Knowledge is power

Adverse Credit Study Spring 2021

In 2019, Pepper Money embarked on an ambitious research programme to create and share knowledge about the attitudes and behaviour of customers with adverse credit.

The in-depth study shone a light on this important group, challenged preconceptions and presented new opportunities for advisers to help a wider range of customers. We have continued to run the regular survey throughout the COVID pandemic and the results have painted a clear picture of a divided nation. Whereas some people have been able to maintain or even strengthen their financial position, others have struggled, with reduced income and increased debt.

Want to find out more about our findings?

Our adverse credit study is an in-depth look at adverse credit and its impact on mortgage customers

Key Findings

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6.29 million adults in the UK have experienced adverse credit within the last 3 years. (This number is actually down from 6.81 million 12 months ago.)
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And of these, more than 880,000 intend to purchase a property to either live in or let out in the next 12 months.
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52% of adults with adverse credit who are planning to purchase a property in the next 12 months are concerned about their mortgage application being declined due to their credit history.
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However, only 44% of respondents with adverse credit who are looking to buy a property said they would go to a mortgage broker.

Concern about having an application for a mortgage/remortgage declined due to credit rating

Amount of current outstanding debt

2021

The impact of COVID-19

People with adverse credit have been hardest hit financially by COVID-19.

Just as the virus does not affect everybody in the same way, the financial impact of COVID-19 is not distributed evenly, and people with adverse credit have suffered greater financial upheaval than the general population.

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36% of people with adverse credit say their income has decreased in the last year, compared to 24% of general population.
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24% of people with adverse credit say their use of credit has increased in the last 12 months, compared to 13% of the general population.
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65% of people with adverse credit think it will be harder to get a mortgage as a result of COVID-19, compared to 55% of the general population.

Ask the experts

In this series of videos, we asked some industry experts what they thought about the Adverse Credit Spring 2021 report and the advice they would give to brokers.

What are the biggest misconceptions of adverse/impaired credit?

We spoke to a panel of experts and this is what they had to say.

Watch our video

After reading the study, what's the one piece of advice you'd give to brokers looking to help more customers?

We spoke to a panel of experts and this is what they had to say.

Watch our video
Find an IFA

Any tips for brokers when engaging with customers when they have more complex needs?

We spoke to a panel of experts and this is what they had to say.

Watch our video

Why is understanding adverse credit and financial inclusion an important topic within our industry?

We spoke to a panel of experts and this is what they had to say.

Watch our video

Our previous reports

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/Autumn 2019

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

Download Report