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Pepper launches a “light” unfavorable credit offer


Pepper Money has launched a line of Pepper Light mortgages and has made changes to other products as well.

Pepper Light is a line of residential and rental products available to customers who may have experienced defaults, missed payments and arrears, but have not received any CCJs. This range works according to Pepper’s ‘time based’ approach.

It is launched in response to the most common types of cases Pepper Money receives from brokers, with prices that more accurately reflect the lower risk profile, with rates starting at 3.70%.

The launch of Pepper Light is part of a comprehensive review of Pepper Money’s product line, which includes some pricing and criteria changes to help the lender maintain service levels.

Paul Adams (photo), sales manager at Pepper Money, said: “Specialty lending in today’s environment is a real balancing act. We are seeing strong demand across our range as the number of customers facing complex circumstances continues to increase, but each case also requires further underwriting consideration given the uncertain economic environment. It is therefore important that we respond to demand to ensure brokers have the most suitable solution for their clients, but also that we take action to protect our service when necessary.

“We are really excited to be able to launch Pepper Light, which recognizes a trend where many clients with poor credit on their file do not actually have a CCJ, and thus provides a solution that more accurately reflects their situation. This is a very positive step forward and directly targets a key area of ​​demand.

“At the same time, we are aware that we must protect our service levels and have made a number of other criteria and price changes to our entire range. These include the removal of the Pepper 6 product group and the no-cost options. We believe this approach will help us strike the right balance between providing solutions that best meet the most popular areas of demand and maintaining service levels in which brokers can have continued confidence.