Pepper Money cuts rates, raises LTVs, eases mortgage criteria


Pepper Money has revamped its line of residential mortgages by increasing loan-to-value ratios, improving criteria and lowering rates.

The specialist lender raised the maximum LTV on its Pepper 18 and Pepper 12 products to 85% and increased the maximum LTV on Pepper 6 to 80%. These products are available to customers who have not had a judgment or default from a county court for 18, 12, or 6 months, respectively.

The company has also tightened its criteria to include variable income as part of its affordability calculations. It now takes into account up to 50% of supported bonus and commission payments and up to 50% of overtime payments.

Finally, the company reduced the prices of its Pepper 6 range.

Prices on Pepper 6 Light – available to customers who haven’t defaulted in the past 6 months and have never had a county court judgment – start at 4.90% for a two-year fixed rate loan at 5.10% for a five-year 70% LTV flat rate loan.

On Pepper 6, rates start at 4.95% for a two-year fixed rate home loan and up to 5.15% for a five-year fixed rate offer up to 70% LTV.

Pepper Money Sales Manager Paul Adams said, “These are significant enhancements to our proposal that will make Pepper Money mortgages more accessible to an even larger group of customers.

“We took into account the feedback from our intermediaries and changed key criteria, such as increasing LTVs for clients with recent adverse credit, reintroducing variable income acceptance, which had been suspended due to the pandemic.

“With our simpler levels and transparent products, it has never been easier for a broker to identify the most suitable Pepper Money mortgage for their clients.”

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