Pepper Money has launched a Debt Management Plan mortgage range for those with an agreement in place to repay debts.
The range offers 2-year fixes starting from 3.78% and is available for residential purchases or remortgages up to 85% loan-to-value.
A Debt Management Plan is an agreement between individuals and their creditors to repay debts and usually happens then they can afford to pay less than their contractual requirements.
Rob Barnard (pictured), sales director of Pepper Money, said: “At Pepper, we believe that a customer who has maintained a Debt Management Plan for at least 12 months has demonstrated determination to rehabilitate their finances and a track record that indicates they are back on track from an affordability perspective.
“Our new range gives individuals who are in a performing arrangement with a licensed debt management company the opportunity to access competitively priced mortgage lending for home purchase or remortgage.
“Placing a case for a client in a Debt Management Plan can be an interesting challenge. Our message to brokers is, speak to Pepper – we’re interested.”
Debt Management Plans must have been in place and satisfactorily conducted for at least 12 months.
Affordability will be calculated based on the original contractual loan repayments rather than the agreed monthly arrangement.
Products come with a £1,295 completion fee.