Pepper Money

Mortgage Type

Buy To Let

Property Value (min)

Buy to Let: £70,000
BTL HMO: £100,000

Advance (min)

£25,001

Advance (max)

For Buy to Let: The maximum loan size is £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

For BTL HMO: The maximum loan size is £1 million within the following LTV limits:
• Up to £500,000 available to 75% LTV
• Up to £1 million available to 70% LTV

Term (Max)

35 years

Minimum Age

21 years

Maximum Age

85 at the end of the mortgage term

Family Cash Gift Deposit

Yes, cash gift from a family member. Subject to underwriting.

Family Gift of Equity Deposit

Income (min)

No Minimum Level of income.

No income verification however at least one applicant does need to have an acceptable income stream.

Rental income:
• Rental income accepted as primary income source for individual and limited company landlords.
Earned income:

For Employed individuals:
At least one applicant must have a minimum of 3 months in the current job, with 6 months continuous employment, and not be within a probationary period.

For Self-Employed: Company Directors:
Minimum trading period of 12 months for at least one director. Directors with a
shareholding of 25% or more will be underwritten as self-employed.

For Self-Employed: Sole Traders:
Minimum trading period of 12 months.

For Retired individuals:
State and Private pensions accepted.

Restrictions

• For BTL, properties with an EPC rating of A – E are acceptable (For EPC A-C, LTV up to 80%; for EPC D, LTV up to 75%; for EPC E, LTV up to 70%).
• For HMO, properties with EPC with A-C ratings are acceptable.

Let to Buy (Turning Residential into Buy to Let)

DWP Tenants

Ex-Local Authority Properties

• Houses: Private and ex Local Authority or social housing
• Flats & Maisonettes: Private only
• Licensed HMO properties accepted

Minimum years remaining on leasehold property

The lease must have a minimum unexpired term of 85 years at the time of completion

Minimum Ownership

6 months

Permanent rights to reside and remain

Residential status:
• 3 years’ UK residential address history required for all applicants
Visa Requirements:
Accepted subject to:
• 3 years UK residency
One Applicant MUST have indefinite leave to remain. Additional applicants must have Indefinite leave to remain OR Right to Reside with acceptable visa type:
• EU Settlement Scheme (EUSS) – Pre-Settled Status
• EU Settlement Scheme (EUSS) – Settled Status
• Leave to Remain
• Family Visa
• Skilled worker visa
• UK Ancestry Visa
• Health and Care Worker visa
• British National (Overseas) visa
• Intra company transfer visa
Visa’s must have a minimum 12 months validity

Ex-Patriates

New Builds

New build definition:
• 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

Credit Score

Does not credit score

Rental Calculation

For BTL (Individual and Ltd Co), 125% of pay rate for standard rate, 140% for higher rate, and 165% for additional rate taxpayers used for rental calculation on 5 year fixed rates.
Individual BTL HMO, 155% of pay rate for standard rate is used, and for Ltd Co HMO, 140% standard rate is used.

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

Paid direct to lender directly, at the lender valuation fee scales.

Maximum number of applicants

2 for individuals, 4 for limited company (Ltd co)

Countries

England, Wales & Isle of Wight

Access

Via 3mc as your packager, as our mortgage desk for details for "mortgage club" business.

Regulated BTLs

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.

Property Type / Commercial

Houses: Private and ex Local Authority or social housing
Flats & Maisonettes: Private only
Licensed HMO properties accepted

For HMO Valuations, the valuer needs to be able to access all of the bedrooms. If the valuer cannot get access to all of the bedrooms a reinspection may be required. A fee may be charged for this, which will be payable directly to Legal & General.

Unacceptable
Unacceptable property
General:
• New build properties without suitable warranty
• Properties suffering ongoing structural movement or insurance claims
• Grade I & Grade II* listed properties
• Back-to-back/cluster homes
• Properties located within 20m of a mine entry/feature
• Properties within 100m of above ground high voltage electrical supply apparatus (excluding small substations)
• Properties subject to compulsory purchase orders
• Large flying freeholds (greater than 20% of floor area)
• Japanese knotweed located within or immediately adjacent to the site, defined as category 4, 3 or 2 in RICS paper IP 27/2012
• Properties without an internal WC, bathroom or kitchen
• Properties subject to any onerous occupancy restrictions, including agricultural
• Shared ownership/shared equity schemes (only acceptable if applicant will own 100% of the interest on completion)
• Properties subject to enforcement notices
• Crofting properties/land
• Self-build properties
• Properties with a commercial element
• Non-standard construction
Flats/maisonettes:
• 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
Non-standard construction:
• Pre-cast reinforced concrete (PRC)
• Cast-in-situ concrete
• Metal framed construction
• Single skin
• Large panel systems (LPS)
• Modern methods of construction (MMC)
Flooding:
• Properties at significant risk of flooding or that cannot be suitably insured will not be considered
Restrictive covenants:
• We are unable to consider any property with a restricted occupancy clause within the planning permission. For example, it can only be occupied for a maximum of 11 months in any one year
• Similarly, property that can only be used for retirement or sheltered accommodation is not accepted. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market
• Please note: for new builds we do consider Section 106 planning obligations
• We are unable to consider properties within a pre-emption period

Location

England, Wales & Isle of Wight

Type of Credit Search conducted at AIP stage

Soft search for DIP and full/hard foot print on application.

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

No Maximum Portfolio Size / Stated Stress Rates
Pepper will not lend to an individual or entity with more than 10 properties, however can accept applications from newly formed Ltd Companies

Portfolio Landlord Criteria

Aggregated exposure of £3m with Pepper Money, including any joint loans the applicants are party to
Includes all residential, Buy to Let and Limited Company Buy to Let loans

Additional Document Requirements

Portfolio Schedule (overview) – All cases
Business Plan – All cases
Cashflow Statement – All cases
Asset & Liability Statement – All cases
Check before submission