Pepper Money has increased loan to value (LTV) levels, improved criteria and reduced rates in its residential mortgage range.

The specialist lender has increased the maximum LTV on its Pepper 18 and Pepper 12 products to 85% and raised the maximum LTV on Pepper 6 to 80%. These products are available to customers who haven’t had a CCJ or Default in 18, 12, or six months respectively.

Pepper Money has also improved its criteria to include variable income as part of its affordability calculations. The lender can now consider up to 50% of sustained bonus and commission payments and up to 50% of overtime payments.

The lender has also reduced rates across its Pepper 6 range. Prices on Pepper 6 Light, which is available to customers who haven’t had a Default in the last six months and have never had a CCJ, starting at 4.90% for a two-year fixed rate and 5.10% for a five-year fixed rate up to 70% LTV. On Pepper 6, rates are available from 4.95% for a two-year fixed rate and up to 5.15% for a five-year fixed rate up to 70% LTV.

Paul Adams, sales director at Pepper Money, said: “These are significant enhancements to our proposition that will make Pepper Money mortgages more accessible to an even wider group of customers. We have taken on feedback from our intermediaries and amended key criteria, such as increasing LTVs for customers with recent adverse credit, re-introducing the acceptance of variable income, which had been suspended due to the pandemic.

“Thanks to our simpler tiers and transparent products, it’s never been easier for a broker to identify the most suitable Pepper Money mortgage for their clients. All of these improvements help us drive forward our aim of improving financial inclusion across the UK, which is a mission for the entire team.”