The products will be available within the Pepper48 and Pepper36 criteria, with pricing starting at 6.39% for a five-year fix.
The products are aimed at people who have not defaulted or received a county court judgment (CCJ) in the last three years. Pepper will allow borrowers to maximise affordability as debt-to-income ratio limits are not applied, meaning borrowers can raise capital up to the maximum LTV.
Paul Adams, sales director at Pepper Money, said: “As a leading specialist lender, we are proud to develop and enhance our product offering to adapt to the changing realities of the housing market, as well as the shifting needs of buyers, particularly those with more complex or less traditional financial histories that might not meet the requirements of high street lenders.
“There is no denying that house prices have skyrocketed in relation to earnings and this means deposits are rising too, putting more stress on already stretched households looking to purchase a home. High-LTV mortgages will go some way to alleviate these pressures, helping more buyers to make their property purchase a reality.
“But we know that not every borrower meets the strict requirements of high street lenders, particularly those who are self-employed or have navigated an adverse life event. That shouldn’t be a reason to hold them back from buying a home of their own; it’s only right that we adapt our product offering to ensure that all those who can and want to buy a home are given the best opportunity to.”
Episode 2: Affordability : Powered by Partnership podcast from Newcastle for Intermediaries
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Atom Bank launches near prime products
Atom Bank has released a range of Near Prime mortgages with a £1,500 fee, following a series of rate cuts to its existing Near Prime deals this year.
The products are available for both purchase and remortgage on two-, three- and five-year fixed terms at 75%, 85% and 90% LTV.
Rates start at 5.24% for both the three- and five-year fixed rates, and 5.09% for the two-year fixes.
Richard Harrison, head of mortgages at Atom Bank, said: “This new range of products are sure to be welcomed by brokers and their near prime clients. The higher arrangement fee opens up lower interest rate options for customers, particularly those borrowing higher loan amounts. It’s another example of how Atom Bank is determined to provide greater choice to those who may have experienced a temporary credit blip in the past but want to raise finance for either a property purchase or remortgage.
“Our creative approach to product development and criteria has transformed Atom Bank’s standing in the near prime space, not only resulting in record levels of activity but helping us to become one of the first choice lenders for brokers whose clients aspire to regaining prime status.”
