The agreement, which the parties believe is the first of its type in the UK, will enable Mortgages plc to accelerate the growth of its mortgage book while allowing Freedom Lending to boost its mortgage sales in the knowledge it has a guaranteed buyer of its assets.
The signing of this agreement follows a number of portfolio sales to Mortgages plc worth more than £200 million since May last year. The sales have included a mixed pool of prime, self-cert, buy-to-let and non-conforming mortgages and the assets that will come under the terms of the flow agreement are expected to be similar.
Colin Snowdon, managing director at Freedom Lending, said: “We are delighted to have signed this agreement with Mortgages plc. Over the past year we have concluded several successful portfolio sales and have established a close working relationship with the Mortgages plc team and this deal will cement what has become a productive working relationship between both companies.”
Peter Beaumont, sales and marketing director at Mortgages plc, added it was the lender’s desire to forge similar working relationships with other providers in 2006. “The quality of mortgages provided by Freedom Lending has been first-class which made the due diligence process a very straightforward exercise.
“The flow agreement is an excellent basis on which to formalise our working relationship and we look forward to working closely with Freedom Lending during 2006 and beyond.”
Beaumont added: “The flow agreement demonstrates our ability to create innovative funding arrangements which are tailored to meet lenders’ specific requirements.”
