Pepper Money has cut the price on seven of its two-year fixed rate residential mortgages.

Rates have been cut on Pepper 18, Pepper 12 and Pepper 6 for clients who have not had a CCJ or default in the last 6 months.

With Pepper 18, two-year fixed rates up to 80% LTV have been reduced from 4.28% to 3.93% and rates up to 85% LTV cut from 4.43% to 4.33%.

Two-year fixed rates on Pepper 12 up to 70% LTV have been cut from 3.78% to 3.63%, and up to 75% LTV reduced from 4.18% to 3.78%.

The rate for up to 80% LTV on Pepper 12 two-year fixed rates has also been cut by 0.70 percentage points from 4.68% to 3.98%.

In addition, Pepper 6 has its two-year fixed rates up to 70% LTV reduced from 4.48% to 4.08%, and up to 75% LTV falling from 4.78% to 4.23%.

James Blower, marketing director at Pepper Money, said: “At Pepper Money, we are big believers that a failed credit score doesn’t need to cost your clients their hopes of securing a competitive mortgage, which is why we continually review our pricing to make sure we are delivering the best possible value.

“We recently announced Pepper Money’s intentions to seek authorisation for a banking licence and the finalisation of terms to purchase Optimum Credit (subject to regulatory approval). However, we aren’t standing still and we continue to work to ensure we are providing brokers and their clients with market leading specialist products.”