Pepper Money

Pepper completes its largest securitisation to date

Pepper Money has closed its largest residential mortgage-backed securitisation (RMBS) to date, backed by £450m of mortgage loans.

Polaris 2022-1 included a mix of first-charge owner-occupied and BTL mortgage loans, with 25% of the portfolio being customers with legacy CCJs.

The securitisation attracted the participation of new investors against the backdrop of a volatile market.

During January, the lender also called the legacy Castell 2018-1 securitisation at the first available opportunity.

Pepper Money has now successfully issued nine transactions, approaching £3bn into the RMBS market across first- and second-charge mortgage loans and anticipates a number of additional securitisations during 2022.

Matthew Blake, treasurer at Pepper Money, said: “At Pepper Money, our objective is to support greater financial inclusion in the UK housing market. 

“The strong performance of these mortgages is a testament to our robust underwriting and our ability to support our customers, this simultaneously provides opportunities for both our customers and our investors. 

“These are exciting times at Pepper Money; we are in the process of growing our treasury team to support the expansion of the funding platform and have recently executed a new funding facility with HSBC, who join as a new counterparty providing additional diversification and capacity to support our second-charge proposition.

Laurence Morey, CEO at Pepper Money (pictured above), added: “The Polaris 2022-1 securitisation is our largest deal to date and includes a number of new investors, demonstrating the quality of assets that we are able to generate at Pepper Money. 

“It caps a great month in which we have launched Pepper-branded second-charge mortgages, continued to innovate with our use of AVMs and made a number of other proposition enhancements. 

“It’s an exceptional start to what promises to be a very exciting year.”

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