We are aware of scams involving individuals being offered loans for an advanced upfront fee. With the fraudster posing as a representative of a financial services organisation. At Pepper Money we do not charge any fees before the application stage. We would not approach you directly in this way. Your broker will be able to tell you what fees and charges the product you’re applying for has, and when they will be charged. If you think you have been a victim of such a scam, please contact your bank immediately and report it to action fraud.
Homeowner Loans FAQs
Who is Pepper Money?
We’re a leading specialist lender, part of the Pepper Global group. We offer a range of variable, fixed, and discounted homeowner loans (second charge mortgages). You can apply for a loan through one of our broker partners.
How much can I borrow?
What is a homeowner loan?
Homeowner loans, also known as second charge mortgages, can be taken out for many different purposes, including to re-organise personal finances. This can allow customers to consolidate existing debt into easy-to-manage monthly payments. All applications are considered and assessed individually but you should be aware that when consolidating existing credit this may result in you extending the repayment term of your debt and could increase the total amount you repay.
What can I use a homeowner loan for?
How much can I borrow?
You can borrow between £5,000 to £1,000,000 subject to your circumstances and credit checks.
How can I apply for a homeowner loan?
You can speak to one of our trusted broker partners about homeowner loans. They can recommend a suitable lender and can help you with your application.
Can I borrow against a rental property?
No. Our homeowner loans can only be secured against your main residential property.
What homeowner loan products do you offer?
We offer a range of fixed, discounted, and variable rate homeowner loan products. You can find out more by visiting our product page.
What is your maximum loan-to-value?
You may be able to borrow up to 100% of your property’s value, less the existing mortgage balance, subject to a satisfactory valuation. Minimum property values and conditions apply.
Can I apply if I have a low credit score?
As a specialist lender, we welcome applications from customers with less than perfect credit histories and have a range of products tailored to suit your needs.
Can I repay my homeowner loan in full?
You can repay your homeowner loan in full at any time, however early repayment charges may apply. Full details are contained in your Mortgage Offer document sent prior to completion or in the ‘Early Repayment Section’ on the reverse of your Loan Agreement.
Please call us on 0330 143 125 if you are uncertain about the early repayment charges on your homeowner loan account.
Do I need a property valuation?
A valuation of your property may be required, depending on the value of your property, the amount of the advance and your personal circumstances.
If you have received mortgage advice from your personal mortgage adviser, the responsibility for ensuring the valuation is carried out, and for paying the cost of it, will fall to either your mortgage adviser or Pepper Money. No additional cost would normally arise as a result of a property valuation, but your mortgage adviser or Pepper Money will notify you if you need to pay some or all of this cost. A portion of any fee that you pay your mortgage adviser may include an element towards the cost of a property valuation.
Where can I find a summary of your Homeowner Loans?
Here’s a summary of the key points of our Homeowner loans.
Lender details
UK Mortgage Lending Ltd trading as Pepper Money
4 Capital Quarter, Tyndall Street, Cardiff, CF10 4BZ.
Loan Purpose
Our Loans can be used for almost any legal purpose, depending on your individual circumstances.
Property
The loan must be secured on your primary residential address. This must be in the UK and already have a first charge mortgage secured against it. The property must be of mortgageable condition when the loan completes.
Valuation
A valuation of your property may be required, depending on the value of your property, the amount of the advance and your personal circumstances.
If you have received mortgage advice directly from us, we are responsible for ensuring that the valuation is carried out and we will pay the cost of it. In limited circumstances you may need to pay some, or all of this cost and we will notify you if this is the case.
If you have received mortgage advice from your personal mortgage adviser, the responsibility for ensuring the valuation is carried out, and for paying the cost of it, will fall to either your mortgage adviser or Pepper Money. No additional cost would normally arise as a result of a property valuation, but your mortgage adviser or Pepper Money will notify you if you need to pay some, or all of this cost. A portion of any fee that you pay your mortgage adviser may include an element towards the cost of a property valuation.
Loan Terms
We offer fixed, discounted, and variable rate homeowner loans between £5,000 and £1,000,000 for a duration of between 3 and 30 years, depending on your personal circumstances.
Loan types
We offer fixed, discounted, and variable rate homeowner loans on a capital and interest repayment basis.
A fixed rate mortgage has a fixed interest rate for a set period of time at the beginning of the mortgage. At the expiry of the fixed rate period, the reversion rate, which is the lenders variable rate, will be applied to the mortgage. An Early Repayment Charge will be applicable during the fixed rate period.
A discounted rate mortgage has an initial lower variable interest rate for a set period of time at the beginning of the mortgage. At the expiry of the discounted rate period, the reversion rate, which is the lenders variable rate, will be applied to the mortgage. An Early Repayment Charge will be applicable during the fixed rate period.
A variable rate mortgage has an interest rate that will be variable from inception, for the duration of the agreement.
Representative Example
Based on Borrowing of £40,000, plus a £1095 lender fee, totaling £41,095, over 200 months on a variable product with an initial borrowing rate of 4.8%. There would be 200 monthly installments of £298.90. Total amount payable £59,875, made up of: Mortgage Amount £40,000, Interest £18,685, Lender fee £1095, Exit Fee £95. Overall cost for comparison purposes 5.3% APRC. Please be advised that any interest rate fluctuations, during the life of the mortgage contract, will affect the total amount repayable.
Possible Further Costs
There may be further costs which you may have to pay depending on particular events, or for a particular service provided by us. These are detailed in our Tariff of Fees and Charges.
Payment Options
Payments must be made monthly by Direct Debit for the duration of the term.
Early Repayment
You can repay your homeowner loan in full at any time, however early repayment charges may apply. Full details are contained in your Mortgage Offer document sent prior to completion or in the ‘Early Repayment Section’ on the reverse of your Loan Agreement.
Please do not hesitate to contact us if you are uncertain about the early repayment charges on your homeowner loan account.
Consequences of Non-Compliance
Should you encounter difficulties in making your monthly payments, please contact Pepper Money straight away to explore possible solutions.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Compliance with the conditions of the mortgage contract does not [necessarily] ensure repayment of the total amount of credit.
Application in progress
How long does the application process take?
Will you need to contact my existing mortgage company?
Can I make overpayments/pay back the account early?
How will you repay my creditors?
We will either pay your creditors directly or we will send you a cheque to forward to the relevant creditor.
Try our loan calculator or find a broker
Use our loan calculator to get an idea of how much you may be able to borrow. Or find a broker who can talk you through your options and give you their recommendation.
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