A snapshot of our research paints an interesting picture of adverse credit in the UK.

1 m

…adults in the UK who have experienced adverse credit in the past 3 years and are looking to purchase a property in the next 12 months. This number has increased by nearly 80,000 since the last wave of research 6 months ago.

It’s common for specialist lenders to say, “We are the lender for customers who don’t fit the high street”, but it’s less common for them to offer real insights into who those customers are.

This is perhaps because most specialist mortgage customers have some element of adverse credit and, as an industry we have become shy about talking about this section of the market.

1 %

…of these adults would seek advice from a mortgage broker. This is up from 40% in our last report.

1 %

…of all adults say they have missed more than one credit payment in their lifetime.

1 %

…of homeowners with adverse credit in the last 3 years have had the adverse credit registered on their credit record while living in the home they currently live in.

At Pepper Money, we think it’s time this changed. Missed credit payments are an increasing reality for a growing number of people and whilst the numbers; total outstanding consumer debt, the number of CCJs and Defaults registered and the number of consumers seeking debt advice or debt management paint an interesting picture, they don’t tell us about the people behind those statistics.

They are the potential customers of the specialist mortgage market. They are the people with credit issues who seek the advice of a broker and they are the group of potential clients who don’t seek advice because they don’t think they have any options.

1 %

…of adults with adverse credit in the last 3 years currently have less than £5,000 of debt (excluding mortgages and student debt) and 14% have no debt at all.

1 %

…of people surveyed think they would have to wait longer than 5 years to apply for a mortgage after being registered with a CCJ. This is slightly up from the last report when the number was 25%.

So, who are the people with adverse credit on their record? What are their intentions and how many are planning to buy a property in the near future? What are their expectations and where do they turn for advice?

These are just some of the questions we have been asking with our bi-annual research, to help us get to the bottom of the potential for the adverse credit mortgage market and the hurdles that stand in the way of meeting that potential.

1 %

…of adults with adverse credit in the last 3 years, who are looking to purchase a property in the next 12 months with a mortgage, are concerned about having their mortgage application declined due to their credit history.

1 %

…of homeowners who had experienced adverse credit before buying their current property say their adverse credit resulted in a declined mortgage application.

The findings are fascinating and have enabled us to put a figure on the potential size of the adverse credit mortgage market and the opportunity for mortgage brokers.

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Please note the results are indicative and should be used as a guide only.

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