The move has been undertaken to allow GEMHL to further its understanding and awareness of the packager market and allow Solent Mortgage Services to continue its investment into its firm.
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While GEMHL was unable to say what percentage its stake in Solent Mortgage Services was, it confirmed that it did not propose to extend its stake any further and go the route of Morgan Stanley when it bought out Advantage.
Solent Mortgage Services will retain its relationships with other lenders and will not be tied to just GEMHL products.
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Colin Shave, chief executive officer at GEMHL, said: “We have always been very clear about our commitment to the packager community and are constantly trying to find new ways to increase our knowledge, understanding and capabilities in this market. This relationship with Solent will give us the ability to increase our understanding of the packager sector at a grass roots level, helping us to refine and develop our propositions and relationships across the packager market. ”
Paul Robinson, chief executive officer of Solent Mortgage Services, commented: “The rapid evolution of the specialist mortgage sector is providing some fantastic growth opportunities.
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“Our closer relationship with GEMHL will help us execute better on the delivery of key improvements in working with all the major lenders in this sector and Europe. This will accelerate our development plans and help us gain access to European markets.”
Kevin Paterson, managing director of Park Row Mortgages, commented: “I’m sure this is something other lenders will follow. It is the second significant move by a lender to extend its business in the packager platform and is a good move for the overall industry.”
