Pepper Money has completed a £ 350million second charge mortgage securitization.

The transaction, initiated by Optimum Credit, is the company’s second-largest fee issue to date.

The securitization, which the company says has received strong demand, is the lender’s fifth issue in its series of secured loan transactions called the Castell program.

Pepper bought Optimum Credit in 2018 from Patron Capital. At the time of the purchase, the Cardiff-based second charge company had a loan portfolio valued at over £ 450million.

Pepper expects demand for second-charge loans to increase next year. The lender said the second load activity this year was dominated by borrowers who wanted to consolidate their debts, a trend that is expected to increase if interest rates rise, making short-term unsecured borrowing more likely. expensive.

Laurence Morey (Photo), Managing Director of Pepper Money, said: “The demand for this securitization reflects the strength of the underlying loan portfolio and the quality assets that we are able to generate through our second load platform. We expect customer demand for second mortgages to increase next year as we continue to expand our product line to meet the changing needs of our customers. “

Treasurer Matthew Blake added, “We have received a strong investor appetite for the securitization which has been executed as part of a funding platform refinancing in 2021. We will look to further diversify our funding in 2022. “