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?

Pepper Money can help you take the first step on your path to homeownership with First Homes, a new government scheme designed to help more people find their way to the home they deserve. Whatever your personal situation, it’ll always be a familiar one to us. This means that we’re better equipped to help you fulfil your ambitions, with the mortgage product you need, when you need it.

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.

We provide a flexible,

inclusive and human approach to lending and we do not credit score

You only need to provide

a 5% deposit if purchasing a house (10% for a flat) and this deposit can be fully gifted

CCJs and Defaults accepted

if you have had none registered in the last 24 months.

CCJs and Defaults

do not need to be satisfied and we do not have a value limit

Recent unsecured

missed payments accepted

We accept 100% of your

commission and car allowance to boost your affordability

Are you a hopeful homeowner?

Our handy guide explains how the First Homes mortgage application process works, step by step



Customer views First Homes property


Application Pack

Customer completes application pack provided by developer


Pack submitted

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


Docs uploaded

Customer uploads docs to broker, including Authority to Proceed


Application submitted

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


Mortgage offer

Pepper issues mortgage offer



Documents and funds exchanged



Collect the keys

Once your First Homes application is approved

Further information can be on the Gov.uk website. However, there are a few areas you may want to consider


If this has not been done it is recommended to explore identifying and hiring a conveyancer - this is a solicitor who can help you with the purchase.


Ensure you are comfortable with the chosen conveyancer and you may want to query with them and familiarise yourself with any local council instructions.


Complete any legal documents the local council sends you.

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;

  1. 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.
  2. 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.
  3. 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
  • Deposit
  • 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  
  • Food  
  • Travel

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. 

Maintaining payments

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.