Impact managing director Dale Jannels said some were being “naïve” in their treatment of payment deferrals given the current economic conditions.
Speaking on Mortgage Solutions Television in association with Pepper Money, Jannels explained the confusion around the subject.
“Mortgage payment holidays are still pretty unknown,” he said.
“Some lenders are taking it quite happily if you’ve taken a payment holiday for six months, whereas others are really looking at it on an adverse basis, which I think is still a little bit naïve in the current climate.
“And of course we’ve got the possibility of another six months of mortgage payment [deferrals] for those who didn’t take them before. So we’ve still got a long way to go.”
Pepper Money sales director Paul Adams and Brightstar CEO Rob Jupp were also taking part in the panel discussion which addressed the findings of Pepper’s latest adverse credit report.
The research revealed nearly half of people who have missed credit repayments as a result of Covid-19 did not have an agreed payment holiday in place – and three-quarters of those were concerned it would affect their ability to get a mortgage.
Around a third of people with adverse credit also confirmed they had missed more payments in the last six months.
And a greater proportion of people with adverse credit have seen a decrease in their income compared to everybody else and have increased the level of debt they have.
“We’ve learnt Covid-19 has not impacted everyone financially in the same way,” said Adams.
“It would seem though that the less equipped to cope financially are those experiencing the most difficulty. These people have been impacted in a greater way than across the whole national picture.
He added: “It’s important we do not let this group of potential customers become disenfranchised from the mortgage market.
“There’s so many intermediaries in the mortgage market place that can help these customers find solutions, to help them become homeowners.”
Download the full report from: https://www.pepper.money/wp-content/uploads/2020/10/Pepper_Autumn-White-Paper-2020_09.pdf