Pepper Ireland is a leading asset manager and provider of third-party loan – principally Danske bank, Shoreline Residential and Bank of Scotland – and advisory services. Established in September 2012 here in Ireland, the company has operations in Dublin and Shannon, where it employs over 400 people. Pepper has over €14 billion of loan and commercial real estate assets under management, including commercial real estate portfolios and residential mortgages, as well as personal, small enterprise and auto loans. The company is rated by Standard & Poor’s as “above average” for its residential mortgage servicing and “average, with a positive outlook” for its commercial servicing.
Pepper in Ireland is part of the Pepper Group, a diversified, global financial services business. Pepper Group focuses on three disciplines across the residential and commercial property sectors: Lending, Advisory and Asset Management. Pepper Group is headquartered in Australia, where it has been operating since 2001.
Pepper Homeloans has announced it will launch three mortgage products in Ireland for both home owners and buy-to-let loans from February 1st through a small group of brokers.. They will be targeted at people looking to switch their loans or consolidate their debts, the self-employed or those with impaired credit histories, and first-time buyers.
John Lowe, The Money Doctor, welcomes this new entrant to the mortgage market as he states that increased competition can only be to the benefit of the consumer.
This will make it the first new mortgage lender in the Irish market since the banking crash in late 2008 and the first non-bank group to offer home loans. The mortgage products will be targeted at people looking to switch their loans or consolidate their debts, the self-employed or those with impaired credit histories, and first-time buyers.
Initially, the loans will be offered through a group of about 20 mortgage brokers but this is expected to increase over time. Pepper Essential will be available for residential and buy-to-let customers with standard variable rates starting at 3.55 per cent for owner occupiers and 4.5 per cent for investors.
Essential Plus has been “tailored” towards the self-employed and those with “non-standard employment types”, with rates starting at 3.8 per cent for residential and 4.75 per cent for investors. Its Advantage product will be aimed at people with a “legacy credit event” that is causing them difficulty in obtaining finance. Standard variable rates for this begin at 4.3 per cent for residential and 5.75 per cent for buy to let.
Customers applying for the Advantage loan must not be in arrears or negative equity, and must demonstrate a clean credit record for the past two years. An arrangement fee of 0.5 per cent will also apply along with a valuation fee of €150. Investors will be required to pay legal fees of €1,550 for their loans.
The maximum term will be 30 years for residential and 25 for buy-to-let and the loans will be targeted at borrowers in the greater Dublin area, Cork, Limerick and Galway. Pepper will be taking on a number of large and well established banks with its mortgage offering.
According to stockbroker Goodbody, AIB and Bank of Ireland each have a 30 per cent share of the Irish mortgage market, with Ulster Bank at 15 per cent, and Permanent TSB and KBC Bank Ireland at 12 per cent each.
Latest filed accounts for Pepper’s Irish business show that it made a profit of €6.6 million on revenue of €27 million in 2014. Founded in 2001, Pepper Group is listed on the Australian Stock Exchange and has a lending portfolio of more than €2.5 billion.