Great chance to win customers for life

Adverse credit is the former product of choice that advisers and lenders are now avoiding like the plague. But what has happened to all the people who still need advice?

Despite the fact that lenders may not want to touch them with a barge pole, the number of consumers asking for adverse credit mortgage advice is increasing significantly, with 15% more clients looking for advice than six months ago.

There is more need for help than ever as the average deposit has dropped by almost 25% from £101,500 to £77,685.

The average age is dropping too – last July the average adverse borrower was 38 and a half years old but is now 36, indicating that people are getting into financial trouble younger.

The evidence that advisers no longer value this type of client is nowhere more clear than in lead prices.

At the height of demand for adverse clients advisers, who set their own prices for leads, paid as much as £280 per lead.

This dropped to an average £45 six months ago and since then has dropped a further 400% to just over £12 per lead.

There may be few lenders willing to touch them, but brokers willing to offer help now may win customers for life.