Speaking at the Mortgage Next conference, Simon Cossons, regional sales manager at Mortgages plc, explained how the increased competition within the non-conforming market was challenging lenders to think of new income streams to maintain profits.
Therefore, with Mortgages plc aiming to be a top 15 lender by 2008, Cossons admitted it would need to move away from its traditional place as a solely adverse provider.
Cossons said: “We are aiming to be a top 15 lender by 2008 but to do this we need to be active in more markets. In August 2006, we launched into prime buy-to-let and in January 2007 we will take further steps into the prime market with the launch of prime self-cert products.
“We are also working towards second charge and commercial lending for some time in 2007.”
Tony Jones, managing director at Pink Home Loans, believed it was a good move for them.
“It has established a good presence in the non-conforming market so it’s no surprise it is looking to broaden its proposition. It’s easier for them now with the backing of Merrill Lynch as this opens up many possibilities for them and areas like commercial are still relatively small so it makes sense.”
Cossons also revealed it was heavily investing in technology, with an integration with Mortgage Next’s front and back office systems in the pipeline.
He believed technology was going to be a major factor in the battle between non-conforming lenders and admitted the lender had a $25 million war chest to invest in its systems.
Doug Hall, sales director at Mortgage Choice, said: “I would agree that technology is key in doing business with mortgage intermediaries. However, what can’t be forgotten is packagers also have the technology to link with a host of lenders, so this is important as well.”
