Forthcoming Rate Change
You will no doubt be aware that the Bank of England recently increased the Base Rate to 0.50%. As a result, Pepper will be increasing the Lender Base Rate to 0.45% with effect from March 1st, 2022.
How does this affect Sales I have made or will make?
1. If your customer has already received a Mortgage Offer from us, then you need do nothing. Where applicable, we will write to the applicants advising them of the pending Lender Base Rate change.
2. If you have produced a Mortgage Illustration (ESIS) on our system after February 17th then you need do nothing, the ESIS will have the correct Lender Base Rate
If you have produced a Mortgage Illustration (ESIS) on a VARIABLE or DISCOUNTED product prior to February 17th and an offer has not been produced by February 28th, you will need to do the following on March 1st;
- Go to the quote screen in our SWAN system and REQUOTE;
- Then SELECT your product;
- For cases already sent to Pepper, e-mail your newly selected ESIS to [email protected] quoting the application number in the subject line, as well as sending the new ESIS to your applicants.
- For cases that you have not sent to Pepper you will need to send the ESIS directly to your applicants.
5. If you have made any sales or produced a quote since February 17th, you do not need to do anything and can follow your normal sales process.
We’ve made changes across our Residential and Buy to Let
We’ve made changes across our Residential and Buy to Let ranges – you can find updated product guides attached to this email.
At Pepper Money, we continue to provide a broad range of mortgage options for your customers across Residential and Buy to Let with improved features and the introduction of tracker products.
We’ve introduced Lifetime Tracker to our range up to 85% for Residential and 80% for Buy to Let. These rates track the Pepper Money variable rate, which is known as LMR and is currently at 1.10%. The Residential Lifetime Tracker starts from 2.67% at 65% LTV and we have applied an ERC of 3% in year 1, 2% in year 2, 1% in year 3, and 0.5% in years 4 – 5.
We have repriced all Residential and Buy to Let rates whilst also removing some of our Buy to Let 2-year fixed rates, leaving our very popular 5-year fixed rate options.
We have however maintained the choice of 2 and 5-year fixed rates in our top Buy to Let tier, Pepper 60.
With these latest changes, we remain dedicated to the intermediary market, with highly competitive products which we hope will meet a wide range of customer needs.