An Interview With An Impaired Credit Lender: Pepper Money

In our latest interview, we cover everything from misconceptions, credit score, and what lenders will look for. We sat down with Alex Hall at Pepper Money, an adverse credit mortgage lender to tell us more.

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1. Who are Pepper’s typical customers, and what brings them to you rather than a mainstream bank?

"Pepper’s customers are often people whose circumstances don’t fit neatly into a mainstream lender’s rigid criteria. That might be due to historic credit issues, complex income, self-employed, or for applicants with relatively low credit scores. They come to Pepper through mortgage brokers, who understand that we can spend the time to look beyond labels and automated tick-boxes, taking a more individual, common-sense view of affordability and every application in general."

2. What is the biggest misconception towards impaired credit lenders?

"The biggest misconception is that impaired credit lending isa “last resort” or they’ll be charged eye-watering mortgage rates. Specialist lenders play an important role by offering fair, regulated solutions to people who may have had a temporary setback or just have a story to tell and need a mortgage lender who can listen."

3. Do real people underwrite cases, or is it all automated?

"Real people underwrite our cases. Technology supports the process, but every application is reviewed by an experienced underwriter who has the autonomy to make a holistic lending decision."

4. What is Pepper’s main objective as a credit-impaired lender?

"Our objective is to help customers access sustainable homeownership. That means lending responsibly, supporting customers through past challenges, and helping them move forward — often with the aim of refinancing into the mainstream market in the future."

5. For people worried bad credit means “no chance” — who can you actually help?

"We can help many customers who have experienced missed payments, defaults, CCJs, or even historic mortgage arrears, provided they’re understood, explained, and no longer ongoing. Bad credit doesn’t automatically mean no — context, improvement, and affordability matter. The brilliant thing about Pepper, is we operate a time-based lending model. The distinct advantage this has over all other credit scoring lenders is, when it comes to adverse credit, even if we can’t consider the application today, we can state a date in the future when we can lend, providing a positive message there is an option in the future if certain conditions are met."

6. How do you look at someone’s story, not just their credit score?

"We assess what happened, why it happened, and what’s changed since. A one-off life event is very different from repeated, unresolved issues. By reviewing credit conduct, the stability of income, explanations, and broker insight, we build a full picture to make a fairer lending decision."

7. What do people misunderstand most about rates and costs in this space?

"People often assume specialist lending is significantly more expensive. In reality, rates reflect risk at a point in time. For many customers, a specialist mortgage is a stepping stone — once their credit profile improves, they can often move to lower rates later, when they come to remortgage or purchase their next property."

8. How important is it for someone to speak to a broker in getting an impaired-credit case right?

"It’s crucial. A knowledgeable broker understands lender criteria, what documents you need to supply, and how to present a case properly. That expertise can make the difference between a decline and a successful outcome. It also ensures customers are matched with the right solution from the start without having to go around the houses so to speak."