Pepper Money has relaunched its buy-to-let purchase mortgages for individual investors and limited companies after withdrawing from this market during lockdown.

The lender will also be making its Pepper Light mortgage range available on buy-to-let purchases for the first time, which means it will consider borrowers who have defaults, missed payments and arrears, but no county court judgements. 

Pepper is also extending its offer validity to 90 days. 

This had been reduced to 60 days earlier in the lockdown, but the lender says it is reinstating the longer offer period as a result of the improving outlook.

Pepper Money sales director Paul Adams says: “We have said previously that specialist lending in the current environment is a real balancing act as demand remains high, but the uncertain economic environment means that every case requires extra underwriting scrutiny. 

“And so, we have taken steps to protect the service we provide our brokers, whilst also ensuring they have access to the most appropriate solutions for their clients.

“When the lockdown was fully enforced, it was difficult to see how there would be tenant demand for new buy-to-let properties and so this was an area we pulled back on to free up greater capacity in other areas of our lending. 

“Now, however, feedback from the market shows that tenant demand has remained stable, as has demand from BTL investors and so we are really pleased to be able to support these borrowers with the return of our mortgages for purchases.”