European institutional investor Patron Capital has agreed to sell its second-charge mortgage lending business, Optimum Credit, to mortgage lender Pepper Money.
The purchase, subject to regulatory approval, will include a loan book of more than £450m.
Cardiff-based Optimum Credit launched in 2014 and offers a range of variable, fixed and discounted second-charge mortgages to homeowners in England, Wales and Scotland.
Last summer, the business completed the first public securitisation of second-charge mortgages by a UK mortgage lender since the 2008 financial crisis.
Laurence Morey, chief executive of Pepper Money, said: “Earlier this month, we announced that Pepper Money was starting the journey of seeking a banking licence and that we would be considering targeted acquisitions to complement our organic growth plans for the business.
“We are looking forward to how this acquisition will enhance the growth of Pepper Money’s intermediary-led secured-lending proposition and are excited at the prospect of supporting the Optimum Credit team in the continued development of their unique proposition supported by excellent systems and intermediary relationships in an exciting market segment.”
Sam Marshall, chief executive at Optimum Credit, added: “Pepper Money has shared a very similar development journey to ours at Optimum Credit; we share a common culture and entrepreneurial approach with the intermediary and UK residential property owner at the core of our proposition.
“This acquisition will give Optimum Credit access to a wider range of resources and shared expertise that will enhance our business and enable our continued growth.”
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