The product which has received the largest cut is the Pepper 24 five-year fix up to 80 per cent loan to value (LTV). This now has a rate of 4.3 per cent, down from 5.34 per cent.
The product is available to borrowers who have experienced defaults, secured missed payments or county court judgements (CCJs) in the last 24 months.
Elsewhere, the Pepper 24 Light equivalent five-year fixed for those who have experienced defaults or arrears but no CCJs, has been reduced by 94 basis points (bps) to 4.25 per cent.
Other cuts include the Pepper 18 five-year fixed product up to 75 per cent which has been reduced from 5.7 per cent to 4.8 per cent.
Products across its two-year fixes have been reduced up to 75 bps, with the largest reduction made to the Pepper 12 mortgage up to 75 per cent LTV. This now has a rate of 5.4 per cent, down from 6.15 per cent.
Paul Adams (pictured), sales director at Pepper Money, said: “As confidence has grown in the UK mortgage market, we are now in a position where we are able to provide many of those mortgages at even lower rates, and so we are passing these savings on to customers with one of the largest product revamps in Pepper Money’s history.”
LiveMore reduces RIO rates
LiveMore has cut rates on its retirement interest-only mortgages and increased the loan to value.
The five-year fixed was cut to start from 3.4 per cent, the seven-year 3.55 per cent, the 10-year 3.74 per cent and at 4.05 per cent, the 20-year fixed rate.
The lifetime fixed rate has been cut to 3.9 per cent.
The LTV on the lowest rate band was increased to 60 per cent, up from 50 per cent.
The lender said at 75 per cent LTV, “we can lend more than any of our competitors and we have no maximum age limit.”
The products are offered to borrowers aged 55 or over.
“We are also able to accept income beyond a traditional retirement age where its plausible — particularly helpful for the self-employed or business owners,” said Alison Pallett, direct of sales at LiveMore.
Furness BS launches discount product
Furness Building Society has launched a two-year discounted product up to 80 per cent LTV, priced at 1.49 per cent.
Its standard variable rate is currently 5.14 per cent.
The product offers free legals and valuation for standard remortgages in England and Wales. For cases in Scotland, £150 is contributed towards legal fees.
It is available for both purchases and remortgage and has a product fee of £999.
Alasdair McDonald, head of intermediaries for Furness Building Society, said: “We believe there are brokers who will have clients that can benefit from this market leading discount.
“When the rate is this keen, it is definitely worth a deeper dive into the potential savings for remortgages.”