Pepper Money has launched a new range of cashback residential mortgages, that do not charge any upfront fee.

This ‘limited edition’ five year fix is available through the Pepper 60 range — designed for customers who do not qualify for a high street mortgage, due to a low credit score or high debt to income ratio. 

Mortgage rates start at 3.55% up to 70% LTV, moving to 3.65% at 75% LTV, 3.64% up to 80% LTV and 4.25% up to 85% LTV. There is no application fee on these fixed-rate products and all offer £500 cashback to help cover legal costs.

Pepper says this mortgage range is also suitable for remortgage customers who haven’t had a default of  CCJ in the last five years, but may have recent unsecured missed payments. 

Pepper has also updated a handful of existing rates in their core range, including improved two-year fixes on Pepper 60 at 70% LTV, replacing their previous 65% offering on the same product. 

Pepper Money sales director Paul Adams says: “Bank of England data shows that credit card debt has hit a record high, and with many lenders, outstanding debt can significantly impact affordability even if other elements of a customer’s profile are strong. 

“Similarly, a low credit score can often prevent someone from getting a mortgage with a high street lender, even if they have no recent record of missed payments. This Limited Edition Pepper 60 product offers a competitive solution for customers with these circumstances and helps lower the total amount payable over the duration of a fixed rate period.”