The Intermediary – October 2026 - Flipbook - Page 26
In Profile.
Q&A
Jessica O’Connor speaks with Rob Barnard,
intermediary relationship director at Pepper Money,
about the lender’s entry into Scotland and the
changing nature of specialist lending
P
epper Money’s entry into the
Scottish first charge market comes
as high inflation, geopolitical
tensions and rising swap rates add
to uncertainty among prospective
homeowners. Despite these challenges, the
appetite for homeownership remains. According
to Rob Barnard, intermediary relationship director
at Pepper Money, greater lending choice in the
region could help more prospective buyers onto
the property ladder, particularly those whose
circumstances do not fit conventional criteria.
For Barnard, Pepper’s entry into the Scottish
market is “a natural next step.” He says: “We could
see a market with strong intermediary community
behind it, and importantly, customers whose
circumstances increasingly didn’t fit the traditional
high street model.”
Ahead of the launch, a Scotland-specific version
of Pepper’s annual Specialist Lending Study found
that 49% of respondents had homeownership
ambitions, although many were uncertain about
when, or whether, they would be able to buy.
The research helped inform the lender’s entry
into Scotland, where it identified an opportunity to
support borrowers whose financial circumstances
call for a more individual approach.
Barnard says: “People’s financial lives simply
aren’t as straightforward as they once were.
Someone might be, for example, self-employed.
They might have multiple sources of income or
have a perfectly explainable credit blip in their
recent history. Not all of that necessarily makes
them a bad borrower.”
Some prospective borrowers are ruling
themselves out before approaching a lender,
Barnard notes: “I think people almost self-decline
in regular cases because they know they’ve got
something in their credit file, or something in
their employment history, that they think will
preclude them from getting a mortgage. It doesn’t
necessarily have to be that way.”
For those who do make an application, an
unsuccessful first attempt can further undermine
their confidence. Pepper found that 26% of
Scottish non-homeowners with adverse credit
have seen their first application declined.
But Barnard stresses that being turned down by
one lender does not necessarily mean a borrower
is ineligible for a mortgage elsewhere.
“A decline is ultimately a lender’s decision, not a
verdict on someone’s future,” he says. “A decline by
one lender gives opportunity for other lenders.”
For Barnard, this also highlights the importance
of helping prospective buyers understand their
options before they apply.
He adds: “Not everybody will be ready for a
mortgage today, but I think there’s no harm at all
in making sure people are mortgage ready. Talk to
them about how they can present a credit file. Talk
to them about income profiles. Educate them a
little bit in things that they can get ready now.
“If they’re looking to buy a house in the next
couple of years, they can get ready now, even
though they’re not actually ready to commit today.
“Even where a mortgage isn’t achievable
immediately, [brokers] can always point the
customer in the right direction and give them a
path forward. One ‘no’ shouldn’t automatically
become the end.”
The confidence gap
Changing borrowers
A lack of lending choice is only part of the
challenge. According to Pepper’s study, 47% of
Scottish non-homeowners believe they will never
own a property at all, a finding Barnard believes
should come as a concern.
He adds: “There are some very, very visible
barriers to homeownership, whether that’s raising
a deposit, affordability, or simply perception that
they won’t qualify for a mortgage.”
While specialist residential lending has
traditionally been associated with adverse credit,
the market has evolved considerably in recent
years. Self-employment, multiple income streams
and contracting arrangements are increasingly
common, while temporary financial difficulties can
arise from major life events.
Barnard says: “Specialist lending today simply
picks up the baton when the high street says ‘no’.”
A new market
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The Intermediary | October 2026
