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Pepper Money

Pepper Money

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

Minimum property value £70,000

Advance (min)


Advance (max)

£750,000 up to 80% LTV
£1 million up to 75% LTV

Term (Max)

35 years

Minimum Age


Maximum Age

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

Family Cash Gift Deposit


Family Gift of Equity Deposit


Income (min)

£18,000 - Rental income can be taken into account, as long as it is not more than 50% of their income.
Can be the combined income of all applicants
Must be earned income
100% of secondary income accepted


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.
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.
Studio flats considered over 35sqm

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


Student Lets


Ex-Local Authority Properties

Houses - 80% LTV Max
Flats - 80% LTV Max
Leasehold Flats with a lease term < 85 years unexpired (such cases will each be considered on their own merits).
4 storeys or less accepted
Must not have deck 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 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/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

Credit Event (CCJs or Defaults are treated the same)
No CCJs or defaults are allowed in the first 6 months
If the total amount of CCJs and defaults are equal to or exceed £2000 the case will be referred
CCJs and defaults registered more than 2 or 3 years ago, dependent on product, are ignored.
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

Unsecured adverse - <£500 ignored, maximum 1 months arrears in months 0-6, maximum 2 months arrears in months 7-12 will be automatically referred to an underwriter for consideration.
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
Bankruptcy Discharged > 6 years ago Max Loan Size
IVA Discharged > 6 years ago
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.
Repossession None in the last 6 years
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


Will lend in England and Wales


Access to Pepper Money is available via selected packagers & distributors

Regulated BTLs


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

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


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) 

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