media's independent market research portal.
89% of brokers surveyed at this week's Financial Reporter Specialist Lending Roadshow said they have had clients with adverse credit.
When asked whether they support mainstream lenders becoming more open to lending to consumers with adverse credit, 94% said they believe it will be good for the market.
Of these, 76% said the decision by mainstream lenders would offer more choice for consumers and 16% said it could mean better rates on adverse credit products.
Other brokers said that adverse credit issues can often be minor and caused by events outside of the client's control, and therefore welcomed more lenders moving into this space.
All of the 6% who opposed mainstream firms lending to adverse credit borrowers said that these products are better suited to specialist lenders.
Insights has been developed throughout 2018 and makes use of a purpose-built digital platform upon which advisers can share their thoughts, experience and market confidence via monthly surveys.
To join the Insights mailing list and get future market research surveys straight to your inbox, visit www.project-insights.co.uk.
Financial Reporter holds dozens of webinars and broker roadshows throughout the UK each year – our commitment to supporting the professional development, education, and business opportunities of our readers.
For information on all of our upcoming events, visit www.financialreporter.co.uk/roadshows.
Financial Reporter editor, Rozi Jones, said: "The fact that almost all of the brokers surveyed had previously had clients with some adverse credit shows how vital these products are to the market.
"Specialist lenders have been offering adverse credit ranges for a long time, but more competition in the market is welcome and could help to bring down rates on these products.
"Mainstream lenders can take on this risk and, as recent research from Pepper Money and Knowledge Bank shows that adverse credit applications are on the rise, we expect to see more lenders moving into the adverse market in 2019 and beyond."