Pepper Money has announced that its mortgage book for second-charge loans has now passed the £1 billion mark in value thanks to a recent spate of lending.
The lender managed to pass this mark after the recent completion of five securitisation loans, which took the overall value of its second-charge book to £1.8 billion. Furthermore, the company has also confirmed that loans totalling £800 million have already been repaid in full.
Speaking to Mortgage Finance Gazette, the Treasurer for Pepper Money, Matt Blake, stated that moving past this financial target demonstrated that the company was now a major operator within the second-charge field, particularly as the overall industry total for that part of the market last year was £1.1 billion. Blake went on to say:
“Throughout our lending, we have maintained ultra-low levels of loans in default and repossessions and the majority of lending continues to be for either home improvements or debt consolidation.”
Blake then added that Pepper Money was anticipating more people seeking second-charge loans to consolidate debts during the rest of 2022, due to the impact of the crisis in living costs.
He concluded by pointing out that advisors could benefit themselves and their clients by directing them towards loans of this type to help them stay in charge of their financial situations.
Mortgage advisors who have the CeMAP qualification will be aware of how second-charge loans can help clients dealing with complicated financial circumstances and will likely be encouraging them to consider these loans.