Following the acquisition of Start, in Ireland, and BlueStep in Sweden, John Maltby, group chief executive at Kensington, confirmed that the lender would look at further opportunities to diversify its offering over the next 12 months. He said: “When looking at other markets you need to be sure that you have a good team in place. Alongside this the market has to be strong and their has to be a strong regulatory environment.”
He confirmed Kensington had been approached by a number of firms.
Looking at the future of the market, Maltby believed that the distribution model would change, with new lenders and those entering new markets, all set for a testing year. He added: “The non-conforming sector is challenging and there is a claim that there are too many people looking for too little business. Some lenders will be disappointed and they will have to look at their performances after the first six to 12 months. Borrowers who fall into further credit problems could cause challenges to lenders.”
Linda Will, managing director at Accord Mortgages said: “There has been a long track record of UK lenders entering the Irish market subject to huge inflationary pressures. If there are not too many active non-conforming lenders in their chosen markets, Kensington could take advantage of other markets. To make the best of any chosen market though, a lender needs to have a presence and cannot just put the products out there.”
