Pepper Homeloans has launched a range of two-year fixed rates starting from 2.40%, exclusively via L&G Mortgage Club.

The new range, which is available for purchases or remortgages up to 85% LTV, is suited to borrowers who may have been declined on credit score, but who haven’t had any CCJs or defaults in the past 48 months.

The deals are as follows:

• 2.40% to 70% LTV. Revert rate LIBOR+3.50%
• 2.68% to 75% LTV. Revert rate LIBOR+3.65%
• 3.28% to 80% LTV. Revert rate LIBOR+3.90%
• 3.53% to 85% LTV. Revert rate LIBOR+4.15%

There are free legals on all remortgages and a completion fee of £995.

Early repayment charges are 3% of the outstanding balance in year one and 2% in year two.

Rob Barnard, sales director of Pepper Homeloans, said: “We have become increasingly aware of borrowers who are being declined on credit score because of credit blips incurred five or six years ago.

“With rates starting from just 2.40%, these products represent an excellent opportunity for such borrowers to lock into today’s low rates.”

Jeremy Duncombe (pictured), director of Legal & General Mortgage Club, added: “We’re delighted that Pepper has chosen to launch this exclusive mortgage deal via L&G Mortgage Club. This provides additional choice to our brokers, combined with the manual underwriting that Pepper offers.”