Understanding Vulnerability in the Mortgage Sector: The Launch of the Vulnerable People Survey

In an industry where financial decisions can significantly impact lives, understanding and supporting vulnerable customers is paramount. This week, a collaborative effort involving 24 lenders, mortgage clubs, networks, and industry bodies has launched the Vulnerable People survey, aimed at identifying and supporting individuals who may face challenges during the mortgage application process. Managed by Smart Money People, the survey is designed to gather anonymous insights from brokers, ultimately enhancing the industry’s approach to vulnerability.

The Importance of the Vulnerable People Survey

The mortgage application process can be daunting, particularly for those facing personal challenges such as illness, financial difficulties, or major life changes like divorce. The Vulnerable People survey seeks to address these critical issues by exploring the industry’s understanding of vulnerability and the obstacles brokers encounter when identifying it. By focusing on these areas, the survey aims to create a more inclusive and supportive mortgage process that protects customers who may be at risk.

Diverse Participation from Industry Leaders

The survey features input from a wide array of lenders, including notable names such as Newcastle Building Society, The Mortgage Lender (TML), Buckinghamshire Building Society, Accord, Paradigm, Sesame Bankhall Group (SBG), Alexander Hall, and the Association of Mortgage Intermediaries (AMI). This diverse participation underscores the collective commitment of the mortgage industry to better understand and support vulnerable clients.

Key Questions Addressed by the Survey

The Vulnerable People survey seeks to answer several pressing questions that can shape the future of mortgage lending:

1. Understanding Complexity: Do brokers fully grasp the complexities of vulnerability beyond the obvious scenarios such as age or illness? This question aims to uncover the nuances of vulnerability that may not be immediately apparent.

2. Disclosure Comfort: Are brokers comfortable disclosing a customer’s vulnerability to a lender without fearing it might hinder the application? This inquiry addresses the potential stigma and concerns surrounding vulnerability in the lending process.

3. Support and Education Needs: What further support or education do brokers require to effectively manage cases involving vulnerable clients? Identifying gaps in knowledge and resources is crucial for improving the overall experience for vulnerable customers.

4. Streamlining Processes: How can lenders streamline their processes to ensure vulnerability is identified and handled early in the customer journey? This question focuses on creating a more efficient and empathetic approach to mortgage applications.

Aiming for Inclusivity and Support

By gathering feedback from brokers, the survey aims to provide the mortgage industry with a clear direction on how to better identify and support vulnerable clients. The ultimate goal is to foster a more inclusive and supportive mortgage process that safeguards customers who may be at risk due to various life circumstances.

Sharing Insights for Industry Improvement

Once the survey results are compiled and analyzed by Smart Money People, they will be shared with the wider marketplace, including influential industry bodies such as the Building Societies Association (BSA) and the Intermediary Mortgage Lenders Association (IMLA). This dissemination of information will help create educational resources for brokers and lenders, ensuring that the insights gained from the survey lead to actionable improvements in the industry.

A Commitment to Research and Insight

A spokesperson from Smart Money People expressed enthusiasm about the initiative, stating, “We are delighted to have been asked by the working group to gather research from brokers on such an important topic as Vulnerable Customers. We’ve been collecting insights from brokers for over five years, which are now used by numerous lenders to inform them on various areas including service, products, and marketing. We are confident this latest report will not only be an exhaustive study but will also provide detailed, practical insights.”

Participate in the Survey

The Vulnerable People survey is an opportunity for brokers to contribute to a vital cause. By participating, they can help shape the future of mortgage lending and ensure that vulnerable clients receive the support they need. Brokers can complete the survey here.

Conclusion

The launch of the Vulnerable People survey marks a significant step towards enhancing the mortgage industry’s understanding of vulnerability. By addressing key questions and gathering insights from brokers, the survey aims to create a more inclusive and supportive environment for vulnerable customers. As the industry continues to evolve, initiatives like this will play a crucial role in ensuring that all clients receive the care and consideration they deserve during one of the most important financial processes of their lives.