Nigel Payne, managing director of HBOS subsidiary The Mortgage Business, made the throwaway remark while talking about the flood of DIY lenders entering the market from packaging associations, such as the Professional Mortgage Packagers Alliance’s Unity and Freehold’s FML.
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. From a lender’s point of view, it keeps us on our toes.
“But you can never have enough competition and there is no reason why a sixth brand from HBOS might not come into play.”
When asked whether they were considering forming lenders, seven out of 10 packagers admitted to thinking about such a venture, but eight out of 10 established lenders didn’t think these possible providers were a threat.