This is part of the lender’s commitment to advocate for affordable housing.
Through the First Homes scheme, first-time buyers can get a discount of at least 30 per cent on the open market value of a new-build property. Some local authorities can offer a larger discount of either 40 per cent or 50 per cent according to local planning policy.
The scheme was launched in 2021 and so far, only mainstream lenders have signed up to offer mortgages through it. This includes Halifax as well as Leeds, Skipton and Loughborough Building Societies.
Pepper Money said its criteria and approach towards borrowers who do not fit mainstream criteria would allow more people to get onto the housing ladder.
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. Our affordable home ownership proposition plays a vital role in this, and we are committed to helping even more hopeful homeowners to achieve their dreams.
“The rising cost of living continues to make it harder for hopeful homeowners to take their first step onto the property ladder. But schemes like First Homes, which offers significant discounts on open market values, could make the dream of home ownership more achievable.”
He added: “Our First Homes mortgages, which are supported by our transparent criteria, individual underwriting and consistently excellent service, provide the perfect option for customers whose circumstances mean they are not properly served by the high street.”
