Pepper Money has introduced improved criteria on its debt management plan (DMP) mortgage range and cut rates by up to 0.5 per cent.
The move means that every rate in the specialist range has been reduced by between 0.2 per cent to 0.5 per cent.
The range now starts from 3.48 per cent, which is available on Pepper 24 DMP up to 75 per cent loan-to-value (LTV).
Rob Barnard, sales director of Pepper Money, said: "Borrowers in the UK have an unprecedented amount of unsecured debt and there are occasions where the burden can become too much for some people.
"At Pepper Money, we recognise the determination of individuals who have taken the responsibility to tackle their debts and entered a DMP.
"So, we are happy to lend to borrowers who have been able to successfully maintain a plan for at least 12 months.
“We have also received some feedback about how the criteria could be improved to help even more clients. I am happy to say that we have been able to respond to this feedback and make the requested changes."
The lender will now accept clients on the range that have completed a DMP in the last 12 months where there is evidence that the plan had been in place and successfully maintained for at least 12 months.
It will also now consider borrowers who have obtained further County Court Judgments (CCJs) or defaults while in a DMP.
Pepper Money launched its DMP mortgage range, for individuals in an arrangement with a licensed debt management company, earlier this year.
The range consists of a number of two-year fixed rates, available for residential purchases or remortgages up to 85 per cent LTV.
Daniel Hodges, mortgage adviser at Suffolk-based Just Mortgage Brokers, said: "Pepper Money’s improvement to their criteria for the debt management plan mortgage range plugs a vital gap in their previous offering and ensures they remain a steadfast go to for consideration.
"The reduction in rates to what was already a competitively priced range, compounds their position in this sector and will make their proposition a help to many would be clients who find themselves in this category of lending."
aamina.zafar@ft.com
