Pepper Money has cut rates by up to 100 basis points on deals for borrowers who have just missed out on high street mortgages.

Following the reductions to two and five-year fixed rates, its rates now start from 5.59%.

The most significant price drops are within its Pepper48 range, which is suitable for borrowers who have been rejected by a mainstream lender, have missed payments on unsecured credit and those with a variable income.

A two-year fixed at 85% LTV on Pepper48 has been reduced by 100bps to 6.69% with a £1,495 fee.

A five-year fixed rate up to 75% LTV has come down by 50bps to 5.59%, with the same fee.

The lender has also cut the rates on shared ownership deals in the Pepper48 range.

For shared ownership, five-year fixed up to 75% LTV has reduced by 50bps to 6.09% and a two-year fixed by 65bps to 6.39%, both of which also have a £1,495 fee.

Sales director Paul Adams says: “We understand the idea of going with a lender that is just off the high street may feel daunting for some brokers and customers, but the reality is that we can deliver competitive pricing and certainty during what can be a stressful time.

“Our underwriters call brokers to discuss every application, providing clarity and confidence that it’s moving towards offer.

“Plus, a senior underwriter reviews any declines to give every application a potential second chance.

“Brokers have direct, fast access to speak to an underwriter if they need to and, alongside our BDM support, we also offer a live chat service that enables brokers to connect to a member of our team for help on a range of questions about our products and criteria.”