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.
First Homes Mortgages
What is First Homes?
First Homes is a government scheme that provides Hopeful Homeowners the option to purchase a new build home for 30% to 50% less than the full market value, up to a maximum allowable property value of £250,000 (£420,000 in London) after the discount has been applied.
A property purchased via the First Homes scheme can either be a new home built by a developer or a home you buy from someone else who originally purchased the property as part of the scheme.
The scheme has certain eligibility criteria such as a maximum household income cap of £80,000 (£90,000 in London) and also local councils may apply their own criteria. For further details around the scheme please visit the government websites First Homes scheme.
Our handy guide explains how the First Homes mortgage application process works, step by step
Customer views First Homes property
Customer completes application pack provided by developer
Developer supports completion of application pack and submits to the local authority
Authority to proceed
Local Authority receives completed application pack, checks criteria are met and issues Authority to Proceed and conveyancer pack
Customer uploads docs to broker, including Authority to Proceed
Broker submits application with Pepper Money
One of these essential documents:
- Valid passport
- Valid photo card driving license (full or provisional)
- National Identity Card Firearms certificate or shotgun license
- Identity card issued by the Electoral Office for Northern Ireland
One of these additional documents:
- Current council tax bill or
- Statement non-internet generated bank statements or
- Credit card statements or utility bills
Pepper will intruct a valuation
Pepper issues mortgage offer
Documents and funds exchanged
Collect the keys
How we help
General questions about First Homes
Here are the answers to some frequently asked questions from our broker partners that could help you.
What would a broker recommend to customers to ensure they are fully prepared?
Before applying for a mortgage it would be beneficial to take an evaluation of your financial position. This means a review of your income and outgoings over at least a 6 – 12 month period. The aim would be to assess if you can meet the payment terms of a mortgage and factor in fluctuations in outgoings.
Unlike many mortgage lenders, Pepper Money do not make lending decisions based upon your credit score. However, it is recommended you review your credit score and file before you apply. There are four UK credit reference agencies TransUnion (previously Callcredit), Equifax, Experian and Crediva.
Customers can check all credit reference agencies using Checkmyfile, but please note that payment will be required thereafter. However, there are other free companies such as Clearscore, Credit Karma and TotallyMoney
Which documents are most important?
To process a mortgage application, there are typically 3 types of documents required;
- Applicant Information – If requested, we’ll require two forms of identification. At least one of them must be from the ‘Essential Documents’ list above. Please ensure that the documents are certified as a true copy of the original and where applicable, a true likeness of the applicant to avoid any delays.
- Income and Employment – You will need to demonstrate 12 months of continuous employment history. This may include but not limited to Business Bank Statements & annual accounts if you are self-employed. This can usually be done by providing your most recent P60 or last payslip from the previous financial year.
- DMP Form – If you are applying for one of our Debt Management Plan products.
Pre-completion expenditure budget
Once you have engaged with an intermediary and lender, we would recommend prior to submitting your mortgage application you assess any potential additional costs you may be required to pay to complete your mortgage. This will include but, is not limited to, the following:
- Stamp Duty
- Conveyancing fees
- Survey fees
- Mortgage arrangement fee
- Mortgage broker fees
Post-completion expenditure budget
With your offer accepted and your mortgage application underway, if you have not already, we would recommend that you devise a plan of your estimated monthly income and expenditure. However with the current trends with inflation it may be useful to include an incremental increase to your variable costs. This may include but, is not limited to, the following costs:
- Council Tax
- Water, gas and electricity bills
- Building & Contents insurance
- Life Insurance
- Service Charge
- Residents parking
Importance of miscellaneous fund
Becoming a homeowner has a number of benefits. It can be said you are likely to have an increased amount of security and stability compared to renting.
However, there are hidden and unexpected costs that could likely arise when you are least expecting it. It is recommended to allocate a fund for unexpected repairs, appliance replacements or upgrades.
A recent consumer survey conducted by Which in March 2023, revealed an estimated 2.5 million households have missed a payment on their mortgage, utility bills and credit cards.
Missed payments can have a detrimental impact on your credit score and therefore could reduce the options when you decide to remortgage.
We would highly recommend you stay abreast of your monthly bills and associated contract terms. However, it is imperative that in the event you anticipate potential challenges with making payments, it is recommended to contact your mortgage, credit card, utility provider or other bill source weeks or months before the payment is due.
Keep your costs down - Recommended sites
Whether it is your internet bill, your utility bill or your TV bill, you are more likely to agree to a fixed term contract.
Once the fixed term expires you may be charged at an increased rate, therefore it is important to record and monitor when each fixed term will expire. This will help you identify an alternative agreement at a reduced rate, prior to the expiration of the fixed term.
There are numerous comparison sites that you can refer to when searching for an alternative provider. This includes, but is not limited to, the following:
Frequently asked questions
At Pepper Money, we’re ready to challenge convention, read between the lines and see the story behind the numbers.
Thinking about applying?
We have the answers we often get asked by potential applicants.
Application in progress?
Read our FAQ's if you're in the process of applying for a mortgage.
Got a mortgage with us?
If you have a mortgage with Pepper Money, we have all you need to know.