Pepper Money has unveiled a range of changes to its lending proposition, including the reintroduction of 100% loan-to-value (LTV) secured loans and the expansion of its Automated Valuation Model (AVM) criteria.
The changes are intended to offer greater certainty and speed for brokers and customers alike, particularly at a time when many households are grappling with affordability pressures.
Among the changes, the expansion of Pepper’s AVM criteria now allows for automated valuations on a wider range of properties, including flats and higher-value homes. The lender said this would help reduce the risk of down-valuations later in the application process and improve the speed with which borrowers can access capital.
Pepper has also responded to broker feedback and shifting customer needs by reintroducing 100% LTV secured loans. The lender said the offering is especially suited to customers looking to consolidate existing debts or fund home improvements, based on its own historical data.
The specialist lender has also launched a new range of products with no early repayment charges. These are designed to give customers greater freedom to adjust their borrowing in the future without affecting their existing mortgage rate or incurring financial penalties. The products are particularly relevant for customers with complex income streams, previous adverse credit, or other specialist circumstances.
Ryan McGrath (pictured), director of secured loans at Pepper Money, said the latest changes reflect the lender’s continued commitment to the sector: “We continuously review our product ranges and consider ways to increase choice and certainty for our broker partners and customers.
“The decision to reintroduce 100% LTVs and products with no early repayment charges and expand our AVM criteria follows insight from brokers that customers are looking for greater flexibility and certainty from their financing when their affordability is under increasing pressure due to the cost-of-living crisis continuing to roll on.
“At Pepper Money we are committed to the secured loan market and providing the best possible options for customers at all stages of their home ownership journey and financial positions, with mortgage rates still high and inflation easing slower than expected, we continue to work with brokers to assess cases and deliver the best possible outcomes for customers.”
