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Pepper Money brings out bankruptcy and IVA mortgage deals
Specialist lender Pepper Money has released a range of products for borrowers who have been discharged from bankruptcy or an individual voluntary arrangement (IVA).
It caters for those who have been discharged from bankruptcy or an IVA three years prior to their mortgage application.
Its two-year fixed rate is priced at 6.74 per cent and its five-year fixed rate is 6.84 per cent. Both are available up to 75 per cent loan to value (LTV).
The lender has also changed its core range criteria to permit customers who are in a debt management plan. This gives customers more options, higher LTVs and lower rates.
Paul Adams (pictured), Pepper Money’s sales director, says: “We understand that people do have life events, such as divorce or loss of employment and that this can create stresses on finances which at worst, can lead to bankruptcy or an IVA.
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“It’s important to understand the situation and establish whether a customer has resolved whatever issues led to the bankruptcy or IVA in the first place, as with any other credit event. But it’s also important to offer these customers a fresh start when it is clear they have put their previous issues behind them.”
He added that financial inclusion was a key component of its lending strategy and it was important to provide more mortgage options to customers who had taken steps to tackle their debt through a debt management plan.