Research shows millions have historic credit issues
December 14, 2023 by Heidi
News
A new piece of research has found that the number of people across the country who have had some historic credit issues that could impact their ability to get a mortgage is over 15 million.
These figures come from the Specialist Lending Study conducted by Pepper Money. The research is intended to supply mortgage advisors with detailed breakdowns of issues that can affect the situation for both potential and current clients. The sorts of problems that can lead to bad credit ratings include using debt management plans, county court judgments (CCJs) that go against them, loan defaults and missed payments.
According to this research, close to half of the people who failed to make one credit payment on time – 49% to be precise – then missed additional ones in the future.
The Pepper Money study also found that close to 13% of people with credit issues developed during the previous three years are hoping to buy a home within the upcoming year. That will add up to more than 900,000 hopeful buyers who are entering the market with the drag factor of a bad credit rating.
Another 84% told the study that they expected it to be more difficult to get mortgages because of the state of the economy.
Paul Adams from Pepper Money told Mortgage Introducer that:
“It’s clear that the cost-of-living crisis is taking its toll and is impacting those people with adverse credit the hardest.”
Specialist lenders are likely to be the option that most people with CeMAP mortgage advisor training suggest for these clients.
Written by
Heidi
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