Pepper Money helps Figtree Financial Recent Recoverer with Debt Management Plan and Default

In the current economic climate, with brokers likely to see an increase in customers with adverse credit, Figtree Financial has completed a case with Pepper Money for a customer with a Debt Management Plan (DMP) and Default on their credit file.

The customers were a married couple, who had sold their home and wanted a new mortgage of just over £445,000 at 85% LTV to help them buy their next property. However, one of the couple had a historic DMP and a Default on their credit file, which impacted the choice of lenders available to them.

According to Pepper Money’s latest Adverse Credit Study published earlier this year, an estimated 6.29 million of the UK adult population had adverse credit. Of this group, 34% had a Default caused by multiple missed payments and 33% had entered a Debt Management Plan (DMP). This number looks likely to increase in the future, given the cost of living crisis and recent data by the Bank of England which shows that borrowing by UK consumers doubled from £0.9bn in May to £1.8bn in June.

However, there are options for customers with these circumstances and after carrying out criteria research on sourcing systems and speaking to lenders about the case, Figtree Financial found that Pepper Money was able to consider the case, subject to underwriting.

Visit our Recent Recoverer page to find out how Kerrie Kendell, Mortgage & Protection Adviser from Figtree Financials was able to assist.