The cashback feature is available for remortgages on the Pepper 12 to 24 ranges and has been designed for borrowers looking to consolidate debt.
The Pepper 24 line of deals, which are open to borrowers who have had adverse credit registered over the last 24 months, is now available up to 85 per cent loan to value.
Interest rates start from 4.45 per cent and are completion fee-free. Cashback of £500 is available on completion.
Paul Adams (pictured), sales director at Pepper Money, said: “We’re really excited about the launch of Pepper Money’s first ever cashback mortgage. Many customers experienced financial difficulty during the pandemic, leading to missed payments and increased debt.
“With our cashback mortgage, the customers now have a great option to consolidate those debts with the cashback available to assist with the payment of disbursements that are often required during debt consolidation.”