Pepper and Halifax among most popular lenders for adverse

Jake Carter

September 7, 2021

Pepper Money has been named the most popular lender for heavy and medium adverse credit cases, while Halifax has been voted the favourite for light adverse credit cases, according to research from broker forum cherry.

When asked which lenders they would consider first for clients with heavy adverse, including secured arrears, individual voluntary arrangements (IVAs) and debt management plans, 30% of brokers named Pepper Money, with 21% saying Bluestone.

A further 17% said Together and 7% of brokers named Masthaven and Precise.

For medium adverse, including unsecured arrears, smaller defaults or County Court Judgments (CCJs), three lenders took nearly 60% of the vote altogether; 26% named Pepper Money, 20% said Precise and 13% chose Kensington.

Halifax was the most popular lender for light adverse, including missed payments on utility or phone bills, with 31% of the vote.

A further 13% of brokers named Pepper Money, 10% said Coventry Building Society, and 7% said they would first consider Barclays for customers with light adverse credit issues.

Donna Hopton, director at cherry, said: “Congratulations to Pepper Money, which came out top overall in our research and clearly offers a comprehensive range of options for customers with light, medium and heavy adverse credit.

“Brokers did comment that lenders need to appreciate that normal people have issues that don’t make them bad risks and that there are not enough lenders offering mortgages for people with adverse credit.

“However, of those that do, brokers said that simple and easy to understand products helped a lot.

“Whether brokers are well-versed in placing adverse credit cases, or relatively inexperienced in this area, the cherryplc forum is a great place to find out information, share ideas and discuss solutions for clients, whatever their circumstances.”

Paul Adams, sales director at Pepper Money, added: “At Pepper Money, we take financial inclusion very seriously and work hard to offer a range of mortgages for people who might be excluded by high street lenders, whether it’s because of adverse credit, the way they earn their income or other circumstances that make their application more complex.

“We know there’s a sizeable group of customers who do have some form of adverse credit, and that no two sets of circumstances are the same.

“As a result, we underwrite every case individually and have a clear set of criteria and products to make it easier for brokers to find a home for their hard to place applications.

“We’re really pleased that this has been recognised by brokers using the cherryplc.co.uk forum and look forward to helping even more brokers in the near future.”

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