Pepper Money
A Cardiff-based specialist lender making first- and second-charge mortgages under the Pepper Money brand. Its second-charge lending, formerly Optimum Credit, is funded through the Castell securitisations.
Checked against its sources on · Public records, not a recommendation
Who the lender is
- Lending company
- UK Mortgage Lending Ltd
- Companies House
- 08698121
- FCA status
- Authorised since 29 June 2016 · FRN 710410
- Incorporated
- 19 September 2013
- Registered office
- 4 Capital Quarter, Tyndall Street, Cardiff CF10 4BZ
- Website
- pepper.money
- Ownership
- Pepper Money (PMB) Limited (11279150) → Pepper Money group
What the accounts show
Figures as filed at Companies House, in pounds. Changes compare the latest year with the year before.
| Item | 31 Dec 2025 | 31 Dec 2024 | Change | Where |
|---|---|---|---|---|
| Mortgage loans | £1,623,955,000 | £2,924,068,000 | −44.5% | PDF page 20 (statement of financial position). First and second charge combined |
| Credit-impaired loans (stage 3), gross | £99,859,000 | £94,967,000 | +5.2% | PDF pages 41–42 (note 17). 6.2% of gross loans (2024: 3.3%) |
| Expected credit loss allowance | £14,543,000 | £19,681,000 | −26.1% | PDF page 41 (note 17) |
| New lending | £1,651,009,000 | £1,129,950,000 | +46.1% | PDF pages 42–43 (note 17). First and second charge combined |
| Interest income | £138,133,000 | £206,655,000 | −33.2% | PDF page 19 (statement of comprehensive income) |
| Interest expense | £124,244,000 | £180,402,000 | −31.1% | PDF page 19 |
| Profit (loss) before tax | £43,463,000 | −£5,822,000 | — | PDF page 19. Includes £71.6m profit on loan sales (note 8) |
| Total equity | £139,153,000 | £96,449,000 | — | PDF page 20 |
Source: Annual report, filed 24 September 2026. Figures from the pages shown.
Financial Ombudsman decisions
The Ombudsman has published 22 final decisions about UK Mortgage Lending Ltd between 1 January 2023 and 20 October 2026. 9 were upheld in the customer’s favour, in whole or in part.
This counts decisions, not complaints. Most complaints are resolved by the lender or at an earlier stage, and the number of decisions reflects the size and age of a lender’s book as well as how it treats customers.
| Theme | Decisions | Upheld |
|---|---|---|
| Affordability | 8 | 4 |
| Account administration | 4 | 1 |
| Financial difficulty | 3 | 1 |
| Deed of postponement | 2 | 0 |
| Lending decision (theme not confirmed) | 2 | 1 |
| Redemption charges | 2 | 2 |
| Application and offer | 1 | 0 |
Source: Financial Ombudsman Service decisions database. Themes assigned by the Secured Loan Index from each decision's summary of the complaint.
| Decision | Date | Theme | Outcome |
|---|---|---|---|
| DRN-6590998 | 2 Sep 2026 | Affordability | Not upheld |
| DRN-6551716 | 13 Aug 2026 | Redemption charges | Upheld |
| DRN-6185409 | 10 Jun 2026 | Account administration | Not upheld |
| DRN-6389854 | 28 May 2026 | Affordability | Not upheld |
| DRN-6198976 | 9 Mar 2026 | Account administration | Upheld |
| DRN-6082092 | 4 Mar 2026 | Account administration | Not upheld |
| DRN-5892247 | 11 Feb 2026 | Deed of postponement | Not upheld |
| DRN-6096785 | 22 Jan 2026 | Account administration | Not upheld |
| DRN-5613010 | 11 Dec 2025 | Affordability | Upheld |
| DRN-6002186 | 9 Dec 2025 | Affordability | Not upheld |
| DRN-5995485 | 4 Dec 2025 | Affordability | Upheld |
| DRN-5943627 | 3 Dec 2025 | Affordability | Upheld |
| DRN-5923432 | 4 Nov 2025 | Redemption charges | Upheld |
| DRN-5520433 | 12 Jun 2025 | Financial difficulty | Not upheld |
| DRN-5372493 | 24 Apr 2025 | Application and offer | Not upheld |
| DRN-5195408 | 14 Jan 2025 | Financial difficulty | Upheld |
| DRN-4870861 | 10 Dec 2024 | Deed of postponement | Not upheld |
| DRN-5130526 | 28 Nov 2024 | Lending decision (theme not confirmed) | Upheld |
| DRN-5098362 | 23 Oct 2024 | Affordability | Upheld |
| DRN-4754803 | 27 Aug 2024 | Financial difficulty | Not upheld |
| DRN-4629101 | 19 Feb 2024 | Affordability | Not upheld |
| DRN-4331170 | 14 Dec 2023 | Lending decision (theme not confirmed) | Not upheld |
Source: Financial Ombudsman Service. Dates as shown in its decisions database. Searched 20 October 2026.
Published complaint figures
UK Mortgage Lending Ltd appears in the FCA's firm-level complaints data for July to December 2025, which lists firms reporting 500 or more complaints in the half-year. For home finance it reported 682 complaints opened and 643 closed. Of those closed, 34.21% were closed within three days, 64.39% after three days but within eight weeks, and 51.63% were upheld.
It does not appear in the Ombudsman's latest published complaint figures for individual businesses (July 2025 to March 2026), which cover businesses with at least 45 complaints received and resolved in the period.
Funding and recent changes
Closed Castell 2026-1, a £400m second-charge securitisation. Source
Announced its move to a standalone UK-regulated business, with new equity from a fund managed by Bayview alongside funds managed or advised by KKR. Source
S&P published its new issue report on Castell 2025-1, the lender's ninth public second-charge securitisation, backed by a £289.0m pool of 6,396 loans. Source
Launched 'payout before consent' on second-charge loans, releasing funds before first-charge consent where that is the only outstanding item. Source