Mortgages 

Pepper Money streamlines adverse credit criteria

Pepper Money streamlines adverse credit criteria

Pepper Money has streamlined its product range to simplify its criteria for borrowers with adverse credit.

The lender has simplified its product tiers to reflect the time frame in which a client must have no defaults or arrears to qualify for the offer.

The Pepper 48 product is available to borrowers with no defaults, County Court judgements, mortgage or secured loan missed payments and arrears in the last 48 months, with rates starting from 2.17 per cent.

Similarly Pepper 36 is available to borrowers with no defaults or arrears in the last 36 months, with rates from 2.23 per cent.

The range also includes Pepper 24, Pepper 18, Pepper 12 and Pepper 6, each reflective of the product criteria time frame.

A Pepper Money spokesman said the changes were intended to help brokers quickly recognise the criteria which applie to their client’s circumstances.

James Blower, marketing director at Pepper Money, said: "At Pepper Money, it’s important we make it as easy as possible for brokers to find a home for their interesting cases, which is why we take a transparent approach to publishing all of our criteria upfront and don’t use credit scores to make our decisions.

"We’re always reviewing our products to identify areas of potential improvement and were able to agree this new way of structuring our adverse credit criteria, which we think is the most straightforward in the market."

Earlier this year Pepper Money announced its intention to apply for a banking licence, seeking authorisation from the Bank of England having already begun discussions with the Prudential Regulation Authority and the Financial Conduct Authority.

The lender has also agreed terms to buy second charge lender Optimum Credit from Patron Capital - including a loan book of more than £450m.

rachel.addison@ft.com