Just over 15 per cent of adults have experienced some form of adverse credit in the last three years, according to research from Pepper Money.

This translates into an estimated 7.9m people across the UK.

There has been a jump of more than a million people since the last study in winter 2021, which calculated the number of people with adverse credit was 6.29 million.

One in 10 people with adverse credit in the last three years intend to buy a home over the next 12 months, while 4% want to purchase a buy-to-let property, according to the research.

However, more than half of adults with adverse credit who are planning to buy a property are concerned their credit history could scupper their application.

‘Credit problem shouldn’t stand in the way of mortgage’

Paul Adams, sales director at Pepper Money, said: “Given the cost of living crisis, it’s unsurprising that the number of customers with adverse credit is growing, but credit problems do not necessarily need to stand in the way of getting a mortgage.

“Professional advisers are best placed to help customers understand the options and point them in the right direction for a lender that is best suited to help.

“Providing fast, robust and responsible decisions for customers with complex circumstances is not straightforward for lenders, but it is possible.

“At Pepper Money, we take pride in understanding customers, to uncover the challenges or potential source of financial complexities.

“We share this information with our broker partners who are perfectly placed to better evaluate and identify the right mortgage solution to meet their customer’s need.

“Considering FCA Vulnerable Customer and Consumer Duty guidance this approach is vital in ensuring we work collaboratively with our broker partners to properly assess the needs of customers and enable them to achieve their goals.”