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Pepper Money revamps resi mortgages with rate cuts and LTV changes

  • 01/12/2020
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Pepper Money revamps resi mortgages with rate cuts and LTV changes
Pepper Money has cut rates, adjusted criteria and improved loan to values (LTV) as part of an overhaul to its residential mortgage range.


The lender has introduced LTV categories at 65 and 70 per cent, with the lowest two-year fixed rates now starting from 2.98 per cent.

At 85 per cent LTV, Pepper has introduced a range of two-year fixed rates, available from 4.28 per cent.

Deals at 80 per cent LTV have also been reintroduced on the Pepper 24 range.

For customers with more recent financial impairments, the Pepper 6 range has been reinstated, which can accept defaults and county court judgements (CCJs) registered as recently as six months ago.

At the same time, the maximum LTV available for customers on a debt management plan has increased to 75 per cent.

Paul Adams, sales director at Pepper Money (pictured), said: “We’re really excited to introduce such an extensive range of improvements to our residential products in order to support brokers and their customers in the run up to Christmas.

“What’s more, these changes are backed up by a speed of service that means we are currently within 24 hours at every stage of our process and, with a dedicated case owner accessible to brokers on every application, there is plenty of reason for festive cheer.”

The changes come after Pepper Money recently revealed it had completed a purchase mortgage for first-time buyers with missed credit payments in just 16 days from the initial application.

The customers, who were borrowing at 70 per cent LTV, had no CCJs or defaults but had late payments on two unsecured credit facilities in the last 12 months.

The case owner at Pepper Money worked with the broker to understand the reason for these missed payments, confirmed they had been resolved and a direct debit was now in place to avoid any re-occurrence.

As such, they were able to make a decision, assess all of the documents and valuation report, and issue an offer within five days.

The case completed 16 days after the initial application.

The application was submitted by Neil Rees, director at JUST Financial Services.

He said: “Within an hour of submission, the only outstanding item on the case was the valuation.

“That was booked on the same day and the case was offered five working days later, just a few hours after the valuation had taken place.

“In these unprecedented times, with many lenders advertising timescales of up to 21 days to simply look at a pay slip, it was so refreshing to deal with Pepper, and it showed that with an efficient process like this, we can still work together to get cases to offer in less than a week. The customers were overwhelmed.”


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