Who is Pepper Money?
Since its launch in June 2014, Pepper Money (formerly Optimum Credit Limited) has advanced funds of over £400 million to homeowners in the UK. Based in Cardiff, it offers a range of variable, fixed and discounted second-charge mortgages to suit your circumstances.
Whether you’re improving your home or consolidating debt, Pepper Money could help with a homeowner loan. Complete a callback form online at the Pepper Money website to receive a call from one of its specialist mortgage advisors.
If you’re approved for a homeowner loan directly with Pepper Money, it will act as a direct lender, not a broker.
What types of loans does Pepper Money offer?
Pepper Money offers secured homeowner loans, specifically in the form of second-charge mortgages.
Second-charge mortgages are available to homeowners who already have a (first-charge) mortgage. Just like your existing mortgage, this type of credit is secured against your property. Many second-charge mortgages are taken out when a homeowner wants to re-organise their finances, such as consolidating debt into more manageable monthly payments.
You should be aware that when consolidating existing credit, this may result in you extending the repayment term of your debt and could increase the total amount you repay. Consider this option carefully before you apply to ensure that it is right for your circumstances.
What are the key features of a pepper Money loan?
Pepper Money provides second-charge mortgages to homeowners. This is a type of loan that is secured against your property.
- Borrow £7,500 to £1,000,000. Pepper Money Ltd will lend up to 100% of the value of your home, less the outstanding mortgage.
- Repay over . Your repayment term will depend on your individual needs and circumstances.
- Fixed, discounted or variable rates. Interest rates can be fixed for terms of between 2 and 5 years, and discounts may be available for 12 or 24 months. The rate you are offered will depend on your individual circumstances.
- Security. Your home will be used as security on your loan. Missing repayments will put your home at risk, so always ensure that you can afford the loan you are asking for before you apply.
- Flexible repayments. Pepper Money allows you to either reduce the term of your second-charge mortgage or reduce your monthly repayments, whichever suits your circumstances best. You may be charged a fee if you settle your loan early in full.
- Set-up fees. Pepper Money may charge you a fee for taking out a second-charge mortgage. If it requires your home to be valued before making a decision, you will be asked to pay for this.
What are the pros and cons of Pepper Money loans?
- The loan is secured against your property, so if you fail to make repayments on the loan there is a risk that you could lose your home
- Repayment periods on secured loans are longer, which means you may end up paying more interest in total over the entire term of the loan
- Early repayment charges may be incurred if you decide to repay the total amount early
What could I use a pepper Money loan for?
Ultimately, a secured loan can be spent on anything you like, so long as it is used for a legal purpose. As secured loans typically allow you to borrow larger amounts than unsecured loans, they’re most commonly used to finance life’s larger expenses, such as home improvement projects or cosmetic surgery.
Secured loans can also be used as a way of consolidating any existing loan or credit card debt into one monthly repayment. However it’s important to note that the loan is secured against your property, so there is a real risk that you could lose your home if you’re unable to keep up with repayments.
Here are a few examples of how you can use secured loans:
- Funding a home improvement project, such as a home extension
- Consolidating existing debts into a single monthly repayment
- Financing a wedding or honeymoon
- Paying for a cosmetic surgery procedure
- Covering the costs of a child’s education, including university fees
- Purchasing a new car
- Funding a holiday or cruise
Am I eligible for a pepper Money homeowner loan?
You should only apply for a pepper Money homeowner loan if you are certain you can meet the repayment terms, and you meet the following criteria:
How do I apply for a pepper Money secured loan?
- Fill out the callback form on the Pepper Money website with some basic personal and contact details.
- A specialist mortgage advisor will call you to discuss your specific requirements before recommending a suitable product.
- A credit check will be performed based on the information you have given and you will be given a quick decision.
Can I get a pepper Money loan if I am self-employed?
Yes, Pepper Money can issue secured loans for self-employed applicants. However, you must have been trading for a minimum of three years to qualify and you may be required to provide additional documentation in support of your application such as income tax assessments, an Accounts Certificate and SA302s.
Do Pepper Money offer payment holidays?
If you are an existing Pepper Money customer and your income has recently been affected or you are experiencing financial difficulties due to coronavirus, you may be able to apply for a payment holiday or a payment deferral.
Pepper Money recommends that you contact their team directly at your earliest convenience to discuss the most suitable solution for you.
Pepper Money customer reviews
Pepper Money has received positive reviews from customers, according to review website Trustpilot. It currently has an “Excellent” rating of 4.7 out of 5 based on more than 460 reviews (updated July 2022). Some customers praised its customer service and expertise.
Pepper Money aims to offer homeowner loans which meet your individual circumstances, offering a range of fixed, variable and discounted second charge mortgages with the possibility of releasing up to 100% of your property’s value (less your existing mortgage), plus the option to reduce the term or reduce your monthly repayments. While you may be able to find a lender that offers you a better APR, Pepper Money may be a good option for those looking to borrow large loan amounts of up to £1,000,000.
Alternatives to second-charge mortgages
A second-charge mortgage is not the only way to access funds that are secured against an asset. You could also consider:
- Car loans. These secured loans can be for new or used cars. You can find car loans from most banks and credit unions, as well as dealerships and standalone car loan lenders. You can usually repay the loan at any time by returning the car.
- Lines of credit. If you’re looking to renovate, invest in property, go on a holiday or buy a new car, you can consider this type of loan. Also called a “home equity” loan, it can be drawn on continually based on the equity held in your property. This is a flexible way to access funds, which could suit you if the amount of credit you need is going to change over time.
- Personal asset secured loans. High-priced assets such as boats, motorbikes and jewellery are accepted by some lenders as a guarantee. Your item or collection of items is valued and then used as security, allowing you to take out the loan you need. You generally won’t find these loans at major banks.
Overview of Pepper Money secured loans
|Loan amounts||From £7,500 to £1,000,000|
|Age||From 21 to 80 years|
|Term||From 3 to 30 years|
|Maximum LTV||Up to 100%|
|Representative APRC||Up to 15%|
|Lender fee||from £595|
Frequently asked questions
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