Secure Trust Bank has appointed Pepper (UK) as administrator for its new Mortgage business as it looks to target those customers who are underserved by traditional lenders.
The partnership comes shortly after the UK challenger bank launched its Mortgage division to the UK market to serve those with complex circumstances. This will include contract workers, the self-employed and those who have recovered from a credit blip.
Pepper (UK) is a specialist loan servicing company providing tailored services to investors and banking clients. Listed on the Australian Stock Exchange, it currently employs over 320 people and has over £10bn of assets under management in the UK. The Uxbridge-headquartered company also operates from offices in Central London and Skipton.
The business will see Secure Trust Bank (STB) dedicated to working with intermediaries to provide loans to customers. Once the funds have been released to the customer, Pepper’s dedicated STB servicing team will take ownership of the customer relationship, using its established servicing and proprietary CRM systems to administer and manage the mortgage.
The Solihull-headquartered bank has initially agreed an exclusive distribution partnership with Mortgage Advice Bureau (MAB) to give it a comprehensive presence in the market from launch. It will provide loans of up to £2m per household and will offer two, three and five-year fixed rate mortgages with a maximum LTV of 80 per cent.
Esther Morley, managing director at Secure Trust Bank Mortgages, said: “As a new player in the market, this is a really exciting time for Secure Trust Bank and we’re delighted to have Pepper on board as a partner. The company has an outstanding reputation in the marketplace for servicing both residential and commercial property loans and can easily tailor its services to cater for customers with complex profiles. A clear and personal service is something we take very seriously at Secure Trust Bank, so this level of detail will add significant value to our proposition.”
Gerry McHugh, Managing Director of Residential Servicing at Pepper, added: “We have known Esther and the team at Secure Trust Bank for a number of years and they’ve built up a robust proposition to enter this market alongside some of the other challenger banks. There are a number of commonalities between both businesses and it was clear that our service matches the bank’s culture and ethos. Secure Trust Bank prides itself on speed of response and placing complex cases more easily, so we very much look forward to working together as lending balances start to rise.”