Knight, the former chairman of GMAC-RFC, will take on the role of executive chairman of Checkmate, while Finegold, founder of Kensington Mortgages, will have an advisory role. The company will be privately funded by the two, with additional capital coming from other private investors.
Checkmate’s two mortgage brands will launch on 1 October 2008, each focusing on a different sector; one for brokers, the other for packagers. The lenders will cover mainstream to light and medium adverse, with technology innovation at their heart.
Knight said: “Checkmate will rip up the rule book on product design, distribution management, and point-of-sale technology. When we launch, we will have an aspect of technology that will be different to anything else.
Knight added they are open to acquiring lenders.
“The securitisation market will dry up for a period of time, but when investors add up to their satisfaction what their exposure and appeared exposure is, they will much happier.”
Matthew Wyles, group executive director of Nationwide, said: “A business dependent on securitisation could prove challenging in the next 12 months, but I imagine that they have a ‘Plan B’ if they can’t securitise.”
