Pepper Homeloans has become the latest lender to boost its buy-to-let offering by broadening its product range and cutting rates by up to 0.5 per cent.
The specialist lender’s near prime range has been augmented with two-year fixed rates starting from just 3.38 per cent and five-year fixed rates starting from just 4.18 per cent.
At the same time, rate cuts of up to 0.5 per cent have been made to some existing five-year fixed rates across all buy-to-let products.
Rob Barnard, sales director of Pepper Homeloans, said: “We are delighted to be making these enhancements to our buy-to-let range. Brokers can easily submit a decision in principle online and will be assured of a fast response.”
Pepper announced enhancements to its residential mortgage range earlier this month, which included lower rates and new 30-month, three and five-year fixes.
Matthew Fleming-Duffy, director at Cherry Finance, said: “It is good news that rates are becoming more competitive.
"Pepper have a real place in the market; they are really challenging Precise, who have had a bigger share of the market. Pepper are putting themselves firmly into that area.
“With rates dropping for adverse credit lenders, I hope they have got their numbers right. History shows us when we try to start creating adverse credit mortgages on credit that could be more risky.”
Brightstar managing director Bradley Moore said: “This is a great move for our partners at Pepper Homeloans and the specialist sector. It is also extremely well timed as the complexities of the buy-to-let market increases.
“Ensuring that rates are competitive is an absolute must. Fixed rates are of course always a very popular option and it is extremely important for lenders to offer a variation of fixed terms to meet borrowers individual circumstances.
“The new products will go some way to assist those borrowers requiring 80 per cent loan-to-value (LTV) who have historic adverse credit.”