SPECIALIST LENDING STUDY

Stay in the know

An in-depth look at adverse credit, the cost-of-living crisis and other considerations that can impact the lives of mortgage customers

The Specialist Lending Study is the most extensive primary research conducted within the Specialist Mortgage Industry. Our aim is to provide a study which takes a broader, detailed look at the views and impacts of UK mortgage customers. The study covers the cost-of-living crisis, adverse credit, self-employed and second charge mortgages.

The UK mortgage market after a period of turbulence is now moving in the right direction. However, customers, brokers, and lenders alike will now have to become accustomed to a new normal. This study is uniquely positioned to provide brokers and lenders valuable insight into the challenges and perceptions of consumers, which gives brokers the opportunity to improve consumer engagement and their outlook on their mortgage prospects.

Download our latest Winter 2023 Specialist Lending Study

With great insight into Adverse Credit, Cost-of-Living Crisis,
Self-Employment & Complex Incomes

ADVERSE CREDIT

0 m

adults in the UK have a history of adverse credit – missed credit payments, Defaults, CCJs, unsecured arrears, secured arrears or entered a DMP.

1 %

Nearly half of people who have missed one credit payment say they have gone on to miss further credit payments.

1 k

potential mortgage customers have adverse credit – 13% of those who have experienced adverse credit in the last three years say that they intend to purchase a property in the next 12 months

More than 15m people have a history of adverse credit in the UK.

The 2023 Pepper Money Specialist Lending Study has found that 15.16 million people have a history of adverse credit – missed credit payments, Defaults, CCJs, unsecured arrears, secured arrears or entered a Debt Management Plan. 

This is based on a YouGov survey of 6,134 people in September 2023, which found that 28.93% have a history of adverse credit and the ONS projection for the UK adult population of 52.4 million. 

COST-OF-LIVING CRISIS

0 %

say the current economic environment will make it harder for them to get a mortgage.

1 %

say their financial situation is negatively impacting their mental health.

1 %

say their disposable income has decreased in the last year. 31% say it has decreased significantly.

0 %

CONCERNED

Level of concern about the cost-of-living crisis on finances

0 %

CONCERNED

Level of concern about their financial future

Our research has shown that very few households are untouched by this situation. However, as is often the case, it’s those with the smallest financial buffer that are impacted the hardest. This is demonstrated very clearly by the impact it’s having on mental health. 36% of all people are suffering from mental health problems because of their financial situation is striking. The fact that this number rises to 49% for those with adverse credit is alarming.
Rob Barnard
Intermediary Relationship Director
0 %

CONCERNED

Mental health negatively impacted by financial situation

0 %

CONCERNED

Consumers' perception that it will be harder to secure a mortgage in the future

It’s clear that the cost-of-living crisis is taking its toll and is impacting those people with adverse credit the hardest. It paints a picture of challenge, but it also one of opportunity. Because it’s circumstances precisely like these that are the reasons why lenders like Pepper Money exist. We work hard to develop the insights into what customers need and we develop our proposition around those insights – not just our products and criteria, but also our service and the way we communicate throughout the process. We aren’t alone in our sector and there remain good opportunities for people to continue to work towards their objectives when it comes to their home and their mortgage. The secret to unlocking these opportunities is professional advice.
Paul Adams
Sales Director
Paul Adams Sales Director at Pepper Money

COST-OF-LIVING CRISIS

Before buying a property customers with Adverse Credit will seek mortgage advice from:

At Pepper Money, we’re active in working alongside our broker partners to ensure more customers recognise the benefits of second charge mortgages and their potential applications in the right circumstances.
Ryan McGrath
Second Charge Sales Director

Specialist Lending Study Partnerships

Specialist Lending Study

Specialist Lending Study

Specialist Lending Study

Download our latest Winter 2023 Specialist Lending Study

With great insight into Adverse Credit, Cost-of-Living Crisis, Self-Employment & Complex Incomes

Our previous Adverse Credit reports

Adverse Credit Study Winter 2022/23

Find out all you need to know about the impacts of adverse credit.

Download Report

Adverse Credit Study Winter 2022

Find out all you need to know about the impacts of adverse credit.

Download Report

Adverse Credit Study Winter 2021

Find out all you need to know about the impacts of adverse credit.

Download Report

Adverse Credit Study Autumn 2020

Find out all you need to know about the impacts of adverse credit.

Download Report

Adverse Credit Study Spring 2020

Find out all you need to know about the impacts of adverse credit.

Download Report

Adverse Credit Study Spring 2019

Find out all you need to know about the impacts of adverse credit.

Download Report