Vulnerability disclosures still not reaching lenders

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Four in five mortgage brokers say they regularly encounter vulnerable clients, yet more than half of lenders report not receiving a single disclosure in the past year, according to new research from Smart Money People.

The findings highlight a continuing disconnect between brokers and lenders when it comes to supporting vulnerable customers.

While 58% of brokers believe the industry has made progress, almost a third admit they do not disclose any cases, despite rising regulatory and consumer expectations.

STRUCTURAL BARRIERS

The survey of nearly 600 brokers and lenders suggests structural barriers remain. Brokers point to unclear processes and inconsistent systems as the main obstacles to disclosure, while lenders argue that client reluctance to share sensitive information is the bigger issue.

Both groups say they are confident in identifying vulnerability, but gaps persist in awareness of FCA guidance.

Brokers say they want practical tools such as integrated disclosure points in applications and clearer guides, while lenders favour dedicated online areas, training and expert input.

FIT FOR PURPOSE

Jess Trueman, Smart Money People
Jess Trueman, Smart Money People

Jess Trueman, head of business development at Smart Money People, said: “The knowledge is there, the willingness is there – but the infrastructure to support consistent disclosure is still not fit for purpose.”

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