Derbyshire launches sub-prime lender

The Derbyshire is launching a standalone sub-prime brand today. Industry sources say the society had a choice of three names – Pepper, Salt or Butter – and has decided on Salt.

From near-prime to heavy sub-prime, products will be available through a limited number of packagers but the aim is ultimately to go direct through brokers.

Three packagers – Abacus, Praxis and Pink Home Loans – are signed up with four to five others in the pipeline.

An industry source says: “Sub-prime is a sector where you can maximise profits. A number of societies have a similar arrangement and I think this trend will continue.”

Martin Reynolds, head of sales at BM Solutions, says: “Another week, another lender. This shows the market is still attractive and vibrant. Welcome to the fold.”

There has been no comment from The Derbyshire.