A specialist lender has attributed its recent hike in rates to the struggling wholesale funding market.
As of 22 March, the increased rates will go live at Pepper Money.
The rates are set to rise across the entire mortgage back book by 17 basis points and on the front book by 12 basis points.
The lender stated that it is “not immune” to the market conditions which have caused other lenders to similarly alter their rates, but that it “held off on this decision as long as possible.”
The rate change will not impact borrowers who are currently in hardship, whose accounts are more than 90 days in arrears, or those still in the pipeline or showing a settlement date within three months of the effective date of change.
Additionally, the altered rates will not impact fixed rate loans or pending complaints.