Target appointed as standby servicer for Central Trust

Central Trust has appointed financial outsourcing specialist, Target Loan Servicing, as its standby servicer for a new £90m funding line secured with the Royal Bank of Scotland.

Mortgage Strategy revealed in January that Central Trust was re-entering the secured loan market.

The new funding from RBS and standby servicing contract enables Central Trust to restart secured lending immediately.

As standby servicer Target Loan Servicing will step in and provide full servicing within 60 days if invoked.  

Central Trust has been a key client of Target Group for nearly five years, having previously invested in Target’s financial software for loan account and arrears management.  

Jason Callander, project manager, at Central Trust, says: “Flexibility and credibility were key requirements for us when sourcing a standby servicer – particularly in the current economic climate.  Our investors required reassurance that the right level of standby cover was in place to support their investment.

“Target Loan Servicing has the specialist skills needed to effectively service the portfolio and mitigate the portfolio’s exposure to risk if invoked. Target Loan Servicing was the obvious choice.”

Target Loan Servicing specialises in business process outsourcing for consumer and commercial lenders and portfolio owners.

James Snow, CEO of Target Loan Servicing, says: “For many of our clients standby servicing is no longer a ‘nice to have’.  Lenders and funders increasingly require robust and realistic standby services, not only to preserve their rating but to provide real portfolio workout in turbulent times.  

“We have the flexibility and expertise for a speedy portfolio transfer into Target Loan Servicing if invoked.”