According to a source, who asked not to be named, the lender has already spoken with selected packagers, as its sees them as a way of
gaining market share.
Linda Will, managing director of Accord, admitted the lender was looking at ways of expanding and that entrance into the sub-prime sector was a possibility.
“Following our migration from Yorkshire Building Society we are now looking at the other sectors of the market including self-cert and sub-prime,” she said.
Will added that any lender considering entering the sub-prime sector would have to consider packagers as a source of distribution.
“Though we are not arrogant enough to think that because we are on prime panels we would automatically make it onto sub-prime panels.”
Will said that because Accord operated electronically, it would not suddenly want to deal with large volumes of paper-based applications.
Paul Brett, head of small packager alliance Freehold, commented: “This could be great news for packagers because Accord tends to release well thought through products, though I suspect it will be more interested in the larger organisations to try and acquire a decent slice of the market.”
Staurt Brumhill, head of marketing at em-financial, commented: “The most important issue for a new entrant would be for it to get its products right.
“There is no doubt that packager arrangements would give it access to distribution and of course the benefits of outsourced processing.”
In addition, Accord Mortgages has identified the products in its new business range which will also be available to borrowers coming to the end of their special deal periods.
Brokers will be able to instruct an existing borrower transfer (EBT) using an e-mail form and, in recognition of the re-broking process they will have conducted, Accord will pay a 0.20 per procuration fee for this business.
