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PACKAGING SUMMIT 2007: HBOS may launch sixth arm

HBOS could launch a new brand to the mortgage market to compete against the growing number of do it yourself lenders that have come to market over the last 24 months.

Nigel Payne, managing director of HBOS subsidiary The Mortgage Business, made the throw away remark while speaking at the Mortgage Strategy Packager Summit in Nice, France.

A flood of new DIY lenders – many spawned by packager associations such as Unity through the Professional Mortgage Packagers Association and FML through Freehold – have entered the mortgage market with high hopes of securing volume business.

But while Payne says that while you can “never have enough competition” it remains doubtful whether the glut of new lenders that have launched over the last two years will survive.

He adds: “There was speculation two years ago that the packaging market would be dead by now and so you can see why packagers have looked at this option. From a lenders point of view it keeps us on our toes.

“But you can never have enough competition in the market and there is no reason why a sixth brand from HBOS might not even come into play.”

Payne also questioned the reasons behind such DIY moves.

He adds: “If the reason for launching DIY lenders is because there is not enough innovation through new products from existing lenders then I’ve not seen anything new since. Maybe it’s not as easy as it is perceived to be?”


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