Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Pepper Money to explore USD and GBP tranches for Polaris securitisation

Pepper Money intends to explore issuing two tranches in USD and GBP, supporting its residential and buy-to-let (BTL) mortgage-backed securitisation under its Polaris brand. Bank of America is acting as sole arranger, with Barclays, Lloyds, MUFG and Societe Generale appointed as joint lead managers.

First USD-denominated issuance

The deal would potentially be Pepper Money's first USD-denominated note tranche. According to the lender, this would diversify its funding, broaden its institutional investor base and strengthen its ability to fund responsible lending at scale.

Scale of the business

The announcement follows sustained growth across Pepper Money, which now supports over 100,000 customers, manages £4.5bn in assets and has originated more than £10.6bn in mortgages since launching in the UK market in 2015.

Andy Voss, CFO at Pepper Money, said the move marks another milestone and reflects the strength and maturity of the firm's capital markets programme. He noted that investor confidence in the securitisation programme rests on disciplined underwriting and resilient portfolio performance, and that the transaction would support the lender's ability to lend responsibly at scale, helping more customers whose circumstances may not fit traditional lending models.

What it means for agents and clerks

For UK letting agents and inventory clerks, Pepper Money is a significant player in the specialist buy-to-let lending market. Continued investment in its securitisation programme signals ongoing capacity to fund BTL lending, which supports the supply of rental finance behind the sector's landlords. The firm's stated ambition to be a regular and reliable issuer in the capital markets points to continued activity in the specialist lending space serving customers outside traditional lending models.