Compare Criteria

Pepper Money

Pepper Money

Mortgage Type

Residential

Property Value (min)

£70,000

Advance (min)

£25,001

Advance (max)

£1,000,000 up to 75% £750,000 up to 85%

Term (Max)

35

Minimum Age

21 years old

Maximum Age

75 years

Family Cash Gift Deposit

Gifted deposits are acceptable from the following close relatives of the applicant(s): Parent/Step‐Parent/Parent‐in‐Law. Sibling. Child/Step‐Child/Son‐in‐Law/Daughter‐in‐Law. Aunt/Uncle. Grandparent/ Grandchild.

Family Gift of Equity Deposit

Yes, but client must have 15% of their own funds and this cannot be gifted from another family member.

Income (min)

Min income must be overall £18,000 per application, can include benefits.

Employed
• Income – last 3 month’s payslips, will use the average net pay out of the 3
• Expenditure – last 3 months months Bank Statements
• Overtime, shift allowance etc. - Accepted, however average net pay from the 3 months’ payslips used
• 100% of commission/bonus if paid weekly/monthly – based on a 3 month average.
• 50% for quarterly/annually based on a 2 year average using P60

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Self Employed (Sole Trader/Partnerships)
• 1 Years final accounts plus 3 months personal and business
bank accounts statements showing applicants share of net
profit
• SA302s can be provided as long as they are supported by 3
months personal and business bank statements

For applicants who have been trading for less than two years, one year’s finalised accounts is acceptable. For applicants who have been trading for two years or more, two years’ accounts will be requested and the latest year’s figure will be used for affordability.

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Company Director
(Note: Shareholding = or < 25% treated as employed, shareholding
>25% treated as s/employed)
• 2 Years final accounts plus 3 months personal and business bank statements showing - this is required if more than 1 years trading.

Foster Carer income is acceptable. Applicants in receipt of P.A.Y.E payslips will be classified as employed. Those in receipt of a Remittance Advice from the relevant authority will be classified as self‐employed.

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Contractors: - (Who can evidence 12 months history of being day rate contractor. Only acceptable on a minimum of £200 day rate.

***Umbrella companies (Where client is being paid on a daily rate) will be classed a contractor)

Where the customer is paying their own tax and/or national insurance will be treated as self employed.

Applications from contractors may be accepted subject to the applicant being able to demonstrate a minimum of 12 months as a day rate contractor and must be currently, contracted.

Gross allowable income should be calculated on the following basis: -
Lower of 12 months average day rate amount OR current contract day rate amount x 5 (days per week) x 46 (working weeks)

Let to Buy (Turning Residential into Buy to Let)

Yes - where the borrower is using the equity in their current residential property to purchase another property and the new property will be their primary residence with the old property being let out.

The re‐mortgage of their current residence will follow the Buy to Let criteria and we will require a copy of the Assured Shorthold Tenancy, and confirmation of who will be residing at the property.

It is a requirement that the purchase of the new property must complete before, or at the same time as, completion of the remortgage of their current residence

Ex-Local Authority Properties

Houses and flats up to 85% LTV

Minimum Ownership

6 months minimum ownership before remortgage

Permanent rights to reside and remain

Applicants who are non‐UK citizens must have been permanently resident in the UK for the past three years and must have indefinite leave to remain in the UK.
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UK citizens who are returning to the UK permanently are acceptable.
Applications from Foreign Nationals are acceptable, however all applicants must:
Live and work in the UK (UK citizens working abroad are acceptable where their main residence is in the UK and they are a UK taxpayer).
Be UK taxpayers (where income is being used in support of the application).
Have resided in the UK for the last 3 years.
Applicants residing in the Isle of Man and Channel Islands are not acceptable.
Non‐UK citizens (UK & European Union (EU) Nationals and Non‐European Union Nationals) must provide evidence of a minimum employment history of 3 continuous years in the UK(where income is used in support of the application).
Non‐European Union citizens must provide evidence confirming indefinite rights to remain in
the UK and have a statutory right to work in the UK.

New Builds

Houses - Yes
Flats - No
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Pepper will consider Wimpey No Fine and Lang Easy Form even though no they are non-standard construction. This is on a case by case basis and is referred to an internal property team within Pepper.

Credit Score

Pepper Money credit check, not credit score

Historic CCJ’s & Defaults

(CCJs or defaults are treated the same)
No CCJs or defaults are allowed in the first 6 months
CCJs and defaults registered more than 2 or 3 years ago, dependent on product, are ignored.
A missed mortgage payment as reflected at CRA (not paid within a month of the contractual due date).
A missed secured payment as reflected at CRA (Credit Reference Agency)

Revolving credit (credit cards, store cards, utilities, overdrafts and communications) can consider missed/late payments as recently as a month ago.
If it is a fixed term agreement (loan, HP, sofa on finance etc) then none in the last 6 months.

Small utilities/ comms/ mail order defaults ignored (up to 2 individual defaults total of £150 each per application) (applicable to BTL and Resi 24, 18, 12 and 6 only, including Limited Edition)

Unsecured Arrears – Must be up to date at the point of application

1 item of unsecured with a balance of less than £200 can have a missed payment in the last 6 months

All other unsecured must be up to date in the last 6 months

Unsecured can be no more than 2 months in arrears in months 7 to 12

Unsecured arrears are ignored after 12 months i.e., month 13 onward.

Valuation Fees

Valuation fees paid direct to lender

Maximum number of applicants

2 applicants

Countries

Will lend in England and Wales

Access

Access to Pepper Homeloans is available via selected packagers & distributors

Shared Ownership

No

Right to Buy (RTB)

No

Debt Management Plan

Yes, DMP's must have been active and satisfactorily conducted for a minimum of 12 months.
If satisfied over 12 months then can apply on standard range
If satisfied within the last 12 months, refer to DMP Range

For remortgages, we can capital raise to clear DMP
• Do not insist that DMP's are cleared – they can be left in the background
• No more than 1 active DMP per application

Help To Buy (Shared Equity)

No

Ex-Bankrupts

Discharged > 6 years ago

IVAs

Discharged > 6 years ago

Repossessions

None in the last 6 years

Payday Loans

None current and none in last 12 months

Repayment Types

Capital and Interest (Repayment) OR Interest Only – Available to 60% LTV and must have a minimum of £150,000 equity at origination Part & Part – Available at 60% Interest Only and 40% Repayment with £150,000 equity at origination and is only available for Purchases and not remortgages.

Lenders completion fee

Can be added providing loan does not exceed 85% LTV

Affordability

Affordability based

Employment

Minimum 6 months in current employment with 12 months continuous.
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Employment gaps of up to 3 months in the last 24 months will now be accepted if not in a probation period. 3 months in the last 12 will be considered by referral
Where the applicant has previous self‐employment within the last 12 months, evidence must be provided.
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Contract/Temporary Employees
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Applications will be accepted for contract or temporary workers, provided they have been in employment with the same employer for the last 12 months. Confirmation must also be provided that the contract will be on‐going and renewed.
Income from seasonal work is unacceptable. Zero hours contract workers are not acceptable.

Self Employed

Self Employed (Sole Trader/Partnerships)
• 1 Years final accounts plus 3 months personal and business
bank accounts statements showing applicants share of net
profit
• SA302s can be provided as long as they are supported by 3
months personal and business bank statements

Share of Dividends Yes - minimum 25% shareholder
Share of Directors remuneration Yes - named shareholder
Share of directors car allowances Yes
Share of directors pension contributions Yes
Share of use of home as office Yes
Share of private health insurance Yes
Share of spouse's income (sole app) No
Operating profit No
Retained net profit No

Finalised accounts will be required where additional remuneration is to be added back.