Residential Criteria

Applicant Criteria: Applicant Details

Minimum age


Maximum age

75 at end of term. For joint applications the age of the oldest application is used. The term cannot extend beyond the applicants stated retirement age

Maximum applicants



Not accepted

First time buyers


Marital status

Applications from married/civil partnership applicants must be in joint names

Applicant Criteria: Maximum Allowable Adverse


None in the last 6 months

No more than 2 in months 7 to 12

Mortgage arrears

Arrears status of 0 in last 6 months

None missed in the last 12 months 

Unsecured arrears

Fixed term - None in the last 6 months

Revolving credit - Missed payments considered

On Pepper 24, 18, 12 and 6 products we will ignore 2 individual defaults (per application) up to and including £150.00 each where these defaults relate to utilities, communications or mail order providers

This does not apply to our Debt Management Plan products


Accepted where applicants have been discharged 6 or more years ago

Pay day loans

Accepted where the account closed more than 12 months ago


Accepted where repossession occurred more than 6 years ago

Debt management plans (DMP)

DMP range

For active DMPs or those satisfied in the last 12 months, a separate product range is available. The following criteria applies:

  • Must have been active for a minimum of 12 months
  • Must be able to provide proof of satisfactory payments from DMP provider
  • If active, doesn't have to be repaid at completion
  • For remortgages, capital raising can be considered to clear the DMP
  • No more than 1 active DMP per application


Standard range

  • Accepted if satisfied over 12 months ago
Please refer to the product guide for further details on each product level

Applicant Criteria: Nationality & Residency

Residential status

3 years UK residential address history required for all applicants

EU Nationals

Accepted subject to:

  • 3 years UK residency
  • 3 years continuous UK employment history

Non EU Nationals

Accepted subject to:

  • 3 years UK residency
  • 3 years continuous UK employment history
  • Indefinite rights to remain

Diplomatic immunity

Not accepted

Income Criteria: Income

Minimum earned income

£18,000 per application

Foreign currency

Not accepted

Income Criteria: Employed & Self-Employed & Retired


  • Minimum of 6 months in current job with 12 months continuous employment
  • Day rate contractors accepted subject to being in a contract and able to demonstrate a minimum 12 months history. Calculate the income as the lower of 12 month average day rate amount or current contract day rate x 5 (days per week) x 46 (working weeks)
  • Contract employees considered provided 12 months employment with the same employer together with confirmation the contract will be renewed
  • 3 months’ payslips with 3 months’ bank statements and last P60
  • Applicants in a probationary period not accepted
  • Zero hour contracts acceptable if a permanent position with 2 years+ at same employer and stable income levels
  • Income from seasonal/temporary work not considered
  • Directors with a shareholding of 25% or more will be underwritten as self-employed


Income type

Proportion considered

Basic salary


Car allowance


Weekly & monthly bonuses


Quarterly & annual bonuses

50% with 2 years evidence*


Considered on case by case basis


Considered on case by case basis

*Enter 100% on the online application and confirm the payment frequency


Self-Employed: Sole Trader/Partnership



  • Minimum of 1 year's accounts
  • 3 months' business account bank statements
  • SA302 accepted

Additional remuneration considered where applicants own 100% of the company:

  • Directors car allowance
  • Directors pension contributions
  • Use of home as an office
  • Private health insurance

Where additional remuneration is to be added back, finalised accounts will be required

Self-Employed: Company Director

  • Minimum of 1 year's accounts
  • 3 months' business account bank statements


Private pension accepted

Income Criteria: Other income sources

Pension income

State retirement pension (SRP) - latest annual statement of pension
Private pension - latest payslip from pension provider or letter from pension provider with 3 months bank account statements showing credits

Secondary/additional income

Employment/self-employment income from a maximum of two sources per applicant considered. Benefits and maintenance may be included as additional income

Loan Criteria

Maximum LTV

  • 85% for Capital & Interest applications; 60% for Interest only applications
  • Up to £750,000 available to 85% LTV
  • Up to £1 million available to 75% LTV

Maximum term

35 years

Minimum term

5 years

Minimum loan


Maximum loan

  • £1 million (including fees)
  • Up to £750,000 available to 85% LTV
  • Up to £1 million available to 75% LTV

Number of mortgages with Pepper

  • Maximum of 3 per applicant including any joint loans the applicants are party to
  • Can be a mixture of Buy to Let and Residential loans

Remortgage applications

  • Accepted where applicant has been the registered owner for the last 6 months at application


  • Capital & interest
  • Interest only to 60% LTV, supported by an acceptable repayment strategy


Products are not portable

Offer validity

90 days

Let to buy


Right to buy

Not accepted

Deposit Criteria

Evidence of deposit

Required on all purchase applications

Applicants savings


Capital raising remortgage


Cash gifted deposit

Gifted deposits are considered from the following:

  • Parent/Step-Parent/Parent-in-Law
  • Sibling
  • Child/Step-Child/Son-in-Law/Daughter-in-Law
  • Aunt/Uncle
  • Grandparent/Grandchild



Unacceptable sources

  • Builders deposit
  • Unsecured borrowing
  • Vendor deposit

Property Criteria: General Criteria

New build definition

A property is to be considered new if it is a first sale by the builder

However, properties which have not sold on physical completion will be considered on an individual basis

Minimum property value


Locations considered

England, Wales & Isle of Wight


Not offered

Acceptable property

  • Houses: Private and ex Local Authority or social housing
  • Flats & Maisonettes: Private only

Property Criteria: Alternative Construction

Timber framed construction

Modern timber framed properties clad with masonry are considered as acceptable

Timber framed properties which are not deemed to be of a modern type clad with masonry will be reviewed on an individual basis and will be considered on their merits

Flying freeholds

Flying freeholds will only be considered up to 20% of the total property area

Coal mining and other forms of extraction

Any properties with a coal mining or metalliferous mining entry/feature within 20m of any building will not be considered

Electromagnetic fields

Any properties within 100m of above ground high voltage electrical supply apparatus will not be considered

Contaminated land

Where there is potential for contaminated land, a pass certificate must be available from an appropriate body

Japanese knotweed

Where a property has Japanese knotweed (or any other invasive weed) located within or immediately adjacent to the site defined as category 4, 3 or 2 in RICS paper IP 27/2012 will not be considered

Solar panels

Properties where solar panels have been installed and are subject to a lease agreement will not be considered

If the solar panels are owned outright, the application will be reviewed on a case by case basis

Property Criteria: Tenure


Houses only accepted


The lease must have a minimum unexpired term of 85 years at the time of completion


Not considered

Property Criteria: Property Reports

Structural reports

Reports may be accepted from members of the following bodies:

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s)

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report

The valuer may request additional reports from specific governing bodies

Specialist reports

We may require specialists' reports. These most commonly will be:

  • Timber and damp, electrical, trees, cavity wall ties;
  • Mining report (as these are obtained by the solicitors, a special condition is imposed at offer);
  • Any such reports should be prepared by a reputable firm and should be forwarded to us for review and referral to the valuer

The valuer may request additional reports from specific governing bodies

Property Criteria: Unacceptable Property


  • New build properties without suitable warranty
  • Properties suffering on-going structural movement or insurance claims
  • Grade I & grade II* listed properties
  • Back to back/cluster homes
  • Properties located within 20m of a mine entry/feature
  • Properties within 100m of above ground high voltage electrical supply apparatus (excluding small substations)
  • Properties subject to compulsory purchase orders
  • Large flying freeholds (greater than 20% of floor area)
  • Japanese knotweed located within or immediately adjacent to the site, defined as category 4, 3 or 2 in RICS paper IP 27/2012
  • Properties without an internal WC, bathroom or kitchen
  • Properties subject to any onerous occupancy restrictions including agricultural restrictions
  • Shared ownership/shared equity schemes (only acceptable if applicant will own 100% of the interest on completion)
  • Properties subject to enforcement notices
  • Crofting properties/land
  • Self-build properties
  • Properties with a commercial element
  • Non-standard construction

Flats & Maisonettes


  • Flats in Local Authority or ex Local Authority owned blocks
  • New build flats/maisonettes
  • Flats with a gross external floor area less than 35m2
  • Flats above commercial premises
  • Studio flats
  • Freehold flats
  • Balcony access

Non-standard construction


  • Pre-cast reinforced concrete (PRC)
  • Cast-in-Situ concrete
  • Metal framed construction
  • Single skin
  • Large panel systems (LPS)
  • Modern methods of construction (MMC)


Properties at significant risk of flooding or that cannot be suitably insured will not be considered

Restrictive covenants

We are unable to consider any property with a restricted occupancy clause within the planning permission. For example, it can only be occupied for a maximum of 11 months in any one year

Similarly, property that can only be used for retirement or sheltered accommodation is not accepted. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market

Please note: for new builds we do consider Section 106 planning obligations

We are unable to consider properties within a pre-emption period

Documentation: Application Requirements

Full mortgage application

Original fully signed and dated declaration

Signed and dated direct debit mandate

Proof of deposit (purchase)

Applicants bank statements

Interest waiver letter from donor where gifted deposit

Use of funds (remortgage with a further advance)

Breakdown of use of funds, after any debts have been discharged

Account details and balance of any debts to be repaid

Proof of address & identification

  1. Any two documents from Table 1 or
  2. One document from each table



Table 1

  • Valid passport
  • Valid photo card driving licence (full or provisional)
  • National identity card
  • Firearms certificate or shotgun licence
  • Identity card issued by the Electoral Office for Northern Ireland


Table 2

  • Valid (old style) full UK driving licence
  • Recent evidence of benefit entitlement
  • Instrument of a court appointment
  • Current council tax demand letter or statement
  • Non internet generated bank statements and utility bills


Proof of income – employed

Paid monthly – Latest 3 consecutive months with P60 and bank statements

Paid weekly – Latest 6 consecutive weeks with P60 and bank statements

Bonus or commission acceptable provided that it is paid weekly/monthly

Quarterly and annual bonus & commission acceptable at 50% provided evidence of 2 years previous payments is received

Proof of income – self-employed

Sole Trader – Minimum 1 year’s accounts or SA302s with 3 months’ business bank statements

Company Director – Minimum 1 year’s accounts with 3 months’ business bank statements

Other sources of income

Child Benefit – Latest notice with bank statements (must be payable for at least the next 5 years)

Working or Child Tax Credits – Full award notice with bank statements

Maintenance  A copy of the maintenance agreement, received under a Court Order, a CSA assessment or a written private agreement drawn up between the separating parties and 6 months’ bank statements as evidence of payment

State Pension  Latest annual statement of pension/due on retirement

Pension Credits – Latest Pension Credit Award Notice

Private Pension  Latest annual statement of pension/due on retirement or

Latest payslip from pension provider or

Latest letter from pension provider confirming pension due on retirement

Rental/mortgage history

Tenancy Agreement with 12 months bank statements confirming rental payments

Last 3 years mortgage statement

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