Customers with adverse credit will find it most challenging to access a mortgage in the next 12 months, a new study by Pepper Money has indicated.

One in four brokers (26%) are concerned about finding a mortgage for customers with adverse credit in the next year.

In March, Pepper Money and Mortgage Business Expo conducted an online survey to their respective intermediary databases. The survey of more than 500 brokers found that the next hardest group of customers to place cases, according to 22% of brokers, will be buy-to-let, while remortgaging at high loan-to-values (LTVs) was seen as the most challenging by 12% of brokers.

Just 11% of brokers said they expect to have trouble finding a mortgage for their self-employed customers and those with complex income, while 10% thought they will struggle to find a mortgage for first-time buyers. Furthermore, the study found that 9% of brokers were most concerned about accessing a mortgage for older customers nearing retirement.

Commenting on the findings, business development director at Pepper Money, Ryan Brailsford, said the results of the broker survey support the findings in the latest Pepper Money Specialist Lending Study.

“The data suggests that brokers are right to think that they will encounter more customers with adverse credit in the next year,” Brailsford commented.

“For the Specialist Lending Study, we partnered with YouGov to conduct research amongst more than 6,000 adults and found that 15% of all adults have experienced some form of adverse credit in the last three years. This means the number of potential mortgage customers with adverse credit has grown by more than 1.6 million in the UK.

“However, finding a mortgage for this growing group of customers doesn’t have to be a challenge. Lenders are open to considering individual circumstances.”

He added: “Finding a mortgage for customers who have blips on their credit record can be a lot more straightforward than you would think – and it could make an enormous difference to their lives.”

Share Story: