Pepper Money is returning to the Buy to Let market.
Pepper’s Buy to Let offering will enable limited companies and individual landlords with up to 10 properties in their portfolio to take out a mortgage, with rates starting from 4.99% and a maximum £4m total borrowing with Pepper. Furthermore, Pepper has improved their maximum loan size, which is now available up to £2m at 65% LTV or below
With no minimum income required, the product provides an invaluable way for landlords to raise capital. For example, with the UK Government requiring a minimum rating of C for all rental properties in England and Wales from 2030, landlords may use capital raising to fund renovations to bring a property’s EPC up to spec.
Pepper Money’s Buy to Let mortgages offer a loan to value (LTV) of up to 80% LTV for properties with a current Energy Performance Certificate (EPC) rating of A-C, 75% LTV for those with an EPC of D, and 70% LTV where the rating is an E.
To maximise convenience for landlords, personal bank statements, business bank statements and proof of income are not required to get a Buy to Let mortgage from Pepper Money. Instead, the focus is on income receivable from the property as assessed by an independent RICS surveyor, rather than what the tenant is currently paying.
By aligning its new Buy to Let range with the more practical affordability rules available on five-year fixed, Pepper is ensuring landlords — especially those impacted by higher tax rates — have a clearer path to borrowing. What’s more, Pepper Money also accepts multiple sources of funds to pay for deposits, including gifts, directors’ loans and existing equity for limited company purchases and there is no requirement to provide a credit score. With terms of up to 35 years and lending available to age 85, Pepper’s Buy to Let range is designed to support both younger investors and experiencedlandlords.
Paul Adams, Sales Director at Pepper Money said: “We’re re-entering the Buy to Let market with a new product offering designed to maximise choice and convenience for residential landlords in the UK.
“We know the market is tough for landlords right now, with an increasingly complex regulatory environment to navigate and rising affordability challenges. With no requirement for a minimum income, bank statements, or credit scores, our new Buy to Let offering is designed to support landlords to raise capital for a range of purposes, including consolidating debts to reduce monthly outgoings, or bringing their property’s EPC rating up to a minimum of C ahead of the UK Government’s planned 2030 deadline.
“At Pepper Money we are committed to the specialist lending market and developing a broad range of products and services to support brokers. It’s important for us to continue to work collaboratively with brokers so they can deliver competitive rates and quality service to their customers. Whether their customers are a first-time landlord, growing their portfolio, or looking to raise capital on an existing property, we could help. We look forward to bolstering Pepper Money’s Buy to Let product range even further with additional enhancements which we hope to launch in quick succession.”
