Pepper launches First Homes mortgage range

Pepper Money has launched a dedicated mortgage proposition to support the First Homes scheme.

The government scheme offers new build properties for a discount of at least 30% on the open market value, and local authorities have the discretion to set deeper minimum discounts of either 40% or 50% through local planning policy.

Initial rates start from 8.14% on a five-year fixed rate and 8.89% for a two-year fix on Pepper48, for customers that haven’t had a CCJ or default in the last 48 months.

Pepper 36 rates are 20bps higher and Pepper 24 rates are 40bps higher.

Paul Adams, 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. 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.”