Optimum Credit raise £256m through securitisation

Optimum Credit has raised £256m through a securitisation transaction that will help it to maintain its position as one of the UK’s leading provider of second charge mortgages and grow it’s market share.

The Cardiff based company which was founded in 2013 and backed by Patron Capital Partners, has grown rapidly since its launch and now employs around 80 staff in the Welsh capital. It recently announced its plans to launch a direct to consumer lending division as part of ambitions growth plans.

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Chief Executive Sam Marshall says that the deal gives him confidence that the next few years will bring even more success for Optimum. “This is a significant milestone in the development of
Optimum Credit and is testament to both the quality of the management team and the business we have built since originating our first loan back in June 2014. It will allow us to continue the
development of our business as we seek to not only increase our prime second lien origination but also add new product lines.”

Commenting on the transaction, Finance Director Barnaby Brand, says, “This is the first time that a second charge mortgage lender has accessed the capital markets in this way for 13 years. Our
monthly lending has doubled in the past year, and this transaction secures the funding that we need for continued growth.”

 

Optimum’s Risk Director, Jonny Jones, explains, “Our typical borrower is affluent and successful. They have built up substantial equity in their home and want to put that money to good use.
Sometimes they will use our loan to invest in a substantial home improvement project, saving the cost and hassle of moving. We also see borrowers releasing funds to purchase a second property, or using the Bank of Mum and Dad to put their children on the housing ladder.”