Freedom Lending, the Wilmslow based specialist mortgage lender, has agreed with Mortgages PLC to sell at least 50% of its mortgage production during 2006.
The flow agreement enables MPLC to accelerate the growth of its mortgage book, while giving Freedom Lending the confidence to boost its mortgage sales knowing it has a guaranteed buyer of its assets.
The signing of this agreement by Freedom Lending follows a number of portfolio sales to MPLC, worth more than 200m since May 2004.
The sales have included a mixed pool of prime, self-cert, buy-to-let and sub-prime mortgages and the assets which will come under the terms of the new flow agreement are expected to be similar.
Colin Snowdon, managing director at Freedom Lending, says: “Were delighted to have signed this agreement with MPLC. Over the past year we have concluded several successful portfolio sales and have established a close working relationship with the MPLC team and this deal will cement what has become a productive working relationship between both companies.”
Peter Beaumont, sales and marketing director at Mortgages PLC, says: “The quality of mortgages provided by Freedom Lending has been first class, which has made the due diligence process a very straightforward exercise.
“The flow agreement is an excellent basis on which to formalise our working relationship and we look forward to working closely with Freedom Lending during 2006 and beyond.
He adds: “It is our desire to forge similar working relationships with other lenders during 2006. The flow agreement signed with Freedom Lending demonstrates our ability to create innovative funding arrangements which are tailored to meet lenders specific requirements.”