Millions of potential homebuyers and remortgagers in the UK have experienced difficulties with credit, potentially making it trickier to get a mortgage. But experts say there’s no need to panic, and help is at hand.
A new report has revealed that a staggering 8.3 million people in the UK have faced what lenders call ‘adverse credit’ over the past three years. This means they might have missed payments on bills, credit cards, or other loans. This is the highest number recorded since the research began in 2019. Worryingly, nearly half of those who missed one payment ended up missing more.
But there’s good news for those with credit issues who are dreaming of owning a home. The research by Pepper Money found that 1.76 million people who fit this category are hoping to buy a property in the next year.
The research, which involved asking over 4,000 people about their finances, also found that a whopping 69% of non-homeowners would like to buy one day. With the current cost of living crisis, it’s no surprise that 4.2 million people are worried about their existing mortgage deal ending in the next 12 months.
However, Paul Adams, a specialist from Pepper Money, reassures us: “Despite the rise in people with adverse credit, there are still solutions available. Many people believe they need to wait years after a credit hiccup before applying for a mortgage, which isn’t always true. Don’t be afraid to seek advice – speak to a mortgage broker to understand your options. “
So, the message is clear – even if you’ve had financial difficulties in the past, owning a home could still be within your reach.