The largest reductions applied to the lender’s Pepper 6 range, with two-year rates cut by up to 117bps and five-year rates reduced by up to 101bps.
Meanwhile, Pepper 12 two-year and five-year rates have been reduced by up to 82bps and 71bps respectively, while Pepper 18 two-year rates have fallen by up to 48bps and five-year rates by up to 50bps.
The lender said the reductions broaden the options available to brokers supporting customers who may be able to afford a mortgage today despite a recent credit issue.
Pepper 6 is designed for customers who have had a default or county court judgment (CCJ) within the past six months. Pepper 12 supports borrowers who have had a default or CCJ within the past 12 months, while Pepper 18 is aimed at those who have experienced a default or CCJ within the past 18 months.
Paul Adams, sales director at Pepper Money, said: “A recent credit challenge shouldn’t automatically prevent someone from buying a home or remortgaging. Many customers have recovered financially but still find their options limited because they don’t fit an automated lending model.
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“These reductions give brokers more competitively priced options across Pepper 6, Pepper 12 and Pepper 18, supported by an inclusive approach that considers the customer’s circumstances today.
“Our focus is on helping brokers give more customers a fair opportunity to move forward with their homeownership or remortgaging plans.”
Clydesdale ups PT rates
Clydesdale Bank announced increases to its residential fixed rates.
Selected two- and five-year fixed-rate product transfer rates increased by up to 0.19%.
The changes applied to core residential product transfer deals.
