Brokers need to do more to help customers with debt problems by directing them to debt advice providers.
That was the message from debt advice firm PayPlan, which said brokers need to get their clients help after they are declined from getting a mortgage.
June research from the Financial Conduct Authority shows that over half (52%) of customers who have been declined a loan are still in the same financial position 12 months later.
Andrew Alder, head of partnerships at PayPlan, said: “Intermediaries are well placed to identify the signs of individuals struggling with money problems and should provide awareness of where they can get free independent debt advice when unable to secure the lending needed to consolidate their unsecured debts.
“We regularly see these types of consumers contacting PayPlan months after they have been declined for this type of lending.
“If the intermediary and debt advice industry had closer links, it could enable the prevention of debt problems before a consumer hits crisis point.
“Lenders are already providing an effective debt management pathway for clients who are struggling financially and it’s important that the intermediary market follows suit in their responsibility.”