Pepper has launched a new product and cut its short-term fixed rates by up to 0.95 per cent on its core residential mortgage range.
The new NP product is aimed at people with marginal high-street credit score fails and accommodates applicants with no county court judgements (CCJs) or defaults in the last 48 months.
Rates start from 2.28 per cent for a two-year fix at 70 per cent loan-to-value (LTV), with a fee of £895.
Early repayment charges are 3 per cent in the first year and 2 per cent the following year.
Meanwhile, rate reductions on the core residential range mean NP1 fixed rates now start from 2.37 per cent and NP 2 rates from 2.68 per cent, with options to fix for 30 months, two, three and five years, alongside two-year discounted trackers.
Existing NP1 and NP2 products target borrowers with no CCJs or defaults in the last 36 and 24 months.
Loans are available up to 85 per cent LTV, and free legals are available on all remortgages. Self-employed borrowers with only one year’s accounts are accepted.
Rob Barnard, sales director of Pepper Homeloans, said: “Adverse credit records remain on file for 72 months, despite the fact that borrowers may have conducted their finances in an exemplary fashion in recent years.
“Our NP range means that such borrowers now have access to competitively priced mortgage finance and can benefit from rates starting from just 2.28 per cent.”
Rob Jupp, chief executive at Essex-based Brightstar, commented: “The new Pepper product consolidates their role as one of the 'serious' group of lenders in the UK specialist market. The product pricing and criteria both look sensible.”