Mortgage brokers are playing a greater role for prospective homebuyers in Scotland with adverse credit, with new Pepper Money research showing 61% of those planning to purchase within 18 months expect to use an intermediary.

The study found that 46% of this group regarded a broker as essential to securing a mortgage. That compares with 29% of adverse-credit borrowers overall and 17% of Scottish adults.

Across Scotland, 31% of adults said they wanted to use a broker when they next bought a home, rising to 41% among respondents with adverse credit.

The findings suggest the value placed on advice increases among borrowers facing more complicated lending circumstances. Of those with adverse credit, 42% were worried about securing a mortgage and the same proportion expressed concerns about the application process.

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Previous difficulties obtaining finance were more common among those yet to become homeowners. Pepper Money found that 26% of non-homeowners with adverse credit had been declined on their first mortgage application, compared with 10% of homeowners with adverse credit.

Access to lenders that customers cannot approach directly was cited as a benefit of using a broker by 26% of adverse-credit borrowers intending to buy within 18 months. The equivalent figure among Scottish adults overall was 18%.

Broker experiences were also viewed favourably by most respondents who had used one, with 87% describing their experience as good.

When Scottish adults were asked what they valued about using an intermediary, 36% cited finding the best rate available in the market. Professional advice was mentioned by 31%, while 29% valued making the mortgage process quicker and easier and 27% highlighted having someone to speak to during the process.

Paul Adams, director of sales at Pepper Money, said: “These findings show that for customers whose financial circumstances may be more complex, a broker isn’t just a nice to have, it’s often central to getting a mortgage sorted. Nearly half of adverse credit buyers planning to purchase within 18 months told us they see a broker as essential.

“Brokers provide valuable guidance throughout the application process and, importantly, help customers understand the options available to them. That trust is reflected in the fact that 87% of people who’ve used a broker describe the experience as a good one.

“The research reinforces the value of the intermediary channel for borrowers whose circumstances may not fit straightforward lending criteria, as well as the role brokers play in connecting customers with lenders and solutions that are appropriate for their individual needs.”

Pepper Money has recently extended its mortgage activity in Scotland with the introduction of a first charge range distributed through intermediaries. It adds residential and buy-to-let mortgages to the lender’s existing second charge presence in the country, with brokers supported by a dedicated regional team.