Pepper Home Loans

abj

Hi,

We have a poor credit history and are trying to apply for a mortgage. Pepper Home Loans got back to me today to say that they would consider an application under their Advantage Product, which is for applicants with poor credit history's but has a higher interest rate.

They are to ring me tomorrow to discuss this option further.

My reasons for posting are:

1 - Has anyone any experience of dealing with Pepper Home Loans.

2 - What are the most pertinent questions I need to ask them?
Some I have already considered are;
Who actually owns Pepper Home Loans?
In the future, if it becomes possible, can we switch mortgage providers and if so will we incur a penalty? (this will also apply to question 1 - will other mortgage providers even accept Pepper Home Loan customers if such an opportunity arose?)
If we come into money (Lotto win or other minor miracle) is there a penalty for paying off early or paying a lump sum?

All helpful advice appreciated,
Abj

winksblinks

Interested to hear how you got on as I'm about to submit an application to pepper following approval in principal.

alig1234

PEPPer are giving out loans but will be very agressive if you default at any time or lose your job’ they are owned by beltany finance a vulture fund so there is no empathy- if you can get a loan from an Irish bank that would be better me thinks:)

smelly sock

Pepper will still be bound by the same rule re Mortgages that all other financial institutes are. Be interested to hear the interest rates though.


They will have to adhere to the code of conduct on Mortgage arrears.

source

alig1234 wrote: »

PEPPer are giving out loans but will be very agressive if you default at any time or lose your job’ they are owned by beltany finance a vulture fund so there is no empathy- if you can get a loan from an Irish bank that would be better me thinks:)

Pepper are not owned by Beltany, they do servicing work for Beltany but are most certainly not owned by them.

Pepper is owned by Pepper, an Australian multinational finance group with operations in Australia, South Korea, Spain, London and Ireland, they have links to companies in the US also though not under the Pepper brand.

Pepper in my experience are the least aggressive of the servicing companies and comply with the CCMA, CPC and SME codes. I used to work there and on top of basic income you got performance related incentive pay, a single regulatory breach in a month and you lost that month’s incentive pay. I note this to show how seriously they take their regulatory obligations.

I’m gone from there over a year, but now work from the opposite side of the table so to speak and my opinion remains the same.

Pepper service a large number of funds and banks:
Bank of Scotland Ireland
Danske Bank
GE Money (the book Pepper bought when they bought out GE Money and entered the Irish market)
Shoreline
Beltany
Ennis
Havbell
Cheldon
Pentire

There are more but I can’t think of them off the top of my head. They do also have their own loans which they are currently selling. Rates from what I can remember are not bad, though not fantastic either as they are marketing a portion of their business at those who had recently been in difficulty and have now got 24 months clear history, so rates are bound to be higher for that type of borrower.

I’m not saying they’re saints, but compared to Cerberus, Cabot, Link etc. they’re probably one of the better companies to deal with.

pinkles

winksblinks wrote: »

Interested to hear how you got on as I'm about to submit an application to pepper following approval in principal.

Just wondering how u got on with Pepper?
Am also considering them.
Please PM if possible
Thanks

winksblinks

pinkles wrote: »

Just wondering how u got on with Pepper?
Am also considering them.
Please PM if possible
Thanks

In the middle of the application. It’s a very slow process. They seem to be extremely busy and every time another document is requested you move to the back of the queue apparently.

Application goes through a “case review” process before it goes to underwriting. Case review was a 5 week delay and I’m now 2 weeks with the file with the underwriters.

Communication is fantastic with regular updates but the process is slow all the same. It’s a lot of stress for a prolonged period of time.

winksblinks

Oh and just to add you have to have your holding deposit paid on a house before they will commence a full application.

smelly sock

winksblinks wrote: »

Oh and just to add you have to have your holding deposit paid on a house before they will commence a full application.

Ffs. Obviously so they can be sure about the assett they will gain if loan defaults.

lawred2

smelly sock wrote: »

Ffs. Obviously so they can be sure about the assett they will gain if loan defaults.

?

It's a refundable holding deposit. It's a sign of serious intent on your part.

It in no way secures a property or a loan for that property.

smelly sock

lawred2 wrote: »

?

It's a refundable holding deposit. It's a sign of serious intent on your part.

It in no way secures a property or a loan for that property.

Yeh i know that. No main stream lender i have dealt with ever stipulated this.

winksblinks

I think the necessity for the deposit means that they know you are serious about the purchase and they can confirm their return on their asset if you default.

I have a historic ICB issue that means until Jan 2020 the main stream banks won't touch me. That makes me a "risk" on paper so extra due diligence on their part is expected.

It does make matters much slower to process than a standard mortgage application so pepper won't suit anyone who is under time pressure to sign contracts. It also cuts out people who want to have mortgage approval before they start house hunting. I put a deposit on a new build so have a bit more wiggle room on timelines.

I would say its difficult to find info from someone who has gone through the process with pepper to get a real sense of how long everything will actually take, what there approval/decline stats are like. My big fear is after months of paperwork etc. I'll just get a no from them and be back at square one.

GordonW84

Hi
I was just wondering if anyone could answer a question about pepper money mortgages?

I have just cleared a Debt Settlement Agreement and I rang pepper money twice about when could I apply for a mortgage,the 1st time they said 2 years,when I rang again they said 3 years before I could apply?
Would anyone have gone through this before?

Thanks,

GordonW84

source wrote: »

Pepper are not owned by Beltany, they do servicing work for Beltany but are most certainly not owned by them.

Pepper is owned by Pepper, an Australian multinational finance group with operations in Australia, South Korea, Spain, London and Ireland, they have links to companies in the US also though not under the Pepper brand.

Pepper in my experience are the least aggressive of the servicing companies and comply with the CCMA, CPC and SME codes. I used to work there and on top of basic income you got performance related incentive pay, a single regulatory breach in a month and you lost that month’s incentive pay. I note this to show how seriously they take their regulatory obligations.

I’m gone from there over a year, but now work from the opposite side of the table so to speak and my opinion remains the same.

Pepper service a large number of funds and banks:
Bank of Scotland Ireland
Danske Bank
GE Money (the book Pepper bought when they bought out GE Money and entered the Irish market)
Shoreline
Beltany
Ennis
Havbell
Cheldon
Pentire

There are more but I can’t think of them off the top of my head. They do also have their own loans which they are currently selling. Rates from what I can remember are not bad, though not fantastic either as they are marketing a portion of their business at those who had recently been in difficulty and have now got 24 months clear history, so rates are bound to be higher for that type of borrower.

I’m not saying they’re saints, but compared to Cerberus, Cabot, Link etc. they’re probably one of the better companies to deal with.

Hi
Just a quick one,I rang pepper twice ,I have just settled a DSA the 1st time they said come back after 24 months and apply the second,a different person said 3 years? Would you know for certain an application can be made in 24 months?
Thanks

source

GordonW84 wrote: »

Hi
Just a quick one,I rang pepper twice ,I have just settled a DSA the 1st time they said come back after 24 months and apply the second,a different person said 3 years? Would you know for certain an application can be made in 24 months?
Thanks

Pepper's product for people who were in financial difficulty requires 2 years clear before they will look at lending. A person coming out of a DSA may have different requirements being a formal insolvency arrangement, i am not sure but it would make sense.

Grooonk

winksblinks wrote: »

In the middle of the application. It’s a very slow process. They seem to be extremely busy and every time another document is requested you move to the back of the queue apparently.

Application goes through a “case review” process before it goes to underwriting. Case review was a 5 week delay and I’m now 2 weeks with the file with the underwriters.

Communication is fantastic with regular updates but the process is slow all the same. It’s a lot of stress for a prolonged period of time.

Hi! Just wondering if your file progressed? I'm going through the same process and it's taking a long time. As you said, plenty of updates but not moving as quick as you would like.

winksblinks

Grooonk wrote: »

Hi! Just wondering if your file progressed? I'm going through the same process and it's taking a long time. As you said, plenty of updates but not moving as quick as you would like.

Move onto the valuation two weeks ago and according to the Estate Agent they have not been contacted yet so still waiting. I hoping now that they are getting the house valued that the loan offer is guaranteed!

Grooonk

winksblinks wrote: »

Move onto the valuation two weeks ago and according to the Estate Agent they have not been contacted yet so still waiting. I hoping now that they are getting the house valued that the loan offer is guaranteed!

Thanks a mill for your response. So did they give you approval pending valuation?

winksblinks

Grooonk wrote: »

Thanks a mill for your response. So did they give you approval pending valuation?

I was told valuation and then loan offer would issue if the valuation came back in line with the house price. Its a new build so I'm hoping it should not be an issue as its a fixed price but I am coming under significant pressure to sign contracts at the moment which I obviously don't want to do till I'm sure I have mortgage approval. The stress levels are epic!! The mortgage repayment will be 50% of my current monthly rent so it would be amazing to get this across the line.

The valuation came with a charge of €150 which I paid to Pepper so I'm hoping that is an indication that my application is fine in the eyes of the underwriters - I didn't specifically think to ask.

Grooonk

winksblinks wrote: »

I was told valuation and then loan offer would issue if the valuation came back in line with the house price. Its a new build so I'm hoping it should not be an issue as its a fixed price but I am coming under significant pressure to sign contracts at the moment which I obviously don't want to do till I'm sure I have mortgage approval. The stress levels are epic!! The mortgage repayment will be 50% of my current monthly rent so it would be amazing to get this across the line.

The valuation came with a charge of €150 which I paid to Pepper so I'm hoping that is an indication that my application is fine in the eyes of the underwriters - I didn't specifically think to ask.

Really appreciate that. Do let us know how it goes!

mummy5

winksblinks wrote: »

I was told valuation and then loan offer would issue if the valuation came back in line with the house price. Its a new build so I'm hoping it should not be an issue as its a fixed price but I am coming under significant pressure to sign contracts at the moment which I obviously don't want to do till I'm sure I have mortgage approval. The stress levels are epic!! The mortgage repayment will be 50% of my current monthly rent so it would be amazing to get this across the line.

The valuation came with a charge of €150 which I paid to Pepper so I'm hoping that is an indication that my application is fine in the eyes of the underwriters - I didn't specifically think to ask.

I have my fingers and toes crossed for you😊 I'm hoping to go with pepper my self in the future I can't afford the "affordable housing" here in Dublin so I'm looking at a new build in kildare or louth. I believe pepper only lend if you are buying in certain cities. Do you mind me asking where you are buying?

ACADasltiv

alig1234 wrote: »

PEPPer are giving out loans but will be very agressive if you default at any time or lose your job’ they are owned by beltany finance a vulture fund so there is no empathy- if you can get a loan from an Irish bank that would be better me thinks:)

Banks have even less. I trained in insolvency and would prepare PIAs, DSA, bankruptcies etc. and vulture funds were the most consistent to deal with. They're run on a purely commercial basis and will accept the deal that results in the best return for them. They buy the loans for cents on the euro and so are much more willing to move on price and accept write downs than the banks are, who will sell these loans to vulture funds rather than give their own customers these discounts.

As previously said, they work within the same confines as banks in relation to evictions etc. so I wouldn't be put off by the fact that they're a vulture fund.

winksblinks

mummy5 wrote: »

I have my fingers and toes crossed for you�� I'm hoping to go with pepper my self in the future I can't afford the "affordable housing" here in Dublin so I'm looking at a new build in kildare or louth. I believe pepper only lend if you are buying in certain cities. Do you mind me asking where you are buying?

Pepper cover Dublin, Louth, Meath, Kildare, Wicklow, Cork city; Galway city; Limerick city; Ennis; Shannon; and Kilkenny.

I'm buying in south Wicklow in a rural enough area. I would highly recommend giving them a call and going through your situation. I found them great in terms of answering (many, many) questions and I spoke to them about 6 months before I put my application in so I could get an idea of what was required etc. It demystified the whole process for me.

mummy5

Yes I'm definitely going to give them a call thank you. How are their interest rates?

winksblinks

mummy5 wrote: »

Yes I'm definitely going to give them a call thank you. How are their interest rates?

I was quoted 3.8% and I have a 30% deposit. It's higher that some of the banks but it's better than renting and continuing to pay off the landlords mortgage.

GordonW84

I was wondering if anybody new,My house went back to the bank and I am going through a DSA,so when it's all complete I will be trying again for a mortgage as a second time buyer,but do I still need 20% deposit if the house is under €300,000? I heard only 10%deposit is needed if under that?
Thanks

cfab

Grooonk wrote: »

Really appreciate that. Do let us know how it goes!

Hi just to add a bit about my experience with pepper money, i started the application process on 12th of july, i am self employed but i had every shred of paper to hand that they needed, statements, loans, signed accounts etc. i got my approval letter on the 25th september, to say they are slow is an understatement!
Right now we have signed contracts etc. we are selling our current house and moving so the equity in our current house is our deposit. Last tuesday,9th october, my solicitor requested the loan cheque from pepper as the funds have been received from the sale of my current house and it was due to be here on monday (15th). no sign of the cheque, no answer to emails and their phones are just ringing out for the last 2 days with no facility to leave a message. Even my solicitor is starting to get worried.
i am supposed to close the sale on monday coming so unless money arrives tomorrow we will be homeless as our sale contract is binding.
wifey is getting a bit upset now as we have kids enrolled in new schools, new books/uniforms etc. and quite possibly we won't have a new house to go to in the area where the schools are.
the vendor has been very patient but they won't wait any longer as there is another buyer with cash waiting in the wings.

Icbaby

cfab wrote: »

Hi just to add a bit about my experience with pepper money, i started the application process on 12th of july, i am self employed but i had every shred of paper to hand that they needed, statements, loans, signed accounts etc. i got my approval letter on the 25th september, to say they are slow is an understatement!
Right now we have signed contracts etc. we are selling our current house and moving so the equity in our current house is our deposit. Last tuesday,9th october, my solicitor requested the loan cheque from pepper as the funds have been received from the sale of my current house and it was due to be here on monday (15th). no sign of the cheque, no answer to emails and their phones are just ringing out for the last 2 days with no facility to leave a message. Even my solicitor is starting to get worried.
i am supposed to close the sale on monday coming so unless money arrives tomorrow we will be homeless as our sale contract is binding.
wifey is getting a bit upset now as we have kids enrolled in new schools, new books/uniforms etc. and quite possibly we won't have a new house to go to in the area where the schools are.
the vendor has been very patient but they won't wait any longer as there is another buyer with cash waiting in the wings.

I believe pepper finance was bought by Finance Ireland as of today. Don't know what that changes for you but I know that their phones were down because of the changeover!!! I heard it won't change anything for the clients it's just in name only.

https://www.google.ie/amp/s/www.rte.ie/amp/1005026/

cfab

I read that today and i rang finance ireland as i have had dealings with them in the past and they said, yes the announcement was today but nothing will be changing for 6 to 8 weeks as the deal needs to be approved by financial regulator or central bank.
im just starting to panic that pepper knew this was coming and have let people go and now my file is just sitting on someones desk and there is no one there to deal with it.
Myself and my wife have been together 11 years and have been through a lot, but this is the first time she actually said to me she is really worried and she was crying. she didn't even cry during childbirth!

im finding it hard to put on a brave face now at this stage, hence the reason i am sitting in my kitchen and posting on boards rather than trying to get sleep!

Icbaby

cfab wrote: »

I read that today and i rang finance ireland as i have had dealings with them in the past and they said, yes the announcement was today but nothing will be changing for 6 to 8 weeks as the deal needs to be approved by financial regulator or central bank.
im just starting to panic that pepper knew this was coming and have let people go and now my file is just sitting on someones desk and there is no one there to deal with it.
Myself and my wife have been together 11 years and have been through a lot, but this is the first time she actually said to me she is really worried and she was crying. she didn't even cry during childbirth!

im finding it hard to put on a brave face now at this stage, hence the reason i am sitting in my kitchen and posting on boards rather than trying to get sleep!

Nobody was left go I don't think. I would think there's just been meetings and announcements and prob restructure
And they probably can't answer questions from the public till they know facts so I'd guess that's why no phones are being answered. Have you emailed them??

cfab

Icbaby wrote: »

Nobody was left go I don't think. I would think there's just been meetings and announcements and prob restructure
And they probably can't answer questions from the public till they know facts so I'd guess that's why no phones are being answered. Have you emailed them??

Yep, both myself and my solicitor have emailed pepper, I sent them to the general address and my solicitor sent mails to the completions department