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Pepper mortgage holders face interest rate spike after company error

The company apologised and said it will help customers who may struggle to adjust to the new rates

The number of people affected reflect about 2 per cent of Pepper’s loan book. Picture: Getty

Approximately 2,500 Pepper mortgage customers are facing the prospect of higher interest rates, after the company admitted an error in customer’s repayments that led to tracker and variable mortgages rates not rising in line with European hikes.

That means that their rates will now sharply rise to the level they should have been at through multiple smaller increases implemented by the European Central Bank since 2022.

Pepper will not seek to recoup the lost funds ...