Pepper Money launches 100% concessionary purchase

Pepper Money has launched new concessionary purchase criteria which now allows 100% loan to purchase price. 

The improvement enables customers to purchase a property below market value. Whilst this is typically from close family, Pepper is also able to offer this to tenants who are looking to buy from their landlords.

The criteria enhancement improves Pepper’s current concessionary purchase offering, enabling customers to borrow up to 100% loan to purchase price, with no deposit required, and is available up to a maximum of 75% of full market value.

Purchases from family in this situation are the most common, but demand is increasing for solutions for tenants looking to purchase the home they currently rent from their landlord. Pepper are reacting to this demand by allowing both of these scenarios at 100% loan to purchase price. 

Prior to this criteria enhancement, Pepper would allow concessionary purchases but use the lower purchase price for the product LTV, requiring a 15% deposit from the applicant’s own funds.

Paul Adams, sales director at Pepper Money, said: “This improvement to our concessionary purchase proposition is further evidence of Pepper’s ongoing commitment to help Hopeful Homeowners onto the property ladder. Concessionary purchase offers many benefits for buyers – not only are they able to obtain the property at a discount, but they could also secure a cheaper mortgage rate in comparison to a higher LTV rate that might ordinarily be associated with first-time buyers.

“Our Specialist Lending Study has consistently identified that deposit remains one of the largest barriers to customers purchasing a property. So, the fact that this enhancement will enable buyers to borrow up to 100% of the purchase price could be a life-changer for some customers. We’ve made these changes in response to feedback gained from our broker partners in the forums we regularly hold. Brokers play such a key role in shaping our proposition and ensuring we’re all able to assist our customers better. We’re delighted to have launched this improved criteria today.”