The Mortgage Lender has secured £250m of funding from TwentyFour Asset Management, according to the FT.
The £250m has come from a TwentyFour mortgage fund set up last year and which targets returns of 7-10 per cent.
The TwentyFour fund bought a book from Coventry Building Society last year. TwentyFour also wants to buy mortgage books from banks.
In February Mortgage Strategy broke the news that former Mortgages PLC chief executive Trevor Pothecary had set up a new specialist lender.
The Mortgage Lender has not yet opened but will focus on specialist products and distribute through broker networks.
it will offer mortgages to the self-employed, older borrowers and those with poor credit when it launches.
The lender will have products available up to 85 per cent loan to value with a two-year tracker from 2.19 per cent, or as a two or five-year fix with rates from 2.41 per cent.
The lender’s board will include chief financial officer David Newman, chief operating officer Hugh Meechan, sales & marketing director Pete Thomson and chief administrative officer & general counsel Alex Cameron.
The Mortgage Lender has been approached for comment.