Here is the latest update from Pepper Money. You can access Pepper Money products through our direct to lender mortgage club and get the benefits of payment on completion. You can also use our Fees Free Mortgage Packager.
Changes to PayPal and Studio Debt Consolidation
At Pepper Money, we’re continuously looking for ways to improve our application process. We’re excited to announce a more streamlined approach for customers consolidating debts with PayPal and Studio.
What’s Changing?
Previously, when consolidating debts with PayPal or Studio, we issued a cheque directly to the lender. From now on, we will pay these consolidation funds directly to your customer upon completion of their mortgage, allowing them to settle the debts themselves.
What Pepper Will Do:
- Affordability: Our affordability calculation will assume that these debts will be settled directly by the customer on completion.
- Customer Discussion: Our speaks script has been updated to remind the customer of this new requirement.
- Mortgage Condition: A condition will be added to the mortgage offer, requiring the customer to settle the debt directly.
- Proof of Settlement: Pepper Money reserves the right to request proof that the debt has been settled post-completion.
What do You Need to Do?
- Include Consolidation in Cashout: When a customer wishes to consolidate debts with PayPal or Studio, please include the consolidation amount within the cashout figure in SWAN.
- Example: If a customer seeks £10,000 for home improvements and wants to consolidate a £1,000 PayPal debt, the total cashout value should be £11,000.
- “Ignore” Debts in SWAN: In the “Commitments” screen in SWAN, you must select “Ignore” for any PayPal or Studio debts the customer is consolidating.
- Inform Your Customer: Please inform your customer that they will receive the funds directly and, as a condition of their mortgage offer, are responsible for settling their debt with PayPal or Studio upon completion.
- Notify Us of Ignored Debts: When submitting the application, please let us know which debts are PayPal or Studio and are being “ignored” in the commitments screen.