Previously, the specialist lender restricted its HMO lending to properties with an EPC of A-C.
Alongside its changes to energy-related performance, Pepper Money has also applied rate cuts to its buy-to-let (BTL) range.
Rates have been reduced by up to 25 basis points on two-year fixed products and up to 15 basis points on five-year fixed products.
The lender has introduced new two- and five-year fixed rates of 4.44% up to 70% loan to value (LTV) with a 7% completion fee.
The enhancements build on Pepper Money’s re-entry into the BTL market in 2025, when the lender reintroduced a product range designed around flexibility, speed and inclusive affordability assessments.
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Paul Adams (pictured), sales director at Pepper Money, said: “These latest enhancements demonstrate our ongoing commitment to supporting landlords in a challenging market.
“By reducing rates across key buy-to-let products and broadening our HMO criteria, we’re responding directly to broker feedback and the needs of landlords who are navigating higher costs and evolving regulation.
“We remain focused on delivering specialist lending products that prioritise real-world affordability and speed, while continuing to build out our buy-to-let proposition. This is another step in strengthening our offering for brokers and their landlord customers, with further enhancements planned.”
Last month, the lender launched Prism, its proprietary end-to-end credit and mortgage servicing platform.
