FAQs

Before you apply for a homeowner loan FAQs

Are you thinking about applying for one of our homeowner loans? Here are the answers to some frequently asked questions from potential applicants.

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General questions

We’re a UK specialist lender, backed by a global financial institution. We offer a range of variable, fixed and discounted homeowner loans (second charge mortgages). These can be applied for by speaking directly to one of our fully qualified mortgage advisors or approaching one of our carefully selected broker Intermediaries (in both cases fees may apply).

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.

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

You can get an indication of how much you may be able to borrow by using our homeowner loan calculator.

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 to pay for a wedding.

You can apply for a homeowner loan with us directly by visiting our homeowner loan page or calling us on 0808 1969611

Our homeowner loans are also available through selected broker partners.

The “enquiry search” that we carry out as part of your initial application has no adverse effect on your credit file.

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

No. Our homeowner loans can only be secured against your main residential property.

We offer competitive fixed, discounted and variable rate homeowner loan products.

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.

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.

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.

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.

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 £1095 lender fee, totalling £41,095, over 200 months on a variable product with an initial borrowing rate of 4.8%. There would be 200 monthly instalments 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.

Homeowner loan calculator

With our homeowner loan calculator, you can find out what your repayments might look like each month, and how much you could end up paying. 

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

About Pepper Money

Pepper Money is the brand name used globally by all Pepper Group companies to market consumer finance products. In the UK, Pepper Money offers a range of residential, buy to let, and second charge mortgages to borrowers.

Pepper Money is part of the Pepper Group, a diversified, global financial services business, whose senior management team is some of the most experienced in the UK mortgage industry having built a long-lasting reputation for creating innovative, flexible home loan products and services. 

Pepper money

UK Mortgage Lending Ltd (UKMLL) t/a Pepper Money is authorised and regulated by the Financial Conduct Authority (FCA) under registration number 710410 as a provider of regulated mortgages. The FCA does not regulate our Buy to Let mortgages. UKMLL is a member of the Finance and Leasing Association and follows its Lending Code as a provider of second charge regulated mortgages. Registered Office: 4 Capital Quarter, Tyndall Street, Cardiff, CF10 4BZ. Registered in England and Wales under Company Number 08698121.

Pepper Money Limited t/a Pepper Money is authorised and regulated by the Financial Conduct Authority under Firm Registration Number 811609 as a provider of regulated mortgages. The FCA does not regulate our Buy to Let mortgages. Registered Office: Harman House, 1 George Street, Uxbridge, London UB8 1QQ. Registered in England and Wales under Company Number 11279253. Calls may be monitored or recorded for training, compliance and evidential purposes.

Information

First Charge Service Levels

Intermediary - First Charge

Working on DIP referrals received on:

27th May

Responding to application portal broker messages on:

27th May

Reviewing applications sent to our underwriters on:

27th May

Working on applications received on:

27th May

Currently reviewing valuations received on:

27th May

Answering calls in less than (average speed):

< 1 Minutes
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