Pepper Money cuts rates on buy-to-let mortgages

On its Pepper 48 Light range, five-year fixed rates at 80 per cent loan to value (LTV) have been reduced by 30bps to 4.6 per cent, and at 75 per cent LTV the rate has been cut to 3.65 per cent.  

If borrowers pay a 1.5 per cent fee on their mortgage, the rate drops to 4.55 per cent for 80 per cent LTV deals and 3.6 per cent at 70 per cent LTV.  

Across its Pepper 48 range up to 80 per cent LTV, the lender has cut five-year fixed rates by 31bps to 4.99 per cent. There have also been reductions at 75 per cent LTV and 70 per cent with rates now at 3.6 per cent and 3.65 per cent respectively. 

If customers pay a 1.5 per cent fee on the Pepper 48 products, rates vary between 3.45 per cent at 65 per cent LTV and 4.55 per cent at 80 per cent LTV.  

Paul Adams, sales director at Pepper Money, said: “One of the positive trends we’ve seen this year is the resurgence of buy to let, with existing landlords looking to grow their portfolios and new investors coming to the market.  

“We have focused a lot of attention on developing our buy–to-let proposition so that it’s best placed to meet the needs of brokers and customers and, where possible, this also means cutting rates to ensure that we continue to offer competitive options that continue to be supported by first class service levels.  

“This is all part of our ongoing promise to brokers that it’s better with Pepper,” he added.