Pepper Money has revealed that almost half of people who have missed payments on credit commitments as a result of Covid-19 say they did not have an agreed payment holiday in place.

The lender’s research also found that 75% of people who have missed payments without first agreeing a payment holiday are concerned that it will negatively impact their ability to get a mortgage in the future.

Paul Adams, sales director at Pepper Money, said: “Covid-19 has been a disruptive influence on the finances of millions of people and official statistics have reflected the popularity of schemes like the mortgage payment holidays, which required customers to contact their lender to arrange a deferral of their payments.

“However, this research shows that many customers have missed credit payments as a result of Covid-19 without a pre-agreed payment holiday in place and three quarters of this group are concerned that it will negatively impact their ability to secure a mortgage in the future.

“This presents an opportunity for mortgage advisers to help restore people’s confidence by talking about the options that are still open to them based on their individual circumstances. There are many lenders that can take a considered and pragmatic view of mortgage applications from customers who have missed payments as the result of a significant life event, and there are few life events as significant as a global pandemic.”