Pepper Money trims buy-to-let rates by 0.50%

Pepper Money has reduced buy-to-let rates by 0.50% across its 70%, 75% and 80% LTV tiers, with its lowest five-year fixed now priced at 3.94%.

The specialist lender has applied the reductions across its Pepper 48 and Pepper 36 ranges, including houses in multiple occupation, in a move aimed at landlords preparing for a fresh cycle of refinancing.

The lowest rate now available is 3.94% on the Pepper 48 Light five-year fixed at 70% LTV. Across the core five-year fixed tiers, Pepper 48 Light is now priced from 4.09% at 75% LTV and 4.84% at 80% LTV.

Pepper 36 Light five-year fixed rates start from 4.14% at 70% LTV, 4.29% at 75% LTV and 4.99% at 80% LTV.

The same 0.50% reductions have been applied to HMO products within both Pepper 48 Light and Pepper 36 Light at 70% and 75% LTV. Five-year fixed HMO rates now start from 4.14% at 70% LTV under Pepper 48 Light and 4.34% at 70% LTV under Pepper 36 Light.

REMORTGAGE FOCUS

The lender said the changes come ahead of what is expected to be a significant year for buy-to-let refinancing. The Intermediary Mortgage Lenders Association has forecast that buy-to-let remortgage lending will exceed £26.5 billion this year, following strong growth in 2025.

Pepper Money’s range continues to be structured around remortgage activity. All single dwelling buy-to-let remortgages include £350 cashback, while selected products offer free valuations for properties up to £500,000.

Paul Adams, sales director at Pepper Money, said: “We’re seeing continued momentum in the remortgage space, and landlords are actively reviewing their funding as fixed rates mature.

“By reducing rates by 0.50% across our 70%, 75% and 80% LTV tiers, including HMOs, we’re strengthening our buy-to-let proposition at a crucial time for brokers and local landlords who are a crucial part of the rental market.

“Competitive pricing is only part of the picture. When combined with cashback on remortgages, free valuations on qualifying properties and our flexible underwriting approach, we’re giving advisers the confidence to support a wide range of landlord scenarios.”