Pepper Money has repriced rates across its specialist mortgage range.
The lender offers residential and buy-to-let mortgages targeted at borrowers struggling to get a mortgage with high street banks or building societies.
Reductions across the Pepper 12 range, available to borrowers who have not registered a county court judgement (CCJ) or default in the past 12 months, include a five-year fixed rate offered at up to 80 per cent loan-to-value (LTV) at 4.63 per cent - reduced from 5.18 per cent.
In the same range, a five-year fixed rate offered at 75 per cent LTV is now 4.47 per cent, down from 4.63 per cent. The same product at 70 per cent LTV has been reduced to 4.17 per cent from 4.48 per cent.
For borrowers who have not registered a CCJ or default in the past six months, the Pepper 6 range has seen cuts to its five-year fixed rate range of 0.4 per cent, with a 70 per cent LTV mortgage now available at 4.48 per cent and a 75 per cent LTV mortgage sold at a rate of 4.78 per cent.
However, as part of the repricing some products have also seen rates go up, to reflect the "changing swap rates".
In the Pepper 24 range, a two-year fixed rate at 75 per cent LTV has increased from 3.18 per cent to 3.43 per cent and the same fixed rate and LTV in the Pepper 36 range has increased from 2.62 per cent to 2.77 per cent.
Rob Barnard, sales director at Pepper Money, said the changes were part of a review to reflect the funding environment and risk profile of the products.
He said: "We don’t use credit scores to determine pricing, so you can be sure that, assuming all details are correct, the rate you recommend to your client is the rate they will be offered.
"As part of this, we regularly review our pricing to ensure that it reflects the funding environment, risk profile of the product and our appetite to be amongst the most competitive lenders in our market."
Nicholas Morrey, product technical manager at John Charcol, said the changes could get better traction with applicants who have had poor credit in the not so recent past.
He said: "Effectively I would say that they are refocusing their book in an area that the main players in the adverse market are potentially neglecting."
rachel.addison@ft.com
