Vast majority believes current economic environment will make it harder for them to borrow
More than 15 million people in the UK have some history of adverse credit, including missed credit payments, defaults, county court judgments (CCJs), unsecured arrears, secured arrears, or entering a debt management plan.
This was revealed in the latest edition of Pepper Money’s Specialist Lending Study, which provides brokers with in-depth research on what is impacting their existing and potential customers.
The study also found that nearly half, or 49%, of people who have missed one credit payment have then gone on to miss further credit payments.
Around 13% of those who have experienced adverse credit in the last three years say that they intend to purchase a property in the next 12 months, which equates to just over 900,000 potential mortgage customers with adverse credit in the coming year.
However, 84% of all respondents say the current economic environment will make it harder for them to get a mortgage.
“The 2023 Pepper Money Specialist Lending Study has been our most comprehensive research to date and has provided more insights than ever before,” said Paul Adams (pictured), sales director at Pepper Money.
“It's clear that the cost-of-living crisis is taking its toll and is impacting those people with adverse credit the hardest. It paints a picture of challenge, but it also paints a picture of opportunity. There remain good opportunities for people to continue to work towards their objectives when it comes to their home and mortgage.
“The secret to unlocking these opportunities is professional advice, and there has been no clearer call to action about the important role that mortgage brokers have in reaching out to new and existing customers to ensure they are able to make a positive difference to as many lives as possible.”
The 2023 Pepper Money Specialist Lending Study is based on research conducted by YouGov in September among a nationally representative sample of more than 6,000 UK adults.
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