Good news for those with less-than-perfect credit scores: specialist lender Pepper Money has announced cuts to their mortgage rates, making it easier for you to get on the property ladder or secure a better deal.
Pepper Money has reduced rates across several of its mortgage products, aiming to assist borrowers who may have had some financial bumps in the road. These cuts are particularly welcome for those with adverse credit histories who often face higher interest rates from traditional lenders.
How Much Could You Save?
The lender has slashed rates by up to 0.20% on all two- and three-year fixed-rate mortgages. Five-year fixed-rate mortgages also see a reduction, with rates dropping by 0.10%.
Why the Focus on Adverse Credit?
Pepper Money’s own research paints a clear picture: more and more people are struggling with debt. Their recent study revealed that a staggering 43% of individuals with past credit problems reported their debts had increased over the last year. This represents a significant jump from the 33% reported the previous year.
The study also highlighted the scale of the issue, with 30% of those with adverse credit currently juggling debts over £5,000 (excluding mortgages and student loans). Worryingly, almost one in ten (9%) are battling debts exceeding £15,000.
Good News for First-Time Buyers and the Self-Employed Too
While the rate cuts will be a particular boon for those with adverse credit, Pepper Money believes the changes will also benefit first-time buyers and self-employed borrowers who often face tougher lending criteria.
What’s Behind the Rate Drop?
Paul Adams, Sales Director at Pepper Money, points to recent positive economic indicators as the catalyst for these cuts: “Following the recent election results and favourable movements in swaps, we’re reducing our rates again to pass this on to customers as quickly as possible.”
Award-Winning Service for a Smooth Mortgage Journey
Pepper Money was recently crowned the top specialist lender, and the highest-ranked lender overall in the latest Mortgage Lender Benchmark survey by Smart Money People. The company is determined to back up these competitive rates with top-notch customer service.
Adams emphasised their commitment to a personal touch: “As part of this commitment, we believe that phone conversations are better than emails, and so our underwriters call a broker after they’ve submitted an application. This is part of our human approach, helping to provide greater confidence and certainty, with real people at the end of the phone looking to help.”
He added, “Plus, any declines are reviewed by a senior underwriter to give every application a potential second chance. These reduced rates, coupled with our award-winning service could make your next customer better with Pepper.”
In a nutshell, if you’ve had some financial challenges in the past, or you’re a first-time buyer or self-employed, Pepper Money’s rate cuts and commitment to customer service could make them a lender worth considering.