Specialist Lending Study
Adverse Credit & Self-Employment
The Specialist Lending Study, is our most extensive primary research to date. The study takes a broader, detailed look at the views and impacts of mortgage customers. The study covers the cost-of-living crisis, adverse credit, self-employed and first-time buyers.
The coming months and years in the UK mortgage market are likely to be some of the most significant in its history. 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 mortgage outlook. The impact of the cost-of-living which is increasing energy and food prices has resulted in a 20% increase in UK adults who could be considered to have adverse credit.
Adverse Credit & Self-Employment Study 2023
Download the latest Specialist Lending Study, which takes an in-depth look at adverse credit and its impact on the lives of mortgage customers.
Cost-of-Living-Crisis
The cost-of-living-crisis is impacting everyone and is putting severe financial pressure on the majority of the population. Our research, in association with YouGov, has found that 71% are concerned about their financial situation as a direct result of the crisis, while 76% say a £100 increase in their monthly bills would have a significant impact on their finances.
COST-OF-LIVING-CRISIS STATS
are concerned about their financial situation as a direct result of the cost-of- living-crisis.
say a £100 increase in their monthly bills would have a significant impact on their finances.
think the current economic situation will make it harder for them to get a mortgage.
say their financial situation is negatively impacting their mental health.
Do you agree or disagree the current economic situation will make it harder for them to get a mortgage in the future?
Strongly Agree
Tend to Agree
Don’t Know

Adverse Credit
This is a significant increase of over 1.6 million more people with adverse credit than the last wave of the research, which took place in Winter 2021. In that wave, the number of people with adverse credit was 6.29 million. According to the research, 15.1%* of all adults have experienced some form of adverse credit in the last three years. Based on the latest ONS projection for the UK adult population of 52.4 million, this means we can estimate the number of people considered to have adverse credit to be 7.91 million.
ADVERSE CREDIT STATS
adults in the UK who could be considered to have adverse credit. This is over 1.6 million more people with adverse credit than the last wave of the research, which took place in Winter 2021.
A third of people with adverse credit say the level of their unsecured debt has increased in the last 12 months. 40% say they have increased their debt on buy now pay later schemes.
of people with adverse credit are concerned that their level of outstanding debt will make it harder for them to get a mortgage.

Preferred Mortgage or Re-mortgage advice
It is concerning that the role of brokers in helping customers with adverse credit to find a mortgage, is less understood than this time last year. Only 24% of people with adverse credit who are looking to buy a property in the next 12 months say they would speak to a broker to help them get a new mortgage. This is down from 54% in Winter 2021.

Misconceptions

Self-employment & Variable Income
For those who are self-employed, there are significant concerns about their prospects of being accepted for a mortgage. More than three quarters (77%) say that being self-employed makes it more difficult to be approved for a mortgage.
50% In general, however, the self-employed are not concerned about the impact of any borrowing that have taken for their business on their individual prospects of being approved for a mortgage. Half (50%) say self-employment makes it a lot more difficult to be approved for a mortgage.

MISCONCEPTIONS
More than 1 in 5 (22%) still think they need to wait more than 5 years after getting a CCJ before applying for a mortgage.
FIRST TIME BUYERS
The biggest barrier to home ownership is saving for a deposit (36%). Nearly a quarter of hopeful homeowners (24%) say it is being able to borrow enough to afford to live in an area they want to live in 16% say being able to afford the mortgage payments, and 15% say having a poor credit score.
SELF-EMPLOYMENT AND VARIABLE INCOME
More than three quarters (77%) of workers who are self-employed say that being self-employed makes it more difficult to be approved for a mortgage. Half (50%) say self-employment makes it a lot more difficult to be approved for a mortgage.
One fifth (20%) of self-employed people say that their business made over 10% more profit in the last year than the previous 2 years.
25% of all workers earn variable income.
Our previous Adverse Credit reports

Adverse Credit Study Winter 2022/23
Find out all you need to know about the impacts of adverse credit.

Adverse Credit Study Winter 2022
Find out all you need to know about the impacts of adverse credit.

Adverse Credit Study Winter 2021
Find out all you need to know about the impacts of adverse credit.

Adverse Credit Study Autumn 2020
Find out all you need to know about the impacts of adverse credit.

Adverse Credit Study Spring 2020
Find out all you need to know about the impacts of adverse credit.

Adverse Credit Study Spring 2019
Find out all you need to know about the impacts of adverse credit.