Over 15 million adults with adverse credit – Pepper Money Specialist Lending Study

30 September 2024

The latest Pepper Money Specialist Lending Study has revealed that over 15 million people have missed payments and experienced adverse credit at some point in their lives – the highest number since Pepper started reporting this data five years ago.

According to the 2024 Pepper Money Specialist Lending Study, 29% of people have experienced adverse credit at some point in their lives, which equates to 15.4 million based on the ONS projection for the UK adult population of 52.4 million.

The research found that 8.4 million people (16%) have experienced adverse credit in the last 3 years, which is also the highest number since Pepper began recording the data, representing an increase of 21% compared to 2023. And, of all those who say they’ve missed a credit payment, nearly half (46%) say they have gone on to miss more than one payment.

The Study also found that 1.76 million people with adverse credit are planning to buy a property in the next 12 months. One in 10 (10%) of these are thinking about buying a home to live in, while 5% want to purchase a buy-to-let investment.

The 2024 Pepper Money Specialist Lending Study is available to download now at https://www.pepper.money/file/Specialist-Lending-Study-2024.pdf

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.

“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.”