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

Whether you’re thinking about applying for one of our homeowner loans or have an application in progress, here are some common questions we get asked.

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?

With a homeowner loan from Pepper Money, you can borrow from £5,000 to £1,000,000 subject to your circumstances and credit checks. A homeowner loan could enable you to borrow more than an unsecured personal loan – the main difference being that the borrowing is secured against the value of your home.

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?

A homeowner loan can be used for almost any legitimate purpose. Common uses for people taking out a homeowner loan include debt consolidation, home improvements, school fees, and paying for a wedding.

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.

What are your fees?

You can find our fees in our tariff of fees and charges.

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 95% 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

Borrowing of £40,000, plus £595 lender fee, plus £3,000 broker fee, totalling £43,595, over 192 months on a 5-year fixed product with an initial borrowing rate of 9.2%, following a variable rate of 9.6%. There would be 60 monthly instalments of £434.49, following 132 monthly instalments of £442.52.

Total amount payable £84,577.09, made up of: Mortgage Amount £40,000, Interest £40,887.09, Lender fee £595, Broker fee £3,000, Exit Fee £95. Overall cost for comparison purposes 11.4% 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?

We will aim to complete your application as quickly as possible. Depending on your circumstances, this can take from as little as a few working days, up to a few weeks.

Will you need to contact my existing mortgage company?

On occasion, we will be required to obtain information from your existing mortgage lender, such as their consent for the second charge to be registered. This has no impact on your agreement with your existing mortgage company.

Can I make overpayments/pay back the account early?

You can make as many overpayments to your account as you wish, without penalty. If you wish to redeem the account in full, an Early Repayment Charge may apply; this will depend on the terms of your product.

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.

e-signature FAQs

Will I be eligible for the e-signature process?

You will be eligible if:

  • your security property is registered in England or Wales;
  • you have your own unique telephone number and email address;
  • you do not require independent legal advice; and
  • you have proficient computer, financial and English language skill levels to complete the e-signature documentation without additional help

Ineligible customers will continue to receive a paper copy of the Offer Pack and Deed directly from Pepper Money in the post, with a requirement for the Deed to be signed and a hard copy original returned via the post.

What if I would prefer a paper copy?​

This is not a problem. You will receive a paper copy of the Offer Pack and Deed directly from Pepper Money in the post, with a requirement for the Deed to be signed and a hard copy original returned to Pepper Money via the post. If you do not wish to proceed with the e-signature process, you should contact your broker, who will be able to send your documents via email or post.

Which documents can be e-signed in the process? ​

The following documents can be signed as part of the e-signature process: ​

  • Mortgage Deed​
  • Credit Consolidation & Cash Out Form
  • Minor Amendments Form​
  • Direct Debit Mandate​

What is the role of Robertsons Solicitors in the e-signature process?  ​

We have instructed Robertsons Solicitors to act on our behalf and help manage the conveyancing and e-signing process to make this as smooth as possible. This is the reason you will receive the Docusign email from Robertsons Solicitors branded Pepper Money.

What happens if I enter my witness mobile number incorrectly or I need to change my nominated witness?  ​

In this instance, you should contact Robertsons Solicitors (the solicitors acting on Pepper’s behalf and who are helping us manage the e-signing process). You can email them at [email protected]. They will then amend this so you can proceed with the journey. 

What do I do if Applicant 2 does not receive an email to e-sign?

In this event, you should check whether the witness for applicant 1 has completed their part of the process, because if they haven’t, then the email will not be sent to applicant 2. If the witness has completed their part of the journey and an email has still not been received by applicant 2 they should check their junk email. If the email can still not be found please email Robertsons Solicitors ([email protected]).

Does my witness need to be physically present when I sign the mortgage deed?

Yes, in order to properly execute the Mortgage Deed, your witness, must know you, however they must not be a relative or live in the same property as you, and will need to be present to witness you e-sign the Mortgage Deed. You will need to provide the full name, email address and mobile number of your witness as part of the Mortgage Deed e-sign process. This is so your witness can be sent the Mortgage Deed to e-sign (witness) once you have e-signed your documents.

How soon after Pepper has agreed to issue my loan offer will I receive my documents to e-sign? ​ ​

Once Pepper has agreed to Offer your loan, you will receive an invite to e-sign your documents within 3 working hours (based on standard business hours of 9am-5pm Monday to Friday).

Can my witness be a relative?  ​

No, your signature must be witnessed by an independent witness who knows you, who is not a relative and does not live with you.​

Can I use the same witness details for both applicants on a joint application issued for e-signature? 

Yes, the same witness can be used for both Applicant 1 and Applicant 2 on a joint application. ​

What if I have a query about any of the documents and / or their contents?  ​

Please contact your broker who will be able to assist you with any questions you may have with regards to the documentation and / or their contents.

How long will it take before I receive my funds after the e-signature process has been completed?  ​

As long as we have received all outstanding documents and information required, it should take approximately 24 – 48 hours for the funds to be paid.

e-signatures Customer Guide

Your guide to Pepper’s e-sign process.

e-signatures Witness Guide

A witness guide to Pepper’s e-sign process.

Try our homeowner 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.