"Credit card debt has hit a record high, and with many lenders, outstanding debt can significantly impact affordability even if other elements of a customer’s profile are strong."
The limited edition mortgages are available as five-year fixed rates on the Pepper 60 range, developed to help customers who just miss out on a high street mortgage because of a low credit score or high debt to income ratio. Pepper 60 mortgages are suitable for remortgage customers who haven’t had a Default or CCJ in the last 60 months but may have recent unsecured missed payments.
Rates start at 3.55% up to 70% LTV, moving to 3.65% up to 75% LTV, 3.74% up to 80% LTV and 4.25% up to 85% LTV.
The specialist lender has also updated a handful of existing rates in its core range, including improved two-year fixed rates on Pepper 60 at 70% LTV, replacing the previous 65% offering on the same product.
Paul Adams, sales director at Pepper Money, said: “Bank of England data shows that credit card debt has hit a record high, and with many lenders, outstanding debt can significantly impact affordability even if other elements of a customer’s profile are strong. Similarly, a low credit score can often prevent someone from getting a mortgage with a high street lender, even if they have no recent record of missed payments.
"This limited edition Pepper 60 product offers a competitive solution for customers with these circumstances and helps lower the total amount payable over the duration of a fixed rate period. This is yet another way that we are giving brokers better options to help more of their customers succeed with Pepper.”
