Almost a third of people – 29% – have had some form of adverse credit at some point in their life, a study from a specialist lender found.
The Pepper Money Specialist Lending Study said that based on the UK’s adult population, this potentially equated to more than 15 million people who had missed a payment and had experienced adverse credit.
The lender said this was the highest figure since it started reporting this data five years ago.
Pepper also found that 16% of people had experienced adverse credit in the last three years, which was also the highest share recorded and 21% higher than the report’s findings in 2023.
Of those who have missed a credit payment in the past, 46% said they went on to miss more than one obligation.
The study also found that among people with adverse credit, 64% who were not already homeowners had plans for ownership.
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However, 78% felt that the cost-of-living crisis had made it harder to get a mortgage.
Rob Barnard, director of intermediary relationships at Pepper Money, said: “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. 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 – and 1.76 million people with adverse credit are planning to buy a property in the next 12 months.
“Amidst these challenges, 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, helping them to better support potential homebuyers and address their unique needs in an increasingly complex financial landscape.”
He added: “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.”
