Pepper Money has introduced a 75% loan-to-value two-year fixed remortgage at 5.09% within its Pepper 48 range, targeting borrowers who fall just outside mainstream lending criteria.

The specialist lender has reduced the rate by 0.30% compared with its equivalent existing product, positioning the limited edition as it prepares for what is expected to be one of the busiest refinance years in recent memory.

The launch comes as 1.8 million fixed-rate mortgages are due to mature in 2026, according to UK Finance. Many borrowers will be rolling off deals secured during the ultra-low interest rate environment, increasing the need for structured advice and full market reviews, Pepper Money says.

BUILT FOR THE REMORTGAGE CYCLE

The new product, available up to 75% loan-to-value, sits within Pepper Money’s Pepper 48 range and is aimed at remortgage customers with credit blips or more complex financial circumstances that may not meet traditional high street appetite.

Brokers can select from fee options of £0, £795 or £1,495, allowing them to structure pricing according to client priorities. The lender is also offering a choice between free legals or £350 cashback to help manage upfront remortgage costs.

The product permits capital raising, including for debt consolidation or home improvements, subject to underwriting.

Pepper Money pointed to recent data from Checkatrade indicating that the average quote for building work has fallen by 14% over the past year and is now 25% lower than its 2023 peak, equating to a typical saving of around £2,000 per project.

With renovation costs stabilising and labour inflation easing, the lender suggested that some homeowners may view remortgaging as an opportunity to fund works that had previously been postponed.

ADDRESSING JUST-OFF-HIGH-STREET DEMAND

The lender’s Specialist Lending Study 2025 found that 16.6 million people, representing 30% of UK adults, have experienced adverse credit at some point in their lives, with missed payments accounting for the majority. This compares with 15.3 million a year earlier.

As refinance volumes build in 2026, Pepper Money said a sizeable cohort of borrowers reaching the end of their fixed terms may no longer fit neatly within automated high street credit models.

The Pepper 48 range is designed to accommodate customers with historic adverse credit, missed payments or more complex financial backgrounds, with applications assessed through a manual underwriting approach.

Paul Adams, sales director at Pepper Money, said: “2026 represents one of the most significant remortgage years in recent memory. With 1.8 million fixed rates maturing, brokers have a vital role in helping customers assess their options carefully rather than defaulting to the most convenient route.

“Our new Residential Remortgage Limited Edition delivers sharper pricing within Pepper 48, alongside flexible fee choices and cost support through free legals or cashback.

“This gives advisers a strong solution for customers who may not meet mainstream criteria, especially when combined with our human underwriting approach and certainty of lending decisions.”