Pepper Money has closed its largest second charge securitisation to date, the lender has confirmed.

The £350m securitisation of second charge mortgage loans, originated by Optimum Credit, follows Pepper Money’s largest first charge issuance of £425m in July.

Pepper Money said the deal had received “very strong support” from a wide range of investors.

“The demand for this securitisation reflects the strength of the underlying loan book and the quality assets we are able to generate through our second charge platform,” CEO, Laurence Morey, commented. “We expect customer demand for second charge mortgages to grow next year as we continue to develop our product range to meet the changing needs of our customers.”

Treasurer at Pepper Money, Matthew Blake, added: “This is the fifth issuance under the Castell programme, which has established Pepper Money as the largest issuer of UK second charge mortgage loans. We received strong investor appetite for the securitisation, which was executed as part of a refinancing of the funding platform during 2021 – and we will seek further funding diversification during 2022.”

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