12.7 million UK residents could be facing an increase in revolving credit payments. Consolidating existing borrowing could be an answer.

At Pepper Money, we’re on a mission to help families keep it simple. We offer flexible and affordable products that could help your customers to consolidate their debts into one simple monthly payment.

With the cost-of-living crisis continuing to dominate the headlines and concerns of many households, Pepper Money has teamed up with YouGov to fully understand the impact of increasing rates of unsecured debt on borrowers.

Debt Consolidation in a time of uncertainty

Pepper Money commissioned YouGov to understand the impact of the growing cost-of-living crisis on UK homeowners.

The results revealed:

  • An estimated 7 million British homeowners could be facing an average increase of more than £750 in annual interest rate payments on revolving credit.
  • 78% of British homeowners spent more on living costs than six months ago.
  • 30% of those with revolving credit, including credit cards, store cards and overdrafts, had an average balance of nearly £3,000 and had seen their rates rise over the same period.

Could debt consolidation be ideal for your customers to get on top of their outgoings?

With so much of the UK relying on unsecured credit, rates rising, and the economic outlook seeming persistently gloomy, this is simply a matter of good money management. Your customers will be looking to streamline their finances, reduce monthly outgoings and shore up their situation in the face of an uncertain economic environment to reduce the risk of complications or missed payments.

There are various ways that a homeowner can use the security of their home in this situation, including remortgaging for capital raising to pay off their debts, or a second charge mortgage. A second charge mortgage may be advisable for borrowers keen to remain on a more favourable first charge rate while taking advantage of the equity built up in their home.

Here’s how our debt consolidation lending criteria could help your customers

At Pepper Money, our flexible and affordable products could help consolidate a customer’s debts into one single monthly payment, so they know exactly where they stand.

We can holistically assess and provide financially inclusive mortgage solutions with the help of our intermediary partners. Your customer has the option of mortgaging or applying for a second charge mortgage, so as an adviser, here’s what you need to know about each option:

Intermediary Mortgage Range:

  • Automated Valuation Model
  • Debt consolidation up to Max LTVs
  • No debt-to-income ratio
  • Unsecured credit won’t affect product tier
  • One year’s self-employed trading accepted
  • Commission and bonus income
  • Universal Credit and DLA now accepted as a source of income


Our Mortgages

We provide mortgages to first-time buyers, home movers, and landlords who are often overlooked by high street lenders

Second Charge Mortgage Range:

  • Borrow up to 100% Loan to value
  • No ERC products available
  • Borrow up to £1,000,000
  • Repayment periods up to 30 years
  • No valuation products available
  • Self-employed, employed, contractor income
  • Min property value £75,000

A second charge mortgage from Pepper Money can be used by your customer to consolidate any debts into one monthly payment.

Want an indication of how much we could lend to your customers?

To get started, use our affordability calculators below.

Residential Affordability Calculator

Help to Buy Affordability Calculator

Shared Ownership Affordability Calculator