Pepper enters limited company BTL alongside product overhaul

The lender has also replaced LIBOR as its variable reversion interest rate with a Lender Managed Rate (LMR), which will be referenced on all new decisions in principle.

LIBOR (London Interbank Offered Rate) is being eliminated in 2022 and the Bank of England has been urging lenders which still use it as a reversion rate to make changes as soon as possible.

Product overhaul

For limited companies, Pepper has launched a range of two- and five-year fixed rate buy-to-let deals which include free valuations for purchases and remortgages.

A rental calculation of 125 per cent at the pay rate on five-year fixed rates, while the higher of the initial rate plus two per cent or 5.50 per cent will apply on two-year fixes.

Deals are available at up to 80 per cent loan to value (LTV).

Its standard buy to let range is seeing free valuations being introduced, with a change to the required rental calculation on two-year fixed rates to the higher of the initial rate plus two per cent or 5.50 per cent.

And rates are being cut on its Pepper 48, Pepper 36 and Pepper 24 products.

For residential mortgages Pepper Money is launching free valuation products for purchases and remortgages, and reducing rates across its core range.

There have been a number of other pricing changes across the range, the lender added.

In-depth analysis

Pepper Money sales director Paul Adams said the lender had conducted in-depth analysis of the market and its products and implemented the recommendations right across our range.

“A headline change is Pepper Money’s launch into limited company buy to let, with mortgages that are available up to 80 per cent LTV to investors who are buying or remortgaging in a special purpose vehicle (SPV) – from first-time landlords, through to portfolios of up to 16 properties,” he said.

“These new year changes are a signal of our intent for 2020 as we intend to continue increasing our lending, work with more brokers, and help more customers achieve their objectives.”