Australian lending firm, Pepper, becomes one of the newest player in the mortgage market in Ireland. Pepper brings most competitive mortgage rates, primarily targeting first-time homebuyers. Pepper also aims to attract clients switching from their current mortgage loan providers and those who are taking out buy-to-let mortgages.
Pepper aims to provide access to loans those who have been rejected by other banks in the country. So while the rates from Australia's finance giant is not the lowest in Irish market, it is expected to be really competitive.
According to The Irish Times, Pepper will offer as low as 3.55 percent mortgage rate to first-time buyers and buy-to-let investors. Self-employed, meanwhile, can enjoy a 3.8 percent rate, while those you have low credit score due to the financial market slump in the past years will be charged 4.3 percent.
Michael Dowling, chair of the Irish Brokers' Association mortgage committee, said of Pepper's expansion in Ireland, "It is positive a new entrant is coming in and it will encourage others to look at the Irish market."
In a report from Independent.ie, Pepper's entry in the country's mortgage market has prompted the Bank of Ireland to introduce a new 10 percent bonus for clients buying a home for the first time and saving up money for a deposit. First-time buyers are said to enjoy up to €80,000 savings with a 10 percent bonus, which means a top-up of €8,000. Bank of Ireland currently offers a rate of 2 percent for new mortgage loans which is proving to be attractive.
Independent.ie said that Pepper's mortgage products will be available through brokers only and there will be a 0.5 percent processing charge, capped at €1,800, which can be added to the borrowed amount. For now, only those who are in the greater Dublin area, Cork, Galway and Limerick can avail Pepper's services.