Dublin, 12 May 2014: Pepper Asset Servicing (Pepper) has been named winner of the Retail Banking Deals of the Year Awards 2014 for its innovative split mortgage product launched in 2013 to help customers experiencing difficulties in repaying their loans.
Run by specialist magazine, Finance Dublin, Pepper’s product was said to have broken ‘new ground in its approach to balancing the interests of both borrower and lender’.
Pepper’s Split Mortgage scheme involves dividing qualifying customers’ mortgage balance into two parts based on their ability to repay the loan, resulting in a main balance (new repayment amount) and a split balance (the portion of the loan which is ‘parked’ interest free) until such time as the customer’s financial circumstances may improve.
As additional support, Pepper helps customers reduce their split balance in the longer term through ‘match payments’ whereby the company contributes five percent of uninterrupted annual repayments towards the main balance. And where customers make additional payments throughout the year, Pepper also contributes 20 percent of the total annual overpayments as credit against the split balance. In cases where a borrower’s affordability improves, only 50 percent of the additional income is subject to review, in line with the Insolvency Service of Ireland guidelines.
Commenting on the award, CEO of Pepper in Ireland, Paul Doddrell said, “We are very pleased to have been recognised by our industry peers for our efforts in relation to mortgage arrears handling and in particular our innovative split mortgage product. Since entering the Irish market in 2012 we have been on record as saying we want to take a more solutions-based approach to mortgage arrears and we have consequently introduced a number of forbearance initiatives that are helping borrowers to manage unsustainable debt according to their individual circumstances.”
In addition to Split Mortgage, Pepper’s other forbearance options include Assisted Voluntary Sale (AVS) scheme and also Mortgage-to-Rent.
Established in September 2012, Pepper Asset Servicing is Ireland’s leading servicer of third-party loan portfolios, asset management and advisory services spanning residential mortgages, commercial mortgages, auto finance, unsecured loans and equipment finance. The company employs approximately 170 people at its offices in Dublin and Shannon and recently announced its intention to grow this number to 270 over the next 12 months. Pepper currently has portfolios with over €8 billion of assets under management and is regulated by the Central Bank of Ireland.
Pepper Ireland is part of Pepper Group, a global financial services business headquartered in Sydney and specialising in lending, advisory and asset management services. The group currently has over €5 billion of assets under management. Pepper is ranked by S&P as a ‘STRONG’ Residential Loan Servicer and is included on S&P’s Global Select Servicer List.
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