The specialist lender found 52% of adults with adverse credit, who were looking to purchase a property in the next 12 months, were concerned about having their mortgage application declined due to their credit history.

This has decreased from last autumn when over two thirds of people with adverse credit and looking to buy a property were concerned (69%) about having their mortgage application declined

However, the most recent Adverse Credit Study carried out in association with YouGov,

Found only 6% of homeowners who had experienced adverse credit before buying their current property said their adverse credit resulted in a declined mortgage application.

And this misconception about the impact of adverse credit on the ability to successfully apply for a mortgage was demonstrated by incorrect assumptions to the impact a CCJ can have on their mortgage prospects.

While 75% of people with adverse credit said they knew what a County Court Judgement was, 23% of people surveyed thought they would have to wait longer than five years to apply for a mortgage after being registered with a CCJ.

Pepper said this was in contrast to the reality that lenders were able to offer competitive mortgages to customers who had been registered with a CCJ as little as 6 months ago.

Paul Adams, sales director at Pepper Money, said: “This research is a mix of good news and bad news. It’s great that customers with adverse credit are generally more positive about their chances of getting a mortgage.

“There is, however, still a significant perception gap and areas of misunderstanding about the opportunities that are available for customers with more complex circumstances.

“The good news is that this presents an opportunity for mortgage brokers to help raise awareness and understanding about the options available, and this can help them to reach more customers and build trust.”