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Pepper Money

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

Minimum property value £70,000

Advance (min)

£25,001

Advance (max)

£2 million within the following LTV limits:

Up to £750,000 available to 80% LTV

Up to £1 million available to 75% LTV

Up to £1.5million available to 70% LTV

Up to £2 million available to 65% LTV

Aggregated Exposure limit has increased from £3mill to £4mill

Term (Max)

35 years

Minimum Age

21

Maximum Age

Maximum age is 85 years old at the end of the mortgage term

Family Cash Gift Deposit

Yes, accept deposits into the SPV, as cash or property transfer, from another Limited Company AND from immediate family members

Family Gift of Equity Deposit

Yes, accept deposits into the SPV, as cash or property transfer, from another Limited Company AND from immediate family members

Income (min)

£18,000 per application (no foreign currency income and rental income cannot be the principal income source. Rental income from the security property must also be excluded).
Rental income can be taken into account, as long as it is not more than 50% of their income.

UNLESS; applicant/director owns 11 properties or more.

Allow Rental Income as an allowable and standalone income stream for professional landlords with 11 properties or more.

Restrictions

Portfolio landlords accepted as both individual or Ltd company ownership.

Ltd co has to be active
Must have no disqualified directors
All directors must be natural persons
No minimum trading period
No debentures to be present
No current adverse credit
SIC codes allowed: - 68100, 68201, 68209, 68320
Sales of main residence acceptable repayment with no minimum.

Pepper Money only accept applicant(s) with a combined maximum of 9 Buy to Let properties, including the application property(s).
This is per individual and will include any joint or limited company loans held that the applicants are party to.
It will therefore not be possible to exceed the maximum stated above if applications are made jointly.
Where a client holds a portfolio of loans with other lenders these will be disregarded for portfolio maximum purposes.
However the conduct of those loans will be taken into consideration and they must be conducted satisfactorily over the last 12 months.
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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.
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Studio flats considered over 35sqm
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Not required to be a home owner for a Limited Company BTL (BTL experience is required, i.e. you must own at least 1 current BTL)
For an individual, you must be a homeowner.

Let to Buy (Turning Residential into Buy to Let)

Let to Buy - considered.

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.
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.

DWP Tenants

No

Student Lets

No

Ex-Local Authority Properties

Houses - 75% LTV Max
Flats - 75% LTV Max - see below for types of flats considered.
Leasehold Flats with a lease term < 85 years unexpired (such cases will each be considered on their own merits).
4 storeys or less accepted

Flats/maisonettes: - NOT ACCEPTED
Flats in local authority or ex local authority owned blocks
New build flats/maisonettes
Flats with a gross external floor area less than 35m2
Flats above commercial premises
Studio flats
Freehold flats
Balcony access

Minimum years remaining on leasehold property

Must have a minimum unexpired term of 85 years at the time of application.

Minimum Ownership

6 months minimum ownership required before remortgage
Applicants without an existing residential mortgage are now acceptable subject to underwriting criteria which will include a plausibility assessment.

Permanent rights to reside and remain

Applicants who are non‐UK citizens must have been permanently resident in the UK for the past 3 years and must have indefinite leave to remain in the UK. 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 the 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.

Ex-Patriates

No

New Builds

Houses - Yes
Flats/Maisonettes - No

Credit Score

Pepper Money credit check, not credit score

Rental Calculation

Ltd company BTL – 125% of product rate for 2 years deals and pay rate for 5 year fixed deals

Individual – 140% of product rate for 2 year deals and 5yr fixed deals available @ 140% of pay rate

Individual – rental calculation is 140% x the highest of Pay rate or Reversion rate + 2%

Historic CCJ’s & Defaults

Maximum allowable adverse: -

(Unsecured missed payments - 2 individual utility, communication, or mail order account defaults up to and including £200.00 each ignored (Applicable to Pepper 24 & 24 Light products downwards, but excluding Bankruptcy range products)

None in the last 12 months
Total combined CCJ value of £2,500 accepted
Check product range for further information.

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Unsecured credit: -

Fixed Term - None in the last 6 months.

Revolving credit - Missed payments considered if none in the last 12 months

On Pepper 24, 18 and 12 products we will ignore 2 individual defaults (per application) up to and including £150.00 each where these defaults relate to utilities, communications or mail order providers.
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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 onwards
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Bankruptcy Discharged > 6 years ago Max Loan Size
IVA Discharged > 6 years ago
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Debt Management Plan - None current and None in last 12 months.
We will consider applicants whose debt management plans completed or finished more than 12 months ago.
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Repossession None in the last 6 years
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Doorstep Loans/Payday Loans - None current and None in last 12 months
Any applicant who currently has a payday or doorstep loan will be declined. We will consider applicants whose payday or doorstep loan finished more than 12 months ago.

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 Money is available via selected packagers & distributors

Regulated BTLs

No

Missed mortgage payments

Can consider dependent on product selection. Applicant(s) must be up to date at the point of the application and must not have any arrears reported in the last 6 months.

Property Type / Commercial

Houses: private and ex-local authority or social housing
Flats & maisonettes: private only

Houses - 75% LTV Max
Flats - 75% LTV Max - see below for types of flats considered.
Leasehold Flats with a lease term < 85 years unexpired (such cases will each be considered on their own merits).
4 storeys or less accepted

Flats/maisonettes: - NOT ACCEPTED
Flats in local authority or ex local authority owned blocks
New build flats/maisonettes
Flats with a gross external floor area less than 35m2
Flats above commercial premises
Studio flats
Freehold flats
Balcony access

New build: -
A property is to be considered new if it is a first sale by the builder
However, properties which have not sold on physical completion will be considered on an individual basis

Timber framed construction:

Modern timber framed properties clad with masonry are considered as acceptable
Timber framed properties which are not deemed to be of a modern type clad with masonry will be reviewed on an individual basis and will be considered on their merits

Flying freeholds:
Flying freeholds will only be considered up to 20% of the total property area

Coal mining and other forms of extraction:
Any properties with a coal mining or metalliferous mining entry/feature within 20m of any building will not be considered

Electromagnetic fields:
Any properties within 100m of above ground high voltage electrical supply apparatus will not be considered

Contaminated land:
Where there is potential for contaminated land, a pass certificate must be available from an appropriate body

Japanese knotweed:
Where a property has Japanese knotweed (or any other invasive weed) located within or immediately adjacent to the site defined as category 4, 3 or 2 in RICS paper IP 27/2012, it will not be considered

Solar panels:
Properties where solar panels have been installed and are subject to a lease agreement will not be considered
If the solar panels are owned outright, the application will be reviewed on a case-by-case basis

Do not consider non-standard construction

20% maximum flying freehold

Location

England and Wales only

Type of Credit Search conducted at AIP stage

Soft credit search

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio

– The overall portfolio will be assessed to ensure affordability is present to support it moving forward .

Portfolio Landlord Criteria

– Up to 3 with Pepper Money to an aggregate borrowing of £3m

– Maximum of 9 Buy to Let properties, including the application property(s) unless Limited Company then it’s 16

Additional Document Requirements

– Portfolio Schedule – All cases

– Asset & Liability Statement – All cases (within the lender application form)

– Business Plan – All cases (within lender application form)

– Cashflow Statement – Not required

Pepper Money
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