Despite financial setbacks, many still aim for homeownership
More than 15 million people in the UK have experienced adverse credit, the highest number recorded since specialist lender Pepper Money began tracking this data five years ago.
The 2024 Pepper Money Specialist Lending Study reported that 29% of adults in the UK — equating to 15.4 million people — have faced adverse credit at some point in their lives. The findings are based on the Office for National Statistics’ projection of 52.4 million adults in the country.
The study also revealed that 8.4 million people, or 16%, have encountered adverse credit within the last three years, marking a 21% increase from 2023. Of those who reported missing a credit payment, nearly half or 46% admitted to missing more than one.
Despite these financial setbacks, 1.76 million people with adverse credit are planning to buy a property in the next year, according to the study. Of these, 10% are considering purchasing a home to live in, while 5% are interested in buy-to-let investments.
“The latest Pepper Money Specialist Lending Study shines a spotlight on the scale of the financial challenge faced by the nation’s households – with 8.9 million people having experienced adverse credit in the last three years alone,” said Rob Barnard (pictured), director of intermediary relationships at Pepper Money.
“Despite these challenges, there’s still a strong desire for homeownership among those with adverse credit, with 64% of those who don’t currently own a home, saying that they aspire to do so in the future. There’s a significant opportunity for brokers to make a real difference in people’s lives and the findings of our study can provide valuable insights for UK mortgage advisers.
“This research suggests that an increasing number of people are going to miss out on a mortgage from a high street lender – but this doesn’t need to stand in the way of their goals, and brokers are best placed to help those customers secure the mortgage they need to live the lives they want.”
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