The reductions mean its residential rates now start from 5.38% up to 75% loan to value (LTV) and BTL pricing starts from 4.54%, up to the same tier.
The new limited-edition remortgage-only range is available across its residential offering. The two-year fixes have no application fee, a free valuation and a completion fee of £1,995.
Paul Adams, sales director at Pepper Money, said: “We know affordability remains a key challenge for many customers, and brokers need lenders who can offer flexibility when circumstances don’t fit the high street mould. That’s why we’re continuing to enhance our range with more competitive pricing and greater choice across both residential and BTL.”
Adams said after the lender lowered its two-year fixed rates, it had seen “strong demand” from brokers seeking tailored solutions for their clients.
He added: “With UK Finance estimating that around 1.8 million fixed rate mortgages will mature this year, we’re also launching our new limited-edition remortgage range to help brokers support even more customers as they come to the end of their deal.”
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“Whether it’s a customer with a complex income, previous credit challenges or simply a need for greater flexibility, our focus remains the same: giving brokers more opportunities to help more people achieve their goals.”
Atom Bank improves prime and near prime affordability
Atom Bank has improved affordability across its prime and near prime products by increasing the maximum loan-to-income (LTI) ratio.
This will apply up to 90% LTV and enable borrowers with household incomes between £45,000 and £60,000 to access a larger mortgage. Atom Bank said this could boost borrowing by between £23,000 to £31,000.
The prime range is available to applicants who have had no defaults in the last 36 months, and no more than one default within the last 37 and 72 months. Any unsatisfied defaults must have a combined value of no more than £500 per applicant.
Atom Bank’s near prime range is open to borrowers with light adverse credit history or thin files. Applicants must have no county court judgements (CCJs) in the last 36 months, and no more than one in the last 37 to 72 months. Any unsatisfied CCJs must have a value of no more than £500. The applicant must also have no mortgage arrears in the last 12 months, with no more than two months of mortgage arrears in the last 13 to 24 months.
Richard Harrison, head of mortgages at Atom Bank, said: “Affordability remains an issue for many borrowers and following feedback from brokers, we have made this improvement to enable applicants to borrow more across all our product ranges.
“This new criteria aims to remove more barriers to home ownership, ensuring more borrowers can get onto, or move up, the housing ladder even if they have lower income and an imperfect credit history.”
Harrison added: “Coupled with our industry-leading speed to offer times, we are well placed to give your clients certainty quickly on the success of their mortgage application.”
