The Irish subsidiary of Australian listed financial services group Pepper is set to offer home loans here from February 1st through a small group of brokers.
This will make it the first new mortgage lender in the Irish market since the banking crash in late 2008 and the first non-bank group to offer home loans.
Pepper Homeloans will launch three mortgage products in Ireland for both home owners and buy-to-let loans. They will be targeted at people looking to switch their loans or consolidate their debts, the self-employed or those with impaired credit histories, and first-time buyers.
The loans will be offered through a group of about 20 mortgage brokers but could be extended over time.
Pepper Essential will be available for residential and buy-to-let customers with standard variable rates starting at 3.55 per cent for owner occupiers and 4.5 per cent for investors.
Essential Plus has been “tailored” towards the self-employed and those with “non-standard employment types”, with rates starting at 3.8 per cent for residential and 4.75 per cent for investors.
Its Advantage product will be aimed at people with a “legacy credit event” that is causing them difficulty in obtaining finance. Standard variable rates for this begin at 4.3 per cent for residential and 5.75 per cent for buy to let.
Customers applying for the Advantage loan must not be in arrears or negative equity, and must demonstrate a clean credit record for the past two years.
An arrangement fee of 0.5 per cent will also apply along with a valuation fee of €150. Investors will be required to pay legal fees of €1,550 for their loans.
The maximum term will be 30 years for residential and 25 for buy-to-let and the loans will be targeted at borrowers in the greater Dublin area, Cork, Limerick and Galway.