900,000 people with adverse credit history to access mortgage in next year

An estimated 900,000 people who have experienced adverse credit are intending to purchase a property in the next year, research from Pepper Money has indicated.

A study by the lender found that 13% of people who have experienced adverse credit in the last three years are planning to get a mortgage.

However, 84% of all respondents said the current economic environment will make it harder for them to get a mortgage.

Pepper Money’s 2023 Specialist Lending Study was based on research conducted by YouGov in September among more than 6,000 UK adults.

It found that 15.6 million people have some history of adverse credit, including missed credit payments, defaults, CCJs, unsecured arrears, secured arrears or entering a debt management plan. The study also revealed that nearly half of people (49%) who have missed one credit payment have then gone on to miss further credit payments.

Sales director at Pepper Money, Paul Adams, said that the cost of living crisis is “taking its toll” and impacting those people with adverse credit the hardest.

“It paints a picture of challenge, but it also paints a picture of opportunity,” Adams added.

“We aren’t alone in our sector, and there remains 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.”

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