What are the new terms under the revised criteria?
Pepper Money has announced several updates to its mortgage criteria in an effort to make borrowing more accessible to individuals who narrowly miss qualifying for mortgages through traditional high street lenders. The specialist lender is seeking to address affordability issues and offer greater flexibility for customers with its latest changes.
One of the most notable adjustments is Pepper Money’s acceptance of up to 5% builders deposit on residential new build applications. This move is expected to assist prospective homeowners, particularly those struggling to gather the full deposit amount typically required. In addition, the lender has expanded its automated valuation model (AVM) tolerance, which will allow more remortgage customers to bypass the need for a physical property valuation, potentially saving both time and money.
Pepper Money is also making its mortgage products more accessible to older borrowers by increasing the maximum age limit at the end of the mortgage term to 80-years-old. Borrowers can now use earned income until the age of 75. The lender had previously extended its maximum mortgage term to 40 years, and these combined changes aim to help customers spread mortgage costs over a longer period.
Improving access for borrowers
In recent weeks, Pepper Money introduced a reduction in rates across its product range by up to 1.00%. The latest enhancements build on this, further setting the lender’s position as an option for individuals who do not meet the strict criteria of high street lenders.
Paul Adams, sales director at Pepper Money, highlighted the lender’s ongoing commitment to supporting customers in the face of economic challenges. “At Pepper Money, we know that the economic environment over recent years has put unprecedented strain on the finances of the nation’s households,” he said. “So, we are doing all we can to help those customers who just miss out on a mortgage from a high street lender to continue to be able to achieve their goals.”
Adams emphasised that these latest changes, coupled with recent rate cuts, reflect Pepper Money’s mission to provide “competitive pricing, products with added value, and exceptional service” to those who may not qualify for a high street mortgage.
Pepper Money’s recent adjustments come at a time when rising interest rates and the cost of living crisis have made securing affordable mortgage options more difficult for many individuals.
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