Intermediaries ‘want to help’ struggling borrowers

Almost half of mortgage intermediaries believe they have a role to play in helping borrowers that are struggling with arrears and possessions, according to the Intermediary Mortgage Lenders Association (IMLA).

Brokers also said it is important that lenders are notified early and many felt they could help their clients by liaising with a lender on their behalf.

A survey of brokers, conducted by IMLA, found 48% embraced the idea that they can support borrowers in difficulty. However, 38% felt it was not their role to help struggling borrowers.

Providing general advice and liaising with lenders are the areas that brokers felt they could be most helpful on, with each being highlighted by 15% of advisers.

Peter Williams, executive director of IMLA, comments: “Many, but not all, intermediaries are keen to play a more proactive role in supporting borrowers who may get into financial difficulty, seeing this as an integral part of the service they provide their customers over the long term. They are able to provide a higher level of expertise and independent advice to borrowers than they could find elsewhere.”

Williams says lenders will welcome the greater involvement of brokers, but stress that notifying a lender of problems is essential to resolving them. Only a small percentage of brokers thought lenders should pay them fees for arrears counselling.

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