Specialist lender Pepper Money has announced the return of its buy-to-let purchase loans for individual investors and limited companies after “closely monitoring the market and demand from both tenants and investors”.
As a result of the perceived “more stable outlook”, the lender has also extended its offer validity from 60 to 90 days, which had been reduced during lockdown.
Paul Adams, sales director at Pepper Money, said: “When the lockdown was fully enforced, it was difficult to see how there would be tenant demand for new buy-to-let properties and so this was an area we pulled back on to free up greater capacity in other areas of our lending.
“Now, however, feedback from the market shows that tenant demand has remained stable, as has demand from buy-to-let investors and so we are really pleased to be able to support these borrowers with the return of our mortgages for buy-to-let purchases.”
Mr Adams added: “[We] will continue to review areas of demand, alongside the latest economic conditions and lockdown restrictions to ensure that our proposition is best suited to meet the needs of our brokers and their clients”.
The lender has also announced that its ‘Pepper Light’ product range will be extended to buy-to-let purchases, which are available to customers who may have experienced defaults, missed payments or arrears, but have no county court judgments (CCJs).
Akhil Mair, managing director at Our Mortgage Broker, commented: “The latest news from Pepper Money is very much welcomed and a great timely entrant back into the specialist mortgage market”, adding that its product range had the “capabilities of helping most property owners and investors”.
Ayodele Johnson, principal at Johnson Adviser, also said: “It’s great to see more competition within the limited company buy-to-let space… [The] 60 days offer validity period was never long enough, especially in the current economic conditions, where completion delays are to be expected. The increase to 90 days from Pepper is much welcomed”.