Pepper Money rolls out fixed rate with no break fees

Pepper Money launched a limited-time offer that allows borrowers to fix their mortgage for two years at current variable rates with no break costs.

According to the non-bank lender, the unique fixed-rate product is open for new application for a limited time. Here are the features of the product:

• Borrowers can fix a two-year loan option at current variable interest rate (starts at 5.59% p.a. with a comparison rate of 5.77% p.a.).
• The fixed-rate product has no break fees.
• Borrowers are able to make unlimited additional repayments.
• Rate lock is available for up to 90 days, but fees apply.
• The option will be available on Prime, Near Prime, Specialist (Full doc and Alt Doc).
• Borrowers can create up to four loan splits, with the ability to take advantage of an offset sub-account.

Pepper Money general manager for mortgage and commercial Barry Saoud said this offer is designed to provide customers with peace of mind in two ways: they will be able to lock in a competitive interest rate for two years and they have the flexibility to switch to a variable interest rate at any time without having to pay break fees.

“We know many Aussies are anxious about how they would cope and are looking for greater certainty given the potential for further rate rises on top of the ten RBA cash rate increases already announced,” he said.

Connective Home Loans head Michael Goerner said the product is an innovation that places brokers to “deliver real solutions” to borrowers.

“For all those clients rolling off fixed rates that are looking for next steps, this is a really good solution and with no break costs it is an absolute safe bet each way, rates go up and you are sheltered, rates go down and you are okay to jump off and ride the rate slide with no penalty,” he said.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Loan purpose

Refinancing

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Additional Repayments	Split Loan Option	Tags	Row Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.79% p.a.	5.83% p.a.	$2,931	Principal & Interest	Variable			$0	$530	90%					Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Neat home loan - max. 60% LVR (Owner occupied, Principal and interest)	5.84% p.a.	5.86% p.a.	$2,947	Principal & Interest	Variable			$0	$250	60%					Owner Occupier Variable Principal & Interest 40% Min Deposit Redraw More details	Easy application. Fast approval. No annual fee. Unlimited additional repayments free of charge. Redraw freely - Access your additional payments.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.74% p.a.	5.65% p.a.	$2,915	Principal & Interest	Variable			$0	$0	80%					100% owned by Commbank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	More details	Compare		Disclosure

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