Increase in more severe forms of adverse credit

Published on

There has been a rise in the number of people who have experienced more severe forms of adverse credit, according to the latest Pepper Money Adverse Credit Study.

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, said: “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.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Rightmove warns property tax reforms could stall housing market

Rightmove has warned the government that proposed changes to property taxation risk distorting the...

Bradford retains crown as UK’s leading property hotspot

Bradford has once again been named the country’s most in-demand housing market, topping OnTheMarket’s...

Keystone reduces expat buy-to-let rates and adds new product

Keystone Property Finance has reduced rates across its expat buy-to-let range, cutting selected fixed...

Gatehouse cuts buy-to-let rental rates and eases paperwork

Gatehouse Bank has cut rental rates by 0.25% across its buy-to-let purchase plans for...

The Exeter: most consumers value advice when purchasing insurance

Almost two-thirds of consumers prefer to purchase insurance following professional advice, according to new...

Latest publication

Latest opinions

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Passing the affordability exam

As teachers and students of various ages have spent August nervously opening exam results...

Investors are changing their approach – and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years...

Leasehold fees, specialists and the need to shop around

Leasehold properties account for around 20% of all dwellings in the UK, and while...

Other news

Rightmove warns property tax reforms could stall housing market

Rightmove has warned the government that proposed changes to property taxation risk distorting the...

Bradford retains crown as UK’s leading property hotspot

Bradford has once again been named the country’s most in-demand housing market, topping OnTheMarket’s...

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...