Pepper Money is returning to the buy-to-let market with a new product suite.
Pepper’s buy-to-let offering will enable limited companies and individual landlords with up to 10 properties in their portfolio to take out a mortgage, with rates starting from 4.99% and a maximum £4m total borrowing with Pepper.
Pepper has also improved its maximum loan size, which is now available up to £2m at 65% LTV or below, with no minimum income required.
With the UK Government requiring a minimum Energy Performance Certificate (EPC) rating of C for all rental properties in England and Wales from 2030, Pepper says landlords may use capital raising to fund renovations to bring a property’s EPC up to spec.
Pepper’s buy-to-let mortgages offer LTVs up to 80% LTV for properties with a current EPC rating of A-C, 75% LTV for those with an EPC of D, and 70% LTV where the rating is an E.
Personal bank statements, business bank statements and proof of income are not required to obtain a buy-to-let mortgage. Instead, the focus is on income receivable from the property as assessed by an independent RICS surveyor, rather than what the tenant is currently paying.
Pepper Money also accepts multiple sources of funds to pay for deposits, including gifts, directors’ loans and existing equity for limited company purchases and there is no requirement to provide a credit score. With terms of up to 35 years and lending available to age 85, Pepper’s buy-to-let range is designed to support both younger investors and experienced landlords.
Paul Adams (pictured), sales director at Pepper Money, said: “We’re re-entering the buy-to-let market with a new product offering designed to maximise choice and convenience for residential landlords in the UK.
“We know the market is tough for landlords right now, with an increasingly complex regulatory environment to navigate and rising affordability challenges. With no requirement for a minimum income, bank statements, or credit scores, our new buy-to-let offering is designed to support landlords to raise capital for a range of purposes, including consolidating debts to reduce monthly outgoings, or bringing their property’s EPC rating up to a minimum of C ahead of the UK Government’s planned 2030 deadline.
“At Pepper Money we are committed to the specialist lending market and developing a broad range of products and services to support brokers. It’s important for us to continue to work collaboratively with brokers so they can deliver competitive rates and quality service to their customers. Whether their customers are a first-time landlord, growing their portfolio, or looking to raise capital on an existing property, we could help. We look forward to bolstering Pepper Money’s buy-to-let product range even further with additional enhancements which we hope to launch in quick succession.”
