Pepper said its new range was available on its Pepper 24 and 36 product tier, up to 75 per cent loan to value (LTV), to help customers with unsecured missed payments, county court judgements (CCJs) and defaults registered as recently as 24 months ago.
The addition of shared ownership mortgages, the lender said, was part of efforts to help more people buy property and follows its jump into Help to Buy last month.
The shared ownership pilot program, conducted with TMP The Mortgage People, began in September with a goal to streamline processes and eliminate any potential service delivery snags.
Paul Adams (pictured), sales director at Pepper, said: “Our primary objective is to promote greater financial inclusion to a diverse range of customers. In line with this, we have been working hard on developing a dedicated proposition to provide competitive specialist lending to customers looking to access the property market through affordable home ownership schemes.”
Adams said the test period was used to“ensure we can deliver this unique type of lending at the same time as maintaining the high service levels expected of Pepper Money.”
Kelly McCabe, managing director at TMP The Mortgage People, said: “Shared ownership needs a lender like Pepper Money, that can underwrite each case on an individual basis, particularly where customers might earn fluctuating income or income from multiple sources.”
Pepper Money entered the Help to Buy market last year, and said in January that it had halved the time it required applicants to have been in their current jobs, from six months to three months.
It also reduced the length of time for an applicant to have been in continuous employment, from 12 months to six months. The lender also increased its maximum loan size from £1m to £2m.