Pepper Money is a specialist mortgage lender that provides a lifeline to people who have been declined by high-street banks, particularly those with an adverse credit history.
They are experts in helping borrowers with past financial difficulties, such as County Court Judgments (CCJs), defaults, or missed payments. They look at the person, not just the credit score.
Important Note: Pepper Money works exclusively through mortgage brokers. You cannot apply to them directly. If you want to compare their latest rates before you get started, you can review them for free below by using our mortgage-sourcing tool:
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Who are Pepper Money?
Think of Pepper Money as a second-chance lender. While high-street banks use automated computers that often reject anyone with a credit blip, Pepper Money uses real people to assess every single application. This is called manual underwriting.
Their underwriters are trained to understand the story behind a person's credit history. They know that life happens – a period of illness, a business issue, or a divorce can all lead to temporary financial problems. Their goal is to provide a mortgage to a "real-life" applicant who is back on their feet and can afford the loan, even if their credit report isn't perfect.
What are they known for?
Pepper Money has built its entire reputation on its specialist expertise. They are not the right lender for someone with a perfect credit score, but they are a market leader for those who need a more flexible approach.
Mortgages for Adverse Credit
This is their core business. They have a range of products designed to help people with various credit issues, including:
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County Court Judgments (CCJs) and Defaults
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Missed mortgage or loan payments
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Debt Management Plans (DMPs)
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Payday loans in the background
They use a tiered system, where the interest rate you are offered depends on how severe your credit issues were and, crucially, how long ago they happened. The older the issue, the better the rate you are likely to get.
A Human Approach
They pride themselves on not using credit scoring as a primary decision-making tool. An underwriter will look at your overall financial situation, understand why the blip occurred, and make a common-sense lending decision. This is invaluable for those who have been unfairly rejected by an algorithm.
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Pros and Cons of a Pepper Money Mortgage
Pros:
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Lifeline for Bad Credit: One of the best lenders in the UK for people with past credit problems.
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Human Underwriting: Your application is assessed by a person who can understand your story.
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No Credit Scoring: They focus on your current affordability and circumstances, not just an automated credit score.
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Considers Complex Cases: They can also be helpful for the recently self-employed or those with unusual income streams.
Cons:
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Higher Interest Rates: This is the crucial trade-off. To compensate for the higher risk they are taking, their interest rates are significantly higher than the high street.
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Broker-Only Access: You cannot go directly to them; you must use a mortgage adviser.
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Higher Fees: Product and arrangement fees can also be higher than mainstream lenders.
How to apply
You must go through a registered mortgage intermediary (a broker) to get a mortgage from Pepper Money.
The process is:
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Enquire here to get matched with a broker who specialises in Pepper Money’s products and can help you access their products and services
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Your broker will take the time to understand your credit history and overall financial situation.
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Your broker will then package your application and submit it to Pepper Money, highlighting your individual circumstances to the underwriter.