The firm has hired investment bankers from Barclays and the Royal Bank of Canada to oversee the plan, while professional services firm EY is also thought to be involved.
Precise Mortgages parent Charter Court Financial Services wants to float on the London Stock Exchange this year, Sky News reports.
The firm has hired investment bankers from Barclays and the Royal Bank of Canada to oversee the plan, while professional services firm EY is also thought to be involved.
Charter Court was on the market for £400m last year but rejected all offers, which were believed to be 10-15% below that price.
At the time it was thought the firm would shift its focus onto a stock market flotation.
A Charter Court spokesman said it declined to comment on speculation.
Nick Field, associate director at Livingstone the M&A and debt advisory firm, said: “The Charter Court IPO will be an important test of confidence in the UK specialist mortgage market post-Brexit.
“Whilst some traditional banks operating in the UK fret over their future access to the European market, Brexit has proven positive for the challenger banks in one important respect: low interest rates are now expected to persist for longer.
“The challenger business model face some hurdles of their own, however, which will need to be addressed early in the IPO process.
“One such question is how the increase in capital weightings proposed under Basel III, will impact the profitability of buy-to-let mortgage business in the medium term.
“Another issue that’s likely to play on the minds of the investors is how challengers will deal with increasing competition in higher-margin mortgage business from non-bank lenders, who now benefit from considerably greater flexibility in underwriting.”
