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 80%
£750,000 up to 85%

Term (Max)

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. Note: "Equity deposit" 100% Concessionary Purchase accepted: customers to benefit from purchasing a property below market value, which they may typically purchase from family or their landlord. Borrow up to 100% Loan to Purchase Price, with no deposit required, up to a maximum LTV of 75% of full market value.

Income (min)

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

Employed Primary income can be made from basic salary.
All other income will be looked at but not used for the affordability calculation.
Accept 50% of bonuses, overtime and commissions yearly, quarterly, monthly and weekly.

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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.
* Add backs’ accepted for controlling Limited Co Directors, including pension contributions, car allowance, and use of home office, to boost affordability

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.

Can use ‘add backs’ for Limited Co Directors, including pension, car allowance and home office costs, to boost affordability

Can also use the net profit within our affordability calculation, where earned during the most recent tax year for majority shareholders in a business.

Pepper will use the net profit in line with the customers share of the business. So, for example, a customer having 60% share of the business, they would allow 60% of the net profit. Where joint applicants have a shareholding of 100%, Pepper will allow 100% of the net profit to be taken.

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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.
Day rate contractors must be in a contract and able to demonstrate a minimum 12 months’ history (daily rate x 5 x 46)

***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)

No, only on the forwarding residential purchase.

Ex-Local Authority Properties

Houses considered
Houses: Private and ex Local Authority or social housing
Flats & Maisonettes: Privately only - not council or housing

Flats/Maisonettes - not accepted, including the below:
Flats in Local Authority or ex Local Authority owned blocks
New build flats/maisonettes
Flats with a gross external floor area less than 35m2
Studio flats
Freehold flats
Balcony access

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

(Unsecured missed payments: - ignore 1 individual utility, communication, or mail order account default up to and including £200.00 (Applicable to Pepper 36 & 36 Light products only).

CCJs
• Don't need to be satisfied
• Can be registered as recently as 12 months ago

Defaults
• Don't need to be satisfied and no value limit
• Can be registered as recently as
12 months ago
• 2 individual utility, communication or mail order account defaults up to and including £150.00 each ignored (applicable to Pepper 24, 18 and 12 products - excluding DMP)

Pepper 48 - Light: -
CCJ's - 0
Defaults - 0 in 48 months

Pepper 48: -
CCJ's/Defaults: 0 in 48 months

Pepper 36 - Light
CCJs: 0
Defaults: 0 in 36 months

Pepper 36: -
CCJs: 0 in 36 months
Defaults: 0 in 36 months

Pepper 24 - Light
CCJs: 0
Defaults: 0 in 24 months

Pepper 24: -
CCJs/Defaults: 0 in 24 months

Pepper 18 - Light
CCJs: 0
Defaults: 0 in 18 months

Pepper 18: -
CCJs/Defaults: 0 in 18 months

Pepper 12 - Light
CCJs: 0
Defaults: 0 in 12

Pepper 12: -
CCJs/Defaults: 0 in 12 months

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

Missed mortgage payments

Product range dependent: - Minimum (No arrears balance in last 6 months) - Depending on when arrears occurred will determine product range. I.e. missed payments outside of 48 months, then Pepper 48, 36, etc.

Shared Ownership

Yes, up to 75% LTV Vendor: Acceptable subject to the vendor being a registered Housing Association or Registered Social Landlord. Rent/Service Charge(s): - The Rent, maintenance and service charge must be included as a commitment on the application. Memorandum Of Sale or an Offer Letter from the Housing Association will be required. The rent payable and must be no more than 3% of the value of the property in the ownership of the provider. The property being purchased must be able to be staircased to 100% private ownership. Leasing:- The completing Solicitor must confirm that the lease meets our requirements, including that it contains all fundamental clauses, the lease must contain a mortgage protection clause in the same form as clause 6 of the Model Lease (Houses)/ clause 8 of the Model Lease (Flats).

Right to Buy (RTB)

Yes, considered.

Note: - 100% cash gifted deposit acceptable with proof of 12 months rental history or household upkeep.

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)

Yes: - on Ranges Pepper 24, 36 and 48 only.

Property type: -
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.

Helping first-time buyers purchase New Build homes

Helping customers who have 5% deposit

One year’s self-employed trading accepted

Latest year used for affordability when trading for two years or more

Employed and self-employed income from a maximum of two sources per applicant considered

Day rate contractors must be in a contract and able to demonstrate a minimum 12 months’ history (daily rate x 5)

100% of shift allowance

50% of variable income accepted including commission, bonuses and overtime

Maximum term is 35 years

Fully Gifted Deposit accepted

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.

Lenders completion fee

Can be added providing loan does not exceed max LTV

Affordability

Affordability based

Employment

Minimum 3 months in current employment with 6 months continuous.
Accept 50% of bonuses, overtime and commissions yearly, quarterly, monthly and weekly.
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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

* Add backs’ accepted for controlling Limited Co Directors, including pension contributions, car allowance, and use of home office, to boost affordability

Can also use the net profit within our affordability calculation, where earned during the most recent tax year for majority shareholders in a business.

Pepper will use the net profit in line with the customers share of the business. So, for example, a customer having 60% share of the business, they would allow 60% of the net profit. Where joint applicants have a shareholding of 100%, Pepper will allow 100% of the net profit to be taken.
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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.