Specialist lender Pepper Money has secured new funding lines worth more than £1.2bn to support its lending growth plans for first and second charge mortgages.

Pepper Money has agreed new funding lines for first mortgages with Deutsche Bank, Lloyds Bank and MUFG and with Santander to fund its second charge mortgages.

It brings Pepper Money’s total warehouse capacity, or funding pipeline, to over £2.8bn to support growth into 2024 and beyond.

Pepper Money chief financial officer Andrew Voss says: “We are very pleased to confirm these new funding arrangements, which bring our total warehouse capacity to over £2.8bn, which represents over 12 months of originations.

“With the recent market volatility, it’s important Pepper Money has this additional capacity to provide a stable funding base and continuing originating through market cycles. With the current challenging conditions, we recognise that intermediaries are looking for lenders who will continue to lend and support their clients, with this new funding, Pepper continues to be that lender.”

The delivery of the MUFG funding line was supported by Vixory Capital. Andrew Twyford from Vixory Capital adds: “We are delighted to have supported Pepper Money on this capital raise and look forward to continuing our relationship with the business.”

Yesterday, Pepper announced a series of rate cuts across its two and five-year fixed rate residential range by up to 90% basis points, as well as launching a new 70% loan-to-value tier on certain products.