Pepper Money has introduced improved criteria on its Debt Management Plan mortgage range and cut rates by up to 0.50 percentage points.
Every rate in the specialist DMP range has been reduced by between 0.20-0.50 percentage points.
The range now starts from 3.48%, which is available on Pepper 24 DMP up to 75% LTV.
Pepper Money has also improved its lending criteria for customers with DMPs. It will now accept clients on the range that have completed a DMP in the last 12 months where there is evidence that the plan had been in place and successfully maintained for at least 12 months.
It will also consider borrowers who have obtained further CCJs or defaults whilst in a DMP.
Rob Barnard (pictured), sales director of Pepper Money, said: “Borrowers in the UK have an unprecedented amount of unsecured debt and there are occasions where the burden can become too much for some people. At Pepper Money, we recognise the determination of individuals who have taken the responsibility to tackle their debts and entered a Debt Management Plan. So, we are happy to lend to borrowers who have been able to successfully maintain a plan for at least 12 months.
“We launched our DMP range earlier this year and have seen a huge amount of demand from brokers. We’ve also received some feedback about how the criteria could be improved to help even more clients. I’m happy to say that we’ve been able to respond to this feedback and make the requested changes. We’ve also been able to cut rates right across the range, making Pepper’s DMP mortgages amongst the most competitive in the market.”