The specialist mortgages will be open to council and housing association tenants in England to buy their home at a discount. The maximum discount of £96,010 or £127,940 in London. 

The mortgages are available across its Pepper48, Pepper36 and Pepper24 criteria categories, which is open to borrowers who have not had a default or county court judgment (CCJ) in either 48, 36 or 24 months. 

All options are available at 75 per cent loan to value (LTV) and are fixed for five years. The Pepper48 deal has a rate of 8.4 per cent and a £400 product fee, the Pepper36 option has a rate of 8.55 per cent and no fee, while the Pepper24 option has a rate of 8.7 per cent and no fee. 

Paul Adams (pictured), sales director at Pepper Money, said: “At Pepper Money, we have a clear purpose to deliver positive societal outcomes and promote greater financial inclusion to a more diverse range of customers.” 

Adams said its affordable homeownership products played an “important role” in this. The lender has recently launched shared ownership and Help to Buy products as part of this focus. 

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He added: “The rising cost of living and continued increase in house prices are making it harder for those hopeful homeowners to take their first step onto the property ladder and Right to Buy can provide an affordable solution for those customers who have the option to take this route. Our Right to Buy mortgages provide the perfect option for customers whose circumstances mean they are not properly served by the high street because of the way in which they earn their income or their credit history.” 

The lender released research earlier this week that said that over two million people could be eligible for Right to Buy.

 

Precise Mortgages adds resi deals 

Precise Mortgages, part of OSB Group, has launched a residential range for borrowers with adverse credit histories. 

Rates have been lowered and now start from 5.39 per cent for a five-year fix at 75 per cent LTV with a £995 fee. 

Some of the products offer a refund of the valuation of up to £630, £300 cashback and there are fee-free options.  

The mortgages are available for both purchase and remortgage.  

It is open to borrowers with different levels of adverse credit, ranging from the Prime Tier 1 category which includes people with no blips in the last 24 months up to those with recently satisfied debt management plans (DMPs). 

Adrian Moloney, group intermediary director at OSB Group, said: “We’re well aware that our brokers have clients who are facing some really tough financial challenges, so it was important for us to introduce a residential range that provides options for less-than-perfect credit profiles including those who may have been rejected by a high street lender. 

“At Precise Mortgages we believe that a credit blip shouldn’t necessarily stop residential customers being able to access a mortgage so we accept a wide range of adverse including those with County Court Judgements (CCJ) and defaults, as well as active and satisfied debt management plans (DMP).”