Pepper Homeloans has launched a range of five-year residential fixed rates for borrowers who have issues with their credit rating within the last two years. 

Rates start from 4.13% and are available up to 85% LTV.

There is a fixed fee of £1,495 on all loans and free legals on remortgages.

Early repayment charges (ERCs) apply, with 3%, 2% and 1% in years one to three and 0.5% in years four and five.

Jeff Knight, head of marketing at Pepper, said: “We believe these five-year fixed rates are uniquely positioned in the market. The rates are the same rates as our equivalent two-year fixes and the reducing ERCs provide greater flexibility for the borrower.

“These additions to our product range will provide greater choice to borrowers at a time when, according to our research, intermediaries are experiencing an increase in enquiries from clients with previous blips on their credit ratings.”