Specialist lender Pepper Money has published the findings from its detailed research carried out into adverse credit.

The research found that 15% of respondents, or 7.86m people, have experienced credit problems, including missed payments, CCJs, defaults, unsecured arrears and secured arrears, in the last three years.

Of these, 16% of people are thinking about buying a property in the next 12 months, which means 1.26m people may need the support from a broker.

Pepper Money argues that the research, carried out with YouGov, illustrates that there is a great opportunity for brokers to help borrowers to buy a home or to help refinance.

Paul Adams (pictured), sales director at Pepper Money, said: “This research shows that the potential adverse credit mortgage market is larger than probably anybody had assumed. With growing levels of unsecured debt and increasing numbers of missed payments, CCJs and defaults, more people are finding that they have a record of adverse credit on their credit file. But they also still have ambitions to take the next steps in their lives – to purchase a new home and apply for a mortgage, and many of those are the people who require an adverse credit mortgage.

“The good news is that there are plenty of competitive options from lenders like Pepper Money, where decisions are made by underwriters who will take a pragmatic view of the customer’s previous circumstances and future ability to maintain payments on a mortgage. The not so good news is that many of these potential borrowers are writing off their own chance of getting a mortgage before they even speak to a broker. Our research proves that we all need to work harder to spread the message that previous credit problems do not have to mean future mortgage problems and professional advice can help people to find the right mortgage for their requirements.”

BestAdvice will have an inclusive interview with Paul Adams on its Sound Advice podcast, which will be available on Friday 18 October.