Precise Mortgages is to launch a range of near-prime mortgages for borrowers with blips in their credit histories.
The lender has gained its Financial Services Authority authorisation and will launch a range of residential deals on November 15.
Alan Cleary, managing director of Precise Mortgages, says it has identified good quality borrowers who have been starved of credit.
GEMHL offers a number of deals for borrowers with up to two defaults and one County Court Judgement.
Cleary says it will take a cautious approach and its criteria will initially be a bit stricter than GEMHL’s.
He says: “The products are still being finalised, but the profile of a typical borrower will be someone who would have been classed as almost prime a few years ago, but because that definition has changed they no longer are.”
He adds that Precise will adjust its products according to the market’s appetite for them.
Last week the lender expanded its list of distributors and launched its autumn buy-to-let range.
A Freedom of Information request to the FSA by Mortgage Strategy in August revealed three new mortgage lenders have applied for authorisation since January.
Cleary says the authorisation process was thorough and focussed on the quality of the lender’s proposition.
Stephen Knight, previously executive chairman at GMAC-RFC and chief executive officer of Portillion, is hoping to launch next year.
Helen Gee, marketing manager at Portillion says: “We have no launch date, but are busy working towards a launch next year hopefully.”