The deals will be available on Pepper’s 48, 36 and Pepper Light ranges which come with the option of a free valuation and £0 completion fee on the five-year fixed rates.

Also available up to 85% LTV is a suite of new 30-month fixed-rate products with rates available from 4.59%. Five-year fixed-rate deals are also on offer from 4.54%.

Pepper retreated from 85% lending at the end of May, restricting its maximum LTV to 80% for new borrowers. It stopped all buy-to-let lending at the same time.

The specialist lender resumed its buy-to-let lending to purchase applicants in July, and two months later completed a pair of securitisation deals totalling £629m.

Paul Adams, sales director at Pepper Money, said: “At Pepper Money, we continually work with brokers and customers to understand what steps we can take to better meet their needs.

“It’s clear there’s huge demand for lending at higher LTVs at the moment and so we’re really happy to be able to launch these products that open up the 85% LTV market for customers who have experienced credit issues.

“We’re also pleased to support these products with up-to-date service levels that are published each day on our website.”

Rob Jupp, chief executive at The Brightstar Group, said: “Any lender coming to market at the moment with an 85% LTV offering is welcome news. When that lender is also able to consider customers with credit issues and takes a pragmatic approach to the self-employed and contractors, it’s an even more positive step for the market, and this is a great announcement from Pepper Money.

“The specialist market is stepping up both in the provision of products to meet client demand and service levels which, in many instances, are superior to much of the mainstream.”