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Pepper Finance to raise variable interest rates

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Pepper Finance said the increase in its variable mortgage rate was in response to the increases in interest rates announced by the European Central Bank in both December and earlier this month.

The company said the move was in response to the increases in interest rates announced by the European Central Bank in both December and earlier this month.

Some borrowers pay less though and others, whose loans had higher rates when they were transferred to Pepper as a result of historic credit issues, pay more. That is because certain borrowers who had previously experienced difficulties in making mortgage repayments to banks and had their loans sold to such companies are now stuck paying very high variable mortgage repayments, in some cases around 7%.

The Governor of the Central Bank has said that banks and financial institutions need to be proactive in supporting their customers as interest rates go up. "The team at Pepper will continue to support those customers looking to switch or refinance their home loan to a bank or alternative lender," it said.

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