The complex credit mortgage market has been around since the mid to late 1990s. Over that time, it has grown, it has changed and seems to have shaken that stigma that existed in the past. In its first decade of existence, it was all about mortgage arrears and the number of County Court Judgments (CCJs).

We have also seen more changes in this important sector. There is now a lot more choice of lenders for brokers which will be important for brokers, as at Vida we believe this market will grow. 

Defaults Growth

We have seen over the years that a lot of adverse credit is now driven by defaults – in particular from the likes of communication and energy companies with bills not being paid. With the continued rise in energy costs and the increased cost of living, putting real strain on people’s finances, we could expect to see more defaults issued. Inflation will also put pressure on consumers with their mobile phone bills and subscriptions to various television companies all adding up; this could see more defaults there too.


CCJs on the rise?

We expect to see more CCJs issued too, again due to the financial squeeze. And CCJs stay on someone’s credit history for six years.

Rising interest rates will also put a strain on consumers with any unsecured loans they may have.

The Complexity of Cases

At Vida Homeloans, we see such cases where the client has had a one-off life changing event. This could be a divorce or redundancy for example. As a result, that event acts like a domino and impacts their finances in many ways. But it is generally a one-off and there is a story to be told. Each case is unique and will have varying types of adverse credit that occurs over a short period of time. This is where brokers need specialist lenders like Vida to be able to take a holistic 3D view of the case and find a suitable solution. That is exactly what Vida does.

These such life changing events always happen and with a financial squeeze, this could increase.

As well as those clients who have experienced a one-off event, causing those credit blips, there will be other clients who have a history of adverse credit. Quite often this is not due to an unwillingness to repay a mortgage or other loan, for example, but due to poor financial management or oversight. And this poor management can exist in all types of clients, regardless of their earnings.

Layering Principles

Another final point is that when it comes to complex cases, a client may have some adverse credit. But their income may be complex, or they may self employed for example. Again, this is why specialist lenders like Vida, who can take that 3D view, are so important to brokers – especially as we expect this important sector to see growth and more opportunities for brokers.