Expansion of AVM use also part of latest criteria changes
Specialist lender Pepper Money has rolled out several enhancements to its lending proposition, including changes to its automated valuation model (AVM) policy and the return of 100% loan-to-value (LTV) secured loans.
The broader application of AVMs — now covering flats and higher-value properties — is designed to speed up valuations and reduce the risk of down-valuations that can delay or derail transactions.
The lender also brought back 100% LTV secured loan products, allowing eligible customers to borrow up to the full amount of equity in their property. The move, which could support borrowers looking to consolidate debt or finance home upgrades, followed broker feedback and was designed to meet demand in a high-rate environment.
Pepper Money also launched a new secured loan option without early repayment charges (ERCs), aimed at giving borrowers more flexibility. The new no-ERC products are positioned as an option for borrowers who want to raise additional funds without altering their main mortgage rate. These products are expected to appeal to customers with non-standard income, previous credit issues, or other complex borrowing needs.
Earlier in the week, the lender also confirmed its return to the buy-to-let market with new mortgage offerings for both individual landlords and limited companies with portfolios of up to 10 properties.
“We continuously review our product ranges and consider ways to increase choice and certainty for our broker partners and customers,” said Ryan McGrath (pictured), director of secured loans at Pepper Money. “The decision to reintroduce 100% LTVs and products with no early repayment charges and expand our AVM criteria follows insight from brokers that customers are looking for greater flexibility and certainty from their financing when their affordability is under increasing pressure due to the cost-of-living crisis continuing to roll on.
“At Pepper Money, we are committed to the secured loan market and providing the best possible options for customers at all stages of their home ownership journey and financial positions, with mortgage rates still high and inflation easing slower than expected, we continue to work with brokers to assess cases and deliver the best possible outcomes for customers.”
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