More customers now fall outside traditional lending models, due to automated underwriting, more varied income structures and cost-of-living pressures.

Rising costs and higher borrowing rates have pushed some borrowers to rely more on credit, while others have adapted how they earn, often taking on a second job.

The latest Pepper Money Specialist Lending Study, of over 4,000 UK adults in 2025, shows that almost a third (30%) of UK adults have experienced adverse credit at some point in their lives, the highest level since the study began.

Nearly four in 10 (37%) have experienced financial stress in the last three years, and 5.5 million have taken on a side hustle in response.

These trends reflect a shift in how people earn and manage money.

There are an estimated 4.38 million self-employed people in the UK, and our research found that 76% believe it is harder for them to get a mortgage.

Automated underwriting works well when cases fit neatly. The issue is that many don’t. Not because they are a bad risk, but because they are different.

Yet aspirations for homeownership remain strong: 1.2 million UK adults expect to be in a position to buy their first home within the next year.

For brokers, that combination of strong demand and more varied financial circumstances creates a clear opportunity.

Specialist lending is sometimes still associated with customers who have experienced significant credit problems.

Many borrowers who approach specialist lenders simply require a more flexible approach to assessing income, affordability or recent credit history. Their overall financial position is often still strong.

Over half of our completions are on our lowest-priced tier, showing that many customers fall only marginally outside high street criteria.

Four in 10 involve first-time buyers, one in three customers are self-employed, and one in five mortgages support affordable homeownership schemes such as shared ownership.

For brokers, specialist lending is not simply about placing difficult cases, but about finding the right home for non-standard customers.

Many customers assume they won’t qualify for a mortgage because their circumstances look complicated on paper.

That could be a missed payment, income made up of bonuses or commission, contract work, multiple income streams or recent self-employment.

These are the situations where advice matters most. Nearly one in 10 UK adults believe they may be declined based on their credit score. And two-thirds (66%) of those with recent adverse credit believe it will hinder their ability to get a mortgage.

There’s a clear need for brokers who can connect these borrowers to lenders willing to take a more holistic view.

Advisers who only focus on straightforward high street cases risk overlooking a sizeable and growing group of borrowers who still have the means and ambition to buy.

This will become even more important as the mortgage market continues to evolve. Technology, automation and regulatory developments are likely to reshape parts of the lending journey. Some simpler refinance cases may increasingly move towards more automated and/or execution-only routes.

Where brokers can add the greatest value is in the cases that require judgement, experience and a more flexible approach. These are often purchases, first-time buyers and borrowers who don’t tick every box.

Helping customers whose circumstances fall just outside standard criteria is where advisers make the biggest difference.

Pepper Money’s broker proposition focuses on simple and inclusive products, a human approach to underwriting, being easy to work with, and specialist expertise brokers can rely on.

We don’t credit score. Instead, our experienced underwriters assess applications individually, looking at the broader picture of your client’s circumstances. We take a personalised approach to help unlock borrowing for those excluded from a high street mortgage.

For brokers, this approach provides greater flexibility. A wider range of income types can be considered, and cases are assessed on their merits rather than automatically filtered out by rigid rules.

These cases don’t have to be difficult to place. With clear communication, quick decisions in principle and direct access to underwriters, the process can be straightforward, helping you place cases that might otherwise struggle with a high street lender.

Borrowers’ financial lives are becoming more complex. Changing working patterns, economic pressures and evolving income structures mean more customers now fall just outside traditional lending models.

That makes the broker’s role more important than ever. With a clearer view of a customer’s full circumstances, you are well-placed to guide them through their options and match them with lenders who can take a more flexible, considered approach.

Because when a case falls outside mainstream criteria, the answer isn’t always another high street search. Sometimes it’s just about looking in the right place.