The lender said that completing its £350m securitisation last month had enabled it to begin plans for re-entering the market ‘imminently’.
Pepper Money has also revealed it is in the process of conducting a securitisation which should help it increase liquidity and lending volumes later in the year.
Weeks rather than months
Speaking on the Brightstar Vlog, Vida Homeloans managing director of mortgages Louisa Sedgwick said: “We’re getting ready to come back into the market imminently, so you will see something over the next few weeks.
“We’ve been working on products, pricing and proposition, making sure it’s ready to come back with something that might be pretty sexy when we do come back.
“And also working on a new sales team structure to compliment not just the new virtual trading world but also compliment what we want to do as a business going forward.”
Sedgwick noted that the team would be coming back from furlough over next couple of weeks and the lender was finalising and defining what it wanted to do on return.
“So it is just a case of watch this space, we haven’t formed a view on the date but we are weeks, rather than months away – so I’m really excited,” she added.
Capital markets open
Discussing the state of the securitisation market and its importance to the specialist lending market, Sedgwick was generally positive and credited Kensington Mortgages with being the first lender to get it going.
“I think the capital markets are definitely open, they are very keen to do trades which has been seen in the last few weeks,” she continued.
“Securitisation markets re-opening and relieving some of the liquidity issues is going to drive some great opportunities in the specialist market.
“The credit risk piece hasn’t yet played out, but capital constraints have and I think you’ll start to see some really good competitive products out there, which will enable some of the specialist customers to come back into the market,” she added.
Pepper Money sales director Paul Adams joined Bluestone Mortgages managing director Steve Seal alongside Sedgwick on the session hosted by Brightstar CEO Rob Jupp.
Adams noted that Pepper had started the year “like a train” and was well on track to reach lending targets, however he agreed that liquidity had been one issue slowing the market and the lender was in the process of releasing more funding as it targeted a big push towards the end of the year.
“We’re working on a second securitisation now which will help building our appetite and volumes towards the end of the year,” he said.
Seal added that since Bluestone returned its full product suite to market in June the lender had seen very high demand and was posting record months.
“Since then we’ve seen great appetite, we’re doing record volumes which is brilliant – and we’ve had great support from the broker community,” he said.
Watch the rest of the Brightstar Vlog by following this link.