Pepper Money has reduced rates on various residential and buy-to-let mortgage products.
Cuts include the 85 per cent LTV five-year fix being reduced from 4.38 per cent to 4.23 per cent. A potential borrower must have no CCJs or defaults in the previous two years, and no arrears balance in the last six months.
The 75 per cent LTV five-year fixed rate has also been sliced, from 4.33 per cent to 4.18 per cent. To be eligible for this deal a would-be borrower must have no CCJs or defaults in the last 18 months, and no arrears on balance in the last six months.
In addition, the rate on the lender’s 70 per cent LTV five-year fix has been chopped from 4.17 per cent to 4.02 per cent. A potential borrower must have no CCJs and defaults in the previous 12 months, and no arrears on balance in the last six months.
Pepper Money sales director Paul Adams says: “At Pepper Money, we are always reviewing our products to ensure they provide value and we are pleased that we have been able to identify this opportunity.
Sesame and PMS director of mortgages Jane Benjamin adds: “Growing numbers of defaults and CCJs mean that more customers are looking for a mortgage with recent incidents of adverse credit on their record.
“It is therefore good to see more lenders taking a pragmatic underwriting approach for borrowers in these circumstances, as well as offering rates in this part of the market that are increasingly competitive.”