Pepper Money has launched a 90% loan-to-value (LTV) mortgage as part of its Pepper48 and Pepper36 residential mortgage range, with 5-year fixed rates starting at 6.39%.
The move follows growing demand for high-LTV mortgages as house prices continue to outpace earnings.
Pepper’s 90% LTV mortgages are open to borrowers who have not defaulted or had a county court judgement in the last three years.
There are no debt-to-income ratio limits, so customers can raise capital up to the maximum product LTV.
Paul Adams, sales director at Pepper Money, said: “As a leading specialist lender, we are proud to develop and enhance our product offering to adapt to the changing realities of the housing market, as well as the shifting needs of buyers, particularly those with more complex or less traditional financial histories that might not meet the requirements of high street lenders.
“There is no denying that house prices have skyrocketed in relation to earnings and this means deposits are rising too, putting more stress on already stretched households looking to purchase a home.
“High-LTV mortgages will go some way to alleviate these pressures, helping more buyers to make their property purchase a reality.”
Adams added: “But we know that not every borrower meets the strict requirements of high street lenders, particularly those who are self-employed or have navigated an adverse life event.
“That shouldn’t be a reason to hold them back from buying a home of their own, it’s only right that we adapt our product offering to ensure that all those who can and want to buy a home are given the best opportunity to.”
