Loans for rental purchase despite bad credit



Pepper Money enters the commercial real estate and hire purchase markets for the first time, offering loans of up to 7.5 million euros, including to borrowers who have not repaid other lenders after the crash.

The group will today launch a new commercial real estate division, with loans ranging from € 250,000 to € 7.5 million for investors in real estate for industrial, commercial, leisure, rest and residential use. rental.

Unlike most banks, Pepper will lend to borrowers who have historical credit problems, provided they are up to date within the past 18 months on loan payments.

“We will do our own due diligence on borrowers and properties, and we will lend to a borrower who went through a period of turmoil with their lender but is now on the other side,” Ian Wigglesworth, Commercial Mortgage Manager at Pepper Money said.

Pepper aims to lend up to € 300 million in 12 to 18 months in the industry, said Ian Wigglesworth.

The lender targets both borrowers looking to refinance loans – such as those held by funds, as well as new home buyers.

Interest rates will start from 5%, the company said.

Australian lender Pepper Money was the first new lender to enter the residential mortgage market after the crash, offering home loans, first through brokers, then through direct telephone and electronic channels and brokers.

As in the commercial real estate industry, it lends to home buyers whose credit history means they cannot get a loan elsewhere as well as to borrowers such as the self-employed who may have difficulty meeting the criteria. loans from banks.

Pepper’s loans are financed by securitization, by pooling the loans and using them as collateral to borrow in the markets.

“It has always been our intention to expand our loan offering to include commercial products and to date we have been successful in attracting clients by providing more choice and competition to all borrowers, but especially those whose options are otherwise limited, ”said Paul Doddrell, CEO of Pepper. Ireland.

Meanwhile, the state-backed Strategic Banking Corporation of Ireland (SBCI) said that at the end of March 2017 it had issued loans totaling € 657 million for more than 15,000 SMEs, which have saved 1.15% on average market interest rates.

Agriculture accounted for 23% of all loans, the lender said.


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