Over a million aspiring homebuyers have bad credit
An estimated 1.09m people with adverse credit would like to buy a property in the next year, according to research from Pepper Money.
The study, carried out by YouGov on behalf of the specialist lender, found that 13% of respondents, or 6.81m people, have experienced credit problems, including missed payments, CCJs, defaults, unsecured arrears and secured arrears, in the last three years.
Of these, 16% of people are thinking about buying a property in the next 12 months, which means that there are 1.09m potential home buyers with adverse credit.
Unsurprisingly a large proportion of these aspiring buyers – 69% – are concerned about having a mortgage application declined.
Paul Adams, sales director at Pepper Money, said: Specialist lenders are able to provide competitive options for customers with these circumstances, even if they have recent missed payments as a result of Covid.
“It’s important that brokers engage with the specialist market and communicate the opportunities with their customers.”