Lender Comparison
Pepper Money Secured Loans vs Masthaven
Pepper and Masthaven both target clean credit and minor adverse cases at typical UK loan sizes. They compete directly on 5-year fixed rates, with Masthaven's Optimal Zero leading at very low LTVs and Pepper having broader minor adverse appetite at higher LTVs.
At a glance
| Pepper Money Secured Loans | Masthaven | |
|---|---|---|
| Min loan | £5,000 (one of the two lowest on our panel, jointly with Selina) | £3,000 (Optimal 1) / £10,000 (Optimal Zero) |
| Max loan | £500,000 | £250,000 standard (£150,000 on HLTV variant) |
| Max term | 30 years | 30 years |
| Max LTV | 85% combined (across first charge plus any other secured borrowing) | 85% combined (HLTV variant); 80% combined (standard Optimal Zero / Optimal 1) |
| Credit tier | Clean credit through moderate adverse — tiered product structure by credit profile | Clean credit (Optimal Zero) through minor adverse (Optimal 1) |
| Rate structure | 2-year and 5-year fixed, then variable revert. From 6.99% APR (5yr fix, prime). | 2-year and 5-year fixed, then variable revert |
| Arrangement fee | £995 arrangement fee, flat across product tiers | £695–£1,495 tiered by loan size — one of the most granular fee ladders on the UK panel |
| Completion | Typically 2–4 weeks; DIP within 24-48 hours | Typically 2–4 weeks |
| Property eligibility | Standard UK residential property with current first charge. Most property types accepted including ex-local authority and standard-construction flats. A property valuation is required. | Standard UK residential property with current first charge mortgage. Most construction types accepted including ex-local authority. Combined LTV capped at 80% on standard Optimal Zero / Optimal 1 products or 85% on the HLTV variant. A property valuation is required. |
Which should you pick?
Pick Pepper for broader minor adverse at higher LTV
Pepper's 5-year fix from 6.99% APR extends up to 85% combined LTV with appetite for minor adverse credit. Best when the case has any credit blemishes or sits above 80% LTV where Masthaven's standard products don't reach.
Read full Pepper Money Secured Loans profile →Pick Masthaven for cheapest clean credit at sub-80% LTV
Masthaven's Optimal Zero 5-year fix from 7.61% APR is competitive at sub-80% LTV with tiered fees that favour smaller loans. Best when the case is clean credit with a comfortable equity position and rate is the deciding factor.
Read full Masthaven profile →Pros and cons
Pepper Money Secured Loans
Pros
- • Strong appetite for self-employed and contractor income — human underwriting reviews complex cases individually
- • Considers CCJs, defaults, and missed payments across a tiered product structure
- • Up to 85% combined LTV with clean credit
- • Institutional balance sheet backed by Pepper Group's £20bn+ AUM — not P2P or investor-funded
- • Accessible senior underwriters — brokers can discuss complex cases before formal submission
- • Day-rate contractor income calculated at day rate × 5 × 46 with fewer overlays than most competitors
- • £5,000 minimum loan — one of the lowest on the UK panel
- • Accepts recent house movers still in probation period
- • 24-48 hour decision in principle across all product tiers
Cons
- • Headline rates not the lowest — beaten by Selina Finance on prime cases at sub-65% LTV
- • Maximum loan £500,000 — caps out below United Trust Bank and Selina for very large cases
- • Tapering early repayment charges apply during the fixed-rate period (3% year 1 to 1% final year)
Masthaven
Pros
- • Granular tiered fee structure — genuinely competitive on smaller loans where flat-fee lenders penalise
- • Both clean-credit and minor-adverse products with consistent service
- • Up to 85% combined LTV via HLTV product for minor-adverse cases
- • Low minimum loan of £3,000 on Optimal 1 — accessible for smaller consolidation
- • Both 2-year and 5-year fixed products — genuine choice of rate stability window
- • Established UK specialist with predictable underwriting process
- • Clean-credit Optimal Zero at 7.61% APR is competitive in the 65-80% LTV range
Cons
- • Maximum loan £250,000 — limits scope on larger consolidation cases (Selina, Pepper, UTB go to £500,000)
- • Adverse credit appetite limited to 'minor' tier — not for recent CCJs, defaults, or discharged bankruptcy
- • Headline rates not the lowest at sub-65% LTV — Selina wins that segment
- • HLTV variant capped at £150,000, below the standard product £250,000
Frequently asked questions
What's the difference between Pepper Money and Masthaven?
Pepper Money has broader minor adverse appetite — 5-year fix from 6.99% APR up to 85% LTV. Masthaven's Optimal Zero product is competitive for clean credit at sub-80% LTV — 5-year fix from 7.61% APR with tiered fees. Pepper wins on LTV reach and adverse credit; Masthaven wins on rate for cleanest cases at lower LTV.
Is Pepper cheaper than Masthaven?
On headline rate, yes — Pepper's 6.99% APR is below Masthaven's Optimal Zero 7.61% APR. But Masthaven's tiered fee structure (£695 on small loans rising to £1,495) can make total cost lower on smaller cases, and Pepper applies higher LTV pricing as the LTV climbs. Compare actuals before deciding.
Should I pick Pepper or Masthaven for a secured loan?
Pick Masthaven if you have clean credit at sub-80% LTV and want the lowest total cost on a 5-year fix. Pick Pepper if your case has any minor adverse credit, sits above 80% LTV, or you want the lower headline rate at a competitive LTV.
Get quotes from both lenders
Our advisers quote Pepper Money Secured Loans and Masthaven side by side against your specific criteria — loan size, LTV, property type, credit profile.