From 1 November 2004, the Ocean Finance call centre staff will initially focus on sub-prime mortgages and remortgages alongside its existing range of second-charge mortgages, secured against borrowers homes.
Paul Newey, managing director of Ocean Finace, said: “Ocean Finance’s entrance into the market will ruffle a few feathers in the industry but we have big plans and this can only be good for mortgage customers. There is no doubt that the new FSA regulations will lead to a shake-up of the industry and far fewer companies being involved in the market by 2006.”
Ray Boulger, senior technical manager at Charcol, said: “From a consumers point of view, lenders that concentrate on niche lending will not be able to offer someone with a £1,000 CCJ paid off a year ago the mainstream mortgage they could be eligible for now. It won’t be whole of market advice.”
Ocean Finance’s second-charge mortgage lending panel includes Black Horse Finance, Endeavour, First National and igroup. The firm has 30 on-site underwriters, twelve lenders on its second-charge panel, and is in talks with mortgage lenders targeted for the panel this year.
Last year’s turnover, mainly drawn from second-charge mortgages, was approximately £70 million, with profits of £29 million to January 2004.
