Pepper Money has cut its high loan-to-value rates by up to 80 basis points, and Darlington has also cut interest rates by up to 20 basis points in the lender’s latest rate cuts.
Paul Adams
Pepper’s 48 and 48 Light two-year rates at 90% LTV fell as much as 80 basis points to 6.99% and 6.94%, respectively.
Their five-year equivalents fell by as much as 32 basis points.
It has also launched some limited two-year double price offers.
These provide the option of a lower initial rate and a higher reversion rate, which increases borrowing power at the point of application.
Alternatively, borrowers can choose a higher initial rate and a lower bounce rate, which reduces the ongoing cost once the specified period expires.
Pepper has also made some price cuts on buy-to-let deals, which now start at 4.64%.
After repricing, residential unit prices now start at 5.75%.
Meanwhile, at Darlington Construction, the 80% two-year fixed rate on residential properties was reduced by 20 basis points to 5.09%.
The two-year fixed shareholding rate fell by 10 basis points to 5.79%.
“Affordability remains one of the biggest challenges brokers face for their clients, especially when prices are moving as quickly as they used to,” says Paul Adams, Pepper Money sales director.
“Often, affordability for two years can be difficult to achieve.
“But at the same time, a lot of customers don’t want to stay longer when they’re not sure which way prices are going.
“The new limited-edition products give brokers a way to organize cases that works for the client today and doesn’t leave them worse off when it’s time to come back.
“The reductions across the Pepper 48 and Pepper 48 Light ranges reflect our continued focus on giving brokers more choice.
“These are products intended for customers who are one step away from the high street, and the right price can make a real difference to whether a case is taken up or not.”
Chris Blewitt, head of mortgage distribution at Darlington, adds: “One of the biggest challenges facing brokers at the moment is not necessarily finding a mortgage, but finding a mortgage that really suits the client’s circumstances.
“We regularly see cases involving first-time landlords, visa borrowers, holiday rental operators and clients looking to remortgage a former residential property in the buy-to-let market.
“None of these scenarios are particularly unusual, but they could still remain outside the comfort zone of some lenders.
“In such cases, the standards are as important as the average.
“Brokers need lenders who can look at the whole picture rather than a competitive rate, which is why we have continued to focus on both pricing and flexibility across the range.”
