In response to the rapid growth in this segment and in order to further complement the lender's proposition for intermediaries, BIM are launching a range of products across the full spectrum of non-conforming profiles. The products will carry the BIM brand but are funded by Kensington Mortgages (KM).
BIM will be solely responsible for the sales and marketing of the products and will aim to build on strong relationships with key distribution via their intermediary sales force. Brokers will submit applications via a new co-branded online platform accessed from Bank of Ireland Mortgages' website. Applications will be processed by Kensington at its processing unit in Reading, with all documentation clearly identifying Kensington as the lender.
BIM will offer products from Near Prime through to Unlimited Adverse profiles. Criteria highlights include Light Adverse products available to bankrupts discharged two years prior to application, and loans up to 85 per cent loan-to-value (LTV) available for purchase on Unlimited products. The range will also particularly be targeting intermediaries' non-conforming clients such as the recently self-employed or those seeking to exceed typical age restrictions.
All of the products will be offered on a self-certification basis with no rate loading, and as an extra incentive to borrowers, they will all feature a free valuation on properties up to £500,000. BIM will encourage brokers to submit cases direct, and as a consequence will not be paying packaging fees.
Ian Bates, head of marketing at Bank of Ireland Mortgages, said: "The non-conforming sector has grown rapidly in recent years and in response to increasing demand from our key brokers, we have been keen to expand our proposition to embrace it. Our chosen approach is to offer non-conforming loans via Kensington Mortgages and we believe the partnership represents the synergy of two lenders firmly committed to offering competitive products and the highest possible levels of service to mortgage intermediaries and their clients.
"We sought a partner with a reputation for expertise and innovation in this field, who share our strong service based ethos. We are proud of our brand and our own reputation for service excellence, leading us to trust the processing and administration of our non-conforming loans to no less than the respected sector initiator."
Keith Street, director of sales for Kensington Mortgages, said: "Kensington are delighted to be able to offer Bank of Ireland Mortgages the tools and technology to enter the non-conforming sector. There is strong competition in the market, but by partnering with Kensington, Bank of Ireland Mortgages have linked with the pioneers of the industry and ensured that they are associated with a lender with a long track record for innovative products and outstanding service."
