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 past 24 months.
Nigel Payne, managing director of HBOS subsidiary The Mortgage Business, made the throwaway remark while talking about the flood of new DIY lenders entering the market from packaging associations, such as the Professional Mortgage Packagers Alliance’s Unity and Freehold’s FML.
While Payne says the market can “never have enough competition” he remains doubtful whether the glut of new lenders will survive.
He adds: “There was speculation two years ago that the packaging market would be dead by now so you can see why packagers have looked at this option. You can never have enough competition and there is no reason why a sixth HBOS brand might not come into play.”
When asked whether they were considering forming a lender, seven out of 10 packagers admitted to thinking about it, but eight out of 10 lenders didn’t think they would be a threat.