Pepper Money has launched its 2023 Specialist Lending Study, providing brokers with in-depth data on what is impacting existing and potential customers.

It covers topics such as adverse credit, the cost-of-living crisis and other considerations that can impact the lives of mortgage customers.

The latest edition of the study is based on research conducted by YouGov in September amongst a nationally representative sample of more than 6,000 UK adults.

The research found that 15.16 million people have some history of adverse credit, including missed credit payments, defaults, county court judgements (CCJs), unsecured arrears, secured arrears or entering a debt management plan.

It also found that nearly half of people (49%) who have missed one credit payment have then gone on to miss further credit payments.

According to the study, 13% of those who have experienced adverse credit in the last three years say that they intend to purchase a property in the next 12 months, which equates to just over 900,000 potential mortgage customers with adverse credit in the coming year.

However, 84% of all respondents say the current economic environment will make it harder for them to get a mortgage.

Pepper Money sales director Paul Adams comments: “It’s clear that the cost-of-living crisis is taking its toll and is impacting those people with adverse credit the hardest. It paints a picture of challenge.”

But he adds: “There remains good opportunities for people to continue to work towards their objectives when it comes to their home and mortgage. The secret to unlocking these opportunities is professional advice, and there has been no clearer call to action about the important role that mortgage brokers have in reaching out to new and existing customers to ensure they are able to make a positive difference to as many lives as possible.”