FAQ's

All you need to know before you apply

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

We’re a UK mortgage lender, backed by a global financial institution. We help people who may have been knocked back by high street lenders or are getting back on their feet financially.

If you want to apply for a mortgage and your situation involves any of these things, we may be able to help.

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General Questions

We’re a UK specialist lender, backed by a global financial institution. We offer mortage products to help people who may have been knocked back by high street lenders or are getting back on their feet financially.

If you want to apply for a mortgage and your situation involves any of these things, we may be able to help:

  • Previous financial difficulties
  • Complex income
  • Self-employment
  • Limited credit history

Because mortgages can be complicated, especially in the cases we specialise in, we’ve decided to partner with advisers. They can help you find the right deal.

Click here to find a mortgage broker near you.

A number of things can affect how long it takes to get a mortgage with us. In some cases, it’s possible to get a mortgage in about the same time you would with any high street lender. In others, we may need you to find more documents or information. We understand it can take a while to dig these out – we hope you’ll understand it also takes us time to process them manually, review your case and come back to you.

At the moment, we don’t lend on properties in Scotland or Northern Ireland.

However, if you’re looking to buy in England, Wales or on the Isle of Wight, we can help.

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If you’ve been trading for over a year, chances are we’ll be able to help. Your adviser can give you more guidance on our specific requirements for applying.

Click here to find a mortgage broker near you.

We’ll need to see evidence that you’ve been contracting for over 12 months and there will be other details we need to confirm. Your adviser will be able to let you know more about this.

Click here to find a mortgage broker near you.

In some circumstances, Yes.

We do have limitations on the number of CCJs we can accept that were registered in the last 12 months, but we don’t have a maximum value and we don’t need them to have been cleared before you submit your application. Speak to your adviser to find out more.

Click here to find a mortgage broker near you.

We may be able to help if you were discharged more than 6 years ago. Speak to your adviser to find out more.

Click here to find a mortgage broker near you.

No. We do not currently offer foreign currency mortgages. 

We’ll need to consider your personal circumstances including your pension income. Your adviser will be able to give you some guidance on this.

Click here to find a mortgage broker near you.

We require that any missed mortgage payments were at least 12 months ago and you’ve been back up to date with payments for at least the last 6 months. There may be other considerations too, so it’s best to speak to your adviser for further guidance.

Click here to find a mortgage broker near you.

Credit reports are provided by credit reference companies like Experian, Equifax and CallCredit. If you want to look at your credit report you can go through one of these companies. If something on it looks wrong, get in touch with the company who provided your report, and they’ll help with what to do next.

Note: When we consider your application we check your Equifax credit report, so it may be worth getting your adviser to check this before making your application.

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This explains:

  • Who we are
  • How and why we collect, use and share your information
  • Your rights regarding your information
  • How to contact us
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For the fullest answer to this question, please visit our Privacy policy page.

This explains:

  • Who we are
  • How and why we collect, use and share your information
  • Your rights regarding your information
  • How to contact us
  • Who to contact if you have a complaint

The LMR or the Lender Managed Rate is a variable rate of interest which we set. We may use this as the reference for setting the variable interest rate we switch the mortgage to at the end of the initial product fixed rate period. You can find more details on our interest rates page.

Here’s a summary of the key points of our Residential mortgages.

Lender details

UK Mortgage Lending Ltd trading as Pepper Money

Harman House, 1 George Street, Uxbridge, London UB8 1QQ

Mortgage purpose

Our mortgages can be used for first charge on a residential property, subject to manual underwriting assessment after submission of application.

Property

The mortgage must be secured on your primary residential address in England, Wales or on the Isle of Wight.

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer or where evident in the structural engineer’s report. The property must be of mortgageable condition when the loan completes.

Valuation

We will instruct the valuation once we have assessed the case and are happy to proceed. However, you can instruct the valuation before this point, but the valuation fee will not be refunded if after reviewing the case we’re unable to proceed.

Some mortgages offer free valuations – the product details for your mortgage will tell you if this is the case.

On 2-year rates we apply a stress to ensure the applicant will be able to afford the mortgage if rates rise. However, on our 5-year rates the affordability is calculated at the pay rate.

Mortgage Terms

We offer residential mortgages on a rate fixed for 2 or 5 years, plus a 2-year variable rate mortgage. 

  • Minimum Term 2 years
  • Maximum Term 35 years
  • Minimum Loan Amount £25,001
  • Maximum Loan Amount £1,000,000 available to 75% LTV

All our loans must be on either a full Capital and Interest or Interest only basis. Interest only to 60% LTV, supported by an acceptable repayment strategy.

Loan Types

We offer fixed and variable rate mortgages on a capital and interest repayment basis, or an interest-only 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.

An interest only mortgage is a mortgage where no capital payments are made during the life of the loan. You will need to arrange for a repayment strategy to be put in place to ensure the capital can be repaid.

Compliance with the conditions of the mortgage contract does not ensure repayment of the total amount of credit.

Representative Example

Total loan amount: £101,310.00 | Fixed Interest rate: 3.20% first 24 months & Variable Interest Rate: 4.70% remaining 216 months | Term of Loan: 240 months | Interest payable: £52,862 | Total amount repayable £154,172.70 | 4.8% APRC

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 which can be viewed on our website.

Payment Options

Payments must be made monthly by Direct Debit for the duration of the term.

Early Repayment

You have the right to repay this mortgage early, either fully or partially. However, an Early Repayment Charge may apply if, during your initial period, you:

  • Repay the entire mortgage, or
  • Make a partial early repayment in excess of 10% of your original mortgage amount. In this case the early repayment charge will be applied to the amount by which the payment exceeds 10% of your original mortgage amount

Full details are contained in your Mortgage Offer document.

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.

Here’s a summary of the key points of our Buy to Let mortgages.

Lender details

UK Mortgage Lending Ltd trading as Pepper Money

Harman House, 1 George Street, Uxbridge, London UB8 1QQ

Loan Purpose

Our mortgages can be used for first charge on a residential property for the purpose to be rented, subject to manual underwriting assessment after submission of application.

Property

The mortgage must be secured on a UK residential address in England, Wales or on the Isle of Wight.

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report. The property must be of mortgageable condition when the loan completes.

Valuation

We will instruct the valuation once we have assessed the case and are happy to proceed. However, you can instruct the valuation before this point, but the valuation fee will not be refunded if after reviewing the case we’re unable to proceed.

Some mortgages offer free valuations – the product details for your mortgage will tell you if this is the case.

On 2-year rates we apply a stress to ensure the applicant will be able to afford the mortgage if rates rise. However, on our 5-year rates the affordability is calculated at the pay rate.

Mortgage Terms

We offer mortgages on a 2-year and 5-year fixed rate terms.

Minimum Term 2 years 

Maximum Term 35 years

Minimum Loan Amount £25,001

Maximum Loan Amount £2,000,000 available to 65% LTV

All our loans must be on a full Capital and Interest or Interest only. Interest only to 80% LTV, supported by an acceptable repayment strategy and maximum age of 85.

Loan types

We offer fixed rate mortgages on a capital and interest repayment basis, or an interest-only 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.

An interest only mortgage is a mortgage where no capital payments are made during the life of the loan. You will need to arrange for a repayment strategy to be put in place to ensure the capital can be repaid.

Compliance with the conditions of the mortgage contract does not ensure repayment of the total amount of credit.

Representative Example

Total mortgage amount: £101,310.00 | Fixed Interest rate: 3.20% first 24 months & Variable Interest Rate: 4.70% remaining 216 months | Term of Loan: 240 months | Interest payable: £52,862 | Total amount repayable £154,172.70 | 4.8% APRC

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 have the right to repay this mortgage early, either fully or partially. However, an Early Repayment Charge may apply if, during your initial period, you:

  • Repay the entire mortgage, or
  • Make a partial early repayment in excess of 10% of your original mortgage amount. In this case the early repayment charge will be applied to the amount by which the payment exceeds 10% of your original mortgage amount

Full details are contained in your Mortgage Offer document.

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.

Find a Mortgage Broker

Our products are only available through mortgage advisors. Find a mortgage broker that we recommend today.

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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