As part of the EU Mortgage Credit Directive (MCD), which came into effect in March 2016, we’re required to publish certain information on our website. Some of this information is available on other pages within this site, but we’ve also collated all this information below.
What's our trading name and where are we based?
"Pepper Money" is the trading name of Pepper Money Limited with its registered head office address at Harman House, 1 George Street, Uxbridge UB8 1QQ. Pepper Money Limited is authorised and regulated by the Financial Conduct Authority No. 811609.
What type of rates do we offer?
All our mortgages have an initial offer period - we offer one type of rate during this period:
Fixed - this means the rate won't change during the initial offer period meaning your repayments won't change during this time.
During this initial period if you chose to repay more than your acceptable overpayment (including paying off all your mortgage) you may have to pay an Early Repayment Charge (ERC). The ERC is calculated as a percentage of the amount you repay. After the initial period, your mortgage rate will switch to the reversion rate - this is a variable rate and may be different for each of our mortgage products. Details of the ERC and reversion rates are included in your mortgage offer.
What benchmarks do we use and for what purpose?
We use the London Interbank Offered Rate (LIBOR), a benchmark interest rate at which financial institutions lend money to each other, to establish the reversion rate for our LIBOR-linked products. The reversion rate is the rate of interest that you’ll be charged after the initial offer period and is comprised of LIBOR plus the agreed set percentage above LIBOR.
We use three month LIBOR which means that we reset LIBOR every March, June, September, and December to reflect the rate at that time. As a result, the reversion rates we charge may go up or down which, if you’ve been moved on to the reversion rate, can result in the value of your repayments changing.
Please be aware that our LIBOR-linked products have a floor, meaning that if LIBOR fell to 0.00% or less, then the reversion rate payable will be 0.00% plus the agreed set percentage above LIBOR. Consequently, the reversion rate payable will never go below 0.00% plus the additional percentage rate.
LIBOR is calculated and published by the Intercontinental Exchange.
How long can the mortgage be for?
Our loan durations range from a minimum of 5 years up to a maximum of 35 years. The loan term is dependent on your circumstances.
What can the mortgage be used for?
Our mortgages may be used to buy or remortgage a residential property for occupation or as an investment on a first charge basis.
What forms of security do we accept?
To get a mortgage with us we'll need to be registered as the first charge mortgage on the property you're looking to buy - we'll use this property as security for the mortgage.
Your Mortgage Adviser will have access to our full lending policy outlining the types of property we are able to lend on.
Are there any additional costs associated with our mortgages?
There may be other costs involved in relation to your mortgage that are not included in a standard APRC. You can find more information about these costs in any illustration that has been issued to you or in our tariff or charges document.
How can you repay the mortgage?
Our mortgages can be repaid on a capital and interest basis (on all LTVs) or interest only (up to 60% LTV for Residential or 80% LTV for Buy to Let).
To select the interest only option you must be no older than 75 years old, or 85 years old for a Buy to Let mortgage, at the end of the mortgage term. You'll also be required to detail how you intend to repay the remaining capital balance at the end of the mortgage term.
The MCD provides customers with the right to repay a loan early, either partially or in full. Early Repayment Charges will be outlined in your Mortgage Offer.
Do you need to get the property valued?
To get a mortgage from us we'll need a valuation of the property to be conducted. The valuation must be undertaken by a surveyor on our valuation panel.
The cost of this valuation will be paid for by you - view our valuation fees.
Are there any other products you need to take from us in order to get the mortgage?
You're not under any obligation to take any extra services or products from us to be able to get a mortgage. However, unless the property is commonhold or held under a lease and another party is obliged to insure the property, customers must arrange buildings insurance for the property and its fixtures against loss and damage.
Warning: Please note that if you do not comply with the terms and conditions of the mortgage then it is not guaranteed that the total amount of credit will be repaid by the end of the term.