Pepper Money has launched a mortgage range targeted at customers that have had payment defaults, but no CCJs.

Made up of residential and buy-to-let products for those who may have defaults, missed payments and arrears, the lender says the ‘Pepper Light’ range is being launched in response to the most common types of cases it receives from brokers.

Rates start from 3.70 per cent.

The launch of Pepper Light comes as part of a full review of Pepper Money’s product range, which includes some changes to pricing and criteria, including the withdrawal of the Pepper 6 group of products and fees-free options.

Pepper Money sales director Paul Adams says: “Specialist lending in the current environment is a real balancing act. We are seeing so much demand across our range as the number of customers with complex circumstances continues to grow, but each case also requires extra underwriting scrutiny, given the uncertain economic environment. So, it’s important that we respond to the demand to ensure brokers have the most appropriate solution for their clients but also take steps to protect our service where necessary.

“We are really pleased to be able to launch Pepper Light, which recognises a trend that many customers with adverse credit on their record don’t actually have CCJs, and so provides a solution that more accurately reflects their circumstances. This is a really positive step forward and directly targets a key area of demand.

“At the same time, we are conscious that we need to protect our service levels and have made a number of other criteria and pricing changes across our range. These include the removal of the Pepper 6 group of products and fees free options. We think that this approach will help us achieve the right balance between delivering solutions that best meet the most popular areas of demand and maintaining service levels in which brokers can have continued confidence.”