Mortgage servicing and lending firm Pepper Ireland is to cease commercial lending in Ireland, citing “increasingly challenging market conditions”.
The Shannon-based group, which services about 60,000 residential mortgages on behalf of third parties as well providing finance itself, informed clients it had ceased originating commercial loans here following a strategic review of operations.
It said it would continue to manage and administer existing facilities, and that the move would not impact on existing terms and conditions.
The group exited the residential mortgage market in 2018 via the sale of €200 million worth of residential loans to Finance Ireland.
It is now ceasing the commercial loan side of the business while maintaining the asset servicing arm, which employs over 400 staff.
“Pepper Money’s decision to cease providing further commercial lending was taken following a strategic review, and is a consequence of increasingly challenging market conditions, reduced availability of funding and ongoing volatility and uncertainty,” it said in an email.
A spokesman said commercial lending accounted for less than 5 per cent of Pepper Ireland’s total revenues in 2019, and its commercial loan book had roughly 200 clients.
“The decision means that Pepper Ireland will not be originating any new commercial loans in the Irish market, and Pepper Money has now ceased all business development activities relating to its commercial mortgage products,” he said.
“The decision will have no impact on existing borrowers who already hold Pepper Money commercial loans. These loans will continue to be serviced by Pepper and the terms and conditions remain unchanged,” the spokesman said.
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