Independent review. Equiclear is an introducer, not a lender, and has no commercial relationship with Pepper Money unless stated. Criteria below are taken from Pepper Money's own published information (source) and were last checked on 15 September 2026. Where a figure could not be verified it is left out.
Pepper Money is a Cardiff based specialist lender that offers second charge mortgages (secured loans, also called homeowner loans) from £15,000 to £1,000,000 over 3 to 40 years, through brokers only. Its Prime range goes to 85% combined loan to value and a high LTV plan reaches 100% on loans up to £150,000, while the Plus range considers more recent adverse credit. It suits homeowners with limited equity or a complicated income who want to keep their first mortgage.
Pepper Money secured loan criteria at a glance
| Maximum combined LTV | 85% on Prime (loans to £500,000); 100% on the Prime high LTV plan (loans to £150,000); 80% on Plus |
|---|---|
| Loan size | £15,000 to £1,000,000 (Prime); £500,000 (Plus) |
| Terms | 3 to 40 years (terms over 30 years need a loan of at least £150,000) |
| Minimum income | Not published |
| Maximum age at end of term | 80 |
| Adverse credit | Two ranges: Prime for cleaner profiles and Plus for more recent problems. Active debt management plans are considered on both ranges if there have been no missed DMP payments in the last 12 months; undischarged bankrupts and active IVAs are not considered, and a discharged IVA or bankruptcy needs to be at least 5 years old on Prime or 12 months old on Plus. Any single CCJ or default of £10,000 or more is referred to an underwriter. |
| Self-employed | Yes; 2 years' accounts on Prime, 1 year on Plus |
| Buy to let | Not published |
| Fees | Lender fee of £595 (loans of £15,000 to £200,000) or £1,295 (£200,001 and above) on the standard fixed and variable plans, rising to £1,295 or £1,995 on the 5 year fixed plans with no or low early repayment charge. Security discharge fee £95 (an extra £220 in Scotland). Most cases need no valuation. |
| Typical time to funds | Not published |
| How to apply | Through brokers only |
Who are Pepper Money?
Pepper Money is the UK arm of the Pepper Group, an international lender headquartered in Sydney. In the UK it trades through UK Mortgage Lending Ltd, which is authorised and regulated by the Financial Conduct Authority (registration number 710410) and follows the Finance and Leasing Association lending code as a provider of regulated second charge mortgages. Its offices are in Cardiff, London and Manchester, and the second charge business is run from Cardiff.
The second charge operation has a longer history than the brand suggests. Pepper Money bought Optimum Credit, an established secured loan lender, in 2018 and completed the integration in 2022, retiring the Optimum name. According to its own site, Pepper Money now describes second charge lending as a core product line alongside its first charge residential, buy to let, Right to Buy, Help to Buy, Shared Ownership and First Homes mortgages.
Pepper Money does not lend directly to the public on second charges. Its criteria and packaging guides are aimed at professional intermediaries only, so a homeowner who wants a Pepper Money secured loan applies through an FCA authorised broker who is on Pepper Money's panel. That is worth knowing before you start: a broker will compare Pepper Money against other lenders in the lender criteria database rather than sending you straight to one.
Because Pepper Money's second charge loans are secured on your home, the same warning applies as with any secured loan: your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. If you are struggling with debt already, free and impartial advice from MoneyHelper, StepChange or Citizens Advice should come before any borrowing decision.
What secured loans does Pepper Money offer?
Pepper Money's second charge range is split into two: Prime and Plus. Both are regulated second charge mortgages secured against your main home, both offer variable and fixed rates for 2, 3, 4 and 5 year periods, and both have a 5 year fixed option with no or low early repayment charge (checked September 2026 in the September 2026 broker packaging guides).
The Prime range is the larger one. Loans run from £15,000 (excluding fees) to £1,000,000 including fees. Up to £500,000 the maximum combined loan to value is 85%; between £500,001 and £1,000,000 it drops to 65% and needs pre-agreement from Pepper Money. The minimum property value is £100,000. Within Prime there is a high LTV plan, which Pepper Money calls XLTV: up to 100% LTV on loans to £150,000 and 95% on loans to £200,000, with a minimum property value of £85,000. There is also an interest only option for Prime customers only, capped at 65% LTV and £250,000, with a minimum 15 year term.
The Plus range is for people whose credit has been affected more recently. Loans run from £15,000 to £500,000, at up to 80% LTV on amounts to £250,000 and 70% on £250,001 to £500,000. The minimum property value is £75,000, and the broker must explain why the credit was affected and why it has now stabilised.
Terms on both ranges are 3 to 40 years, though any term over 30 years needs a loan of at least £150,000. Pepper Money says the majority of cases do not require a physical valuation, and that overpayments are allowed without penalty outside the fixed rate charges. Rates are priced individually rather than in tiers, so the only way to see your rate is through a broker's illustration. Our rates index shows what the wider market is advertising.
What are Pepper Money's lending criteria?
Applicants must be at least 21, and the loan must end by age 80, with older cases reviewed individually. Employed and self-employed income are both considered, but self-employed income cannot be used beyond age 75. On Prime, sole traders need the latest two years of SA302s or an accountant's certificate; on Plus, the latest year is enough. Professionally qualified self-employed people can be considered after one year of trading on either range.
Pepper Money does not publish a minimum income for second charges in its packaging guides. It runs a full affordability assessment and requires proof of at least 12 months' employment history. Where the loan is for debt consolidation, Pepper Money pays the creditors directly rather than sending the money to you, which is common among specialist lenders and worth being prepared for. Any existing mortgage arrears must be cleared on or before the loan completes.
On credit history, the key points published in September 2026 are these. Undischarged bankrupts and anyone in an active IVA are not considered on either range. A discharged bankruptcy or IVA must be at least 5 years old for Prime or 12 months old for Plus. Active debt management plans are considered on both ranges provided there have been no missed DMP payments in the last 12 months; on Prime the DMP has to be cleared with the loan. Any single CCJ or default of £10,000 or more, or credit that has been deteriorating in the last 3 months, must be referred before submission. Payday loans, home credit and gambling debt are reviewed case by case and usually have to be repaid from the loan. See our guides on secured loans with a CCJ and with defaults for how the wider market treats these.
Pepper Money lends in England, Wales and mainland Scotland (Scottish Islands are capped at 65% LTV). Applicants need to live and work in the UK; those in the Isle of Man and Channel Islands are excluded.
How does Pepper Money compare?
Pepper Money's headline strength is its loan to value ceiling. A 100% LTV plan on loans up to £150,000 is unusual: most second charge lenders in our database stop at 75% to 90%, so if your equity is thin Pepper Money is one of the few names a broker can turn to. Combined with a £1,000,000 maximum and a 40 year term, it covers a wide range of cases. See our guide to secured loans with low equity for context on how high LTV lending is priced.
The trade off is that Pepper Money is broker only and prices each case individually. There is no public rate card, so you cannot compare it against a personal loan or a remortgage without going through an adviser. A higher LTV also usually means a higher rate, and consolidating over a long term can cost more in total interest even when the monthly payment falls. Our secured loan calculator lets you test the total cost over different terms.
On adverse credit, Pepper Money sits in the middle of the market. Its Plus range considers recent problems and active DMPs, but it will not lend to anyone in a live IVA and it wants a discharged IVA or bankruptcy to be 12 months old even on Plus. Norton Home Loans and Together publish more detail on how many missed payments they will tolerate, and Norton will lend to someone still in an IVA if the loan clears it. United Trust Bank and West One compete directly on high value, cleaner profile lending at up to 90% and 85% LTV respectively.
Fees are moderate: £595 to £1,995 depending on loan size and product, plus a £95 discharge fee, and most cases avoid a valuation fee. Broker fees are set by the broker, not Pepper Money, so ask what they are before you proceed; our guide on secured loan broker fees explains what to expect.
Our verdict
Pepper Money is a strong option if you have little equity, a large or long loan in mind, or a self-employed income that a high street lender struggles with. Its 100% LTV plan and 40 year terms are rare, and its fees are moderate. It suits less well if you are in an active IVA, were discharged from one less than a year ago, or want a quick indication of your rate before involving a broker, since pricing is individual and there is no published turnaround time. If your credit history is very recent and heavy, a lender with a more explicit adverse plan may be more suitable. A qualified adviser can check Pepper Money against the whole market in one go.
Alternatives to Pepper Money
If Pepper Money does not fit, United Trust Bank lends up to 90% LTV with published credit tiers, West One Loans offers a similar £1,000,000 ceiling with four named plans from Platinum to Near Prime, and Norton Home Loans is more explicit about missed payments, IVAs and benefit income. Compare the lenders we have reviewed so far in the lender criteria database.
Worried about debt? Get free advice first
If you're struggling, it's worth speaking to a free, impartial debt advice service before you borrow more. They don't sell anything and won't judge your situation.
- MoneyHelper: Free, impartial debt advice backed by government
- StepChange: The UK's largest free debt charity
- Citizens Advice: Free, confidential advice on debt and money
Checking your options with Equiclear will not affect your credit score.
Frequently asked questions
Can I apply to Pepper Money directly?
No. Pepper Money's second charge mortgages are distributed through professional intermediaries only, and its criteria guides are not written for the public. You apply through an FCA authorised broker on its panel, who will also check whether another lender in the market offers you a better deal. Checking your options will not affect your credit score.
What is the maximum LTV on a Pepper Money secured loan?
On the Prime range it is 85% combined LTV for loans up to £500,000, dropping to 65% for larger loans. The Prime high LTV plan goes to 100% on loans up to £150,000 and 95% up to £200,000. The Plus range for recent adverse credit is capped at 80% (checked September 2026).
Does Pepper Money lend to people with a CCJ or default?
Yes, within limits. Its Plus range is designed for customers whose credit has been affected more recently, provided the broker explains why and why it has stabilised. Any single CCJ or default of £10,000 or more has to be referred first. Active IVAs and undischarged bankruptcies are not considered on either range.
What fees does Pepper Money charge?
The lender fee is £595 on loans of £15,000 to £200,000 and £1,295 above that on standard plans, or £1,295 and £1,995 on the 5 year fixed plans with no or low early repayment charge. There is a £95 discharge fee at the end. Most cases need no valuation. Broker fees are set separately by your broker.
How long does Pepper Money take to pay out?
Pepper Money does not publish a typical time to funds for second charges. It says most cases do not need a valuation, which removes one of the slower steps, and it can issue a binding offer before the first mortgage lender's consent arrives in some cases. Your broker can give a realistic estimate for your circumstances.