Bespoke Solutions: Specialist Mortgages for Complex Needs
Offering comprehensive advice via specialist lenders and referral partners.
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Adverse Credit & Low Credit Score Solutions
As a whole of market broker, we have access to lenders who you may not be familiar with and who specialise in mortgages when other “high street” lenders may have declined to help. We know how specialist lending seeks to help disenfranchised customers who have been let down and ignored by mainstream lenders for too long. Done correctly, specialist lending is flexible, affordable and responsible.
In recent years, studies have shown just how difficult it has been for many households to maintain their financial commitments in the face of the cost-of-living crisis. Record numbers of people have struggled to pay their bills and missed payments and the total number of people with adverse credit rose again this year.
30% of UK adults have experienced adverse credit at some point in their lives. That is 16.6 million people compared to 15.3 million the previous year. Of these, 9.26 million have suffered adverse credit within the last three years while 5.57 million have missed at least one payment in the last year.
One in 10 adults have missed a credit payment in the last 12 months – 5.57 million UK adults. This is most prominent amongst the younger generations with 21% of 18–24-year-olds missing a credit payment compared to only 3% of those aged 55 and above.
“By taking a more personalised and holistic approach, lenders like Pepper who sit just off the high street are working in partnership with brokers to unlock opportunities for people who might otherwise be excluded from the market. These solutions help households navigate complex financial realities, maintain resilience and ultimately pursue their financial ambitions.
As brokers continue to connect borrowers with specialist lenders like Pepper, the opportunity today to deliver better outcomes for consumers – and support the broader mortgage market – has never been greater.”
Richard Spinks
Chief Commercial Officer, Pepper Money
Frequently Asked Questions on Adverse Lending
Adverse credit is a term for negative information on your credit file that indicates past problems managing money. This can include missed or late payments, defaults, County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), or bankruptcy.
Lenders use your credit report to assess the risk of lending to you. Adverse credit typically results in:
- Declined applications: Many mainstream high-street lenders have strict criteria and may decline your application outright.
- Higher interest rates: If approved, you will likely be charged higher interest rates to offset the perceived risk, leading to higher monthly payments and total costs over time.
- Fewer options: Your borrowing options may be limited to specialist lenders who work with individuals with poor credit histories.
- Larger deposits: You might be required to provide a larger deposit for a mortgage or a higher down payment for a loan.
You can take several steps to improve your creditworthiness over time:
- Check your credit reports: Regularly review your reports from the main UK credit reference agencies (Experian, Equifax, and TransUnion) for errors and dispute any inaccuracies.
- Pay bills on time: A consistent history of making timely payments is crucial.
- Reduce existing debts: Work towards paying off outstanding debts and keep your credit utilisation (the amount of credit you use compared to your total limit) low.
- Register on the electoral roll: Being on the electoral register helps lenders confirm your identity and address.
- Avoid multiple applications: Limit the number of new credit applications, as each leaves a mark on your file.
You might have adverse credit if you’ve been declined for loans, receive letters about missed payments, or are offered interest rates much higher than advertised rates. Checking your credit report is the most definitive way to know your status.
Commercial, Bridge, 2nd Charge
For our clients that have very particular needs in the following areas, we have partnered with a number of lenders and can refer you to them for the highest level of advice
Commercial:
Commercial lending experts give you access to a wide range of specialist lenders and private funders. When it comes to commercial mortgages, we’ll make sure you get the best outcomes available.
Bridge:
Bridging experts promise you the best rates on the market, AIPs in 4 hours, a specialist valuer panel who are selected for speed, expert bridging solicitors and focussed underwriters.
2nd Charge:
With a whole of market product range, exclusive products, transparent fees and superb service, our referral partners can find you the best second charge mortgage deals available.
Key FAQs on Commercial Lending
Lenders typically offer a maximum loan-to-value (LTV) ratio of around 70-75% of the property’s value, though this can vary by property type and lender. This means a deposit of at least 25-30% is usually required.
- Both fixed and variable interest rates are available.
- Fixed rates offer predictable monthly repayments for a set period, providing stability.
- Variable rates can fluctuate, often tracking the Bank of England Base Rate, meaning payments could go up or down.
- Lenders generally assess potential borrowers based on the “Five C’s of Credit”:
- Character: The borrower’s trustworthiness and history.
- Capacity: The business’s ability to repay the loan, assessed via cash flow and financial statements.
- Capital: The borrower’s own investment (deposit/equity) in the project.
- Collateral: Assets (such as the property being financed) that can secure the loan.
- Conditions: External factors like the market or economic trends.
The time to complete a commercial mortgage can vary widely based on the complexity of the transaction. While bridging loans might be approved in days, a commercial mortgage can take several weeks or a few months.
No, commercial mortgages and lending for business property are generally not regulated by the FCA, unlike residential mortgages.
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