Specialist lenders introduce flexible loan options and rate reductions
Specialist lenders Pepper Money and Somo have both announced product changes aimed at increasing flexibility and affordability for borrowers.
Pepper Money has expanded its homeowner loan product range, introducing new no and low early repayment charge (ERC) options. The lender’s latest offering includes a five-year fixed no early repayment charge (ERC) product, now available within its XLTV and Plus ranges, with maximum loan-to-value (LTV) ratios of 100% and 80% respectively.
This follows the earlier launch of the Prime five-year fixed no ERC product. In addition, Pepper Money has rolled out five-year Fixed Low-ERC products across its XLTV, Plus, and Prime ranges, with ERC fees as low as 1% during the fixed period.
The company said these changes are designed to give homeowners more choice and flexibility, allowing them to tailor loans to their individual needs and circumstances.
“We are always on the lookout for ways we can adapt our product ranges to increase choice and flexibility for our customers and broker partners,” said Ryan McGrath (pictured left), director of secured loans at Pepper Money. “By expanding our proposition, we can meet the needs of more customers giving them greater certainty over their financial futures, as well as increased flexibility at a time when monthly affordability can be strained.
“We are proud to lead the secured loans market by providing the best possible options for customers at all stages of their homeownership journeys. While interest rates are edging down, we continue to work with our broker partners to find the right products and best outcomes for as many customers as possible.”
Meanwhile, Somo has announced significant rate reductions across its bridging loan products. First charge rates have been cut to 0.69% with up to 75% LTV on the open market value (OMV), while second charge rates now start from 0.85% with LTVs up to 70% OMV.
The move comes as the UK bridging market shows strong growth. According to the Bridging & Development Lenders Association (BDLA), bridging completions in the first quarter of 2025 reached £2.8 billion, matching the record high from the previous quarter. New loan applications rose by 55.3% to £18.34 billion, and lender loan books totalled nearly £13 billion.
“Bridging is growing at pace, but speed, certainty and flexibility still rule,” commented Jade Keval (pictured right), sales director at Somo. “We’ve sharpened our pricing to remain ahead of the curve and paired it with features brokers tell us they really need.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
