Financial services group Astute NZ has announced a suite of new mortgage and home loan products in partnership with non-bank lender Pepper Money, which will be launching its services to the New Zealand market for the first time.
The product range will bring “a new level of borrower choice and flexibility” to New Zealand’s mortgage lending market, and will be composed of eight products ranging from prime and near-prime, to specialist loans. Pepper Money’s Director of Sales & Distribution, Aaron Milburn, says the loans are designed to suit borrowers who are not currently well serviced by mainstream banks or non-bank competitors.
“We specialise in finding solutions for the under-served market where customers are looking for solutions outside of what the major lenders are willing to do, and we want to help more people achieve the goal of home ownership,” Milburn told NZ Adviser.
“We chose to partner with Astute because they are passionate about helping customers through their adviser network, and they really impressed us with the approach they had to borrower flexibility, compliance and support networks. Our products will provide Astute with a new range of solutions that they can offer to Kiwi families, so that they can get a better deal.”
Milburn says that New Zealand’s lending circle is in need of more competition, especially in the non-bank sector, and this was the catalyst for the Australian lender to set its sights on the market. Aside from its home loan products, it will also be bringing an end-to-end online submission platform, which advisers can use to get an indicative offer in less than five minutes.
“We feel that Kiwi families can get a better deal and be helped in different ways, and we think the work we’ve done with Astute has created a way of transacting that hasn’t been done before,” Milburn said. “We don’t believe this is just a one-stop shop where you fix your credit issues, and then move on. It’s about the full customer journey, and helping people who don’t conform to the major lenders’ credit policies – whether that be due to income, employment type, or anything else.”
Commenting on the new partnership, Astute NZ CEO Sarah Johnston said: “The products are the result of close consultation by Pepper with stakeholders in the mortgage market. They are aligned closely to borrowers’ best interests and we believe they will appeal to borrowers in a lending market that is not uniformly well serviced.
“Certainly, the feedback received in the short time the loans have been available has been very positive.”