Pepper has extended its 50-basis-point reduction on mortgage risk fees for an additional month until 29 February 2016.
According to Pepper, feedback from brokers shows that the promotion has led to meaningful savings for their borrowers at a time when more households are enduring some pressure on surplus cash.
Pepper’s director of sales and distribution Mario Rehayem told The Adviser late last year that the specialist lender consulted brokers before deciding to slash its fees at the end of November.
“We spoke with brokers and came to a general consensus that during the Christmas period and post-Christmas period, most households endure a little bit of pressure on surplus cash. Especially if they are purchasing a home,” Mr Rehayem said.
“So instead of concentrating on the rate, we’ve decided to concentrate on an area that will be particularly beneficial to customers over the Christmas period.
“On an average loan of $500,000 they will be saving $2,500, which is meaningful, especially if the loans coming in now are most likely to settle in the tail end of December or in early January.”
Mr Rehayem said the new offer comes at a time when all lenders have their eyes firmly on rates, which have been rising out-of-cycle as a result of regulatory pressures.
“We looked at the fees, where we can save money to borrowers which will give us another edge over our competitors,” he said.
The 0.50 per cent reduction applies to all mortgage risk fees for Pepper’s near prime and specialist products until 29 February 2016.