Star Finance and Credit was launched last week as a non-conforming lender specialising in self-cert commercial and bridging loans and Right to Buy deals.
Mike Rashman, who founded the Prime Finance Group that was sold to London Scottish Bank in May 2003, is heading the venture.
Commercial loans start at 9.9% APR with LTV up to 75%, bridging loans from 1% a month, interest-only with LTV up to 80% and Right to Buy deals start at about 10.75% APR.
Rashman says the aim is to get back to traditional ways of lending by providing a fast service with competitive rates for borrowers looking beyond high street institutions.
Star will specialise in high-rise flats and non-traditional properties.
Rashman adds: “Star will take a view on each case as it comes. Whereas a high street player has to set its criteria, with Star, just because a case is difficult doesn't mean we won't lend.”