Twenty-nine per cent of people have experienced adverse credit at some point in their lives, according to Pepper Money’s latest Specialist Lending Study.

This equates to 15.4 million people based on the Office for National Statistics (ONS) projection for the UK adult population and is the highest number since Pepper Money started reporting this data five years ago.

Pepper Money’s latest research suggested that 8.4 million people (16%) have experienced adverse credit in the last three years, which is also the highest number since it began recording the data, representing an increase of 21% compared to 2023.

Of those who said they’ve missed a credit payment, 46% said they had gone on to miss more than one payment.

The study also found that 1.76 million people with adverse credit are planning to buy a property in the next 12 months. One in 10 (10%) of these are thinking about buying a home to live in, while 5% want to purchase a buy-to-let investment.

Director of intermediary relationships at Pepper Money, Rob Barnard, said that despite these challenges, there is still a “strong desire for homeownership” among those with adverse credit.

Barnard added: “Amidst these challenges, there’s a significant opportunity for brokers to make a real difference in people’s lives and the findings of our study can provide valuable insights for UK mortgage advisers, helping them to better support potential homebuyers and address their unique needs in an increasingly complex financial landscape.

“This research suggests that an increasing number of people are going to miss out on a mortgage from a high street lender – but this doesn’t need to stand in the way of their goals, and brokers are best placed to help those customers secure the mortgage they need to live the lives they want.”

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