Hot off the heels of the RBA’s announcement, a non-bank lender has confirmed that its promo home loan rates will be adopted as the standard variable rate.
Pepper Money has launched an eight-week promotion featuring a Prime Variable interest rate starting at 3.12% p.a. (3.32% p.a. comparison) for P&I and from 3.87%p.a (4.06% p.a. comparison) for interest only loans across various LVR bands.
With the promotion running until 22 November, the same rate will apply to new customers working with brokers and customers approaching the lender directly.
Pepper has also confirmed the reset of its standard rate card for Pepper Prime and Near Prime, Full Doc and Alt Doc products, to be “more competitively priced”.
Aaron Milburn, director of sales and distribution, said, “Pepper has moved as quickly as possible in the wake of [yesterday’s] announcement from the RBA to ensure we can help more families finance their dream property. These changes ensure people currently out in the market and researching their options will be able to source the best available rate and make the leap to their new home.”
Pepper Money has also changed its serviceability floor interest rate and interest rate buffer across its entire residential mortgage home loan range, effective yesterday, 1 October.
Pepper’s interest rate floor has been reduced from 7.25% to 5.85% and its interest rate buffer has increased from 2% to 2.5%.
“Pepper is committed to remaining responsive to the market to ensure brokers and their customers get the best deal,” Milburn added.
Last month Pepper Money announced that it has started lending to mortgage customers in New Zealand.