We should welcome these developments, along with the rising confidence that may come with them. But it can’t be ignored that our recovery isn’t as clean cut as we’d like it to be. Challenges remain, and bespoke lenders will need to play their part in addressing them.

The issues of the last few years remain. The pandemic fallout, 2022 mini-budget, and more continue to afflict borrowers across the UK. The 2024 Specialist Lending Study from Pepper Money highlighted how widespread these difficulties are.

Some 8.38 million people in the UK have experienced adverse credit in the last three years, according to its research. This is the highest level seen since it launched its regular study. The causes behind all this adverse credit are also illuminating.

Missed credit payments (11%), several missed payments resulting in defaults (7%), unsecured arrears (7%), secured arrears (5%), entering debt management plans (6%), and CCJs (4%) all played their part.

Unfortunately, this tends to lead to difficulty progressing with high street lenders. The same research explored people’s plans for funding their next purchase, and 30% intended to get a mortgage with a high street lender — what’s more 23% planned to re-mortgage on the high street.

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Despite this, 34% experienced a negative financial experience as a result of a missed credit payment. As did 13% of those who entered a debt management plan, 11% who ended up in an agreement cancellation, and 11% who struggled with CCJs.

Sadly, these negative experiences can end up being devastating for would-be borrowers. Nearly 1 in 10 (8%) of borrowers were declined a mortgage on their first application as a result of their money problems.

Those who do manage to progress with their purchases or investments may still struggle in the medium-to-long term too. Default rates on secured loans to households increased in Q3 according to the Bank of England, and are expected to increase again slightly in Q4.

Meanwhile, analysis from Hamptons found that homeowning millennials are set to experience much higher mortgage costs during the second half of their terms, unlike their predecessors. Many millennials will be squeezed financially at a time when they’re starting families and reaching the peak of their careers.

Options may diminish further over the coming years in the mainstream market. Fortunately, the specialist scene may be able to open doors.

As more borrowers come to realise that there may not be much leeway on the high street, they’re likely to seek alternatives. Bridging lenders, with their ability to remain flexible in any market and commitment to looking for ways to say yes to a deal, need to be ready for this.