Pepper Money has repriced its product range following “significant increases in swap rates” over the last week.
The specialist lender says its rates now start at 6.74%, with shared ownership rates starting at 8.19%, Help to Buy remortgage rates from 8.19% and Right to Buy rates starting at 8.99%.
Its full range of new rates are available this morning, 2 June.
Last week, lenders pulled almost 400 home loans, around 300 BTL deals and raised rates, as firms reacted to the prospect of further Bank of England base rate rises, after inflation fell to higher-than-expected levels sparking a rise in swap rates.
The two-year Sonia swap rate is currently 4.93% from 4.38% at the beginning of May, while the five-year Sonia swap rate is 4.36% compared to 3.88% at the beginning of last month.
Pepper Money sales director Paul Adams says: “The volatility we are seeing in swap rates means that, as with many lenders, we need to review the pricing across our product range.
“Our clear criteria and hands-on approach to underwriting remain unchanged and we’re committed to continuing to help those underserved customers”.
The firm says that the cut-off for brokers submitting decisions in principle on the previous range was 5pm on 1 June, while the deadline for full mortgage applications is 5 June.
