Around half of people (49 per cent) who have missed one credit payment say have then gone on to miss further credit payments
Pepper Money has launched its 2023 Specialist Lending Study, which found that 15.16 million people have some history of adverse credit, including missed credit payments, defaults, CCJs, unsecured arrears, secured arrears or entering a debt management plan.
The latest edition of the study is based on research conducted by YouGov in September amongst a nationally representative sample of over 6,000 UK adults.
It also found that around half of people (49 per cent) who have missed one credit payment say they have then gone on to miss further credit payments.
As per the study, 13 per cent of those who have experienced adverse credit during the past three years say that they plan to buy a property in the next 12 months, which equates to just more than 900,000 potential mortgage customers with adverse credit in the coming year. Nevertheless, 84 per cent of all pollees say the present economic environment will make it more difficult for them to get a mortgage.
Paul Adams, sales director at Pepper Money, said: The 2023 Pepper Money Specialist Lending Study has been our most extensive research to date and has provided more insights than ever before.
It is clear that the cost-of-living crisis is taking its toll and is affecting those people with adverse credit the hardest. It paints a picture of challenge, but it also paints a picture of opportunity. Because it’s situations like these that are the reasons why lenders such as Pepper Money exist. We work hard to develop the insights into what customers require, and we design our proposition around those insights – not just our products and criteria, but also our service and the way we communicate throughout the process.
