The research found that 37% of people with adverse credit said their income had decreased as a direct result of COVID-19, compared to 25% of people overall.

Additionally, 35% of people who have adverse credit said the amount of debt they have has increased as a direct result of COVID-19, compared to 25% of people overall.

Consequently, 70% of people with adverse credit think the economic downturn as a result of COVID-19 will make it harder to get a mortgage in the future.

Paul Adams, Sales Director at Pepper Money, said: “This research supports the widely shared belief that the finacial impact of COVID-19 has been felt most strongly by particular sections of society and it seems that people with a clean credit file are more likely to have emerged from COVID-19 in a stronger position financially, whilst those who have experienced adverse credit in the last three years are more likely to have suffered a fall in income and seen their debt levels increase.

“It is more important than ever that we ensure these people are not disenfranchised from mortgage lending because of their credit history, but that they are given a fair opportunity to access the market based on their current circumstances and future ability to make payments.

“Professional advice is the key to achieving this and brokers have an important role to play in helping people realise their objectives and repair their finances as we emerge from the pandemic.”