Pepper Money has unveiled a range of specialist mortgage products for customers who have been discharged from bankruptcy or an IVA, and the lender has opened up its core range to customers in a Debt Management Plan (DMP).

The specialist lender’s new bankruptcy proposition is available to customers who have been discharged from a bankruptcy or IVA at least three years prior to applying for the mortgage. Loans are available up to 75% LTV and rates start at 6.74% for a 2-Year Fixed Rate and 6.84% for a 5-Year Fixed Rate.

In addition, the specialist lender has also improved its criteria to allow customers in a Debt Management Plan (DMP) to access products on its core range – opening up more options, higher LTVs, and lower rates to this group of borrowers who have taken action to address their debt.

Paul Adams, sales director at Pepper Money, said: “At Pepper Money, we always strive to improve financial inclusion and that means doing what we can to make our products accessible to a broader group of customers. We understand that people do have life events, such as divorce or loss of employment and that this can create stresses on finances which at worst, can lead to bankruptcy or an IVA. It’s important to understand the situation and establish whether a customer has resolved whatever issues led to the bankruptcy or IVA in the first place, as with any other credit event. But it’s also important to offer these customers a fresh start when it is clear they have put their previous issues behind them.

“Financial inclusion is a focal component within our lending ethos and we understand the importance of our role, as a lender, to provide mortgage options to customers who have taken a proactive step to tackle their debt through a Debt Management Plan (DMP). Which is why, following a review our criteria and pricing, we’re pleased to now to lend to borrowers in an active DMP as part of our core range. This will lower the cost of borrowing and open up higher LTVs for a large group of people.”