Pepper resumes BTL purchases including credit impaired borrowers

The lender is also opening its landlord purchase offering out to borrowers with previous credit impairments.

Its Pepper Light range will be available to customers who may have experienced defaults, missed payments and arrears, but who have not received any County Court Judgements (CCJs).

Offer validity is being reinstated to 90 days after it was reduced to 60 days during the lockdown.

“The improving outlook has enabled Pepper Money to reinstate the longer offer period, in addition to the launch of new products,” the lender said.

Specialist lending balancing act

Sales director Paul Adams explained that specialist lending in the current environment was a balancing act as demand remains high, but the uncertain economic environment means every case requires extra underwriting scrutiny.

“And so, we have taken steps to protect the service we provide our brokers, while also ensuring they have access to the most appropriate solutions for their clients,” he said.

“When the lockdown was fully enforced, it was difficult to see how there would be tenant demand for new buy-to-let properties and so this was an area we pulled back on to free up greater capacity in other areas of our lending.

“Now, however, feedback from the market shows that tenant demand has remained stable, as has demand from buy-to-let investors and so we are really pleased to be able to support these borrowers with the return of our mortgages for purchases.”

He added that the lender would continue to review areas of demand along with the latest economic conditions and lockdown restrictions for its proposition.