However, saving for a home has been fraught with challenges. Over the past few years, unexpected expenses, such as rising utility bills and car troubles, have made it increasingly difficult to save for a home. To spread their costs, they turned to Buy Now Pay Later schemes, but ultimately struggled with missed payments.
By the time they decided to apply for a mortgage, their credit scores had taken a hit due to previous unsecured credit balances and missed payments. This led to disappointment when not just one, but two traditional high street lenders rejected their application. Left feeling disheartened but not defeated, Peter and James sought the help of a knowledgeable broker experienced in navigating the specialist lending market.
Their broker, Rachel, recognised their potential and recommended Pepper Money.
Rachel connected with our underwriting team directly to discuss Peter and James’ situation. With our most experienced underwriters involved from the outset, we quickly worked on a Decision in Principle (DIP) application tailored to Peter and James’ unique circumstances.
While other lenders turned Peter and James down due to their credit scores and missed payments, at Pepper, we take a different approach. We don’t rely on traditional credit scoring models and have no debt-to-income ratio. We overlooked their previous unsecured missed payments and existing unsecured credit balances, which didn’t impact their ability to get a mortgage.
This not only gave them access to their desired mortgage but also ensured they could manage their monthly payments without any unnecessary financial strain.
At Pepper Money, we’re widely recognised for our expertise in handling adverse credit cases. However, our diverse product range also caters to customers who may not fit the high street’s criteria. We aim to be your first choice when high street lenders say no.
“We were daunted by the process of applying for a mortgage after our turbulent financial challenges. Despite our credit score fail and missed payments, that didn’t matter with Pepper, as they could help us secure a product at their cheapest rate.
Thanks, Pepper, for helping us purchase our first home.”
Peter and James
BUSINESS DEVELOPMENT
There’s a range of support available to our intermediaries, including our experienced team of BDMs, and direct access to a Case Owner that helps make lending decisions.
Key Criteria
We don’t credit score
Unsecured credit never affects the product tier
No debt-to-income ratio
Service
Supported by:
No painstaking paperwork
Direct access to underwriters
Less time consuming process
Need help with your mortgage case?
To discuss a case, or find out more about our products, call our experienced team. Ready to submit? Log into the application portal to get started, or register if it’s your first case with Pepper Money.
Case study summary
- Peter and James failed credit scoring thresholds with the high street due to unsecured credit balances and missed payments
- Pepper Money don’t use credit scores to make lending decisions, so they were able to see the story behind the numbers to accept their application.
- They fit straight onto a Pepper 48 Light product at Pepper’s cheapest rate, helping them to get their desired mortgage without paying a higher monthly payment.
- Recent adverse remortgage – debt consolidation to raise capital to clear unsecured debts.
- Concessionary purchase – 100% of variable income & term up to 40 years – purchasing from landlord.
CASE STUDIES
A little further reading
on how you can help your just-off-high-street customers
A Pepper Money case study – Interest Only
A Pepper Money case study – Self Employed
A Pepper Money case study – Concessionary Purchase
