Helping customers succeed with specialist lending solutions

Pepper Money shares how brokers can help their customers who have experienced a life event by offering them a specialist solution.

Meet Jenny. Jenny’s marital breakdown had led to financial difficulties and a history of defaults within the last 24 months.

She wanted to stay in the family home with the kids (aged 12 and 13), but this meant she had to buy her ex-husband’s share of their home.

She had no previous mortgage or rental history; however, her father had gifted the equity for the property when it was originally purchased, so her ex agreed to sell her the property at 80% of the current value.

Jenny had maintained a clean credit record during the past year and had a stable job as a manager at a bank. With her family support benefit and her work, she had sufficient income to comfortably afford her mortgage repayments. However, traditional lenders did not accept her child support and family tax benefit payments which were needed to service the loan.

She approached a broker for help, and after having her requirements assessed, it became clear that a range of specialist lenders could be offered to Jenny. After the broker presented her with some options, she chose to apply for a Pepper Money home loan.

Reading between the blips

After reviewing Jenny’s situation, Pepper Money was able to offer her a Pepper Money specialist loan.

While she had experienced a real-life event that impacted her credit history, Jenny had turned her life around, held a steady job and maintained a clean credit record for over a year.

Pepper Money was willing to accept her family support benefit as income, even though her kids were above the age of 11. Jenny also had enough money coming in to comfortably afford the loan she was after (an 80% LVR loan on the property, which was valued at $480,000).

With her broker’s help and the funds from Pepper Money, Jenny and the kids were able to stay in the family home.

Real-life specialist solutions with Pepper Money

In real life, a specialist home loan might be an option for your clients for a number of reasons: they may be recently self-employed, have a past bankruptcy, have non-traditional income, or be behind in bill repayments. However, these outcomes are just a part of their story – real life happening to everyday Australians who are capable of moving forward.

That’s why at Pepper Money we take a real-life view of their situation. We look at a wide range of factors when assessing a home loan application, and it’s a person who does the work. To help get a better understanding, a Pepper Money credit assessor will ask questions so they can have a more detailed and informed view before they start making decisions.

Common specialist solutions we can assist with include:

General purpose

• LVRs up to 95% (up to $650,000)
• Minimum 5% deposit for LVR greater than 90%
• Loan amounts up to $2.5m (up to 65% LVR)
• Cashout up to 85% LVR for personal or business purpose
• Non-genuine savings

Income from various sources

• Alternative income verification available within six months of ABN registration and six months of GST registration
• Child support income and government payments such as Family Tax Benefit Part A and B

Missed repayments

• Overdue or overdrawn credit cards/unsecured debts
• One missed repayment on a mortgage facility

Adverse credit

• Up to six months ofnon-mortgage arrears
• Up to one month of mortgage arrears (within the last six months)
• Unlimited defaults, judgments and writs >$1,000, listed >12 months (paid or unpaid)
• Discharged bankruptcy (one day)Debt consolidation
• Consolidate unlimited number of debts
• Pay out land tax debt and ATO debt
• Pay out private or solicitor debts

To find out more about Pepper Money’s specialist solutions, head to pepper.com.au/broker, or reach out to a Pepper Money BDM.