Pepper Money has eased its affordability criteria for second charge mortgages to take into account more of borrowers’ variable income streams.

The lender will now accept up to 100% of bonus, overtime, commission, and foster care income.

In these cases borrowers must be able to provide evidence that bonus or overtime income is consistent and sustainable.  

With nearly 70,000 children living within over 53,000 foster families across the UK, Pepper will also accept up to 100% of foster care income on the same basis.

Second charge sales director Ryan McGrathsays: “Our living and working habits have changed over recent years and as a leading specialist and second charge mortgage lender, Pepper has a reputation for helping more customers to achieve their goals by taking a pragmatic, hands-on approach to assessing their circumstances.

“There are a vast number of occupations where variable incomes like bonuses, overtime, and commission are intrinsic to the role. 

“In addition, over recent years the value and challenges foster carers face have been exasperated. 

“We would like to support all such customers to overcome potential affordability hurdles. 

“Therefore, it is important that we can consider variable income as part of our affordability calculation. 

“This is particularly helpful for those customers who want to raise funds to consolidate unsecured debts and control their monthly outgoings in the current climate.”