The purchase of the Cardiff-based second charge lender – which is still subject to regulatory approval – will see Pepper acquire the entire Optimum Credit business, which includes a loan book of over £450m.

Optimum Credit offers a range of variable, fixed and discounted second charge mortgages to homeowners across England, Scotland and Wales.

The acquisition is part of Pepper’s growth strategy and comes after it announced that it had commenced initial discussions with the PRA and FCA with a view to seeking authorisation for a banking licence.

Laurence Morey, CEO at Pepper Money (pictured above), said it was delighted to have been able to agree the purchase of Optimum Credit.

“I am pleased to welcome the market-leading team at Optimum Credit into the Pepper Money family.

“We are looking forward to how this acquisition will enhance the growth of Pepper Money’s intermediary-led, secured lending proposition and are excited at the prospect of supporting the Optimum Credit team in the continued development of [its] unique proposition supported by excellent systems and intermediary relationships in an exciting market segment.”

Sam Marshall, CEO at Optimum Credit, added that the acquisition would give it access to a wider range of resources and shared expertise that would enhance its business.

“We are pleased to be joining the Pepper Money team in the UK.

“Pepper Money has shared a very similar development journey to ours at Optimum Credit.

“We share a common culture and entrepreneurial approach with the intermediary and UK residential property owner at the core of our proposition.”