Specialist lender Pepper Money has unveiled a limited-edition summer product as part of its Pepper48 residential mortgage range, targeting borrowers who fall just outside high street lending criteria.

The new five-year fixed rate is priced from 5.14% at up to 75% loan-to-value, representing a 0.20% discount on the lender’s core range.

The offer comes with a choice of incentives, including free legals, free valuation or no completion fee, as part of an effort to provide flexibility for customers with more complex financial profiles.

Pepper48 is aimed at creditworthy borrowers who do not fit the strict mould of mainstream lenders, such as those with multiple income sources or a past history of financial difficulty.

The lender said the latest launch was a response to a marked increase in demand for long-term certainty amid lingering economic uncertainty.

FIVE-YEAR FIX BOOM

Completions on five-year fixed rate products at Pepper Money have risen by 79% year-on-year and now account for 70% of all completions.

The company also reported a 67% increase in overall completions over the past 12 months, underlining sustained demand for specialist mortgage solutions.

Paul Adams (pictured), sales director at Pepper Money, said: “We know brokers are always looking for more ways to offer value to their customers, and this summer our pricing changes provide both stability and value.

“Our refreshed five-year fixed rate is designed to support customers who may not tick every high street box but are financially responsible and ready to take their next step.”

He added that borrowers with self-employment income, multiple jobs or historical credit challenges should not be excluded from the mortgage market if they can demonstrate sustained financial stability.

The profile of Pepper Money’s borrower base continues to evolve, with 40% of new business now coming from customers without a CCJ or default – up from 33% a year ago.

The lender said the shift pointed to a growing number of creditworthy applicants being left behind by traditional banks and building societies.