Pepper Money has revised its product lineup following “significant increases in swap rates” over the past week.
The specialty lender says its rates now start at 6.74%, with condo rates starting at 8.19%, purchase assistance rates starting at 8.19% and duty rates starting at 8.19%. purchase from 8.99%.
Its full range of new fares is available this morning, June 2.
Lenders withdrew nearly 400 home loans, about 300 BTL transactions and hiked rates last week as businesses reacted to the prospect of further base rate hikes from the Bank of England, after inflation fell to higher than expected levels, causing swap rates to rise.
The two-year Sonia swap rate is currently at 4.93% from 4.38% at the start of May, while the five-year Sonia swap rate is at 4.36% from 3.88% at the start of last month.
Pepper Money Sales Manager Paul Adams says, “The volatility we are seeing in swap rates means that, like many lenders, we need to re-pricing our product line.
“Our clear criteria and practical approach to underwriting remain unchanged and we are committed to continuing to help these underserved customers.”
The company says the deadline for brokers submitting tentative decisions on the previous range was 5 p.m. on June 1, while the deadline for complete mortgage applications is June 5.