A specialist lender has moved closer to prime lending with the launch of a new product line.
Pepper Home Loans has announced a new near-prime product line. The Pepper Easy product is an alternative documentation loan geared toward self-employed borrowers with at least three years of clean credit history. The loan will carry a rate of 7.99%, and Pepper said the product differed from other alternative documentation loans in that it will allow borrowers to draw cash out for any specified purpose with an LVR up to 80%.
The company also dropped rates on its existing product range by up to 76bps, as well as lowering the LVR on its Flexi Advantage product. LVRs up to 55% will now carry a rate of 7.99% and a reduced mortgage risk fee of 1%.
Pepper director of sales and distribution Mario Rehayem said the product changes were in direct response to broker feedback.
"There is no better way to promote our products than with lower interest rates and three new product ranges within the space of two months," he said.