Pepper Money said the product would be in its Pepper48 residential mortgage tier, which is aimed at individuals who “don’t fit the credit scoring mould of high street lenders”.
Specifically, it is for customers looking for a purchase or remortgage who have not missed a payment on a loan or had a county court judgment (CCJ) in the last 48 months.
Pepper Money said the pricing starts from 5.14%, with free legals, free valuation or no completion fee options, and is available to suit a diverse range of customer needs.
The lender said the product launch would support the “growing numbers of customers who sit just off the high street and may have slightly more complex needs”.
It added that it offered “greater value and long-term stability to customers in a market still shaped by economic uncertainty and ever-changing borrower needs”.
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Pepper Money said overall completion volumes had increased by 67% year-on-year, with demand for five-year fixed rates surging by 79% and making up 70% of completions.
Around 40% of new business is from customers without a CCJ or default, the lender added, a rise from 33% last year.
Paul Adams (pictured), sales director at Pepper Money, said: “We know brokers are always looking for more ways to offer value to their customers, and this summer, our pricing changes provide both stability and value.
“Our refreshed five-year fixed rate is designed to support customers who may not tick every high street box but are financially responsible and ready to take their next step.”
He continued: “Just because a person has complex income sources such as multiple jobs, self-employment, or a history of financial challenges, it doesn’t mean they should be excluded from entering the housing market or refinancing, especially when they have demonstrated a sustained period of financial stability.
“With demand for longer-term fixes continuing to rise, this is a great opportunity for brokers to offer something different to their customers, while also benefitting from Pepper’s high-quality service.”
Pepper Money has been adding to its proposition, re-entering the buy-to-let (BTL) market in May and launching house of multiple occupation (HMO) deals in June.
