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Pepper will be increasing variable mortgage rates by 1% for majority of customers following recent ECB rate increases
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- Increase reflects two consecutive increases in the ECB rate in December 2022 and February 2023
- Average rate of 5.2% on Variable Rate mortgages and 3.1% on Split Mortgages (average across customers’ Main balances and Split balances at 0%) as at 31st January 2023
- New Helpline takes over 5,000 interest rate query calls so far in 2023 as Pepper continues to invest in enhanced customer support measures for borrowers concerned about interest rate increases and the rising cost of living.
- Notable increase in customers redeeming loans or switching to a new lender
Following on from two further interest rate increases, totalling 1%, announced by the European Central Bank (ECB) in December 2022 and February 2023, Pepper will start notifying certain customers this week by letter of an additional 1% increase in their variable mortgage rate. This latest increase for variable mortgage rates continues to be less than or equivalent to the increase in ECB interest rates announced to date.
The five consecutive ECB interest rate rises, totalling 3% since July 2022, have regrettably necessitated these increases being passed on to the majority of the 21,000 residential variable rate mortgages, serviced by Pepper on behalf of its clients.
The average rate across these mortgage loans is approximately 5.2% (as at 31st Jan 2023), noting some loans will have a higher rate and some loans will have a lower rate.
