Pepper Money are starting the new year with a series of updates across their product range, including changes to their criteria and rates. There are many changes to note and so Pepper have put together the below bullet pointing them all for you.
What’s changing in their Residential range?
- Residential rates will be enhanced. Their Pepper 60 remortgage product is now available from 2.40%, at 55% LTV. Reprice of Pepper 48, 36, and 24 Residential products.
- Tracker rates are now available for the first time on 2-year options from Pepper 60 through to Pepper 24 product tiers.
- Pepper Money will now ignore 1 individual utility, communication, or mail order account default up to and including £200.00 each (Applicable to 36 & 36 Light products only). This is in addition to the current rule that ignores 2 individual utility, communication, or mail order account defaults up to and including £200.00 each (Applicable to Pepper 24 & 24 Light products downwards, but excluding Bankruptcy range products)
What’s changing in their But to Let range?
- Buy to Let Pepper 60 product now starts at 2.99%, at 75% LTV.
- Which means the rental calculation is even greater = £1,000 of rent will allow borrowing of over £289k! and on a Ltd Co BTL it allows borrowing of over £321k!
- Reduced minimum income thresholds to £15,000 for Buy to Let and Limited Company Buy to Let. Introduced First Time Landlord threshold of £25,000.
- Allow Gifted Deposits (Defined immediate family). Allow deposits into SPV applicant, as cash or property transfer, from another Limited Co.
- Bank statement no longer required where SPV is newly formed. Financials not required for SPVs formed in the last year.
- They have removed the restriction for the main director to be a homeowner, so now no directors need to be a homeowner – unless a first time landlord is involved.
- Maximum Loan of £2m with max LTV of 65% above £1.5m. Aggregated Exposure limit has increased from £3m to £4m.
- Allow Rental Income as an allowable and standalone income stream for professional landlords with 11 properties or more.
- 2 individual utility, communication, or mail order account defaults up to and including £200.00 each ignored (Applicable to Pepper 24 & 24 Light products downwards, but excluding Bankruptcy range products)
Furthermore, here’s what’s changing across both their criteria ranges:
- Current employment has changed to three months with six months continuous. Previously current employment was six months with 12 months continuous.
- The absolute requirement for Indefinite Leave to Remain has been removed. They now accept 2nd applicants who have the right to reside in the UK. Income will not be used in Affordability calculations and one of the applicants must have Indefinite Leave to Remain with both having a minimum 3 years UK address history.
- As part of their ongoing commitment developing green initiatives and reducing Pepper’s environmental impact, they now accept leased Solar Panels. Properties where solar panels have been installed, and where the panels are subject to a lease agreement may be considered acceptable for the mortgage purposes.
- All limited edition products have been moved into their respective core ranges.
- Shared Ownership expanded to Pepper 24 tier.
If you have any questions regarding the above or any new cases you think Pepper could help you with, please do give call on 07736 615995.