Pepper Mortgages

vickielouise87

Hi, has anyone used the lender Pepper for their mortgage? My broker said she will be using a packager as a middle man between her and this lender as they don’t deal with applicants or intermediaries directly. There’s not much information on their website about rates etc and I just wondered if anyone had used them before and what their experience was like? We are in a bit of a rush after having to change broker and having already sold our house months ago. So I am hoping their turnaround timescales are not too long. I would ask my broker about them in more depth but she is closed now until January. 

Thanks in advance! 

ACG

They do deal with brokers directly. We use them maybe once or twice a month at times.

Packagers are horrible and they charge you for the pleasure! They are basically just a middle man that relays messages, in effect they slow things down. The theory behind them is good, they only deal with a number of lenders so they know the criteria and processes better than brokers who do not regularly use those lenders, but in practice it never really seems to work. 

https://www.pepper.money/intermediary/products/residential-products/ (here are their rates).

I think we have a 100% record with Pepper on submitted applications, so from my experience they do usually lend if you fit criteria. 

dimbo61

Hi Vickie,
Maybe a good idea to speak to ACG direct !
Private message to them could save you alot of money.
I am Not a mortgage broker 🙂

[Deleted User]

I used to be able to use Pepper directly but now must go through a packager due to restructuring of various deals way above my head. 
I still talk to the lender directly to check it fits criteria and then the documents go through the packager.   Personally i think they packagers are a good tool for specialist lenders if you are new to the industry but I'd be happy to bypass them if i could.   You shouldn't get a different outcome whatever and its down to how the broker manages the process. 

Pepper are a good lender though.  If it fits clearly published criteria and bank statements aren't hiding anything then you should be fine

ACG

Deleted_User said:

I used to be able to use Pepper directly but now must go through a packager due to restructuring of various deals way above my head. 

Is that a network decision? 

[Deleted User]

ACG said:

Deleted_User said:

I used to be able to use Pepper directly but now must go through a packager due to restructuring of various deals way above my head. 

Is that a network decision? 

Pretty much. We've always had packagers and were able to ignore them by virtue of no one really caring.  if the lender would pay us direct then it never got raised.   they brought a new packager (Positive Lending) around q2 this year and they had special helpdesks, cheaper fees, increased commission rates etc for the first year of them being on panel so network tightened up rhe process to move us back through packagers.
Hopefully it will loosen up again as its so much easier being able to explain odd things to a lender without a middle man.
In fairness most of my stuff is a fair bit more vanilla than yours so it doesnt inpact me too much to make a fuss.   

ACG

Some networks need to realise it is you paying them. I have to admit I would be on my way out if I were under a network and they did that. Its just a money spinner for the network no matter how they try to package (...sorry) it up. But I suppose the fact that half of my business is geared around adverse lenders, it would be a bigger problem for me than it would be if you use them 2-3 times a year. 

K_S

I have a referral relationship with a packager but I only ever use them for unregulated business that occasionally comes my way. They're pretty good at what they do and pay quite well for very little work at my end. But I definitely wouldn't pass over any resi clients to them, far too much that can go wrong. 
I've only ever done 2 Pepper cases and I found them to quite good processing wise.

[Deleted User]

K_S said:

But I definitely wouldn't pass over any resi clients to them, far too much that can go wrong. 

The strange thing with the system is that they dont have any contact with the client in any way.  I still provide the advice ( and take the liability) and I still do the sourcing to choose the lender.   Its purely that they key the Application, upload documents, relay messages from the underwriter, and then send me acopy of the offer when it comes through.  

For 2nd charge then i just pass a name and number and they do it all and to be fair they provide a service i put value on.  But on first charge i dont really know what they add to the process beyond charging my client £199 extra

ACG

Thats my issue with packagers. 
I have to fill out the application to pass it to the packager, so even if they pick it up straight away it still delays things by an hour. Thats before you get in to the whole lender asking for documents and information, more delays - all the while they are charging for this. 

The only good experience I have had with packagers in through Complete and Kent reliance, they seem to split their staff up to only deal with one lender (but I am talking 3 years ago). Every case I sent to Kent had the same person and she knew her stuff inside out. But I have used 3-4 other packagers and not one of them added any value, some made it worse. 

Its just a money spinner for the network, they have their mucky fingers in everything. What would actually happen if you submitted direct? The more I think about it, the more annoyed I am getting and it doesnt even effect me. So you have to fill out the form for them to copy and enter, you then have to check over the application to ensure they have done it correctly. 

vickielouise87

Thanks everyone. I at the point where I don’t really care what interest rate I have to pay now, I just want to get a mortgage secured, fast. 

I don't think our position is that bad really. Nothing to hide at all. I’m sure people have got mortgages in worse positions. 

Ive worked for the NHS for 5 years, I’m part time as have a one year old, I earn £9,000 per annum, 16hrs a week. I can earn £400-£800 a month in overtime, which is guaranteed and I do this as and when I need it. I get £450 a month in child maintenance, consistent for 5 years through CSA and £192 in child benefit for 3 children. Around £16,000 if all income is accepted (not including overtime). Excellent credit. £9,000 car loan over 4 years. No other debts. 

Partner self employed for 10 years. Salary of £35,000 last three years. Fair credit. No debt at all. £20,000 in savings, but 2 settled defaults 😡 1x £950 in 2017 and 1x £250 coming up for 2 years old. 

We have £105,000 equity in our current home and would like to borrow £180,000 ideally, but could still make things work on £150,000. The house is £260,000. 

I’m not great with money, I do use my overdraft and I could save more if I tried. My partner is an excellent saver, but he has the adverse credit. The defaults are currently sat with the ombudsman as my partner believes they were registered unfairly but unfortunately that doesn’t help our situation right now.