Aldermore steps boldly into the lending breach
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COLIN SNOWDON: THIS IS NOT A CAUTIOUS PILOT
Aldermore is gearing up to launch a range of mortgages exclusively for the broker market within the next three months.
The lender plans to offer prime products for both residential and buy-to-let mortgages but also wants to cater for prime borrowers who are currently unable to meet lenders’ tight underwriting criteria.
It will not offer mortgages to borrowers direct.
The mortgage arm at Aldermore is being headed up by Colin Snowdon, former chief executive of Wave and the man who launched The
ortgage Business and Britannia Building Society’s Verso.
Richard Spinks, former director of product development and credit at Wave, joins his former colleague as commercial operations director.
Mark Elden has been appointed to the role of head of commercial and product development while Robert Barnard has joined the firm as business development manager.
Snowdon says: “Brokers tell us they have been let down by lenders that abandoned them and their clients during the recent slump.
“We intend to give them the ability to place creditthis is not a cautious pilotworthy business.”
The Aldermore brand was created following a merger between Ruffler Bank and Base Commercial Mortgages last July. The bank has been offering commercial finance to small and medium-sized firms and savings products.
Snowdon was brought on board last November to look into the possibility of launching an intermediary residential mortgage lender and the bank signalled its intention to enter the mortgage market in January this year.
Snowdon has now confirmed that the research phase of Aldermore’s plan is complete and the expected launch date for the intermediary arm is Q2 2010.
Aldermore’s products will be available to directly authorised brokers and appointed representatives via a panel that includes Legal & General, Mortgage Intelligence, Mortgage Next, and Personal Touch Financial Services.
Products will also be available through Pink Home Loans, PMS and 3mc.
Mortgages via Aldermore will be underwritten and serviced at new offices in Wilmslow, Cheshire. Lending will be funded by retail deposits and all mortgages will be held on Aldermore’s balance sheet.
Aldermore did not need to apply to the Financial Services Authority for a licence to enter the mortgage market as it had already the relevant permissions in place.
Snowdon will not reveal specific lending objectives but he says: “We have ambitious targets - this is not a softly-softly pilot.”
