Dilosk in deal to buy Leeds’ mortgages

NON-bank lender Dilosk has bought another portfolio of mortgages.

It is acquiring a €182m residential mortgage book from Leeds Building Society, which is exiting this market.

It consists of 789 mortgage accounts, with the deal set to close next month.

Pepper Finance will hold legal title to the mortgages and will also act as servicer and administrator, but the ultimate owner will be Dilosk.

Pepper is regulated by the Central Bank as a credit servicing firm. Customers have been advised of the proposed transfer of legal ownership of their loans and mortgages to Pepper.

This transaction will be Dilosk’s fourth portfolio acquisition.

The specialist mortgage lender initially entered the mortgage market in 2014 through the acquisition of ICS Mortgages from Bank of Ireland, including the brand and distribution platform, and a portfolio of €223m of mortgages.

Dilosk intends to enter the residential mortgage market in the first half of next year, adding to its current offering in the buy-to-let sector. It will use the ICS brand name.

Chief executive Fergal McGrath said: “It will be a competitive mortgage product.”

He said the acquisition of the Leeds portfolio was part of the company’s long-term growth plan, targeting both existing performing residential mortgage books in addition to new mortgage lending.

It currently specialises in the buy-to-let market. The latest deal means it will have €600m in mortgages under management.