Customers with adverse credit will find it most challenging to access a mortgage in the next 12 months, according to a survey of more than 500 brokers.

In March 2023 Pepper Money & Mortgage Business Expo conducted an online survey to their respective intermediary databases. The research found that nearly 26% of brokers are concerned about finding a mortgage for customers with adverse credit in the next year.

The next hardest to place cases, according to nearly 22% of brokers, will be Buy to Let, with remortgaging at high LTVs seen as the most challenging by nearly 12% of brokers.

Just over 11% of brokers said they expect to have trouble finding a mortgage for their self-employed customers and those with complex income, while nearly 10% think they will struggle to find a mortgage for First Time Buyers. Just under 9% were most concerned about accessing a mortgage for older customers nearing retirement.

Ryan Brailsford, business development director at Pepper Money, said: “The results of the broker survey supports the findings in the latest Pepper Money Specialist Lending Study. The data suggest that brokers are right to think that they will encounter more customers with adverse credit in the next year.

“For the Specialist Lending Study, we partnered with YouGov to conduct research amongst more than 6,000 adults and found that 15.1% of all adults have experienced some form of adverse credit in the last three years. This means the number of potential mortgage customers with adverse credit has grown by more than 1.6 million in the UK.

“However, finding a mortgage for this growing group of customers doesn’t have to be a challenge. Lenders, like Pepper Money, are open to considering individual circumstances, have clear, concise criteria and, at Pepper, we’re also very proud of our service levels. So, finding a mortgage for customers who have blips on their credit record can be a lot more straightforward than you would think – and it could make an enormous difference to their lives.”