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Pepper limits all lending to 80 per cent LTV and withdraws BTL purchases

  • 26/05/2020
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Pepper has withdrawn all buy-to-let (BTL) purchase deals and all products above 85 per cent loan to value (LTV) as it relaunches its lending range.


Lending at 80 per cent LTV is also being removed across buy-to-let, limited company buy-to-let, debt management plan and select residential ranges.

Due to the coronavirus, all applications to Pepper are currently being manually underwritten.

It comes as the lender restarts full physical valuations in England for pipeline cases and new business.

Full risk assessments will be carried out to ensure the safety of residents and surveyors.

Pepper is currently not using automated valuation models (AVMs) or desktop valuations.

The lender took all products off sale last week to make way for its new ranges.

Applicants who had county court judgments (CCJs) or defaults as recently as six months ago will be considered, but only at a maximum LTV of 70 per cent.

Pepper is also taking applications from borrowers in debt management plans at a maximum LTV of 75 per cent.

Rates on offer from the lender start at 3.15 per cent.

Paul Adams, sales director at Pepper Money, said: “Our approach to lending remains fundamentally the same as it did prior to the Covid-19 crisis, with hands-on underwriting to provide easy and affordable solutions for clients with complex circumstances.

“It’s important that we are able to deliver this in a sustainable way and continue to provide options for brokers to serve their clients. So, with an uncertain economic outlook, we are taking a prudent stance regarding some criteria and LTVs.

“The launch of our new range demonstrates our ongoing commitment to lend to customers with a range of circumstances throughout this difficult environment and we continue to explore opportunities to build our proposition in a way that suits the market conditions and the needs of borrowers.”


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