Pepper Money (formerly Optimum Credit) secured loans

Since its launch in June 2014, Pepper Money (formerly Optimum Credit Limited) has advanced funds of over £400 million to homeowners in the UK. Based in Cardiff, it offers a range of variable, fixed and discounted second-charge mortgages to suit your circumstances.

Whether you’re improving your home or consolidating debt, Pepper Money could help with a homeowner loan. Complete a callback form online at the Pepper Money website to receive a call from one of its specialist mortgage advisors.

If you’re approved for a homeowner loan directly with Pepper Money, it will act as a direct lender, not a broker.

Pepper Money offers secured homeowner loans, specifically in the form of second-charge mortgages.

Second-charge mortgages are available to homeowners who already have a (first-charge) mortgage. Just like your existing mortgage, this type of credit is secured against your property. Many second-charge mortgages are taken out when a homeowner wants to re-organise their finances, such as consolidating debt into more manageable monthly payments.

You should be aware that when consolidating existing credit, this may result in you extending the repayment term of your debt and could increase the total amount you repay. Consider this option carefully before you apply to ensure that it is right for your circumstances.

Pepper Money provides second-charge mortgages to homeowners. This is a type of loan that is secured against your property.

• Borrow £7,500 to £1,000,000. Pepper Money Ltd will lend up to 100% of the value of your home, less the outstanding mortgage.
• Repay over 3 to 30 years. Your repayment term will depend on your individual needs and circumstances.
• Fixed, discounted or variable rates. Interest rates can be fixed for terms of between 2 and 5 years, and discounts may be available for 12 or 24 months. The rate you are offered will depend on your individual circumstances.
• Security. Your home will be used as security on your loan. Missing repayments will put your home at risk, so always ensure that you can afford the loan you are asking for before you apply.
• Flexible repayments. Pepper Money allows you to either reduce the term of your second-charge mortgage or reduce your monthly repayments, whichever suits your circumstances best. You may be charged a fee if you settle your loan early in full.
• Set-up fees. Pepper Money may charge you a fee for taking out a second-charge mortgage. If it requires your home to be valued before making a decision, you will be asked to pay for this.

Ultimately, a secured loan can be spent on anything you like, so long as it is used for a legal purpose. As secured loans typically allow you to borrow larger amounts than unsecured loans, they’re most commonly used to finance life’s larger expenses, such as home improvement projects or cosmetic surgery.

Secured loans can also be used as a way of consolidating any existing loan or credit card debt into one monthly repayment. However it’s important to note that the loan is secured against your property, so there is a real risk that you could lose your home if you’re unable to keep up with repayments.

Here are a few examples of how you can use secured loans:

• Funding a home improvement project, such as a home extension
• Consolidating existing debts into a single monthly repayment
• Financing a wedding or honeymoon
• Paying for a cosmetic surgery procedure
• Covering the costs of a child’s education, including university fees
• Purchasing a new car
• Funding a holiday or cruise

You should only apply for a pepper Money homeowner loan if you are certain you can meet the repayment terms, and you meet the following criteria:

• You own your property, with a mortgage. Minimum property values apply depending on the product you choose. If you are a joint property owner, you must become joint borrowers.
• You are employed or self-employed.
• You’re borrowing for acceptable purposes. Pepper Money will lend for most purposes, including consolidating existing debts, home improvements and large ticket purchases such as a new car. Its lending criteria do not allow it to provide funds for transfer of equity, matrimonial settlements, or for business purposes.
• You have a minimum of £75,000 equity in your home. Pepper Money can lend up to 100% of your property’s value, less any existing mortgage secured against it. In certain circumstances a valuation may be required on your property. If this is necessary, there may be additional costs to you to cover this.

1. Fill out the callback form on the Pepper Money website with some basic personal and contact details.
2. A specialist mortgage advisor will call you to discuss your specific requirements before recommending a suitable product.
3. A credit check will be performed based on the information you have given and you will be given a quick decision.

Yes, Pepper Money can issue secured loans for self-employed applicants. However, you must have been trading for a minimum of three years to qualify and you may be required to provide additional documentation in support of your application such as income tax assessments, an Accounts Certificate and SA302s.

If you are an existing Pepper Money customer and your income has recently been affected or you are experiencing financial difficulties due to coronavirus, you may be able to apply for a payment holiday or a payment deferral.

Pepper Money recommends that you contact their team directly at your earliest convenience to discuss the most suitable solution for you.