Packagers are confident that HBOS will continue its BM Solutions brand following its buyout by Lloyds TSB.
Roger Morris, managing director of em-financial, says: “Once things have settled down Lloyds will look at the different packager and broker brands and what they have to offer. I think self-cert and self-employed has never been a negative issue with C&G, it is one of the founders and one of the visionaries of the self-cert market.
“It will look at the products and make sure that they have good margins in, which they will find they do. I do believe Nigel Payne will remain in charge and continue to bring profitability to the bank.”
John Rice, managing director of the Regulatory Alliance of Mortgage Packagers, says: “The official statement is that it wants to continue with the same levels of mortgage levels, I am optimistic it will want to do that when the market comes back.
“It decision to merge is certainly better than the alternative which could have seen HBOS going bankrupt.”
Ray Boulger, senior technical manager at John Charcol feels the BM brand is the one most at risk.
He says: “BM Solutions is probably the most difficult one in terms of brands, it operates in areas that C&G are not keen on, which presents a difficulty.
“The main three areas for BM Solutions are buy-to-let, self-cert and sub-prime.
“Buy-to-let is not a problem for Cheltenham & Gloucester but it doesn’t like sub-prime and self-cert.
“I suspect those two areas are the ones that are at the most risk of not continuing.”