Pepper Advantage to acquire Computershare’s UK mortgage servicing business

Pepper Advantage has agreed to acquire Computershare’s UK mortgage servicing operations.

Global credit and asset servicing group Pepper Advantage has entered into an agreement to acquire the UK mortgage servicing business of Computershare Loan Services, a move set to significantly expand its footprint in the British market. The deal, announced on 24 September, is subject to regulatory approval.

The business being acquired provides residential mortgage servicing for lenders and investors across the UK. According to Pepper Advantage, the addition will lift its assets under management in the country to approximately £50 billion. No financial terms of the transaction have been disclosed.

Founded in 2014, Pepper Advantage manages more than £60 billion in assets globally across residential and commercial real estate, consumer, auto, and small business loans. It has operations in 12 jurisdictions, including the UK, Spain, Ireland, and parts of Asia. The company said the deal marks a “step change” in its UK presence, aligning with its strategy to scale in markets where there is sustained demand for outsourced loan servicing.

Computershare Loan Services is one of the UK’s largest third-party mortgage servicers, overseeing loans for banks, building societies, and specialist lenders. Its divestment to Pepper Advantage reflects continued consolidation in the loan servicing sector, where scale and technology investment have become decisive factors.

Pepper Advantage confirmed that Computershare staff supporting the UK mortgage servicing business would transfer as part of the deal. The company added that its proprietary technology platform, which uses data analytics and automation to manage servicing portfolios, would be rolled out across the new operations once integration is complete.

The UK mortgage servicing industry has been under pressure from rising interest rates and tighter regulatory oversight, prompting lenders to seek partners with the scale and digital tools to manage complex portfolios. Pepper Advantage noted that its expanded UK operations would allow it to service a broader spectrum of clients, from major banks to non-bank lenders and investors.

The transaction is expected to close following approval from the Financial Conduct Authority and other regulatory bodies. Pepper Advantage did not disclose a completion timeline but said the integration process was already being planned in consultation with Computershare.

Industry analysts noted that the deal underscores growing private capital interest in UK mortgage and loan servicing platforms, particularly as investors search for resilient cashflow-generating businesses in volatile credit markets. Pepper Advantage’s expansion follows other recent moves in the sector, where specialisation and technology capabilities are increasingly driving M&A activity.