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SPECIALIST LENDING STUDY 2024

Be in the know

We’re pleased to present our eighth Pepper Money Specialist Lending Study. It’s packed with fascinating insights, from the cost-of-living crisis to green mortgages.

It’s robust too. Conducted by YouGov on our request, it takes a deep dive into thousands of customer sentiments on a range of topics. Throughout, we’ve noticed one clear takeaway – the importance of professional advice.

My hope is the findings give you food for thought. More than this though, actionable tips that you can use in your business to improve the support provided for more customers. You can review the report by topic below. Or you can download the full report.

We hope you enjoy the insights.

Laurence Morey

CEO, Pepper Money

KEY FINDINGS

Cost-of-living crisis

The cost-of-living crisis remains a real challenge for millions of households. Disposable incomes are falling. Some people are borrowing money to pay the bills. Naturally, this is having a significant impact on people’s lives.

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of all respondents say they are continuing to see a decrease in their amount of disposable income.

of all respondents say that an increase of £100 to monthly bills would have a significant impact on their finances, and this increases to 82% for those with Adverse credit.

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have used a credit card or other borrowing to pay for food shopping or utilities in the last 12 months, and one in 20 (5%) have borrowed to pay their rent or mortgage.

Adverse credit

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8.38 million people (16%) have experienced Adverse credit in the last 3 years, based on the ONS projection for the UK adult population of 52.4 million. This is the highest level since we launched our regular Study.

First time buyers

Nearly seven in 10 (69%) of people who do not currently own their own home say that they would like to in the future.

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Remortgaging

4.2m (8%) people have an existing mortgage deal that is coming to an end in the next 12 months, based on the ONS projection for the UK adult population of 52.4 million.

Self-employment

Nearly three quarters (72%) of self-employed people think that self-employment makes it more difficult to get a mortgage.

Complex income

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7.34m people (14%) say they earn income from more than one job as a result of the cost of living crisis. This is up from 5.77m (11%) in the last study.

Buy to Let

More than half of Buy to Let landlords with a mortgage (53%) have had to remortgage in the last 12 months and 56% of those have seen their mortgage payments increase by more than 20%.

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Outstanding debts

Nearly one in three (30%) of people with adverse credit have outstanding debts of more than £5,000 and 41% say this debt has increased in the last 12 months.

Second Charge

Nearly four in 10 people who have remortgaged in the last 12 months say they increased their borrowing when they remortgaged.  

Green mortgages

More than half of people (55%) would consider investing in home improvements to make their property more energy efficient, but 46% have previously been put off doing this because of the costs involved.

Credit reports

Four in 10 people (40%) are registered with a credit scoring platform, and this increases to 54% of people who have adverse credit.

The role of brokers

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Half of potential homebuyers with adverse credit (50%) say they would speak to a mortgage broker for advice on getting a mortgage. This is slightly down from the last Study when 58% said they would speak to a broker.

“There’s a significant opportunity for brokers to make a real difference in people’s lives. To support and address unique needs. In these trying times, brokers can guide customers through an increasingly complex financial landscape.”

Richard Spinks

 Chief Commercial Officer, Pepper Money