New specialist lender Pepper UK has launched as a lender just over a year after it first announced its intentions.
Money Marketing sister-title Mortgage Strategy revealed in September 2013 that Pepper Group was planning to launch a mortgage lender in the UK.
The non-bank lender has confirmed it is piloting a suite of residential and buy-to-let products through Brightstar Financial and Mortgage Advice Bureau, with plans to expand its distribution panel over the first quarter.
Residential product rates will start from 3.6 per cent, while its buy-to-let range will start from 4.35 per cent.
The lender says all products will have multiple repayment options, including fixed rate terms up to five years.
Pepper UK is targeting borrowers who have been unable to qualify for a standard mortgage from a mainstream lender.
Pepper UK chief executive Richard Klemmer says: “After conducting extensive market research throughout 2014 we are convinced this is the ideal time for us to launch Pepper Homeloans. Market conditions and economic indicators are favourable and it’s clear there is a place in the UK mortgage market for a new specialist lender.
“The revived securitisation market, the drop in arrears and repossessions, and the intelligence we have gained via Pepper’s vast data from our existing loan servicing portfolios have all given us complete confidence to launch in 2015.”
The lender was rebranded from Oakwood Global Finance in February last year, following its September 2013 purchase by Australian-based Pepper Group.