Nearly one in five with adverse credit planning property purchase

Nearly one in five (18%) of those who have experienced some form of adverse credit in the past three years have plans to purchase a property in the next 12 months, according to the latest Adverse Credit Study from Pepper Money.

Nearly one in five with adverse credit planning property purchase

Nearly one in five (18%) of those who have experienced some form of adverse credit in the past three years have plans to purchase a property in the next 12 months, according to the latest Adverse Credit Study from Pepper Money.

The study, to be released in full in the new year, found that the number of people who have experienced adverse credit within the past three years has remained stable since the study was last published in May, and accounts for 12% of the population.

However, the percentage of this group who anticipate buying a property in the next 12 months has increased from 14% in the last study to 18% in the latest wave of research. This equates to just over 1,132,000 potential mortgage customers with adverse credit.

According to the research, 12% of people with adverse credit intend to buy a home to live in over the next 12 months, whilst 6% want to purchase a buy-to-let property to rent out.

Paul Adams (pictured), sales director at Pepper Money, said: “The Pepper Money Adverse Credit Study provides important insights into the millions of people who have experienced a blip on their credit file.

"The latest research indicates growing optimism amongst people with adverse credit, with more than 1.13 million planning to purchase a property in the next 12 months.

"And this presents a significant opportunity for brokers to provide much-needed advice to customers who may have limited options with the high street lenders. The report comes out in the new year, and I would recommend it to any broker who wants to gain greater insights into the circumstances and concerns of their customers.”

The Pepper Money Adverse Credit Study Winter 2021 will be published in the new year, featuring insights into the latest adverse credit trends, the role of brokers, money management and mental health.

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