Pepper Money has announced a significant reduction in its mortgage rates. This change is set to benefit a wide range of customers, particularly those looking to secure a mortgage with a smaller deposit.

Pepper Money has made a sweeping change by reducing rates across its entire product range. The cuts are as substantial as 0.98%, which is a significant saving for potential homeowners. The most notable reduction is in the Pepper 18 Light 5-year fixed-rate mortgage, which has seen a 0.98% drop for loans up to 80% of the property’s value (loan-to-value or LTV).

Special Focus on Customers with Recent Credit Issues

For those who have faced recent credit challenges, Pepper Money has tailored its reductions to be particularly beneficial. The Pepper 6 product, ideal for customers with recent adverse credit history, now offers up to 0.96% lower rates on 5-year fixed mortgages and 0.81% lower on 2-year fixed mortgages, both up to an 80% LTV.

Affordable Homeownership Schemes Get a Boost

The rate cuts extend to Pepper Money’s Affordable Homeownership range. Here, reductions of up to 0.88% have been made on 5-year fixed rates. This applies to Shared Ownership and Right to Buy products up to 75% LTV and First Homes up to 70% LTV. These changes make it more accessible for individuals to own their first home or buy a shared property.

Words from the Sales Director

Paul Adams, the sales director at Pepper Money, expressed optimism about these changes. He mentioned that the recent decline in SWAP rates (a key indicator in the lending market) has enabled them to offer lower mortgage prices. Adams highlights that the more significant reductions are targeted at customers who can only afford smaller deposits – often up to 20%. This is particularly good news for brokers who work with clients having limited mortgage options.

Adams also assured that Pepper Money is committed to maintaining its high standards of service and underwriter access. This ensures that brokers and their clients can easily take advantage of the new, lower mortgage rates.