Pepper Homeloans has launched a range of 5-year fixed rate residential mortgages for borrowers with blips on their credit rating acquired within the last two years.
The 5-year fixed rates start from 4.13% and are available from up to 85% LTV. Early repayment charges on the loans are 3% and 2% from years one to three and 0.5% in years four and five.
Pepper is offering free legals on remortgages and each loan has a fixed fee of £1495.
Jeff Knight, head of marketing at Pepper, said: “We believe these 5-year fixed rates are uniquely positioned in the market. The rates are the same rates as our equivalent 2-year fixes and the reducing ERCs provide greater flexibility for the borrower”.
“These additions to our product range will provide greater choice to borrowers at a time when, according to our research, intermediaries are experiencing an increase in enquiries from clients with previous blips on their credit ratings.”