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Pepper Money creates mortgage for people with bad credit

A set of new fixed-rate mortgages designed to help people who have issues with their credit has been announced by finance specialist Pepper Money.

The loans within this slate are all fixed three-year ones and are on offer for all parts of the lender’s range, from Pepper 24 to Pepper 48. They come with loan-to-value (LTV) of up to 85%, while the starting rate for them has been set at a level of 7.20%. There is also a £1,495 fee for completions, although property valuations are provided free of charge.

These mortgages are only available on a limited-edition basis. The sales director for the specialist lender, Paul Adams, declared that adverse credit caused by County Court Judgments or past defaults can leave a borrower’s credit history damaged for as long as six years.

He pointed out that this causes problems when applying for a loan from one of the big lenders, because most fixed rate periods last for either two years or five. Adams was quoted by Financial Reporter as saying:

“The launch of our new limited edition 3-year fixed rates provides these customers with a new option to continue to repair their credit and achieve their objectives.”

He concluded by highlighting their appeal to those who are three years into a spell of adverse credit, as the fixed rate period would see them through the rest of that time.

Advisors with CeMAP training know that credit issues are affecting more people now, so this is a good idea.

 

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