Increase in the number of people with more severe adverse credit

03 March 2022

The latest Pepper Money Adverse Credit Study has revealed an increase in the number of people who have experienced more severe forms of adverse credit.

According to the research, the number of people with adverse credit who have missed a payment on an unsecured loan has increased from 26% in Spring 2021 to 33% in the latest wave.

Over the same period, the number of people with adverse credit with a CCJ registered against them has increased from 22% to 27%. Whilst the number of people with adverse credit who have missed a payment on a mortgage or secured loan has risen from 18% to 23%.

The study also found that the number people with adverse credit who have entered a Debt Management Plan has increased from 27% to 33%.

Despite these increases, overall, the number of people who say they have had some form of adverse credit over the last three years has remained flat at 12% of the population.

More insights about adverse credit trends are available within the Pepper Money Adverse Credit Study Winter 2021/2022, which is available now at pepper.money.

Paul Adams, Sales Director at Pepper Money, says: “The Pepper Money Adverse Credit Study provides essential insights into the millions of people who have experienced a blip on their credit history. And while the total number has remained relatively flat over the course of the last year, we have seen an increase in the number of people reporting more severe forms of adverse credit such as CCJs and missed payments on secured and unsecured loans.

“However, just because customers have slipped up in this way does not mean that they should be prevented access to suitable mortgage options. At Pepper Money, we can offer a range of individually underwritten mortgages, including 85% LTV Pepper 12 for customers with adverse more severe forms of adverse credit as recent as 12 months ago. We also allow debt consolidation up to maximum LTVs on our remortgages, which can help put customers in greater control of their finances.”