Pepper Money: Customers with adverse credit increasingly positive

Jake Carter

June 16, 2021

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Customers with adverse credit have become more positive about their prospects for a successful mortgage application than they were six months ago, according to Pepper Money.

As part of its latest Adverse Credit Study, carried out in association with YouGov, the lender found that 52% of adults with adverse credit who are looking to purchase a property in the next 12 months are concerned about having their mortgage application declined due to their credit history.

This has decreased from last autumn, when more than two-thirds of people with adverse credit and looking to buy a property were concerned (69%) about having their mortgage application declined.

However, the most recent study found that only 6% of homeowners who had experienced adverse credit before buying their current property said it had resulted in a declined mortgage application.

While 75% of people with adverse credit said they know what a County Court Judgement (CCJ) is, 23% thought they would have to wait longer than five years to apply for a mortgage after being registered with a CCJ.

Paul Adams, sales director at Pepper Money, said: “This research is a mix of good news and bad news.

“It’s great that customers with adverse credit are generally more positive about their chances of getting a mortgage.

“There is, however, still a significant perception gap and areas of misunderstanding about the opportunities that are available for customers with more complex circumstances.

“The good news is that this presents an opportunity for mortgage brokers to help raise awareness and understanding about the options available, and this can help them to reach more customers and build trust.”

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