Charter Court Financial Services, the parent company of Precise Mortgages, will launch a new savings bank after being given a banking licence.
The new brand, which will be called Charter Savings Bank and will launch in the first half of 2015, will offer savings products online and over the phone. Mortgage products will continue to be offered through the Precise brand.
Precise Mortgages managing director Alan Cleary says the addition of a savings bank to the CCFS stable will give Precise a new source of funding.
He says: “This is good news for our intermediary partners and our borrowers as being part of a bank gives us access to further funding sources, which will help us to continue with our strategy of helping those borrowers underserved by high street lenders.
“Precise Mortgages’ strategy remains unchanged by this announcement.”
CCFS has appointed former Halifax chief operating officer for mortgages Philip Jenks to the role of chairman, while former Leeds Building Society chief executive Ian Ward has been named vice-chairman and will oversee the savings arm of CSB.
CCFS chief executive Ian Lonergan says: “We see the development of a retail banking proposition as a logical extension for our business, enabling it to diversify into new markets and build a sustainable and competitive business model for the future.
“Being granted this license by the PRA demonstrates the strength of our offering and the plans we have to champion savers and borrowers.”