Pepper Money has launched its first range of cashback products which it says are for customers who want to secure better rates or to consolidate debt.

The new cashback options are available for remortgages on its Pepper 12 range through to Pepper 24.

The Pepper 12 to 24 ranges cover customers who have not have a county court judgement or default against them in the last 12 to 24 months.

The lender says the products are available from 4.45% without a completion fee and cashback of £500 on completion.

Also, the Pepper 24 range is now available with an 85% loan to value, which “helps customers who have had adverse credit registered over 24 months ago”.

Pepper Money sales director Paul Adams says the deals are the firm’s “first ever cashback mortgage”.

He adds: “Many customers experienced financial difficulty during the pandemic, leading to missed payments and increased debt.

“According to our latest Adverse Credit Study, 24% of people with adverse credit say their use of credit has increased compared to 12 months ago, compared to 13% of the general population.

“With our cashback mortgage, the customers now have a great option to consolidate those debts, with the cashback available to assist with the payment of disbursements that are often required during debt consolidation.

“The launch of these products is an excellent example of Pepper Money responding to the evolving circumstances of customers, with products developed to meet their specific requirements.”

In April, Pepper Money raised the maximum LTV range available on its mortgages for customers with recent poor credit histories.

It said the maximum LTV on its Pepper 18 mortgage and Pepper 12 product has been increased from 75 per cent to 80 per cent.