Changes have been made to over 300 mortgages and the largest reduction applies to its options at 85 per cent loan to value (LTV).
Rates now start from 6.72 per cent within this tier and include the five-year fixed Pepper 12 debt management plan (DMP) product which has gone down by 0.35 per cent to 8.9 per cent. This is available to borrowers with an active DMP who have not had a default or county court judgment in the last 12 months.
The three-year fixed Pepper 36 product has been lowered by 0.55 per cent to 7.55 per cent, while the two-year fixed Pepper 18 deal has been reduced by 0.25 per cent to 8.09 per cent.
Paul Adams, sales director at Pepper Money, said: “We’re delighted to be able to cut the rates on more than 300 mortgages, with a particular focus on those customers who have experienced credit problems or have smaller deposits.
“We have no LTV restrictions on capital raising when remortgaging, so brokers are able to consolidate existing debts up to 85 per cent, where some of our biggest rate reductions are, and take advantage of our free legals offering of £350 cashback.
“Our recent affordability enhancements combined with these reductions across our range of products highlights the role we play in helping brokers to help customers fulfil their mortgage ambitions.”
Atom Bank reduces low LTV rates
Atom Bank has cut rates across its low LTV options for prime residential borrowers by up to 0.2 per cent.
Its five-year fix at 60 per cent LTV with a £900 fee now has a rate of 4.84 per cent.
Meanwhile, its two-year fixed rates begin from 5.29 per cent, while three-year fixes start from 5.14 per cent.
All reduced products come with a free valuation and remortgage products feature fee-assisted legals.
Richard Harrison, head of mortgages at Atom Bank, said: “We’re delighted to be able to introduce these new rate reductions, which are the seventh set of cuts since August. This particular move is focused on supporting lower LTV customers and providing a greater incentive to remortgage. It also complements the enhancements we recently made to benefit higher LTV borrowers.
“Our 60 per cent LTV five-year products are now priced below five per cent and we expect them to be well received by brokers and their clients, given where rates have been over the last 12 months.”
“At Atom, we are all about providing speed, ease and value to our intermediary partners and their clients and these reductions further demonstrate our continued lending appetite, supported by the strength of our service proposition,” he added.
