DIY lenders, created by packagers, hold no fear for 80% of established lenders, according to a poll cast at this year’s Mortgage Strategy Packager’s Summit in Nice.
When asked whether they were considering forming a lender, seven out of 10 intermediaries admitted to thinking about such a venture, but eight out of 10 established lenders didn’t think these possible providers to be any sort of threat.
Michael Clapper, chief executive of Enterprise Group, says: “With these DIY lenders there is a real risk of a product lender bias on the packager’s behalf. This may blur lines and be against regulations.”
Peter Beaumont, deputy chief executive of Mortgages PLC, backed the intermediaries.
He says: “Packagers know that it is not all rosy in the garden – they have to be realistic and evolve.”