Nearly half of adverse credit borrowers planning to buy within 18 months say a broker is essential to securing a mortgage
Scottish borrowers with adverse credit are turning to mortgage brokers in growing numbers. New research from specialist lender Pepper Money underscores just how central the intermediary channel has become for those outside mainstream lending criteria.
Nearly half — 46% — of adverse credit borrowers in Scotland who plan to buy within the next 18 months describe a mortgage broker as essential. That is the finding of a Pepper Money study published in October 2026.
That compares with 29% of adverse-credit borrowers nationally and 17% of Scottish adults overall.
Broker demand rises with complexity
The research, which fed into Pepper Money's launch of its First Charge mortgage proposition in Scotland, also found that demand for broker support tracks closely with urgency and complexity.
Thirty-one per cent of Scottish adults said they would want to use a broker for their next purchase. That figure rises to 41% among all adverse-credit borrowers and to 61% among those intending to buy within 18 months.
Why do adverse credit borrowers value mortgage brokers?
Among Scottish adults weighing up the benefits of using a broker, professional advice (31%) and finding the best rate in the market (36%) ranked highest. Making the process quicker and easier (29%) and having someone to speak to throughout (27%) followed closely.
For those with adverse credit, access to lenders not available directly to customers ranked particularly highly, with 26% identifying it as a key benefit.
That last point speaks directly to the structural value brokers provide in the specialist market. Specialist lenders operate exclusively through the intermediary channel. This means, for a borrower with credit issues, a broker is not just useful, it is the only point of access to that part of the market.
As the broker response to the adverse credit surge in the UK has shown, the range of lenders willing to operate in this space has grown considerably over the past decade. Real opportunity exists, but only for borrowers who can navigate it with the right help.
What are the barriers for adverse credit borrowers in Scotland?
Pepper Money's research did not paint an easy picture for borrowers with credit challenges.
Some 42% of those with adverse credit said they have worries about securing a mortgage, while the same proportion has concerns about the application process itself.
Among non-homeowners with adverse credit, 26% said they were declined on their first mortgage application, compared with 10% of homeowners with adverse credit.
Those figures sit alongside the broader affordability pressures affecting the Scottish market. Almost half of Scots see homeownership as out of reach, with pessimism running highest among those with complex incomes or credit histories.
"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," said Paul Adams, director of sales at Pepper Money. "Nearly half of adverse credit buyers planning to purchase within 18 months told us they see a broker as essential."
Brokers offer guidance throughout the process and explain the options available to customers. "That trust is reflected in the fact that 87% of people who've used a broker describe the experience as a good one," Adams said.
Brokers play a growing role in specialist lending
Research has long flagged which cases are hardest to place for mortgage brokers, with adverse credit consistently near the top of that list. The complexity of those cases shows no signs of easing.
The Pepper Money data carries a clear message for brokers across Scotland. Adverse credit borrowers who face the most friction in the mortgage market value their broker's help the most.
