Pepper confirms pilot launch
The lender will initially start lending through a pilot scheme with packager Brightstar and Mortgage Advice Bureau.
And CEO Richard Klemmer has said that Pepper has big ambitions for the UK mortgage market.
He said: “In the year since the Australian asset manager and specialist lender the Pepper Group bought the UK mortgage servicing business Oakwood Global Finance, the newly unified company has been the subject of intense industry speculation regarding its ambitions to originate mortgages in the UK.
“I can now confirm that we are introducing our new residential and buy-to-let products on a pilot basis through intermediaries Brightstar and Mortgage Advice Bureau, and will quickly add further distributors to our panel throughout the first quarter.
“Our loans are designed for customers who may for a variety of reasons be unable to qualify for a mortgage on the high street. These customers may be buy-to-let investors, first-time buyers or those who require a more customised approach to lending than is currently offered in the market.”
Klemmer also released some details about the products that are available in the new lenders range.
He said: “Pepper’s products include residential loans with rates starting from 3.60% and buy-to-let loans with rates starting from 4.35%.
“All of Pepper’s residential and buy-to-let products will offer the applicant multiple repayment options including fixed rate terms of up to 5-years.
“After conducting extensive market research throughout 2014 we are convinced this is the ideal time for us to launch Pepper Homeloans.
“Market conditions and economic indicators are favourable and it is clear there is a place in the UK mortgage market for a new specialist lender.
“The revived securitisation market, the drop in arrears and repossessions, and the intelligence we have gained via Pepper’s vast data from our existing loan servicing portfolios have all given us complete confidence to launch in 2015.
“The commencement of lending in the UK is a significant next step in the Pepper Group’s strategy of building a global speciality financial services business, adding to its existing lending operations in Australia, South Korea, Hong Kong and Spain.”