The brand’s details are a closely guarded secret but is said to form
an integral part of the lender’s plans going forward. Currently DHLL acquires portfolios of non-conforming mortgage assets from other lenders and believes the move into self-origination will complement this strategy and develop DHLL’s niche market presence.
Richard Crisp, mortgage development manager at DHLL, explained that the move would offer a range of mortgages that enable borrowers who would ordinarily fall outside traditional lending values to obtain a deal.
He continued: “The non-conforming mortgage market is attractive to lenders due to the wider mar- gins that can be achieved. While the margin is clearly attractive, lenders must balance this with the associated risk. As we expand our distribution it’s our intention to enter into port-folio sales in early 2006.”
DHLL, a wholly-owned subsidiary of the Derbyshire, has acquired 22 mortgage portfolios to date, with a combined value of £1.5 billion. Most recent trades have been with Kensington Mortgages, SPML, Amber Home Loans and GMAC-RFC.
Crisp concluded: “The move into organic origination will enable us to enjoy greater balance sheet flexibility and further enhance our reputation as a dynamic lending organisation.”
Andy Pratt, chief operations officer at Alexander Hall, said it is a good idea to have a separate brand in niche areas. “If you have one brand covering the whole spectrum of your lending it’s difficult to cover all bases and consumers will only recognise one aspect of it. The obvious downside is the additional costs of supporting the new brand.”
