Leading specialist lender Pepper Money has announced it will enhance itsPepper48 and Pepper36 residential mortgage range with the introduction of a 90% loan-to-value (LTV) option.
Rates will start at 6.39% on a 5-year fix.
This enhancement is in direct response to growing customer demand amid rising property prices and economic pressures. Across the wider market, while aspirations to own a home remain high, the house price to earnings ratio hit 7.25 in 2024* making it increasingly challenging to take that initial step onto the housing ladder. High-LTV loans are growing in popularity, particularly amongst first-time buyers.
The ongoing cost of living crisis means the expansion of Pepper’s LTV range will be a welcome change for customers struggling to save a larger deposit, or those who need to release equity to consolidate debt and help manage their household finances.
Pepper’s new 90% LTV products, criteria, and human approach to underwriting are aimed at individuals who have not defaulted or received a county court judgement (CCJ) in the last 3 years. These borrowers can maximise affordability as debt-to-income ratio limits are not applied. Therefore, customers will be able to raise capital up to the maximum product LTV.
Paul Adams, Sales Director at Pepper Money, comments: “As a leading specialist lender, we are proud to develop and enhance our product offering to adapt to the changing realities of the housing market, as well as the shifting needs of buyers, particularly those with more complex or less traditional financial histories that might not meet the requirements of high street lenders.
“There is no denying that house prices have skyrocketed in relation to earnings and this means deposits are rising too, putting more stress on already stretched households looking to purchase a home. High-LTV mortgages will go some way to alleviate these pressures, helping more buyers to make their property purchase a reality.
“But we know that not every borrower meets the strict requirements of high street lenders, particularly those who are self-employed or have navigated an adverse life event. That shouldn’t be a reason to hold them back from buying a home of their own, it’s only right that we adapt our product offering to ensure that all those who can and want to buy a home are given the best opportunity to.”
