This will be the first time the lender has offered its products, including non-conforming and buy-to-let (BTL), through a network. It is a distribution channel GEMHL intends to grow over the course of 2007 with further networks and mortgage clubs.
The move follows research by the lender that suggested almost three-quarters of the estimated 35 per cent growth by 2009 in the specialist mortgage market will come via the direct broker channel. It was estimated the direct broker channel in the specialist market would outstrip general growth in this market two to one.
Almost one in five brokers questioned claimed they would increase the amount of non-conforming mortgages over the next 12 months , with 75 per cent admitting that BTL will be a key driver for growth in 2007.
Duncan Berry, director of mortgage sales for GEHML, said: “Our entry into this market signifies our intention to offer our products through a wide range of distribution channels. As we continue to grow our existing packager and broker relationships, we will also seek opportunities to quickly grow the business elsewhere.”
Paul Hearden, managing director of My Mortgage Direct, welcomed the move: “Going through networks is a good way to get into the mass market. The key is to make sure the products are competitive and it has the service to back it up. It has to have the cards in place before it goes ahead, but the research has obviously been done.”
