Pepper Money cuts adverse credit mortgage rates by up to 117bps

Pepper Money has reduced residential mortgage rates by up to 117 basis points for customers with recent credit challenges.

The largest reductions apply to the Pepper 6 range, with two-year rates cut by up to 117 basis points and five-year rates by up to 101 basis points. Pepper 12 two-year and five-year rates have been reduced by up to 82 and 71 basis points, respectively, while Pepper 18 two-year rates have been cut by up to 48 basis points and five-year rates by up to 50 basis points.

The reductions broaden the options available to brokers supporting customers who may be able to afford a mortgage today, despite a recent credit issue.

Pepper 6, Pepper 12 and Pepper 18 are designed for customers who have had a default or CCJ within the past six, 12 or 18 months.

Paul Adams, sales director at Pepper Money, said: “A recent credit challenge shouldn’t automatically prevent someone from buying a home or remortgaging. Many customers have recovered financially but still find their options limited because they don’t fit an automated lending model.

“These reductions give brokers more competitively priced options across Pepper 6, Pepper 12 and Pepper 18, supported by an inclusive approach that considers the customer’s circumstances today.

“Our focus is on helping brokers give more customers a fair opportunity to move forward with their homeownership or remortgaging plans.”