Growth in the specialist mortgage market within the direct broker channel will also outstrip general growth in this market by two to one, according to the lender. Data compiled for GEMHL suggested whilst the market will enjoy approximately 35 per cent growth by 2009, the direct sector will expand much more rapidly, accounting for almost three quarters of this growth.
The research comes as GE Money Home Lending announces its intention to have a significant presence in this channel, adding to the growing partnerships it has already established within the broker and packager industry. Entry into the direct market represents a further step towards diversifying GEMHL’s distribution network and offering within the marketplace.
Initially, GE Money Home Lending will offer brokers its proposition through Mortgage Intelligence, including its buy-to-let and non-conforming deals. GE Money Home Lending intends to continue to grow this channel throughout 2007, potentially working with further selected networks and mortgage club partners during the year.
Recent research by GEMHL amongst mortgage brokers found significant appetite for specialist mortgage products such as buy-to-let and non-conforming. Almost one in five claim they will increase the amount of non-conforming mortgages over the next 12 months and 75 per cent of UK mortgage brokers claim that buy-to-let will be a key driver for growth for them in 2007.
Duncan Berry, director of mortgage sales at GEMHL, said: “As we continue to grow our flourishing packager relationships, we are also keen to ensure that our compelling products are more widely accessible to the general broker marketplace. Today’s announcement is a clear indication of our intention to diversify and grow and we are excited by the future growth potential that the direct to broker channel offers.
“Our significant experience in developing compelling and attractive product propositions in the specialist mortgage market, coupled with expected future growth potential in this channel, makes this an exciting launch for us. 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.”
Sally Laker, managing director at Mortgage Intelligence, commented: “We are delighted to be launching with GE Money Home Lending as we feel their products will offer variety to our brokers who are always looking for new and innovative products. GE Money Home Lending has been very successful in the packaging market and we are looking forward to offering their new range of products through our network and club.”
