Pepper Money brings in funding lines worth over £1.2bn

The three funding lines for first charge mortgages have been agreed with Deutsche Bank, Lloyds Bank and MUFG.

Pepper Money said that Santander would be funding its second charge lending with a new agreement.

The arrangements bring the specialist lender’s total capacity to over £2.8bn and offer a “strong funding pipeline and increased capacity to support its growth aspirations and intermediary partners into 2024 and beyond”.

Pepper: ‘Providing a stable funding base’

Andrew Voss, chief financial officer at Pepper Money, said it was “very pleased” to confirm these new funding arrangements, and the warehouse capacity of £2.8bn represents more than 12 months of originations.

“With the recent market volatility, it’s important Pepper Money has this additional capacity to provide a stable funding base and continuing originating through market cycles.

“With the current challenging conditions, we recognise that intermediaries are looking for lenders who will continue to lend and support their clients, with this new funding, Pepper continues to be that lender,” he added.

Vixory Capital assisted in the delivery of MUFG’s funding line, with Andrew Twyford from the firm noting: “We are delighted to have supported Pepper Money on this capital raise and look forward to continuing our relationship with the business.”