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

The securitisation, Polaris 2022-1, included a mix of first charge owner occupied and buy-to-let (BTL) mortgage loans, with a quarter of the portfolio being customers with a legacy county court judgements (CCJ).

Pepper Money stated that Polaris had attracted the participation of new investors even against the backdrop of a volatile market, driven by rising inflation as well other geo-political concerns. During January, the lender also called the legacy Castell 2018-1 securitisation at the first available opportunity, to underline its commitment to the RMBS market.

The latest deal marks the ninth transaction that Pepper Money has successfully issued, with the lender now approaching £3bn into the RMBS market across first and second charge mortgage loans.

Treasurer at Pepper Money, Matthew Blake, commented: “Our objective is to support greater financial inclusion in the UK housing market. Polaris, which was our largest RMBS to date and was a mix of residential and BTL mortgage loans, a quarter of which had associated CCJs.

“These CCJs relate to historic events that our customers can demonstrate are in the past and as part of our financial inclusion strategy we believe this should not present an impediment to accessing a mortgage.

“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.”

CEO, Laurence Morey, 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.”

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