Pepper Money has launched a new remortgage proposition and will pay brokers a full procuration fee to be involved in the process.

The proposition is offering existing Pepper Money customers the opportunity to remortgage onto one of the lender’s current products, with the exclusive benefits of no application fee, no completion fee and free standard legal work.

Pepper Money said the enhancement is an “initial step” towards enabling its customers to seamlessly transfer a mortgage to an alternative product within its range. The lender suggested this process will support more customers who are nearing the end of their term by providing enhanced options to help meet their needs.

Eligible customers of the lender will be contacted three months before the expiration of their current mortgage deal to make them aware of the product range available. Pepper Money said that early repayment charges may be applicable, if completion takes place before the end of their current term, but if they would like to proceed then it has advised customers to speak to their broker.

Access to the fee-free proposition will require a full remortgage application and brokers will receive a full standard proc fee as part of the process, the lender added.

“Many customers coming to the end of existing fixed rates are faced with the prospect of paying substantially higher costs for their mortgage as a result of rising interest rates,” said sales director at Pepper Money, Paul Adams. 

“We are always looking at ways to make things easier for existing and new customers. While we cannot change the rising rate environment, we have identified an opportunity to provide customers with exclusive access to a reduced fee remortgage proposition, which features no application or completion fee and free standard legal work.

“We will be writing to existing customers reaching the maturity of their product, asking them to speak to their broker about our remortgage offering.”

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