Although the Derbyshire has a presence in the specialist lending market through its subsidiary Derbyshire Home Loans Ltd (DHLL) which has bought mortgage portfolios from the likes of Platform and GMAC-RFC, this will be the first time the lender will have launched its own non-conforming products.
Derbyshire’s expansion into the specialist lending market will be made through a staged programme of initiatives.
Early next month the Society will launch a range of non-conforming mortgage products through its Derbyshire Home Loans Ltd brand by way of an exclusive arrangement with Pink Home Loans.
The products will range from near prime/light adverse through to heavy adverse while a self-cert option will be available on all mortgages. Products will be distributed through Pink’s distributor base and packaged on behalf of DHLL. On-site DHLL specialist underwriters will be based with Pink to give quick decisions-in-principal and processing.
Following the initial launch, the Derbyshire will broaden distribution of the products through networks, mortgage clubs and further packager arrangements as well as direct to lender. The Society said it is also looking at the equity release market but no firm plans have been made.
Tony Capon, head of intermediary support at the Derbyshire, said: “With high property prices and consumer debt still rife, there is a great need for non-conforming deals. We believe we will be a significant player in the market.”
Dev Malle, sales director at Pink, commented: “Pink has a reputation for being successful with the launch of new lender initiatives and we are confident the Derbyshire’s specialist range will be well received in the market.”
Mike Fitzgerald, sales director at Brentchase Financial Services, believes this a good move for Derbyshire to take. “It is not a massive lender so this is a brave step but it just shows it has done its research by entering this lucrative market,” he said.
