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Anyone used Pepper?

Discussion in 'Property Finance' started by ellejay, 28th Jan, 2016.

  1. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
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    1,123
    Location:
    Kimberley and NZ
    I've seen them mentioned a couple of times but just curious if anyone's used them, or a similar firm for other reasons than negative credit history or self employment?
     
  2. Redwood

    Redwood Well-Known Member

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    22nd Jun, 2015
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    342
    Location:
    Melbourne
    Pepper is a non-bank lender. I use them for clients with a checkered history, i.e credit default/ bankrupt. Given risk - rates are a touch higher however they do a great job and we have an awesome BDM in Vic to ensure everything goes smoothly. You can also use mortgage managers like Better Mortgage Management or another lender called Redzed.

    Have a settlement tomorrow in Brissy through Pepper with two clients who were bankrupt and had no chance of starting their property journey - luckily the application was strong and Pepper was able to facilitate the deal at an awesome rate.

    In summary no problems with Pepper at all.

    Cheers Ivan
     
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  3. Perthguy

    Perthguy Well-Known Member

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    23rd Jun, 2015
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    Location:
    Perth
    Not intentionally but I had a number of loans with Pepper. I started with Wizard who sold to Aussie to sold to GE Finance who sold to Pepper. GE Finance put up interest rates when rates went up but didn't put them down when rates went down. I don't know if Pepper was the same but they didn't drop rates for the short time I was with them. I ended up with loans @ around 9.5% when the bank rate was around 6%. It was a hassle to refinance because none of the main lenders wanted to touch Pepper loans. I ended up getting a good deal with AMP. A bit of luck and a lot of hard work by my mortgage broker.
     
  4. ellejay

    ellejay Well-Known Member

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    Location:
    Kimberley and NZ
    Ouch! Thankfully you managed to wriggle your way out of that. Daylight robbery really.
     
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  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    I use them a bit via a mortgage manager (homeloans ltd) - can be a good lender for those close to being capped out on borrowing capacity.

    Cheers

    Jamie
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Location:
    Melbourne, Nationwide
    Pepper is one of those lenders you use when the loan is well outside the box. It might be credit imparement, lousy financials, or something else. You pay a premium for the loan which can vary from a small amount extra to an obscene premium depending on the magnitude of the problem.

    I think they're a fairly good lender, especially compared to some of their competitors in the same space. They're not a lender for straight forward scenarios though.
     
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  7. JacM

    JacM VIC Buyer's Agent Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,118
    Location:
    Melbourne, Australia
    As the boys have said, Pepper is not going to be your first choice, but if your loan is well outside the box your options are reduced and you'll look at them as an option. Be aware that in the event that you try to refinance or secure a second mortgage later on, it might be trickier as some lenders will see Pepper on the title and shy away since it is a clear indication that you are or have been in a position where your options are limited, so you're not going to be viewed as a perfect prospective customer.
     
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